Periodic Updates - Update #41
CENTRAL MICHIGAN UNIVERSITY
OFFICE OF THE PRESIDENT
May 5, 2004
THE IMPACT OF BUDGET REDUCTIONS AT CMU
Painful and severe — those are the most descriptive words I can think of to describe the latest round of budget reductions at Central Michigan University. Nearly every administrator who was required to identify reductions has said that the cuts, particularly in this round, are damaging to the university. These cuts will be painful to the hundreds and thousands of employees and students who will be affected by the cuts.
In fact, I do not hesitate to say that this year’s budget cuts are the most severe in the university’s 112-year history. They were bound to be severe when you consider these facts:
Yet, these very difficult—and often seemingly impossible—decisions have been made with careful thought and reflection. The senior staff and I fully realize the impact these reductions will have on the lives of many in the university community. Ultimately, however, with reductions in state appropriations as high as 15 percent in just the last 18 months, cuts were bound to be deep and difficult for many.
CMU is not alone in facing the budget challenge. States throughout the nation have suffered revenue declines, and universities throughout Michigan and the nation are sharing in the reductions. But even in tough economic times, CMU must maintain its commitment to its central mission of academic quality and classroom learning through teaching and research for programs that it chooses to continue.
The reductions were made programmatically, not across-the-board. While across-the-board cuts are usually more popular because every area shares more deeply in the “pain,” they have proven to be unhealthy over the long term because they simply dilute every area instead of allowing growth and building on the excellence of the most stellar programs. This is not to say that areas cut lack excellence, but that ultimately, some areas had to be reduced in favor of not diluting others.
In most cases, cuts in administrative units double the cuts made to the academic colleges. Accumulated over two years, academic college cuts range from 7 to 10 percent. Cuts to the non-instructional units range from 11 to 25 percent, including 15 percent for finance and administrative services, 15 percent for facilities management, 16 percent for the president’s division, 17 percent each for development and government relations, and 19 percent for human resources.
Efforts have been made to limit the impact of cuts in the classroom. Students, however, will feel the effects of the cuts in the non-instructional units since they use the services provided by them. With fewer staff, lines are bound to be longer, and hours will be shorter. The university simply cannot win at this point, no matter what it cuts.
Because two-thirds of the university’s budget constitutes employee salaries and benefits, a major portion of this year’s reductions was identified through the elimination or reduction of positions. On April 26, we announced that a total of 88 staff positions will be affected by the reductions — including 23 vacant positions that will be eliminated and 11 positions that will be funded through non-general fund sources — and that 54 individuals will receive informal notices that their positions were identified for elimination or reduction. Of the 54 positions, 39 are being eliminated and 15 reduced to less than full time. These cuts are planned for implementation in fiscal year 2004-05.
No regular faculty members will be laid off, but instructional unit reductions will include having to not renew some temporary faculty contracts and placing on hold searches for 10 vacant regular faculty positions.
While the personnel reductions are severe, the non-personnel cuts also are significant. The initial impact of some cuts may vary depending on the use of non-general fund or one-time money.
Following is a review of some of the 2004-05 budget reductions and their impact on the campus community.
ACADEMIC PROGRAMS (Revised July 21, 2004)
Because of the urgency of budget reductions, it has been recommended that four academic programswill be phased out or temporarily suspended:
the medical technology program, the nursing minor, the museum
studies minor, and the master of arts degree in health promotion
and program management.
These programs are not being eliminated immediately, but
will be phased out over two years to allow currently enrolled
students to complete their programs.
Administrators initiating elimination are working with
the appropriate program faculty and the Academic Senate.
No additional class reductions are anticipated from what is printed in the fall course offering guide.
OTHER MAJOR NON-PERSONNEL REDUCTIONS
The Museum of Cultural and Natural History will be phased out over the next two years. Students who have declared a museum studies minor will be able to complete their required courses. The disposition of museum collections is currently under review by the provost and deans.
The Learning Technology Center and the Faculty Center for Academic Excellence were merged into a new Faculty Center for Innovative Teaching. The merger was effective January 19, 2004.
The August commencement ceremony will be eliminated effective in 2005. The 2004 summer commencement ceremony will take place as scheduled on August 7. In 2005, students who complete their degree requirements following the summer session will be invited to participate in the December 2005 commencement ceremonies.
