200507 Budget Reduction Planning Forum

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2005-07 Budget Reduction Planning Forum

• University of Wisconsin Oshkosh
• March 22-23, 2005

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The Governors ProposalFunding Priorities

• 176M for "costs to continue"  for projected
  increases in utilities costs (91M) and projected
  increases in fringe benefits (74M), and debt
  service (11M).
• 13M for increased instruction, adding teaching
  positions.
• 10M of ongoing financial aid commitment that,
  last biennium, was funded through a draw on
  auxiliary reserves and maintains the statutory
  link to tuition increases.
• continued

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The Governors ProposalFunding Priorities
continued

• 7 M increase in Student Technology Fee.
• 5M for a faculty retention fund.
• 1M for domestic partner insurance.
• 3M for Alzheimer's research.
• Total 215 Million

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The Governors ProposalFunding Sources

• Tuition increases 100M (47)
• Cut/Reallocation of existing budget 65M (30)
• New GPR 50M (23)
• Total 215 Million

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System Budget Guidelines

• 1. Faculty and Instructional Academic Staff
  positions will not be reduced as part of the
  Administrative savings.
• 2. Budget reductions should first target
  administrative expenses that are least related to
  serving students, meeting legal accountability
  responsibilities, achieving Plan 2008 Goals, and
  providing opportunities to generate (non-GPR)
  revenues.
• 3. One-time reductions opportunities should be
  considered in the short term to give Provosts and
  Chancellors time to plan more permanent
  modifications including changes to program array.

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UWOs Budget Cutting Criteria

• Budget for activities that are central to the
  mission, add value, or are required.
• Protect the direct instructional undergraduate
  and graduate teaching mission.
• Protect the integrity of services supporting the
  central university mission.
• Continue a commitment to the strategic plan and
  university priorities.
• Value employees and abide by contracts, policies
  and established procedures.

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Our Past Challenge
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Our Current ChallengeGovernors Proposal
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Our Internal Challenge Reallocations

• First six months health insurance (200,000)
• Property/Liability/WC/Premiums (130,000)
• Additional Fringe Benefits (70,000)
• Total 400,000
• Compensation needs,
• i.e. equity and title changes ( unknown)

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What UWO is NOT budgeting for
at this time.

• Potential additional liabilities
• Current utility shortfall (unknown)
• Retroactive union settlements (unknown)
• Pay plan for faculty and staff (unknown)
• APBS (unknown)
• Potential Budget additions
• 2005-06
• Faculty Retention funds (120,000?)
• 2006-07
• Additional faculty positions (6400,000?)
• COBE Initiative Graduation Project (150,000?)

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Budget Reduction 4 Planning Scenario

• Determine 4 Scenario
• Determine impact of 4 reduction on major
  divisions
• Chancellors Division 31,282 5.36
• Academic Affairs 1,665,732
• Student Affairs 124,803
• Administrative Services 240,483
• Advancement 35,501
• Total 2,097,801

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2003-05 BienniumHow We Maintained Access

• Large Cuts to
• Administration
• Academic Support
• Physical Plant
• Smaller Cuts to
• Student Support
• Indirect Instructional Support
• Even smaller
• Direct Instruction

• Held Harmless
• 100 of Instructional Access
• Plan 2008 Commitments
• Student Compact Differential Tuition
• Student Technology Fee

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2005-07 BienniumHow We Will Maintain Access

• Large Cuts to
• Administration
• Academic Support
• Physical Plant
• Smaller Cuts to
• Student Support
• Indirect Instructional Support
• Even smaller
• Direct Instruction

• Hold Harmless
• 100 of Instructional Access
• Plan 2008 Commitments
• Direct Student Compact Support Positions
• Student Compact Differential Tuition (?)
• Student Technology Fee

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What Has Been Protected(from Proportional Cuts)

• Occupied Positions (account for 3-4 of the
  approximately 24 jobs being cut)
• Resources to meet Legal Accountability
• Resources to generate Non-GPR Revenues
• NCA Accreditation

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Consequences of Cuts in Administrative/Academic/St
udent Support Jobs (approximately
750,000-850,000)

• Reduced Cashiering availability
• Reduced Employee benefit liaison services
• Reduced Custodial services
• Reduced Office Support Staff
• Reduced Department Chairs summer salary
• Reduced Graduate Assistantships
• Reduced Department Administrative releases
• Delays in Central Stores deliveries
• Reduced Services to students in financial aid and
  intramural sports
• Reduced University Police Services

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Consequences of Cuts inNon-Salary Operating
Budgets (Approximately 350,000-400,000)

• Reduced Travel and Professional Activities
• Eliminate Computer/Equipment Replacements
• Reduced Supplies and Expense
• Fewer Resources for Recruiting New Faculty, Staff
  and Administrators during 2005-06

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Consequences of Cuts inStudent Employment
(Approximately 100,000-120,000

• Reduced Budget for Student Employment by 13 of
  the 900,000 Primary Operating Budget in
  Departments and Administrative Units
• In any given year, the University budgets up to
  5M across all funding sources for student
  employment. Cuts amount to approximately 2.4 of
  the 5M

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Other Overall Consequences

• Reduced Course Selections
• Increased Class Size
• Delayed Searches for Faculty in 2005-06
• Delayed Searches for Key Administrators in 2005-06

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Biennial Summary of Cuts/Reallocations

• Approximately 1.6 million (61) in Salaries and
  Fringe Benefits
• Approximately 770,000 (30) in Non-Salary
• Travel and Professional Activities
• Computer/Equipment Replacements
• Supplies and Expenses
• Approximately 240,000 (9) in Student Employment
• Total 2,610,000

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Current Status of Capital Budget

• Elmwood (7.7M)
• Parking Ramp (7.3M)
• Relocation of Maintenance (7M)
• Property Acquisition Funding
• New Academic Building (53.3M)

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Budget Development Discussions to Date

• Feb. 24, Senate of Academic Staff
• Feb. 28, Oshkosh Student Association
• March 1, Faculty Senate
• March 8, Classified Staff Council
• March 16, U-Plan Council

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Remaining Budget DevelopmentDiscussions

• March 22 and 23 Two campus-wide open budget
  forums will be held for faculty, staff and
  students to provide additional feedback and
  advice.
• April 1 11 The Chancellors staff will review
  and reevaluate budget reduction/reallocation
  scenarios.
• April 6 UW Oshkosh delegation lobbies
  legislators.
• April 13 U-PLAN Council meeting will be held to
  seek additional advice and feedback on the
  revised budget reduction/reallocation scenarios.
• April 15 The 2005-2006 campus budget will be
  submitted to UW System.

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What is Next

• We must continue to set our own house in order
  to meet the challenges of covering our share of
  the final budget reallocation and cuts.
• I invite you to become an active and informed
  participant in our on-going budget process by
  expressing your views on the first year of our
  2005-07 biennial budget.
• Continue to advocate and lobby for better
  Operating and Capital Budgets.
• Continue to advocate and lobby for our highest
  priorities A Fair and Competitive Pay Plan.

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• Feedback
• Discussion
• Questions