Budget Update January 16, 2009

Colleagues:

In late December I sent an email requesting that you a) do some planning around a possible 10% cut, b) stall administrative and staff hiring until mid January, c) raise your standards on faculty hiring.

It is now mid-January so here is the update:

The Governor has stated that he will modify his budget after the February economic forecast. The original budget had a 6% increase for higher education. We anticipate a substantially lower number the second time around. However, the Governor has stated that education would remain his highest priority in the second budget.

There is no further information on the likelihood of a rescission (take back of budgeted funds) this year. There is still significant disagreement in Salem on this issue.

I am pleased to hear that many groups have been hard at work considering what a potential 10% cut would take. I do not need to see those plans yet, but they should inform your hiring decisions the next two months.

Instructional faculty: Continue with higher quality standards as requested in the December 23 email. We must meet the educational needs of the growing student body. Be judicious where possible since unfilled salary lines may be a source of revenue for the cutting exercise.

Research faculty, administrative and staff positions:

a) Funded (entirely) by endowment, grants or contracts: Please move forward with the normal approval processes for hiring. b) Funded (at all) by general fund, ICC or auxiliary funding: You may move forward under the following limiting conditions. All positions will require sign off by your appropriate dean, vice president or vice provost. They will need justification that the position is critical to your operations at this time and cannot be delayed without damage to the mission of the institution. Please consider this: if position eliminations become necessary in your unit, is the position of this hire sufficiently important that it will be given preference over current employees? If not, then please do not hire at this time. Russ Tomlin, Academic Affairs and/or Sonia Potter, Unclassified Personnel Services will be looking for that justification in all unclassified appointments sent forward. Please keep in mind that the collective bargaining agreements include layoff processes that can allow more senior employees to displace other workers in their classifications/ranges. Chris Lonigan in Human Resources will review the justification for classified vacancies. Position eliminations are not under consideration at this time, but we need to be prepared if the financial situation worsens.

Please ask questions or seek clarification from Frances Dyke or me.

Regards, Jim