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Budget update: April 10

April 10, 2019

Tori Tragis

— by Dan White, chancellor

At the Board of Regents special meeting this past Monday, President Jim Johnsen presented four potential scenarios for the university. These ranged from a $65 million (20%) reduction in unrestricted general funds (UGF) to our current UGF level of $327 million. The full presentation can be viewed on the Board of Regents' website under the . (Click on the “Meetings” tab.)

All scenarios outlined in the president’s presentation, regardless of the level of funding, would require reallocation to fund aspects of the FY20 BOR priority requests for Title IX enhancement ($1.8 million), initiative funding ($10 million), salary compensation increases ($7 million) and fixed costs ($12.6 million). Each scenario also includes consolidation or reduction of administrative support, along with projected tuition increases of 5% or 10%.

Outline of the four potential scenarios per presentation in BoardDocs

Scenario one: $327 million UGF (flat UGF funding)

• $30 million overall reallocation to BOR priorities
  
  
  
  • Reduction of 250 FTEs, or $25 million
  
  
  • Reduce facility maintenance by $5 million
  
  
  
  


• 5% tuition increase


• Possible realignment of community campuses

Scenario two: $317 million UGF (3%, or $10 million UGF reduction)

• $40 million overall cut/reallocation to BOR priorities
  
  
  
  • Reduction of 300 FTEs, or $30 million
  
  
  • Reduce facility maintenance by $10 million
  
  
  
  


• 5% tuition increase


• Possible realignment of community campuses

Scenario three: $294 million UGF (10%, or $33 million UGF reduction)

• $63 million overall cut/reallocation to BOR priorities
  
  
  
  • Reduction of 400 FTEs, or $40 million
  
  
  • Reduce facility maintenance by $15 million
  
  
  
  


• 10% tuition increase


• Realignment of community campuses; possible closure

Scenario four: $262 million UGF (20%, or $65 million UGF reduction)

• $95 million overall cut
  
  
  
  • Reduction of 600 FTEs, or $60 million
  
  
  • Reduce facility maintenance by $20 million
  
  
  
  


• 10% tuition increase


• Closing a university and community campuses; significant accreditation risk

At ������, faculty and staff have been working hard on several task force committees that will be wrapping up this week. They will provide guidance to leadership in areas for possible efficiencies, growth opportunities and improving the student experience.

The Budget Planning Task Forces are listed below.

• Adjunct teaching


• Class sizes


• eCampus integration


• Non-credit credentials


• Policies and procedures


• Research

We still have many unknowns with this legislative session. What we do know is that the House Finance Subcommittee recommendations were submitted and voted on by the House Finance Committee, moving the UA budget forward at $317 million, a $10 million reduction from our current FY19 budget. We anticipate that this budget will likely hold in the House but expect the Senate to craft a budget of its own. I am anticipating a memo from the president to the chancellors this week asking for plans to hit specific budget targets. I will let you know next week what that looks like and our actions to respond.

As always, thank you for your continued support and advocacy efforts.