TO: UW-­‐Stout Faculty and Staff via electronic mail FROM: Bob Meyer, Chancellor DATE: May 21, 2015 RE: Update on Meeting Budget Challenges Even though the Legislature has not completed its work on the 2015-­‐17 state budget, I thought it was imperative to give the campus an update on where we stand in meeting the challenges we expect will be forthcoming after legislators conclude their deliberations. A previous communication indicated that a Budget Subcommittee of the Strategic Planning Group reviewed over 800 suggestions on how to reduce our expenditures and improve efficiencies. That report is available here. The SPG then discussed the subcommittee’s report and their comments were sent to my Cabinet for further review. Based on the feedback I received from those groups and others, here is a status report on the recommendations from the SPG Budget Subcommittee: Chancellor’s Division Marketing/Communications Subcommittee Recommendation: Merge Marketing and Communications and reduce overall combined 102 budget by approximately 14 percent. Estimated savings: $130,000. Response: The merger is under review; in the meantime, both Marketing and Communications will reduce their FY16 budgets by at least 10 percent. Chancellor’s Office Subcommittee Recommendation: Reduce 102 budget by approximately 10 percent of existing 102 budget. Estimated savings: $53,000. Response: I accept the recommendation and will reduce the Chancellor’s Office budget by at least 10 percent. Foundation Subcommittee Recommendation: Cut 100 percent of the existing 102 budget. Estimated savings: $169,000. Response: I am taking this recommendation under review. The Foundation is important to the economic vitality of UW-­‐Stout and I want to ensure that we take no actions that will have a detrimental effect on our fundraising ability. Learning and Information Technology Subcommittee Recommendation: Reduce 102 budget by 10 percent. Estimated savings: $354,000. Response: I accept the recommendation to reduce the LIT budget by at least 10 percent. The unit will be given flexibility on how to achieve that reduction. PARQ Subcommittee Recommendation: Reduce 102 budget by 27 percent. Estimated savings $95,000. Response: The PARQ budget will be reduced by at least 10 percent and the unit will be given the flexibility on how to achieve that reduction. Human Resources Subcommittee Recommendation: We recommend no change as their staffing levels have not changed over the last six years. Affirmative Action was added to this area in the past. No cost savings. Response: The HR Department budget will be reduced by at least 10 percent. Academic and Student Affairs Discovery Center Subcommittee Recommendation: Move the Discovery Center off 102 funding to be self-­‐supported through applied research collaboration with business, industry and granting agencies. Estimated savings: $177,000. Response: The cut to the Discovery Center will be at least 10 percent. Research Services Subcommittee Recommendation: Redistribute Research Services functions to other areas of campus with at least reduction of 2 FTE; all remaining FTE should be funded by 150. Estimated Savings: $256,000. Response: This recommendation is under review, pending other organizational changes. Graduate School and Enrollment Services Subcommittee Recommendation: Consolidate the Graduate School functions within Enrollment Services to reduce administration, administrative support, and other FTE per peer benchmarks. Estimated savings: $114,434. Response: The organizational changes are under review, but the Graduate School budget will be reduced by at least 10 percent. Stout Online Subcommittee Recommendation: Evaluate duplication of services and efficiencies. Response: I accept the recommendation. Provost’s Office Subcommittee Recommendation: Reduce 102 budget by 10 percent. Estimated savings: $53,000. Response: I will accept 10 percent reduction and will allow the office flexibility in how to meet the reduction. Teaching Load Subcommittee Recommendation: Equalize instructional teaching load across the university (such as 24 Faculty, 30 Instructional Academic Staff credits per academic year) and develop a consistent workload reporting format with senate involvement. Estimated savings: Unknown. Response: I accept the recommendation; a committee has completed a report on this matter and its recommendations are under review. College Reorganization Subcommittee Recommendation: Consolidate four colleges into three colleges to reduce administration and administrative support. Estimated savings: $496,000. Response: I am taking this recommendation under review; this issue demands a large amount of study and discussion across campus. College Administration Subcommittee Recommendation: Reduce and consolidate administrative layers and positions within the academic colleges to a maximum of two layers below the dean (chair, school director, associate dean). Estimated Savings: $200,000+. Response: I am taking this recommendation under review; while some savings might be available, this recommendation requires further review and discussion. Student Services, Advisement Center Subcommittee Recommendation: Eliminate Living Learning Community programming. Estimated savings: $96,226. Response: I am accepting this recommendation. Honors College Subcommittee Recommendation: Eliminate .5 FTE. Estimated savings: $28,000. Response: I am accepting this recommendation regarding the amount of the budget reduction, but details will be determined by the Provost and Director of the Honors College. Library Subcommittee Recommendation: Reduce 102 budget by 10 percent. Estimated savings: $215,000. Response: I am accepting the recommendation to reduce the library budget by at least 10 percent. A further note: Additional reduction opportunities in Academic and Student Affairs are being reviewed by Interim Provost Weissenburger in consultation with the deans, other members of the Provost Council and other administrators. Administrative and Student Life Services Physical Plant Subcommittee Recommendation: Reduce $550,000 in 102 funding to Physical Plant for FY16. Estimated savings: $550,000. Response: The Physical Plant reduction will be at least $550,000. Further details are being worked out by Vice Chancellor Lyons. Athletics Subcommittee Recommendation: Reduce GPR support to Intercollegiate Athletics by 15 percent. Estimated savings: $160,000. Response: The reduction in Athletics will be at least 10 percent, given the streamlining efforts proposed in conjunction with University Recreation. Health and Safety Subcommittee Recommendation: Redistribute functions to other areas of campus. Estimated savings: $220,000. Response: I accept the recommendation and it is being implemented. Business and Financial Services Subcommittee Recommendation: Reduce administration in Procurement and Materials Management. Estimated savings: $85,000. Response: I accept the recommendation. Vice Chancellor’s Office Subcommittee Recommendation: Reduce 102 budget by 10 percent. Estimated savings: $55,000. Response: I accept the recommendation and the vice chancellor will have flexibility in how to accomplish the recommendation. Student Life Services Subcommittee Recommendation: Eliminate all 102 funding. Estimated savings: $6,000. Response: I accept the recommendation. Campus-­‐wide Reduce/Right-­‐Size Administrative Support Subcommittee Recommendation: Develop a metric that incorporates benchmarking data. Use this metric to disperse the FTE across the campus in an equitable manner at the sub-­‐division/college level. Response: While I accept the recommendation in principle, further analysis is required before implementation. Vice Chancellor Lyons has announced a significant reorganization of his division that includes many of these recommendations, plus additional items. Refer to ASLS Organizational Changes for details. Finally, I want to emphasize that the measures we are announcing today are only the first steps in meeting the tremendous budget challenges we face. Other measures are under review and will be announced as decisions are reached. Our effort is made all the more difficult because the Legislature has not completed its work on the 2015-­‐17 state budget – we hope to hear what the Joint Finance decides next week – and UW System has yet to announce what, if any, of the system-­‐wide reserves will be distributed to those campuses, like UW-­‐Stout, that do not have large budget reserves to buffer the impact of the cuts. I know that this is a period of high anxiety for many people, myself included. We will do everything we can to keep the campus abreast of our decisions as we move forward. Thank you for your patience, understanding and good counsel!