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Open Forum for Faculty, Staff, and Administrators:Open Forum for Faculty, Staff, and Administrators:

Positioning the University for the FuturePositioning the University for the Future

Presentation by President Sidney A. McPheePresentation by President Sidney A. McPhee

Tuesday, November 18 – 3:00 – 4:00pmTuesday, November 18 – 3:00 – 4:00pm Wednesday, November 19 – 1:30 – 2:30pmWednesday, November 19 – 1:30 – 2:30pm

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Presentation OutlinePresentation Outline

• Review of operating budget

• Review of budget reductions for FY 08-09

• Plans to position the University for future challenges and opportunities

• Opportunities for campus-wide participation

• Questions and answers

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Review of operating budgetReview of operating budget

2008-09 Total Budget2008-09 Total Budget

Auxiliaries $33,406,400

9%

Restricted $82,894,900

23%

Education & General

$238,684,288 68%

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Total: $354,985,600

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Auxiliaries

Self-supporting activities: bookstores, housing, health services, etc.

RestrictedExpendable only for purposes, programs, or activities specified by the donors and organizations providing the funds through gifts, grants, or contracts

Education and General

Operating Funds used to support academic and instructional programs and their administration.  Examples are State Appropriations, Tuition and Fees, and Sales and Services of Education Departments.  Education and General Funds pay for daily operations.

2008-09 Education & General 2008-09 Education & General Base Expenditure Budget By Base Expenditure Budget By DivisionDivision

Academic Affairs $135,933,506

56%

Auxiliaries $33,406,400

14%

Athletics $17,915,300

7%

President $1,971,640

1% Student Affairs $17,234,522

7%

Business / Finance $20,587,517

9%

Development / University Relations

$4,650,623 2%

Information Technology $8,486,477

4%

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2008-09 Education and General 2008-09 Education and General Base Expenditure Budget By Base Expenditure Budget By CategoryCategory

Equipment $3,458,813

2%

Operating $20,835,136

10%

Salaries $123,591,600

59%

Benefits $41,122,400

20%

Travel $3,603,2562%

Scholarships $14,168,329

7%

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2008-09 Base 2008-09 Base SalarySalary Budget By Division Budget By Division

Academic Affairs $91,773,189

71%

Information Technology $4,059,383

3%

Development / University Relations

$2,573,5272%

Business / Finance $12,363,494

10%

Student Affairs $7,135,059

5%

President $1,373,226

1%

Athletics$4,313,795

3%

Auxiliaries $6,935,163

5%

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Total Salaries: $130,526,836Total Salaries: $130,526,836

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Distribution of new funds 2001-02 through 2008-09Distribution of new funds 2001-02 through 2008-09

Academic Affairs $21,278,321 81.5%

Business & Finance 409,135 1.6%

Development & University Relations

1,235,462 4.7%

Information Technology 1,140,863 4.4%

President 866,154 3.3%

Student Affairs 1,169,790 4.5%

Total $26,099,725

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Review of budget reductions Review of budget reductions for FY 08-09for FY 08-09

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2008-09 Budget reductions for Fiscal Year2008-09 Budget reductions for Fiscal Year

Discretionary Budget

% of Discretionary

BudgetDiv / Dept Reduction

% of Div / Dept

Discretionary

% of 6.156 m Total

Reduction

Academic Affairs $ 95,337,140 68.5% $ 2,250,000 2.4% 36.5%

Business & Finance 7,615,451 5.5% 282,530 3.7% 4.6%

Development & Univ Rel 3,678,750 2.60% 128,756 3.5% 2.1%

Information Technology 7,069,558 5.1% 247,435 3.5% 4.0%

President 1,628,401 1.2% 56,994 3.5% 0.9%

Student Affairs 9,868,148 7.1% 345,385 3.5% 5.6%

Athletics 6,826,300 4.9% 239,000 3.5% 3.9%

O & M 7,118,600 5.1% 355,900 5.0% 5.8%

Total Unrestricted Budgets $139,142,348 100.0% $ 3,906,000

Central Administration / Pool reductions $ 2,250,000 36.5%

(Reserve $1,250,000; PC Replacement $500,000; Capital Commitment $500,000)

Total Base Reduction: $6,156,000

As you can see, even though Academic Affairs holds the largest portion of the budget, this division had the least impact of this reduction.

