From:                              DePaolo, Rosemary

Sent:                               Tuesday, April 14, 2009 9:27 AM

To:                                   FAC&STAFF

Subject:                          Budget Update

 

Dear Faculty and Staff,

I promised to keep you informed about our budget situation and today want to discuss two issues: 1) the proposed budget cuts for fiscal years 2009-2011 we were required to submit by Governor Easley just before he left office and our plan for how to make that level of cuts, and 2) the very latest budget directive we were given late last week by Governor Perdue.   Clearly, while a glimmer of optimism seems to be brightening the national budget picture, state revenues are taking somewhat longer to recover.   While we have planned well and have been able to minimize the financial impact on various campus units to date, our budget situation will remain challenging.

First, the required budget cuts. While at this time, we do not know the exact percentage of the cuts we will finally be facing, we are planning for 5% and 7% reduction scenarios.  Cuts at this level are profound, and there is no way that they won’t impact services.  We have approached our planning for the cuts with the two overarching guiding principles of being strategic and above all, of protecting, as much as possible, our core academic mission of providing a quality learning environment for our students.  While cuts of this magnitude are difficult on our university community, we have done them in a way that attempts to ensure that when the economy recovers, UNCW will be positioned to reemerge with strength.

To that end, across-the-board budget reductions will not be made; that would simply diminish the entire university.   Therefore, some units will be affected more than others.  While each division has reviewed the critical nature of its services and identified areas where strategic, targeted cuts can be made with the least amount of impact on university priorities, certain divisions and areas were asked to go back and make even deeper cuts to lessen the impact on the academic heart of our university. I particularly asked the vice chancellors and my chief of staff to look closely at the Chancellor’s Division, along with other non- academic areas like Business Affairs, Public Service, Advancement, Information Technology, and Student Affairs to see how, strategically, they could take disproportionately large cuts.  While that is the right thing to do, there will no doubt be diminished services and opportunities that will necessitate significant adjustment for us all

Let me mention secondly the recent communication we received from the governor.   Last Thursday we received a message from the Office of State Budget and Management with Governor Perdue’s directive to issue mandatory spending restrictions immediately for the remainder of the fiscal year.  This directly impacts hiring, purchases of goods/ materials/services, and travel for the balance of the 2008-2009 fiscal year.  All state agencies, including the University, are subject to these restrictions.  There’s much still to be clarified about the directive, and Vice Chancellor Maimone will share further information with our campus community very soon.

The next few months will be difficult for all of us at UNCW.   I know many of you are concerned above all about the possibility of layoffs.  Ideally, it would be wonderful if we could avoid them, but I must be completely candid and say that the percentage of cuts we are likely facing for the next two years may force us to implement a reduction in force (RIF) process for some of our employees. If we are forced to utilize the RIF process, we may have to say goodbye to valued, dedicated coworkers whose positions we may have to eliminate as a result of our serious budget situation. Those who remain will have to adjust and continue the work that must be done. For all of us who care deeply, as I do, about the people who make UNCW special, this is very hard.

As our campus deals with the possibility of this news, I want you all to remember one of our core values.  We are a community, a family that believes in treating people with dignity and respect and in trying to support our members.  We have already had a few reductions-in-force due to grant funds ending.  I have asked that our administration ensure that we are affording any employee who has been laid off all the rights and privileges available to them.  In some instances, we have been able to place these employees in other positions on campus.   In the event that we have to make such reassignments in the future, I know that I can count on all of you to welcome these employees into your offices and assist them to be successful with their new duties. 

I plan to share more budget detail with you at our open forums this week.  The first forum will be held on Wednesday, April 15th from 10:00am -11:30am and another one will be on Thursday, April 16th from 1:30pm-3:00pm.  Both open forums will be held in the Burney Center.

Now more than ever, it is imperative that all of us commit ourselves to the extraordinarily high quality teaching, scholarship, and service that make UNCW the great university that it is.  We will continue to develop more innovative and creative solutions to achieve our goals and aspirations. 

 

I know none of this is good news, and we face great challenges ahead.  We have an opportunity to sharpen our focus, and there is no doubt in my mind that, together, we can – and will – transcend these budget difficulties. 

 

Again, thank you for your commitment to UNCW, to our students, and to one another.

 

Sincerely,

 

Rosemary DePaolo

Chancellor