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Academic Forum: How to Survive Manage the Reversion Anticipated Budget Reduction

Academic Forum: How to Survive Manage the Reversion Anticipated Budget Reduction. January 15, 2009 Kyle R. Carter Provost and Senior Vice Chancellor. Outline of Today’s Forum. Budget 101 The Budget Shortfall Actions to Date WCU’s Unique Problem Corrective Actions

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Academic Forum: How to Survive Manage the Reversion Anticipated Budget Reduction

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  1. Academic Forum: How to Survive Manage the Reversion Anticipated Budget Reduction January 15, 2009 Kyle R. Carter Provost and Senior Vice Chancellor

  2. Outline of Today’s Forum • Budget 101 • The Budget Shortfall • Actions to Date • WCU’s Unique Problem • Corrective Actions • Questions and Discussion

  3. Budget 101: Types of Budgets • The University’s E&G (Education and General) budget • Funds that pay for core personnel and operations related to the university’s mission • Sources • State appropriations • Tuition • Capital budget • Funds specifically earmarked for construction • Auxiliary and fee budgets • Self-supporting budgets that exist on revenues generated • Outside the E&G budget • Examples: Book Store, Housing, Athletics, University Center operations

  4. Budget 101: The E & G Budget

  5. Budget 101: Enrollment Funding • See Handout 1: SCH – Enrollment Change Funding Model

  6. Budget Shortfall • State revenue shortfall expected to be 10% or more of 2008-09 budget • Reductions to E & G budget • Reversion for 2008-09 • Anticipated permanent reductions for next year

  7. Budget Shortfall Budget Reductions: Essential Points • Applies only to state appropriation • WCU’s state appropriation is approximately $95.5 million • Every 1% equates to approximately $955,000

  8. Budget Shortfall: The Reversion • What is a reversion? • State sends a lesser amount than promised • One-time cut • Effect on 2008-09 WCU’s E&G budget • 5% less than expected • Institution $4.8 million • Provost Division $3.5 million • Handled centrally—So far • Held back 20 new faculty positions • Academic support dollars • Reserve funds

  9. Budget Shortfall: Planning for Reductions to 2009-10 E&G Budget

  10. Actions to Date • Identified criteria to guide decisions • Brainstorming session to identify possible cost savings strategies • All Deans and Directors (and VCs from other areas) have prepared 8% scenarios that are under review • See Handout 2

  11. Actions to Date: Criteria to Guide Decisions • Institutional Criteria • Strategic initiatives including UNC-T • QEP • Millennial Campus • Quality students • Infrastructure • Retention and graduation • Provost Division • Production of distinguished graduates • Quality relationships that support core mission • Core programs, services and talent • Long-term productivity trumps short-term gains

  12. WCU’s Unique Problem SCH production not aligned with budget

  13. WCU’s Unique Problem Understanding the Problem • New faculty positions are earned separately • SCH through distance education • SCH through resident instruction

  14. WCU’s Unique Problem • Over budgeted by 25 to 30 faculty lines • Over budgeted in support dollars that accompany faculty lines in areas like • Academics • Library • IT • Finance • Development

  15. WCU’s Unique Problem: The Student/Faculty Ratio

  16. WCU’s Unique Problem: Some Variables Associated with Student/Faculty Ratio • Number of faculty • Class size • Size of curriculum • Class scheduling • Concentration in major • Faculty load

  17. WCU’s Unique Problem:Average Instructional Salary Ranks 11th in the System

  18. Corrective Actions: Getting Back in Balance • Reduce current instructional FTE (582.25) by at least 30 FTE • Increase S/F ratio to 17 to 1 • Increase average instructional salary Cautions • Move toward 3/3 faculty load • Focus on quality

  19. Corrective Actions: The Most Pressing Problem FALL CLASS SCHEDULE is due January 29th See Handout 3: Strategies for Fall Semester 2009

  20. Corrective Actions: More Long-term Issues • Size of the major • Size and flexibility of Liberal Studies See Handout 4: Actions

  21. Corrective Actions: Anticipated Results • More efficient curriculum • Better retention • Better graduation rates • Higher future levels of funding • Increased faculty salaries • More appropriate faculty loads • Increased quality in academic programs

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