Other general reductions by various campus units include decreased funds for supplies and equipment, travel, student employees, and faculty and staff professional development opportunities. Admittedly, there weren’t many choices here as these budgets were reduced significantly in previous years.
EMPLOYEE SERVICES
A major impact of budget reductions will be on services for students and employees. Fewer programs will be offered in many offices, and response times to requests for services are likely to be slower. The finance and administrative division also is looking at standard hours that offices will be open to the public for service across the campus and may consider reductions from the current policy of 8 a.m. to noon and 1 to 5 p.m. Other reductions follow:
The building maintenance worker (BMW) program for general fund buildings has been eliminated, which will result in slower response time to routine maintenance requests. BMWs will continue to service the residence halls.
A reduction in SAP consulting days will mean delays in responding to system problems or special programming needs. The focus will be on emergency issues that occur with day-to-day operations and with periodic updates required to keep the system in compliance.
The processing time for employee travel reimbursements and similar transactions will be slower.
Office reception hours in the employment, compensation and benefits offices in Rowe Hall and the SAP/HR office in Foust Hall may be reduced. Other impacts in Human Resources include slower response time for employee services, reclassification studies and individual retirement counseling. Orientation sessions for new hires will be reduced to two per month. In addition, the student intern training program in HR has been eliminated.
STUDENT SERVICES
Reductions in student service offices will negatively impact the quantity and quality of services that most units provide. Examples follow:
Service hours may be reduced in the Student Service Court in the Bovee University Center, the student ID office and Receivable Accounting, all related to having fewer staff available.
Fewer advising workshops for students, a higher student-to-adviser ratio and slower response times will result from reductions made in Academic Advising.
Reductions in Career Services will mean fewer career development programs and slower response times to requests from students, professors, and employers.
Reductions in the Counseling Center will mean longer wait times to meet with a counselor, reduced meeting times, and a decrease in preventative programs.
Reductions in Scholarships and Financial Aid will mean slower processing of documents, delays in mailing award packages, and less timely services to students.
Reductions in Orientation include the elimination of overnight stays at university expense and reduced person-to-person attention with incoming students.
In the Registrar’s Office, reductions will include slower delivery of service in the Student Service Court, slower processing of information, and the elimination of diploma covers distributed at commencement.
Reductions in Student Life will mean delays in judicial procedures and reduced services to students and student organizations.
OTHER REDUCTIONS
The production of Centralight, the alumni magazine, will be reduced from four to three issues per year with a reduced circulation, despite the significant increase in designated gifts from alumni and other donors.
In public relations and marketing, the response time for processing the licensing and written authorization of the use of CMU names, trademarks and related artwork on commercial products may be slower. Some sports information services may have to be curtailed.
To eliminate set-up costs for a relatively low-attended event, the annual state-of-the-university address has been eliminated. I will continue to address faculty at college meetings prior to the start of the fall semester and will meet with staff employees in August.
Purchased programming for Public Broadcasting (radio and television) will be reduced. Final programming decisions will be made in July.
The reductions identified in this update focus on areas in which services and programs will be affected. But many other units on campus, including many administrative areas and Athletics, also are sharing in budget reductions. For example, Athletics' reductions included the elimination of two full-time positions and several leases for cars used by coaches for recruiting.
The university would never choose to make budget reductions. Responsibility for these cuts falls squarely on the shoulders of a declining economy and resulting in state appropriation reductions. Given the place in which we find ourselves with such a severe decline in state funding, I encourage you to share your thoughts and concerns with elected members of the Legislature and the Governor. Michigan’s universities are key to keeping and attracting the talent the state needs for the jobs of the future. Alert legislators and the Governor about the deep and serious consequences of funding reductions to higher education. Cuts as deep as those CMU has faced, with an already low per-student funding level, were bound to hit the institution’s core quickly.
OFFICE OF THE PRESIDENT
May 5, 2004
| TO: | CMU Colleagues and Students |
 |
|
| FROM: | Mike Rao |
|
|
|
| SUBJECT: | CMU Update #41 |
THE IMPACT OF BUDGET REDUCTIONS AT CMU
Painful and severe — those are the most descriptive words I can think of to describe the latest round of budget reductions at Central Michigan University. Nearly every administrator who was required to identify reductions has said that the cuts, particularly in this round, are damaging to the university. These cuts will be painful to the hundreds and thousands of employees and students who will be affected by the cuts.
