FROM: Interim President Joseph S. Wood
Newsletter #11: Priority for Early 2008
December 21 , 2007
Our first priority early in the New Year will be to finalize our mid-fiscal year budget presentation to the Board of Trustees. The Board has made it clear that they expect a detailed report of how we plan to reduce expenditures by $2 million in the current fiscal year (FY 08, ending June 30, 2008), and how we will continue to reduce our deficits in future years. I'll be presenting those details at the Board meeting, scheduled for January 13-14, at the University of Maine.
An outline has been submitted to the Chancellor's Office, with details to be added for the Board meeting. The outline stresses the need to continue to reduce the number of employees by eliminating open positions that are not critical to maintaining academic quality, health, safety, and revenue generation. This winter and spring, we also will must move toward capturing savings through layoffs, reorganizations, as well as reductions in travel and equipment purchases.
I also want to refer you to an earlier document, which outlines in spreadsheet format, financial targets through 2010. As noted in an earlier "Moving Forward," this spreadsheet shows that efforts to reduce the current budget by $2 million will leave an estimated year-end deficit come June 30 of $2.6 million. It also shows that another $2 million reduction in FY 2009 will leave an estimated year-end deficit of $600,000. Finally, the spreadsheet shows that a $2 million cut in FY 2010 budget (July 1, 2009 through June 30, 2010) will allow us to begin repayments to replenish reserves at the System and campus levels. Those repayments will continue through fiscal year 2014.
Now, those figures could change due to shortfalls in the state budget. Earlier this week, Governor Baldacci announced that higher education is NOT included in current state budget cuts. We're grateful for that, but it's more important than ever that we continue to identify any and all cost-saving initiatives.
I find it very difficult to share this type of news during the holiday season but the next few weeks and months will be critically important to laying the groundwork for the new president and for a plan which will return this university to fiscal sustainability.
Please take time over the next week to enjoy your family and friends. And please don't lose sight of the fact that we will get through this. USM, thanks to your efforts, will continue to deliver its core mission: highly engaged learning that transforms lives and communities.
Sincerely,
Joe Wood
Interim President
For more information, please click on http://www.usm.maine.edu/mcr/update This site includes the breakfast speech; the latest digest of ideas e-mailed to movingforward@usm.maine.edu; our work plan; and notes from the recent series of town meetings.
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