Provisional Budget Reduction Plan

2014-15

Linda P. Brady, ChancellorPresentation to UNCG Faculty

SenateApril 2, 2014

Outline of Presentation

• Context• Overview of Planned Reductions• Consultation Process• Feedback Received and Response• Allocation of Reductions Across Divisions• Principles Applied in Development of

Plans• Summary of Provisional Plans• Impact of Reductions on Campus• Next Steps

Context

• Economic environment since 2008• Impact of reductions in state

appropriated budget to date• Strategies employed since 2008 to

manage reductions• Impact of enrollment shortfall for

2014-15

Overview of Planned Reductions

Budget Cuts

Legislative -Year 2 of Cuts - Estimated Allocation from GA

1,500,000

Office of State Budget & Management Requested Cut 2%

3,075,679

Enrollment Decrease 7,928,858 Total Cuts 12,504,53

7Initiatives Quality Enhancement Program - Permanent

Positions175,900

Compliance (Title IX) 120,000Total Initiatives 295,900

Total to be Allocated 12,800,437

Consultation Process

• Initial allocations announced to Executive Staff on January 27, 2014

• Executive Staff• Deans Council• Academic Department Heads/Chairs• Faculty Senate• Staff Senate• Budget Sounding Board• Student Government Association• Board of Trustees

Feedback Received

• Initial allocation of cuts to academic affairs too high

• Call for enhanced focus on administrative efficiencies

• Consider reductions in athletics budget and/or construction of new Student Rec Center

• Add General Fee to support academics• Ensure consultation within and across

divisions/units

Response to Feedback

• Reduced cut assigned to Academic Affairs by approximately $1 million; additional $1 million cut assigned to other units/divisions

• Strategic cuts assigned within Provost areas to moderate impact on instruction

• Principles emphasize focus on administrative efficiencies and consultation

• Due to enrollment shortfall, athletics reducing staff/administrative and operating budgets and internally reallocating funds to support student scholarships

• Addition of General Fee to address university-wide academic needs raised with GA; deemed tuition and not supported

• New Student Recreation Center will proceed; planning underway to repurpose existing facility for academic uses

Allocation of Reductions Across Divisions

Division

Academic Affairs 9,332,801

Student Affairs 513,570

Office of Research and Economic Development

201,972

Total Provost Area 10,048,343

Information Technology Services 652,183

University Advancement 212,686

Business Affairs 1,591,398

Chancellor 195,827

Gateway University Research Park 100,000

Total 12,800,437

Reductions As % of Permanent State Budget

Division

Academic Affairs 7.30%

Student Affairs 14.83%

Office of Research and Economic Development

7.82%

Total Provost Area 7.50%

Information Technology Services 6.65%

University Advancement 7.68%

Business Affairs 8.18%

Chancellor 7.68%

Gateway University Research Park 15.61%

Total 7.57%

Reductions 2007-08 to 2013-14

Division Net Cut + CITI+Enroll Change

% of 2013-14 Budget

Academic Affairs $ 985,000 0.1%

Student Affairs -449,000 -13.0%

ORED -139,000 -5.4%

Total Provost Area 397,000 0.3%

Information Technology Services

-1,275,000 -13.0%

University Advancement -291,000 -10.5%

Business Affairs -1,970,000 -10.1%

Chancellor -130,000 -5.1%

Gateway University Research Park

-175,000 -27.3%

Institutional (Financial Aid & Benefits)

6,231,000 9.0%

Total $ 2,787,000 1.2%

Principles Applied in Development of Plans

• Protect instruction and efforts to rebuild enrollment

• Design strategic cuts v. across the board reductions

• Address administrative efficiencies• Pursue collaborations across

units/divisions• Document consultation within and across

units/divisions

Summary of Provisional Plans

• Provost and Executive Vice Chancellor ($9.3 m AA; $513,570 SA; $201,972 ORED)– Approx. $1.3 million strategic cut to

Undergraduate Studies, Student Affairs and ORED before cuts allocated to academic units

– Protect enrollment services functions (admissions, financial aid, registrar)

– Minimize impact on Office of Institutional Research

Business Affairs ($1,591,398)

• Reengineered student mail• Consolidated enterprise risk

management functions under existing AVC; eliminating vacant ERM position

• Leverage utilities savings as a result of facilities operations efforts

• Grounds and housekeeping• Protect campus police/safety

Information Technology Services ($652,183)

• Eliminate additional positions• ITS has reduced 21.5 FTE since

2008, a 14.3% cut in staff and middle managers

• Increased technology capabilities enable greater efficiencies

University Advancement ($212,686)

• Consolidate corporate and foundation relations function with ORED

• Create single point of contact for external parties

• Enables protection of major gift officers assigned to academic units in anticipation of campaign

Gateway University Research Park ($100,000)

• Reduce operating budget and rely more heavily on externally generated funds, including revenues from Nanomanufacturing Innovation Consortium and grants

Chancellor’s Office ($195,827)

• Significantly reduce remaining state operating budget

• Eliminate SPA salary reserves• Eliminate paralegal position• Decrease state operating budget for

University Relations due to planned efficiencies in communications

Impact of Planned Reductions on Campus Operations and Services

• Course Sections• Student Services• Facilities Repairs and Renovations• ITS response time• General Counsel response time• Preliminary estimate of personnel

impacted

Next Steps

• Communicate with employees subject to Reduction in Force during April 2014

• Update General Faculty on April 23• Update Board of Trustees on April

30• General Assembly convenes May 14• End of short session June 30• Adjustment to cuts based on General

Assembly actions July 1, 2014