FROM: Interim President Joseph S. Wood
Newsletter #15: Budget Updates
February 26, 2008
Dear Colleagues:
You will recall that in August I argued that at USM we would no longer try to do more with less, indeed that we would have to do fewer things. The objective was to build sustainability into USM. We have been working this year, all of us, at identifying those things we will not do, starting with ideas for reorganization. Some of these ideas are driven by the randomness of attrition, and increasingly, some are driven by evaluation of what we do. In that regard, as we continue the work of evaluating 26 of our academic programs (See Moving Forward #14), I want to share with you the recently completed work of our Public Service and Non-Credit Task Force, as well as the work of our Student and Administrative Support Task Force.
PUBLIC SERVICE AND NON-CREDIT
In October of 2007, I asked the Public Service and Non-Credit Task Force to evaluate whether our public service and non-credit activities are mission-based; complement the work of schools and colleges; and make sound use of limited resources. Furthermore, I asked for recommendations on possible reductions, eliminations, or reorganizations.
Task Force members (Co-chairs Bob Hansen and Craig Hutchinson; Bob Caswell; Mark Druker; Nancy Martz; David Nutty; Jim Shaffer; Beth Shorr; Sue Picinich; Brian Toy; John Voyer; Betty Lou Whitford; and John Wright) evaluated 18 programs. The group also applied the aforementioned criteria to numerous 501(c)3 organizations which are hosted on campus.
The Task Force has submitted recommendations which will accomplish the following: ensure that any current arrangements and future decisions to host 501(c)3 organizations on campus are strategic, and fiscally and programmatically sound; establish a process to explore the feasibility of selling 68 High Street in downtown Portland; and ensure a comprehensive evaluation of any prospective public service programs.
Moreover, the Task Force recommendations on eliminations, reductions and reorganizations represent potential savings of more than $500,000 per year. Out of fairness to, and respect for, the affected people and departments, I’m going to delay any public announcements until individuals have been consulted.
STUDENT AND ADMINISTRATIVE SUPPORT TASK FORCE
I’ve asked this task force to help evaluate whether student and administrative support functions are effective and fiscally sustainable, and to submit to me recommendations on possible reductions or reorganizations.
The role of the task force, under the direction of Co-Chairs Craig Hutchinson and Bob Hansen, has inventoried those student and administrative support functions which cut across disciplines and administrative units. That information will be helpful as we decide on cuts which must be made to meet the targets in fiscal year 2009.
FY 2009
Fiscal year 2009, which begins on July 1, 2008, will be the most difficult in terms of cuts. You may recall that originally we were scheduled to make a $2 million cut in fiscal year 2009. That figure must be increased dramatically because of one-time cuts -- as opposed to permanent based budget cuts -- we took to make the $2 million target in the current year. As I've said before, one-time cuts simply prolong the agony. Furthermore, we’re dealing with $900,000 of additional cuts which must be made because of increased costs and lower-than-expected spring ’08 enrollments.
We’re currently in discussions with deans and members of the senior staff to finalize the full and accurate dollar figure to be cut in the next fiscal year. Within a week, all budget managers at the college, school and unit levels will have their projected budgets for FY 2009, including the amount of cuts to be made at each level. A special thanks to CFO Dick Campbell and his staff in Finance and Administration for their efforts to make budgets for the coming year available much earlier than has ever been the case.
Our current fiscal situation is NOT going to improve, especially with recent news about the state budget shortfall, and as a result, the very real possibility of a $7.1 million cut in the University System budget. (Read a review of Chancellor Pattenaude's February 11 presentation to the Legislature's Education Committee concerning the impact of these System-wide cuts.)
Clearly, we must ramp up our efforts to take a hard look at ALL services and programs to identify cost savings and to make sure that we’re doing everything possible to protect and support the central mission of this university.
Sincerely,
Joe Wood
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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