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How UTIA is Managing More Effectively and Efficiently with a Reduced Budget

Presented to the University of Tennessee Board of Trustees Effectiveness and Efficiency Committee May 19, 2010. How UTIA is Managing More Effectively and Efficiently with a Reduced Budget. UTIA Organizational Chart. *Funded via UTK. PHILOSOPHY.

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How UTIA is Managing More Effectively and Efficiently with a Reduced Budget

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  1. Presented to theUniversity of Tennessee Board of TrusteesEffectiveness and Efficiency Committee May 19, 2010 How UTIA is Managing More Effectively and Efficiently with a Reduced Budget

  2. UTIA Organizational Chart • *Funded via UTK

  3. PHILOSOPHY • Improve operating efficiency while maintaining critical positions that are necessary to drive our teaching, research, and extension missions • Guiding principles dealing with budget reductions • Minimize negative impact on students • Minimize reductions in force • Maintain program availability statewide

  4. Budget TrendsFY 2005 through FY 2010

  5. REVENUE 1Growth is due to increase of cost of tuition and class size for the College of Veterinary Medicine. 2Increase in FY 2008 Federal Appropriations was due to additional Hatch funds awarded to AgResearch and timing difference due to state and federal year end. 3Funding for CASNR is not included.

  6. REVENUE

  7. STATE APPROPRIATIONS ARRA and MOE funds are not included in the totals. Funding for FY 2011 and 2012 are estimates.

  8. EXPENDITURES

  9. UTIA Administration Budget UTIA Administration’s budget has been reduced by 18 percent since 2008. It is 2 percent of the total UTIA budget.

  10. UTIA Administration Budget Reductions * Includes UTIA Vice President’s voluntary 5 percent salary reduction. **FY 2010 reductions totaled $285,358 due to stimulus funding. The remaining $103,606 will be implemented by FY 2012.

  11. Managing with Reduced BudgetsBudget Plan forFY 2010 – FY 2012

  12. Cost Savings • Travel Improvement Program – Statewide travel is submitted by scanned document instead of mailing hard copy. Annual Savings - $50,000 • Four of seven academic units converted all or part of multiple research support staff positions to restricted accounts. Annual Savings - $208,000 • Smart Meetings – By use of Polycom, Centra and MicroSoft Communicator, meetings are conducted via the Internet instead of face-to-face. Travel costs are reduced while communications are improved. Estimated Savings - $75,000; Staff Time Savings (from travel) - $1M • Electronic Receipts – Replacement of handwritten receipts with electronic system. Direct Savings - $5,000; Staff Time Savings - $200,000

  13. Cost Savings • 152.91 positions eliminated. Estimated annual savings - $6.56M- Vacant 60.00 - Retirement 59.50 - Professional/Support Staff 24.41 - GRAs 9.00 • Operating budget reduction. Annual Savings - $1.92M • Purchase of vans and trucks for off-campus locations. Annual Savings vs. Mileage Reimbursement - $.43/mile. Savings does not include vehicle acquisition cost. • CVM replaced “chiller plants” originally installed in 1976, 1 of 9 original air-handler units, and old “mercury lighting” system with the Pendergrass Library. This new equipment is 50 percent more efficient than the original.

  14. Strategic Reallocation • Centralized grant and contract pre-awards operation within the teaching, research and Extension units. This was a strategic move to promote more efficient and effective use of resources by both faculty and staff and will result in growth in grant/contract award dollars. • Re-focused programmatic areas at the 10 Research and Education Centers while maintaining the necessary diversity in geographic and climatic conditions. REC total reduction - $1.2M • Consolidated leadership at the Middle Tennessee and Dairy Research and Education Centers. Annual Savings - $135,000 • Relocation of the Milan Research and Education Center headquarters next to the Milan No-Till Museum – improved staffing efficiency. Annual Savings - $65,000

  15. Strategic Reallocation • New e-commerce store front is being developed for online sales. It is anticipated that the number of online clientele will increase with a more user-friendly website. Estimated additional income = $50,000 • E-Mail system was merged with UTK and allowed for the elimination of 1.4 FTE. Annual savings = $200,000 • International Agriculture program was merged with UTK and allowed for the elimination of 2 FTE. Annual Savings = $200,000

