Campus-Wide Budget Forum December 10, 2008

Discussion Topics Context in terms of global, national, and state economic environments UW responses to date Campus funding statistics Budget principles Next steps Concerns already expressed Questions, thoughts

Economic environments …. Global economic crisis beyond our control Center on Budget & Policy Priorities website reports that 41 states have projected revenue shortfalls totaling over $24 billion for 2009 alone! Chronicle of Higher Education and similar publications report regularly on higher education institutions grappling with financial issues

State’s Economic Outlook Current FY : $350 Million shortfall Projected : $5.4 Billion shortfall against a budget of ~ $60 Billion Largest funding gap in State’s history Hiring freeze imposed on other state agencies; UW exempted Possible targeted tax increases

UW Response to Date UW System has not been given a number or specific guidelines Required to report on GPR hiring activities and review travel requests All campuses are beginning to prepare scenarios to address shortfalls President Reilly has scaled back the unclassified pay plan recommendation by more than half to 2.5% for each year of biennium

UW System Budget (In Billions) Total$4.731B Less: Federal, Gifts, Grants, Contracts, Auxiliaries (2.256) Restricted GPR (.330) Net GPR for Education$1.841 B

Whatever the Number….. Rule of thumb is to take the campus’ GPR/Fee percentage (roughly 1.5% x the number) to arrive at the campus share. Example: in 2005/07 UW System was required to take an administrative reduction amount of $14,148,000. UW Superior’s portion of that reduction was $206K (1.5% x 14,148,000) Campus does have a small contingency to address need; expected that it won’t be enough

Budget Principle Suggestions: Focus on the student Decisions made within the context of campus’ strategic plan and priorities Open dialogue engaging civility, dignity for community members, and respect for diverse perspectives leading to transparent and understandable decisions

Budget Principle Suggestions, continued Support the processes of shared governance and work with key internal constituencies UW Superior values its employees and will abide by contracts, policies, and established procedures. The campus has no intent to enter fiscal emergency status. Short term decisions may not be long term solutions

Concerns Expressed to Date Liberal arts initiative Hiring freezes/recruitment activity Financial Aid Auxiliary cash balances Building projects Pay plan

Identified Priorities/Investments Admissions Marketing Retention Affirmative Action Tenure Track Positions Salary Compression Issues Faculty/Staff Development

Strategic Themes Academic Excellence Culture of Respect Campus Life Continuous Improvement Resource Management Enrollment Management University Image

Next steps: Continuous Improvement Planning Team (CIPT) meets, gathers campus input, discusses possible strategies Program assessments and prioritization at all levels Identify efficiencies and flexibilities utilizing “lean” principles Weekly budget updates

Questions/Thoughts

In Closing… Campus is going to be facing some hard decisions as we position for the future Approach this process from a culture of caring As we become aware of information it will be passed on to the community Thank you for your hard work, dedication, and in these uncertain times, your patience.