In fact, I do not hesitate to say that this year’s budget cuts are the most severe in the university’s 112-year history. They were bound to be severe when you consider these facts:
- State appropriation cuts to CMU have reached approximately 15
percent over the last 18 months, a decline of more than $12.5
million.
- In addition to cuts in state funding, the university, like any
organization, is experiencing regular budget growth that exceeds
$7.8 million annually stemming from increases to maintain
competitive salaries, health insurance, utilities, and other
needs.
- The reduction in state funding, combined with regular budget
growth, amounts to a $10.2 million expenditure reduction that
the university has to resolve to avoid overspending. This amount
is based on the Governor’s tuition proposal
- The Governor’s tuition deal, adopted by CMU and most of the
other 14 public state universities, promises no additional
funding cuts and restricts the university’s ability to raise
tuition and mandatory fees beyond 2.4 percent, most of which is
consumed immediately by increases in health care costs for
employees and those retirees in the state retirement system,
which provides lifetime health benefits. This tuition deal has
not yet been approved by the legislature.
Yet, these very difficult—and often seemingly impossible—decisions have been made with careful thought and reflection. The senior staff and I fully realize the impact these reductions will have on the lives of many in the university community. Ultimately, however, with reductions in state appropriations as high as 15 percent in just the last 18 months, cuts were bound to be deep and difficult for many.
CMU is not alone in facing the budget challenge. States throughout the nation have suffered revenue declines, and universities throughout Michigan and the nation are sharing in the reductions. But even in tough economic times, CMU must maintain its commitment to its central mission of academic quality and classroom learning through teaching and research for programs that it chooses to continue.
The reductions were made programmatically, not across-the-board. While across-the-board cuts are usually more popular because every area shares more deeply in the “pain,” they have proven to be unhealthy over the long term because they simply dilute every area instead of allowing growth and building on the excellence of the most stellar programs. This is not to say that areas cut lack excellence, but that ultimately, some areas had to be reduced in favor of not diluting others.
In most cases, cuts in administrative units double the cuts made to the academic colleges. Accumulated over two years, academic college cuts range from 7 to 10 percent. Cuts to the non-instructional units range from 11 to 25 percent, including 15 percent for finance and administrative services, 15 percent for facilities management, 16 percent for the president’s division, 17 percent each for development and government relations, and 19 percent for human resources.
Efforts have been made to limit the impact of cuts in the classroom. Students, however, will feel the effects of the cuts in the non-instructional units since they use the services provided by them. With fewer staff, lines are bound to be longer, and hours will be shorter. The university simply cannot win at this point, no matter what it cuts.
Because two-thirds of the university’s budget constitutes employee salaries and benefits, a major portion of this year’s reductions was identified through the elimination or reduction of positions. On April 26, we announced that a total of 88 staff positions will be affected by the reductions — including 23 vacant positions that will be eliminated and 11 positions that will be funded through non-general fund sources — and that 54 individuals will receive informal notices that their positions were identified for elimination or reduction. Of the 54 positions, 39 are being eliminated and 15 reduced to less than full time. These cuts are planned for implementation in fiscal year 2004-05.
No regular faculty members will be laid off, but instructional unit reductions will include having to not renew some temporary faculty contracts and placing on hold searches for 10 vacant regular faculty positions.
While the personnel reductions are severe, the non-personnel cuts also are significant. The initial impact of some cuts may vary depending on the use of non-general fund or one-time money.
Following is a review of some of the 2004-05 budget reductions and their impact on the campus community.
ACADEMIC PROGRAMS (Revised July 21, 2004)
Because of the urgency of budget reductions, it has been recommended that four academic programs
No additional class reductions are anticipated from what is printed in the fall course offering guide.
OTHER MAJOR NON-PERSONNEL REDUCTIONS
The Museum of Cultural and Natural History will be phased out over the next two years. Students who have declared a museum studies minor will be able to complete their required courses. The disposition of museum collections is currently under review by the provost and deans.
