I hope that your semester is still going well.  The major issue on the minds of many people is the state of the budget, and most of this update will deal with that issue.  I did want to make you aware, however, that deposits for freshmen are going very well so that we should see a strong class.  One of the effects of the major economic situation is that public universities nationally are seeing an increase in applications.  Our increase is substantial and in line with these national trends.  We will, of course, know more about enrollment toward the end of April.  Many private universities have a May 1 decision date so students tend to finalize their decisions around that time.

Turning to the budget, I wanted to make you aware that President Bowles has begun exploring with the legislature the possibility of the state allowing agencies to furlough individuals as an option for dealing with the budget short-fall.  As of today, there has been no decision, but I will keep you informed if the situation changes.  Using furloughs reasonably can protect jobs and fringe benefits, though they have the immediate impact of reducing salaries for those involved.  

Budget Process

Over the last several weeks, I have reviewed the key budget recommendations of the Provost and vice chancellors.  We are still working with a target potential cut of eight percent even though there is no indication that permanent cuts next year will reach that level.  In listening to the national and state news, it is clear that we should expect budget issues to continue for the entire biennium, so we are using eight percent as a means to focus our planning for more than one budget cycle.  At the same time, as the plans become public, it will allow the campus to understand where various units and positions are within the longer run context of what appears to be a multi-year budget issue.

Over the next several weeks, I plan to have a draft of the budget completed.  It should be available soon.  Once the plan is drafted, I have asked Kyle Carter to convene the Strategic Planning Committee to gain their feedback.  After we respond to their suggestions, I will place the draft plan on the Web under my office's Homepage.  This should happen by Spring break. This will give the entire campus the opportunity to respond to the draft and to make any additional suggestions.  I will ask that the Executive Council and the University Leadership Council review any suggestions, make appropriate modifications, and recommend a final plan for my approval.

I also would strongly encourage each of you to talk with your supervisor, department head, or dean regarding plans in individual units.  We are using a much more decentralized approach to budget planning than we have in previous years, so many of these individuals have developed plans that have been aggregated to create a large part of the University plan.

One final point:  As we move forward through the process, you will hear that each University is handling the process in different ways.  Each University is in a different situation and may use different strategies to adjust to the new budget situation.  We will try to minimize the negative impact of the budget on as many departments as possible.  I also am keenly aware that we need to continue to progress as an institution even in these tight times.  Therefore, we will continue to seek alternatives that allow us to minimize disruptions.  If you hear rumors regarding other institutions and would like further information about them, please let me know.

Implementation of Reductions

Generally, we will wait to implement most reductions until there is a reasonable indication of the nature of the budget cuts that we can expect.  However, there are several actions that have already been taken:

·         A number of faculty searches have been delayed or cancelled.   Some of these searches may be released depending on the magnitude of the cuts and programmatic considerations.

·         Academic schedules have been created that reflect the likelihood of budget reductions.  If the reductions are less than anticipated, some of the temporary and part-time positions that are currently being held vacant for next year may be released based on expected enrollment and other programmatic considerations.

·         All EPA non-faculty positions and SPA positions are frozen unless they are specifically released by Executive Council or me.  Several EPA non-faculty searches have been cancelled or delayed until the economic situation improves.

·         Employees in several departments have been informed that positions will not be re-filled if a person retires or otherwise leaves employment.

·         Because of the freeze on hiring, Summer Ventures and the Legislators School will not be offered this summer.  The potential for offering the programs in 2010 will be reviewed based on the budget situation.

These times are very difficult.  Each of us knows one or more individuals who will be affected—or who have already been affected—by the economic downturn.  Please keep them in your thoughts. I will keep you informed as there are changes or developments.