Wilbur unleashes plan to cut university budget

A university budget reduction plan for the 2010-11 fiscal year was put into action Wednesday.

Each budget center, or area that spends money, was asked to prepare a suggestion of budget cuts of 3, 6 and 9 percent by Feb. 8.

“We need a hotwire number, (which is) 9 (percent). Three percent is the starting point,” said David Burdette, vice president of Finance and Administrative Services. “We’re obviously going to be doing less with less.

“We need to begin the planning for budget reduction now.”

Kathy Koch, interim dean of the College of Education and Human Services, said she was expecting an announcement of some sort of cuts. The difference in each department, she said, from the 3 percent range to the 9 percent range, is massive.

“It’s a huge jump … We are looking at millions of dollars we have to cut,” Koch said.

She said she would be meeting with different departments this week to look over what things could be cut.

Based on the 2009-10 operating budget, if 3 percent of funding was cut from residential halls, it would result in a loss of $514,642.71. In the case of 6 percent cuts, residence halls lose $1,029,285.42. A total of $1,543,928.13 would be lost with a 9 percent cut.

If the College of Education and Human Services was cut by 3 percent, it would result in a loss of $549,011.49, if the cut was 6 percent, the loss would total $1,098,022.98 and, if it was 9 percent, there would be a loss of $1,647,034.47.

Vice presidents of the budget centers were directed to send preliminary reports to Interim University President Kathy Wilbur by Feb. 15.

Asking for three different possible cuts helps the university prepare for a variety of situations, said Steve Smith, director of public relations.

“There are so many variables right now we are dealing with,” he said.

The university is waiting to hear from Lansing as to the state’s financial situation. It is possible Gov. Jennifer Granholm will be calling back funds to the university, Smith said.

What to cut

Each center will not necessarily be cutting its budget by the same percentage.

After reviewing suggestions from the centers, it is important to go through and see which options are most necessary, Burdette said.

If one cut will affect another area on campus, it cannot be cut, he said.

“You have to watch the unintended consequences,” Burdette said. “We want to keep the next three or four years into consideration.”

John Fisher, associate vice president of residences and auxiliary services, said though the decision could be a while off, it is one that could affect students, faculty and staff alike.

“If we do get the larger percentages, students will see changes,” he said.

Fisher said if the percentage reduction is in the 6 percent to 9 percent range, layoffs are possible.

He said Residence Life is unique because it actually makes money and does not rely on the general fund for money each year. Although Residence Life is a special group in that way, he said, the department would be providing different plans for budget reduction. He could not comment on what those might be yet.

Budget urgency

The Senior Staff Budget Advisory Group has been researching for months to come up with options for university-wide cuts.

Wilbur is considering several million dollars worth of ideas. Burdette said about 120 suggestions have been sent to Wilbur from the Senior Staff Budget Advisory Group, some of those being from the CMU community submitting ideas online last semester.

“It’s difficult,” said Barrie Wilkes, controller and associate vice president of Financial Services and Reporting. “It’s hard to look across the campus and say we’re doing stuff we shouldn’t. That ship has sailed. We’re way past that.”

Burdette said no decision will be made in the near future, but budget concerns need to be addressed now. There will be a lot of discussion over the next several weeks.

“They have to stop right now and pay attention,” he said. “Unfortunately, people are very experienced at this kind of planning.”

Whatever cuts are implemented will be effective July 1, at the start of the next fiscal year.

Wilkes said he knew cuts would be coming, he just did not know when.