Budget Update from the Provost
December 23, 2008
Colleagues:
While the state’s financial status is still unclear, we are beginning to get a better picture of the financial scenarios that could be coming our way. They are bad, but still better than many of our sister institutions are enduring. We now expect a second rescission in late winter (larger than the $1.7M already taken). This could result in several million dollar additional cut from UO this fiscal year. Some of that can be handled centrally, but some will need to come from administrative units, schools and colleges. The bigger shock is the budget for the next biennium. Recent speculation is that OUS could take as much as 8% to 20% reduction from EBL (inflated flat budget). If this happens, tens of millions could come from UO over the biennium. If we are near the high end of these scenarios, a significant tuition hike will be necessary to maintain quality.
Please begin early planning on how you might handle a 10% cut from your general fund budget for the next fiscal year.
Administrative and Staff Hiring: At this time we request that you stall all administrative and staff searches until mid January. We will know better at that time if they may be filled this year. If an offer has already been made, please continue that process. If the position is critical please contact the appropriate vice president to discuss an exception.
Faculty Hiring: We wish to continue faculty hiring due to the growing student body. To be prudent, please raise your quality threshold. If you find a candidate that is the best you have seen in at least three years for that discipline, I recommend you move forward. If they are our standard solid quality, I recommend that you push the search forward to next year (perhaps recruiting an adjunct or visitor in the interim). This is not a freeze. The decisions are up to you. However, the impending cuts will be significant and you should consider how you will maintain flexibility.
Tuition Discount: Beginning fall, 2009, we will discontinue the tuition discount for early and late classes. This will save $1M.
The system is studying a number of cost saving approaches. That process is too early to discuss yet, but we will be back to you with intel on those in January.
We believe that this financial upset reemphasizes the importance of the Academic Plan. The Academic Plan as it is developing puts us on a path of greater self-reliance. The expected cuts in state funding are pushing in that same direction. Our process continues. The redrafting committee will be engaging some outside readers prior to submitting the second draft to the Presidential Search Committee by January 12. Departments will continue to discuss the goals and big ideas process through winter quarter.
Have a great holiday season. Despite our challenges, we are employed and living in Oregon. We can count our blessings.
Regards, Jim Bean