UPDATE From: President Richard L. Pattenaude
Number 6, February 2004
> USM Advocates Speak Out Against
Budget Cuts
> Budget Update
> Where We Stand on Restructuring
> In My Travels
At a joint public hearing on the supplemental budget last
month, legislators heard powerful testimony about the importance
of USM from seven University advocates. The prominent business
and community leaders traveled to Augusta to voice their concerns
over proposed budget cuts and to stress the importance of
USM to the state's social and economic well-being.
"No other single organization touches so many different lives,
and has the capability to create the future we envision for
our families, our businesses and our communities," said the
group's spokesperson, Jeanne Hulit, a vice president at Citizens
Bank in Portland. "The University system is an investment
that, if damaged, takes years to repair. Maine doesn't have
that luxury."
This level of support is so important to USM, and, following
on the heels of testimony from Chancellor Westphal earlier
in the week, was critical in helping legislators make their
tough decisions.
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Late last week the Legislature finalized the State's FY04
budget, which included Gov. Baldacci's proposed cuts for state
spending for public higher ed. There is good news and bad
news. The governor had sought a total cut of $5.8 million
-- reflecting a $1.2 million cut in USM's current budget.
The approved budget cut was $4.95 million, with USM shouldering
approximately $1.1 million. It's a tough challenge, but easier
to manage than the original combined $23 million cut for FY04-FY05
proposed earlier. We have the efforts of the Chancellor and
our many advocates to thank for working closely with the Governor
and Legislature to minimize cuts.
If the State finishes the fiscal year with a surplus of
unappropriated funds, some of the FY04 cuts will be restored,
according to the following legislated priorities: $564,287
to the Student Financial Assistance Program run by FAME; $850,000
to UMS; $350,000 to the Maine Community College System; and
$2 million to the Maine Economic Improvement Fund, which the
UMaine System uses to leverage federal and private-sector
R&D funds.
Still to come is the Governor's $1.2 million cut to the UMaine
System's base budget for FY05, with USM's portion at approximately
$265,000. Those are funds that will permanently disappear.
We also face a $1.6 million increase in costs for health care
expenditures at USM, as well as a $1.1 million increase for
negotiated salary and wage increases among our employees.
I wish I had more pleasant news to report. The fact is, these
cuts will hit us hard. Our current strategies of limiting
operational expenditures, delaying searches, and curtailing
travel will help us meet immediate cuts, but a longer-term
strategy is critical -- and will require us to make changes
at all levels. As we develop a blueprint for rethinking and
re-engineering the University, let us remember how interconnected
these issues are, and how much we all must participate in
shaping the course of the future.
^top
USM's restructuring process is ongoing and a bit contradictory
on the face of it. On the one hand, we are striving to create
a more modern university, attract new students, and grow programs
and facilities. On the other, we are in conservation mode
-- inventorying our processes, resources, and departments
to streamline operations. Is it possible to succeed at both?
I am convinced it is. But, as the University Restructuring
and Improvement Committee's report confirms, we have to be
very smart about it. And we have to accept ambiguity as part
of the package.
I encourage you to look at an executive summary of the URIC
report on my Web page: www.usm.maine.edu/pres/pdfs/uric01.pdf.
Later this month, I'll post the beginning blueprint for what
a transformed USM may look like in five years.
These two documents tell us much. First, it's clear that
our belt-tightening will continue into the foreseeable future.
Our nip-and-tuck strategies can only go so far. At some point,
we may need to reduce our work force. My hope is that we can
do that by streamlining operations, through attrition, and
by leaving positions open. We've avoided lay-offs thus far
and I am committed to continuing the course. But there will
have to be some significant changes in operations to keep
our work force intact.
Many of you have already offered cost-cutting suggestions,
which are detailed in the URIC report. I view the ideas presented
as a jumping off point for discussion at the campus-wide URIC
forums to be held later this winter and spring.
It's also clear that we need to continue to upgrade, and
in some cases expand, facilities and academic programs to
attract students. How do we do that with shrinking funding?
Building funds can be sought through Federal and private sources,
dedicated bonds, and revenues generated through student fees.
Current academic programs will rely more deeply on professional
and community partnerships; new programs will be launched
in response to clearly defined demands from students, with
enrollment levels that will guarantee viability.
These are the outlines of current thinking. I encourage
each of you to bring your thoughts to the table and be active
participants in re-visioning our university.
^top
In these times particularly, it's encouraging to see the
progress we are making to enhance the university's facilities.
The long-awaited Portland garage opened on time, on budget,
and from all reports is working well. We still have a few
traffic issues to sort out, but already the garage is making
a big difference on campus and in the community.
Garage completion means that we soon will begin work nearby
on construction of the 500-seat Hannaford Lecture Hall and
the new Joel and Linda Abromson Community Education Center,
both of which will be accessible from the parking facility.
The Community Education Center will give us 12,000-15,000
square feet of office and conference space, including a 570-square-foot
computer classroom, to be known as the Peoples Heritage Bank
Room.
We just received word that, thanks to our federal delegation,
funds will be available to construct a covered skywalk over
Bedford St., connecting the garage to the campus between Luther
Bonney and Masterton Hall. Great news!
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