Reporter Volume 26, No.21 March 23, 1995 By CHRISTINE VIDAL Reporter Editor The last six weeks have been a turbulent time for UB and SUNY as the system faces the loss of nearly one-third of its state tax support in the 1995-96 fiscal year. In addition to a budget reduction of $75 million, the system also is expected to raise an additional $215 million of income for a total reduction in state support of $290 million. As the April 1 deadline for legislative approval of the budget draws close, the university community is anxious for answers regarding what can be expected next year. While it is difficult to speculate about the final budget and the impact it will have on the State University of New York and UB, following are answers to some of the more commonly asked questions. What is the current status of SUNY's $290 million budget cut and revenue obligation that was proposed in the Executive Budget? No changes to the executive budget were made by the governor during the 30-day amendment period. It is now up to the Legislature to determine what shape the 1995-96 budget will take. What plans has SUNY developed to address the budget cut? In a March 14 press conference, SUNY Board of Trustees Chair Frederic V. Salerno, with the unanimous support of the board, outlined a plan to meet the $290 million budget cut and revenue obligation. (See related story.) In order to meet the cuts proposed in the 1995-96 executive budget, according to Salerno, SUNY would have to: o Carry out systemwide restructuring, including a 30 percent cut in SUNY administration, for estimated savings of $3.5 million, as well as reduce support to the statutory colleges in SUNY and other reductions. o Eliminate 120 campus programs, curtail 600 others and make other campus reductions, for total savings of $42.2 million. o Increase undergraduate resident tuition by $1,600 to $4,250, with proportional increases for all other students, for a total net revenue of $188 million. o Merge or close eight campuses and/or hospitals, for total savings of $41 million. Should SUNY pursue this course of action, an estimated 2,500 jobs would be eliminated systemwide, and 20,000 students would be denied access to the SUNY system, according to Salerno. Twenty-eight percent of all programs, and every SUNY campus, would be impacted by the cuts. What actions, if any, has the Legislature taken to restore funds that were cut in the executive budget? At press time, initial meetings are being held with the legislative leadership regarding the trustees' proposal. How will students be affected by the proposed budget cuts and revenue obligation? "We're making a transition from an institution that was almost entirely subsidized less than 10 years ago to one that will be almost entirely revenue driven," said Provost Aaron N. Bloch. "If everything holds close to what the governor has proposed and the trustees have found necessary in their response, students are going to find the cost of their education substantially higher, with less aid available than before. That will certainly be a burden on our undergraduates and as now formulated, it will be an even greater burden to our graduate students." Graduate costs, he noted, will approach the level of private universities, especially when tuition increases are combined with the total elimination of TAP for graduate students. The budget proposal also means students should expect some curtailment of academic programs and possibly the elimination of some majors, although "I can't begin to tell you where that burden will fall," Bloch said. "UB is committed to opening channels for undergraduates to get their degrees in a more appropriate period of time," according to Bloch. "Our students deserve a responsive, accommodating and supportive environment, and we intend to provide that." Where do efforts to restore Educational Opportunity Program funding stand? "The campaign for the restoration of EOP has been very impressive in the way in which it's been conducted," said Bloch. EOP students, alumni and program staff have been mobilized and are waging an extensive campaign to have funding put back in the budget. "There are encouraging signs. Many in Albany are impressed with the conduct of the campaign to have EOP restored." Numerous vehicles are still being utilized to promote the importance of EOP and to encourage its restoration. Efforts include letter writing, telephone calls, petitions, demonstrations and personal visits to the capital and to those local elected officials who will contribute to the decision to restore this vital New York State program. As of yet, however, university officials have not been apprised of any official changes; the governor's budget as of March 1 did not indicate any restoration for EOP. Hence, although officials remain hopeful of some level of restoration, at this point, EOP access for thousands of students still is not part of the state agenda. What plans are underway at UB to address the problems created by a substantial budget reduction in fiscal year 1995-96? UB has been engaged in contingency budget planning for the past several weeks. Groups are working on enrollment planning, human resource and employment strategies, including the early retirement program, organizational and administrative review, particularly in the area of general administration and selected revenue fee opportunities. Discussion related to potential targeted reductions has begun. The provost's academic planning process is examining closely the capacity of each school and faculty to absorb reductions in budget. These planning efforts have involved broad consultation, including the Faculty Senate Executive Committee and the Senate Budget Priorities Committee, as well as discussions with vice presidents, deans and department chairs. What are key provisions in the State's retirement incentive legislation? o Employees must be members of the Optional Retirement Program (TIAA-CREF), Employees' Retirement System, or Teachers' Retirement System. o Eligible employees must be at least age 50 with 10 years of service credit on the effective date of retirement and encumber a targeted title. o For eligible Employees' Retirement System and Teachers' Retirement System members, the incentive allows one to retire with an additional one-twelfth of a year of service for each year of service credit one has as of the date of retirement, up to a maximum of three years. o Eligible TIAA-CREF members may retire and receive three equal cash payments 2, 14, and 26 months after retirement based on the formula: One-twelfth for each year of service, multiplied by 15 percent, multiplied by the annual salary rate in effect on Feb. 1, 1995, up to a maximum of 45 percent. o Eligible Classified Service employees had to file a Notice of Interest by March 17, 1995. An irrevocable application for retirement must be filed by April 7, 1995 with a retirement date on or before April 21, 1995. o Eligible Faculty and Professional Staff must file a Notice of Interest with Personnel Services by April 19, 1995. An irrevocable Notice of Retirement must be filed with Personnel Services and TIAA-CREF by July 19, 1995 with a retirement date on or before August 10, 1995. Will the budget-cutting process result in layoffs at UB? Depending on the size of the campus reduction and the guidelines provided by SUNY Central and the trustees it may be necessary to retrench at UB. The trustees' plan calls for selected program reduction and elimination that, depending on the savings requirement, could lead to the need to go beyond faculty/staff vacancies in meeting the required reduction. Is the state planning to issue pink slip furlough notices to SUNY personnel if the budget hasn't been passed by April 1? No. Because SUNY has a continued appropriation through June 30, 1995, it is unlikely that the university will be affected by any failure to enact a New York State budget by April 1. Additionally, state civil service laws require that workers be told at least 20 days in advance if furloughs are planned. March 12 was the deadline for notification of an April 1 layoff. And, according to a report published March 14 by the Associated Press, Gov. Pataki has said the state's 211,000 workers will have a job on April 1 and, with the exception of the legislators, the legislative employees and the executive employees, will continue to be paid.