Budget Updates

03/04/09

Colleagues,

As I indicated in my message yesterday, the budget planning process is an evolving one and I am endeavoring to keep you updated along the way.  The option of implementing temporary furloughs (days off without pay) or temporary salary reductions as a cost-savings measure has been explored in greater depth in the past two days.  The overarching principles that are guiding the process are these:

1. Necessity – Are temporary furloughs or salary reductions necessary?
            
   Some colleges cannot meet the 10% target reduction in General Education Fund budget without reducing their overall outlay for payroll.  Implementation of temporary furloughs or salary reductions is preferable to layoffs and cutting jobs.
   
   
2. Equity – Can these furloughs/salary reductions be applied equitably?
   
   If this option needs to be implemented, ALL PERSONNEL (faculty, P & S staff and merit staff), regardless of salary funding source, would be subject to the reduction.  Merit staff would have a temporary furlough (days off without pay) rather than a temporary salary reduction, but the ultimate effect on salary would be the same.  At the present time, the minimum amount of overall reduction that is being proposed for each college and support service unit, including the College of Nursing, is 1% of total salary costs.  In applying this same principle of equity, the University leadership has adopted the position that these furlough/salary reductions be implemented campus-wide rather than only in those colleges that cannot achieve their reduction in other ways.
   
3. Flexibility – Would there be any flexibility in applying the reductions? 
   
   The proposal would allow Deans to make selective salary increases on a case-by-case basis for equity adjustments, promotional increases and other centrally approved reasons.  In addition, an individual College or service unit would be allowed to increase the temporary salary reduction to meet that unit’s targeted budget reduction (at this point, the maximum being proposed is 3%).  Thankfully, the College of Nursing will not need to go beyond the 1% level to meet our current target budget reduction.
   
   
4. Fairness – Will the reductions be applied fairly?
   
   The reductions will be applied on a progressive basis, rather than a flat basis, so that those with higher salaries incur a larger reduction.  However, the overall average reduction across the College of Nursing (faculty, P & S staff and merit staff) would be 1%. 

Regards,

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03/03/09

Colleagues,

Since there have been several budget related items in the new media this past week, I wanted to pass along what updates there are from the perspective of the College of Nursing.  I recognize that these economic times create uneasiness for everyone and it is my intent to keep you as informed as I possibly can.  At this point much of the planning is occurring at the University level with input from deans, department heads, Faculty Senate and Staff Council.  The portion of the budget that must be reduced is revenue from General Education Fund  (state allocations), and the legislature will not begin its work on the State budget in earnest until after the Revenue Estimating Committee issues its latest projections for state revenues later in March. In the meantime, the budget planning process has involved evaluating alternative options to reduce the budget by varying percentages. 

The goal is to protect faculty and staff lines while reducing expenditures.  The greater the ultimate reduction in budget that the University must absorb, the more it will necessitate consolidation of activities and even departments.  Within the context of broader university level decision-making, collegiate deans will have some degree of flexibility to identify specific cost-savings to meet the target reduction.  Given the present target of a 10% reduction in the General Education Fund, the College will be able to continue to fund all current regular (non temporary) faculty and staff positions.  However, the University is considering implementing temporary cost-savings measures such as temporary furloughs (days off without pay) or temporary salary reductions in order to reduce expenditures on salaries for faculty and staff.  Final decisions related to these options have not yet been made.  Those appointments that occur on a year-to-year (i.e., temporary) basis will be evaluated and renewed only as the budget allows. 

While we face a future of constrained resources and belt-tightening, it is also an opportunity to focus on strategic growth and selective reinvestment.  To that end it is crucial that we maintain a clear vision of the College’s future directions:

1. To produce the next generation of nurse leaders while meeting the nursing workforce needs of the State.

2. To achieve Top Ten ranking in research among nursing colleges/schools in the U.S.

3. To sustain the research and teaching missions of the College through faculty development and recruitment.

4. To reconfigure workflow processes and incorporate technology systems to reduce inefficiencies.

With a clear vision of the future, we are poised to make strategic decisions that will allow the College to emerge from this period of economic entrenchment a leaner but stronger institution.  As always, I welcome your ongoing input into planning our future.

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