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2008-09 October Budget Reduction2008-09 October Budget Reduction

Discretionary Budget

% of Discretionary

BudgetDiv / Dept Reduction

% of Div / Dept

Discretionary

% of 6.156 m Total

Reduction

Academic Affairs $104,210,594 71.0 0 0% 0%

Business & Finance 807,3056 5.5% 118,300 1.5% 3.6%

Development & Univ Rel 3,624,994 5.0% 53,100 1.5% 1.6%

Information Technology 7,196,462 4.9% 105,400 1.5% 3.2%

President 1,571,407 1.1% 23,000 1.5% 0.7%

Student Affairs 8,649,181 5.9% 126,800 1.5% 3.9%

Athletics 6,945,200 4.7% 101,700 1.5% 3.1%

O & M 6,454,100 4.4% 94,500 1.5% 2.9%

Total Unrestricted Budgets $146,724,994 100.0% 622,800

Central Administration / Pool reductions $ 2,658,200 81.0%

Total Base Reduction: $3,281,000 or 3.4%

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State Appropriation ReductionsState Appropriation Reductions

FY 2007-08 Appropriation $100,775,700

FY 2008-09 Base Reduction 6,156,000

FY 2008-09 Appropriation 94,619,700

FY 2008-09 Mid-year reduction 3,281,000

FY 2008-09 Revised Appropriation $ 91,338,700

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Impact of ReductionsImpact of Reductions

• Elimination of vacant positions in areas such as the Records Office, Information Technology, Development and University Relations, and Business and Finance

• Faculty positions– Reduced number of faculty lines, increased faculty load, and increased faculty-student ratio

• Decreased operating budgets– Reduced faculty travel and operating funds

• Equipment purchases– Reduction in equipment replacements / upgrades and lower response time

• Office cleaning reduced to one time per week

• Cost for facility use will increase

• Significant impact on services and activities– A reduction in athletic scholarship funds; student programming, training and development activities; travel and

professional development funds; and custodial and grounds services– A revision in the weekend lockdown schedule which will eliminate two shifts of building lockdown services on

the weekend– Delays in the development and implementation of some Information Technology projects and services

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Position Reductions Position Reductions Reflects cuts in July and October 2008Reflects cuts in July and October 2008

Number Filled Unfilled Retirement Part time

Academic Affairs

Tenured 0

Tenure track 7 7

Temp faculty 9 9

Admin / Prof 1 1

Classified 8 1 7 4

Student Affairs

Admin / Prof 7 5 2

Classified 1 1

Information Technology

Admin / Prof 4 4

Classified

Development

Admin / Prof 3 3

Classified 1 1

Business / Finance 1 1

Admin / Prof 2 1 1 4

Classified 6 4 2

Athletics

Admin / Prof

Classified 1 1 1

Totals 50 11 39 5 6

Note: 16 teaching positions (7 tenure track, 9 temp faculty)

34 admin / professional positions / classified

positions

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Plans to position the University for Plans to position the University for future challenges and opportunitiesfuture challenges and opportunities

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A Sober Message from Harvard’s President19

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Arizona

State

University

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What lies ahead???What lies ahead???

• Additional cuts

• Tough decisions regarding priorities

• Fewer dollars available

We can no longer do “business as usual”

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What we have done so far…What we have done so far…

• April – Two brainstorming meetings - one with Department Chairs and one with Deans and Vice Presidents

• June – Brainstorming meeting - combined group

• October / November – Preliminary work designed to shape the processes that will be used to continue efforts to solicit campus-wide involvement

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Positioning the university for the future – Positioning the university for the future – Strategic Work GroupsStrategic Work Groups

Work Group for External Resource Development

Work Group for Energy Efficiency and Conservation Initiatives

Work Group For Realignment, Restructuring, Consolidation or Elimination of Non-Academic Support Units

Work Group for Academic and Instructional Review

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Opportunities for campus-wide Opportunities for campus-wide participationparticipation

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Members of the steering committeeMembers of the steering committee

U N I V E R S I T Y - W I D E O P E N F O R U M

Charles Perry – Chair

Jill Austin

Jim Burton

Virginia Donnell

Janet Kelly

Loren Mulraine Deb Sells

Rick Moffett – Assistant Chair

Kim Bailey

Tonjanita Johnson

Alfred Lutz

Patrick McCarthy

Web SiteWeb Site

U N I V E R S I T Y - W I D E O P E N F O R U M

http://www.mtsu.edu/

strategicgroups.shtml

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Questions and AnswersQuestions and Answers

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Thank you !!!Thank you !!!