  16. Cost Avoidance • The Buford Ellington 4-H Center in Milan was closed to reduce expenses and avoid large capital maintenance and improvement costs due to deteriorating conditions of the facilities, while also increasing the utilization of the remaining three 4-H Centers in Columbia, Crossville, and Greeneville. Savings - $300,00 • High priority faculty vacancies were redefined as joint Extension/Research positions in Animal Science, Biosystems Engineering and Soil Science, and Plant Sciences, resulting in appointments of faculty with skills in both applied research and outreach while reducing the total number of faculty hires needed. Savings - $200,000

  17. Cost Avoidance • Faculty in Extension Family and Consumer Sciences have collaborated with Nutrition and Animal Science faculty in establishing an Obesity Research Center. These collaborations have increased grants and contracts for health and nutrition projects. Increased Revenue - $150,000. • Purchased new Eastern Region Extension office instead of constructing new facility. Estimated savings of purchase vs. construction is $500,000, excluding land acquisition.

  18. Impact of Budget Reduction • Operating, equipment, and salary budget reductions will increase the dependency on extramural funding, placing an increased demand on faculty. • Reduced funding support for graduate student assistantships. • For CASNR, 12 courses were eliminated or reorganized into four courses. • Impact on students: • Less diverse course offerings • Subject matter breadth sacrificed to maintain depth • Reduced hands-on lab experience

  19. Impact of Budget Reduction • Increased use of non-PhD faculty to teach courses: • CASNR is under-funded by 18 FTEs to support teaching/advising activity. • CASNR enrollment has increased more than 10 percent from 2007 to 2009. • Lecturers (on ARRA funding) are being used in BESS and AS to teach courses due to greater demand. • All graduate students (even those on research assistantships) are now being used to help teach. • One staff position was eliminated and funds shifted to help fill faculty position. Workload was shifted to other staff.

  20. Total FilledFaculty Positions

  21. Revenue Enhancements Opportunities • Student-Led Organic Vegetable Market • Rental of UT Gardens • Garden membership fee • Increased livestock show fees – will be used to fund livestock coordinator position • Online sale of publications • Master beef programs and pesticide safety certification • Food Safety training • Tai-Chi education

  22. Revenue Enhancements Opportunities • UTIA Capital Campaign has exceeded $85M • Improve marketing of UT animal genetics • 50 mile radius “courier service” to capture blood and tissue submissions from private veterinary practices to hospital diagnosis labs will enhance revenue and referral cases. • New services established with Small Animal Hospital • Community practice – primary care medicine • Dental practice • Integrative Medicine • Electronic medical record access, “Referring Veterinary Web Portal,” should enhance referral cases.

  23. Revenue Enhancements Opportunities • Considering new MRI service for Equine Hospital. • Intend to market name change from VTH to UT Veterinary Medical Center to enhance recognition of UT medical and surgical expertise. • Fees for lab intensive CASNR courses or those requiring materials. – $34,702 • Increased grant and contract activity to support teaching: • 7 submitted for a total of $2,810,553 • 2 funded to date for a total of $1,390,665 with the others pending

  24. Stimulus Funds Spending PlanFY 2010 and FY 2011

  25. Strategic Use of Stimulus Funds • Offered staff incentive retirement plan that allowed flexibility in making strategic budget reduction. UTIA paid for retirement bonus and ½ time appointment for one year appointment up to 960 hours. - $2.9M • CVM Large Animal Hospital capital improvement to help resolve accreditation deficiency. - $2M • CVM will replace essential hospital and research equipment. - $3M • CVM teaching, faculty start-up and maintenance needs. - $100,000 • CVM revenue is currently forecast at $600,000 behind budget target ($9.8M vs. anticipated $10.4M). FY 2011 stimulus funds may be needed to temporarily meet ongoing hospital operation needs.

  26. Strategic Use of Stimulus Funds • Greeneville 4-H Camp water line maintenance/ renovation project will provide improved safety and water service for the 4-H Center and surrounding community. - $300,000 • Consultant hired to assist with the development of a new strategic plan and corresponding re-staffing effort due to loss of positions. • Improve energy efficiency at the Johnson Animal Research and Teaching Unit by implementing occupancy zone management and heat recovery units. Anticipated energy cost savings of $54,000/year with a pay-back period of 2.2 years. • Highland Rim Research and Education Center installed new irrigation system. - $95,000

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