Budget forum: Reduction of about 30 FTE positions expected at UNO
Web Update
Scott Stewart
Issue date: 6/23/09 Section: News
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UNO is planning on eliminating the equivalent of 30 full-time positions as part of a worst-case scenario to cover its $2.2 million share of the university system's budget shortfall.
The plan, sketched by Chancellor John Christensen at a public forum Thursday, would eliminate mostly faculty positions and would also include reducing some faculty to 9- or 10-month contracts, bringing in non-state support for some positions, moving some full-time positions to part time, and capturing salary savings where possible.
"It's very possible that most or many of the 30 [full-time equivalent positions] will be from positions that do not have people in them," Christensen said.
Because of savings realized last year, however, the fall academic semester will remain intact -- so students do not need to worry about courses being cut due to budget reductions when they return to campus in August, Christensen said.
"I think the winners -- if there can be winners in something like this -- are the students," Christensen said.
The scenario used by the university to approximate 30 full-time equivalent positions being cut is if the university loses its appeal with the Nebraska Commission on Industrial Relations. Christensen said a decision was unlikely by July 1, the earliest the commission would issue an order.
The University of Nebraska is appealing an award made to the UNO Chapter of the American Association of University Professors that gives faculty a 3.8 percent salary increase in both fiscal year 2009-10 and fiscal year 2010-11.
The university had offered the faculty 2.9 percent in 2009-10 and 2.5 percent in 2010-11 -- compared to the 1.5 percent increase budgeted system-wide for salary increases. A special master awarded the AAUP its offer in arbitration with the university.
"We do not know for certain what this portion of the budget shortfall will be," said Terry Hynes, senior vice chancellor for Academic and Student Affairs.
If a decision is not handed down before the new salary increases are scheduled to take effect, which is for the fall semester in most cases, then -- in accordance with state law -- the university will withhold any additional dollars until an order is given.
Faculty would then receive interest on the additional dollars when they are paid, which would be based on an interest rate established by the Commission on Industrial Relations as part of its order, Christensen said.
Once the decision is handed down, Christensen said the campus would have specifics on the budget reductions calculated in a few days. Each administrative unit will be presented with the budget situation at that time and asked to make final recommendations on cuts.
In the meantime, Christensen encouraged the approximately 140 campus community members in attendance at the forum -- who ranged from custodians to deans -- to continue to help place UNO on a sound fiscal footing over the long term.
Christensen encouraged UNO to continue to conserve resources and help grow revenue, in particular through recruitment and retention efforts on an individual, one-on-one basis by faculty members. In addition, Christensen suggested that faculty and staff members participate in wellness activities to help reduce future health care costs.
Christensen also urged attendees to look at the glass as half full, reminding them that budget cuts at higher education institutions nationwide are generally worse than the cuts being made at UNO.
Increased enrollment for the summer semester -- an increase of about 5 percent from last year -- is also an encouraging sign, Christensen said. The campus is hoping for an increase of about 3 percent enrollment in the fall semester, too.
"People are starting to recognize [UNO] for what it is: one hell of an institution," Christensen said.
UNO's shortfall part of bigger picture
The NU system overall is facing an $8.5 million shortfall in the fiscal year 2009-10 budget. UNO receiving a $2.2 million share based on a tuition shortfall of $700,000, university-wide cuts of $300,000 and $1.2 million in salary increases beyond the NU-wide increase of 1.5 percent, said Bill Conley, vice chancellor of Business and Finance.
Looking forward to the fiscal year 2010-11 budget, UNO is anticipating a $2.7 million shortfall, as the salary component stays static at $1.2 million, the campus share of university-wide cuts increases to $400,000 and occupancy and maintenance costs associated with Mammel Hall opening replace the tuition shortfall at a cost of $1.1 million.
"It appears we're going to have a challenging budget for fiscal 2010-11 as well," Conley said.
At other NU campuses, similar reductions are being made to cope with the tightened budget, which are ultimately being caused by the recession that began, according to the National Bureau of Economic Research, in December 2007.
UNL announced plans to cut the equivalent of 56 full-time positions -- including 28 filled staff positions -- to cover its $3.7 million share of the budget shortfall. Lincoln will also cut $1 million to the Institute of Agriculture and Natural Resources, among many other cuts to programs and academic departments.
At UNMC, a $1.7 million shortfall will impact the equivalent of nearly 24 full-time positions, about half of which are vacant. The Medical Center will try to find non-state-aided funding to support the remaining positions, which may otherwise face elimination.
Information regarding the UNK budget reductions has not yet been announced, said Sharon Stephan, a spokeswoman for the university.
Barbara Johnson, UNK's vice chancellor for Business and Finance, said the campus hoped to have a preliminary plan announced in the next two or three weeks. Details will be presented at an open forum in the fall semester to give the campus opportunity for feedback.
"We are not as far along as the UNL campus," Johnson said. "We have been working with the Chancellor's Cabinet and the Administrative Council in developing those plans, and we hope, within the next several weeks, we will have a plan."
For more information about the UNO campus budget, visit the UNO Budget Advisory Task Force Web site at www.unomaha.edu/budgetadvisorytf or click here to download a PDF of the PowerPoint slides presented at the forum.
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