Provisional Budget Reduction Plan 2014-15

Linda P. Brady, Chancellor Presentation to UNCG Faculty

Senate April 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 Slide 2

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

Slide 3

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

12,504,537

Initiatives

Quality Enhancement Program - Permanent Positions

175,900

Compliance (Title IX) 120,000 Total Initiatives

295,900

Total to be Allocated

12,800,437

Slide 4

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

Slide 5

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

Slide 6

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

Slide 7

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

Slide 8

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%

Slide 9

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%

Slide 10

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

Slide 11

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

Slide 12

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 Slide 13

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

Slide 14

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

Slide 15

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

Slide 16

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

Slide 17

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

Slide 18

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 Slide 19