The Learning Technology Center and the Faculty Center for Academic Excellence were merged into a new Faculty Center for Innovative Teaching. The merger was effective January 19, 2004.
The August commencement ceremony will be eliminated effective in 2005. The 2004 summer commencement ceremony will take place as scheduled on August 7. In 2005, students who complete their degree requirements following the summer session will be invited to participate in the December 2005 commencement ceremonies.
Other general reductions by various campus units include decreased funds for supplies and equipment, travel, student employees, and faculty and staff professional development opportunities. Admittedly, there weren’t many choices here as these budgets were reduced significantly in previous years.
EMPLOYEE SERVICES
A major impact of budget reductions will be on services for students and employees. Fewer programs will be offered in many offices, and response times to requests for services are likely to be slower. The finance and administrative division also is looking at standard hours that offices will be open to the public for service across the campus and may consider reductions from the current policy of 8 a.m. to noon and 1 to 5 p.m. Other reductions follow:
The building maintenance worker (BMW) program for general fund buildings has been eliminated, which will result in slower response time to routine maintenance requests. BMWs will continue to service the residence halls.
A reduction in SAP consulting days will mean delays in responding to system problems or special programming needs. The focus will be on emergency issues that occur with day-to-day operations and with periodic updates required to keep the system in compliance.
The processing time for employee travel reimbursements and similar transactions will be slower.
Office reception hours in the employment, compensation and benefits offices in Rowe Hall and the SAP/HR office in Foust Hall may be reduced. Other impacts in Human Resources include slower response time for employee services, reclassification studies and individual retirement counseling. Orientation sessions for new hires will be reduced to two per month. In addition, the student intern training program in HR has been eliminated.
STUDENT SERVICES
Reductions in student service offices will negatively impact the quantity and quality of services that most units provide. Examples follow:
Service hours may be reduced in the Student Service Court in the Bovee University Center, the student ID office and Receivable Accounting, all related to having fewer staff available.
Fewer advising workshops for students, a higher student-to-adviser ratio and slower response times will result from reductions made in Academic Advising.
Reductions in Career Services will mean fewer career development programs and slower response times to requests from students, professors, and employers.
Reductions in the Counseling Center will mean longer wait times to meet with a counselor, reduced meeting times, and a decrease in preventative programs.
Reductions in Scholarships and Financial Aid will mean slower processing of documents, delays in mailing award packages, and less timely services to students.
Reductions in Orientation include the elimination of overnight stays at university expense and reduced person-to-person attention with incoming students.
In the Registrar’s Office, reductions will include slower delivery of service in the Student Service Court, slower processing of information, and the elimination of diploma covers distributed at commencement.
Reductions in Student Life will mean delays in judicial procedures and reduced services to students and student organizations.
OTHER REDUCTIONS
The production of Centralight, the alumni magazine, will be reduced from four to three issues per year with a reduced circulation, despite the significant increase in designated gifts from alumni and other donors.
In public relations and marketing, the response time for processing the licensing and written authorization of the use of CMU names, trademarks and related artwork on commercial products may be slower. Some sports information services may have to be curtailed.
To eliminate set-up costs for a relatively low-attended event, the annual state-of-the-university address has been eliminated. I will continue to address faculty at college meetings prior to the start of the fall semester and will meet with staff employees in August.
Purchased programming for Public Broadcasting (radio and television) will be reduced. Final programming decisions will be made in July.
The reductions identified in this update focus on areas in which services and programs will be affected. But many other units on campus, including many administrative areas and Athletics, also are sharing in budget reductions. For example, Athletics' reductions included the elimination of two full-time positions and several leases for cars used by coaches for recruiting.
The university would never choose to make budget reductions. Responsibility for these cuts falls squarely on the shoulders of a declining economy and resulting in state appropriation reductions. Given the place in which we find ourselves with such a severe decline in state funding, I encourage you to share your thoughts and concerns with elected members of the Legislature and the Governor. Michigan’s universities are key to keeping and attracting the talent the state needs for the jobs of the future. Alert legislators and the Governor about the deep and serious consequences of funding reductions to higher education. Cuts as deep as those CMU has faced, with an already low per-student funding level, were bound to hit the institution’s core quickly.
