University pursues hiring freezes, budget cuts

The University is reorganizing staff, reducing expenditures and freezing most new hires to respond to anticipated reductions in state funding.

In addition to a 5 percent cut in the current budget, University officials are gearing up for an additional 10 percent reduction for the current biennium, according to University officials.

"I don't want to panic. I want to prepare," Gregg Lassen J.D, Executive Vice President for Business Affairs, said.

Two University committees convened to identify and recommend ways to save money.

The Cost Containment Committee, headed by Lassen, examined the issue of budget cuts and where to apply them.

The Academic Reorganization and Revitalization Task Force, lead by Provost Peter Fos, looked for ways to contain costs and reduce expenditures.

About 118 positions will have been eliminated from the UT System as a whole by Sept. 1, according to a message from the Chancellor, but Lassen said that while about half of the University's operating costs are employee salaries, layoffs are a long way off for this campus.

"We are working very hard, and we value our employees like family," Lassen said. "We will do everything possible first."

The Cost Containment Committee and The Academic Task Force have examined ways to cut costs within the university.

Immediate recommended actions include flexible freezes on hiring and purchases, curtailments on travel and reductions in part-time pay. There will be increased efforts to conserve energy. Auxiliary operations will be required to become self-funding.

Other cost-cutting options won't be so easy, said President Rodney Mabry in a June 10 memo to University employees.

"We have arrived at an important crossroads for the University. Most of the easy cost containment measures have been taken ... We cannot just continue going down this path of taking the easy, short-run measures that hurt everyone somewhat evenly, but do nothing to solve the long-run problem."
Mabry said in the memo there will be changes that make the university "a leaner and more effective educational institution."

Such measures would include furloughs (a euphemism for across-the-board pay cuts) and reductions in marketing and student services.

However, Mabry also said they want to avoid reductions in marketing and student services because of the consequences to enrollment and university growth.

Lassen said the reduction in state funding and cap on tuition costs give the university more incentive to grow.

"For us to thrive, we need to stop being a well kept secret," Lassen said. "The cost of education hasn't changed. Who pays it has, and we are doing everything we can to keep this from affecting the students."

A 10 percent cut in the annual budget would be approximately $5 million.

Ten percent "would obviously be a significant reduction in funding from the state, and we must start now if we are to conserve that amount of funding without doing harm to our mission," Lassen said in a June 16 letter to faculty and staff. "To avoid more draconian actions such as large layoffs or furloughs, we must take action immediately on some of the valuable recommendations of our two groups."

Some of the changes already taking place include:

• Col. Jesse Acosta is taking on new duties and sharing others with Lassen. Acosta's position as chief of staff will be eliminated July 1.
• Dr. Howard Patterson is taking over the role of athletic director, replacing James Vilade, who left the University this month after accepting a new job in Plano.
• A full-time and a half-time position were eliminated in Alumni Affairs.
• University officials also expect to eliminate 80 percent of small classes (classes with less than 20 students), cut adjunct faculty positions and increase the emphasis on on-line education.

Efforts are under way to implement ways to increase revenue such as implementing a professional educational program and boosting enrollment.
"Our primary mission is to give students an education," Lassen said. "We don't want to hurt that."

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