March 14, 1996-Vol27n22: UB takes two-pronged approach to state budget cuts

UB takes two-pronged approach to state budget cuts

In the past month, President Greiner and Provost Headrick have shared with the university their views on efforts to manage UB's future in light of continuing cuts in state tax support. The essential point they make is that UB intends to manage change and not be managed by it.
To that end, we are currently engaged in two processes: advocacy efforts to minimize the overall budget reductions and contingency planning to deal with the lump-sum reduction that will be UB's share of cuts in state funding for the State University of New York.
Since the 1991-92 fiscal year, SUNY's budget has been reduced by $217.2 million. As the system's largest and most comprehensive campus, UB has absorbed a large part of that total reduction. For the current fiscal year alone, UB's reduction totaled more than $10 million.
SUNY and UB would be hard hit in the next fiscal year by three major budget reductions being proposed in Albany:

$98 million in the SUNY operating budget

$16 million in the SUNY capital equipment budget for technology and support for the Graduate Research Initiative

$45 million in TAP funding for SUNY students
While the SUNY Board of Trustees has proposed ways to ameliorate approximately $67 million of the $98 million reduction through a combination of more income (largely from a $250 tuition increase) and reducing state costs, these savings or some portion of them will be generated only if SUNY's legislative package is enacted.
Even with a successful advocacy effort, we expect SUNY and UB to be hit with a lump-sum reduction which, at this stage in the budget process, we estimate will range from 4 percent to 7 percent. This translates into an $8 million to $14 million reduction to UB for 1996-97.
UB's advocacy efforts are focused on a number of crucial areas:

Restoring TAP to its 1995-96 funding level and funding formula, a "must" if we are to provide access to the most needy SUNY students.

Passing SUNY's legislative package, including the Management Effectiveness Bill, Health Care Management Bill and Retirement and Severance Incentive Bill.

Supporting a $250 tuition increase for 1996-97. That general tuition increase would translate into $26 million in revenue, and is essential given the proposed $98 million reduction in SUNY's operating budget.

Approving legislation permitting differential tuition, which is necessary to meet UB's unique program needs.

Reducing the size of SUNY System Administration consistent with recommendations made in "Rethinking SUNY."

Increasing funding for technology to meet educational and administrative requirements. Technology has been, is and will continue to be a high priority and vital to the university's ability to function.

Extending excess tuition revenues in 1995-96 (SUTRA) for meeting UB program needs, and insuring that the SUTRA mechanism is in place for 1996-97.

Extending decentralization of Research Foundation activities to allow the campus to both improve service and to reduce administrative costs.

Securing approval for more campus management of student fees and charges from System Administration.

Retaining current July-June fiscal year.

Retaining Educational Opportunity Centers (EOC) in SUNY, rather than moving them to the Labor Department.
How will UB deal with another large reduction in state funding that is likely to occur, despite our advocacy efforts? At this time, indications are that:

Reductions will be allocated to all areas, including academic programs. It no longer will be possible to have a disproportionate share of reductions assigned to support areas. Further reductions will require a proportionate reduction being assigned to academic areas.

We will have to integrate enrollment management. Both the structure for managing enrollment (Senior Enrollment Management Group) and the integration and input into enrollment planning are now in place. What needs to be done is now clearly identified, and steps to improve recruitment and retention are underway.

Students will continue to pay for selected services. To meet a portion of technology needs for students, a fee was initiated for Fall 1995. Other fees were modified based on increased costs of services.

There will be more emphasis on staff development and training, both necessary to our future success. More time, attention and resources will be paid to this activity.

Despite seven consecutive years of reduction, we will continue to avoid retrenchment this year, although there is concern over the growing lack of resource flexibility to manage this in the future.

We will aggressively take advantage of entrepreneurial opportunities to increase revenues from non-state sources. Policies and regulations will need to be revised to allow for an improved "entrepreneurial atmosphere" on campus, and overhead costs will need to be examined.

Technology is a strategic resource. Like many large organizations, UB is beginning to see technology as not just a tool or set of tools, but a transforming resource. Because technology will be essential to our future and will fundamentally change how we work, Computing and Information Technology will not be expected to make the same budget reduction as other areas of the university.

We will continue to emphasize improved service to students in all support areas. There is growing recognition that quality services are essential to student recruitment and retention.

UB's investment priorities will focus on academic programs (e.g., Center for Structural Biology); technology; Public Service and Urban Affairs; Development; and Intercollegiate Athletics.
The bottom line is that change will occur; for some, the rate of change will be seen as too rapid.
Technology will be absolutely essential to our future and will fundamentally change how we work. Competition for students will be intense, and we will need all the incentives and tools we can identify to compete effectively.
The skills that staff need will change dramatically, and nearly all staff will require more development and training. Units will manage more of the institution's overall resources, and administration will be re-engineered and downsized.
Over the next several months you will be hearing more about the university's push for more flexibility and resources, and our review of plans to implement the necessary reductions that will result from the final 1996-97 budget process.
I welcome your feedback on our contingency planning and advocacy efforts.
Robert J. Wagner
Senior Vice President
520 Capen Hall
Phone #: 645-2922
FAX #: 645-2933
E-Mail: USVRJW@UBVMS.CC.BUFFALO.EDU