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FROM: Interim President Joseph S. Wood
Newsletter #19: Cuts to Balance FY ’09 Budget, Invest in Growth
May 19, 2008
Dear Colleagues:
Later this morning, Monday, May 19, I will report to the Board of Trustees that we have, to date this fiscal year, eliminated 91 full- and part-time positions as part of our plan to cut and reallocate more than $6 million in fiscal year 2009, which begins this July 1.
You may see or hear these numbers reported a number of ways. I want to be clear that the 91 positions include 67 full-time and 24 part-time positions, for a full-time equivalent (fte) total of 79, since July 1, 2007.
Furthermore, 18 of the 91 positions have involved layoffs, including 14 full-time and four part-time people. The remaining 73 of the 91 positions have become vacant due to retirements, resignations, or the elimination of fixed-length positions. The 79 fte positions represent 6.5 percent of our fte workforce of 1,237. With this latest round of position eliminations, we have -- since September of 2006 -- eliminated 109 fte positions.
The position eliminations result in total salary and fringe benefit savings of $4,914,044. Changes in business processes, the use of revenue-generating operations to fund select positions, and permanent reductions in equipment budgets account for the remaining $1.1 million of the $6 million in cuts.
You may recall that our original plans called for us to cut a minimum of $2 million each year in fiscal years 2008 through 2010, a move that would have balanced the budget at the end of 2010 and allowed us to begin repayments of our loan. Earlier this spring, I decided to move more aggressively to balance the budget. As a result of that decision and your work, we’ve made real, measurable progress toward returning USM to a firm, sustainable fiscal footing. We still, however, have work to do, including another $1.5 million in cuts to cover such items as compensation and benefits, and increases in energy costs. This will entail further position eliminations.
I’ve said this before but it bears repeating, especially now: This year has been traumatic for some of us, and for others, at the very least, stressful. I can’t thank you enough for your support, and for your commitment to this university. Together, we have made difficult decisions and have done so in such a way that allowed the essential work -- engaged learning that transforms lives and communities -- to continue. In fact, this year has not been without its milestones, including our largest-ever graduating class of 1,747 students and approval of General Education, our nationally recognized core curriculum.
The budget will be balanced and we will also will make internal reallocations so that we invest in student recruitment, marketing and related areas that support student growth and reinforce the quality of this university. We now can focus on the future rather than past fiscal difficulties.
Sincerely,
Joe
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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