UTC Chancellor Says Budget Cuts ''Not Good News"

One of the many measures announced by Tennessee Governor Phil Bredesen last night was a $56 million cut to the state's "higher education" institutions.

The Governor said, "I have asked both the University of Tennessee and the Board of Regents to engage in this situation the way we have done in general government; to tighten their belts as much as possible and not simply pass along these reductions to families in the form of large tuition increases."

Click HERE to read all the details of the proposed budget cuts.

University of Tennessee at Chattanooga Chancellor Roger Brown sent out the following e-mail to UTC staff:

Dear Colleagues,

As President John Petersen reported yesterday to the university, state revenues continue to come in under projections and planning for next fiscal year will absolutely include cuts. Although the Governor has reported a $55 million cut to higher education, we do not yet know exactly what this means for the UTC budget in exact dollar figures. We do know, however, that we will be facing cuts and that we must take dramatic and unpleasant measures to face this fiscal reality.

Vice Chancellor Richard Brown and Associate Vice Chancellor Debbie Parker have prepared a response plan for our campus that I believe will take the necessary steps to meet our fiscal needs while doing the most possible to preserve instruction and operations.

A critical element of our budget reduction response plan is that we will protect our core functions and strive to maintain the integrity and quality of the academic instructional and research programs. We will provide basic support for student support services to ensure all enrolled students enjoy the benefits of a quality university experience.

Our first priority is to maintain the human capital of this campus and to protect the positions of current faculty and staff members who are in good standing. Base budget reductions will not be "across the board." We will look strategically at all programs and services as they relate to mission, strategic direction, and institutional quality. We must also ensure that all base budget reductions are implemented with recurring revenue sources.

The following steps are Phase I of our Reduction Action Plan.

1. We will implement an immediate university-side hiring freeze, extending at this time through June 30, 2008. Vacant and open positions will be utilized to offset base budget reductions. The hiring freeze may be extended beyond June 30 once we have more information about next year's budget.

2. Any reductions in force function on a last-in-first-out, or seniority-based, strategy. It is neither prudent nor ethical to bring in new employees until permanent revenues and final state appropriations have been determined.

3. We will implement an immediate freeze on equipment and special purchases, extending through June 30, 2008. While this action is late in the fiscal process, any savings realized might offset any potential reductions for the current fiscal year. It may be necessary to extend the freeze on special projects and equipment purchases beyond June 30 once we have more information about next year's budget.

4. Operating budget reductions for 2008-09 will come from travel, equipment, training, and special services.

Let me assure you that despite the bleak fiscal outlook, I remain optimistic about this campus and the direction we are moving. Although the two percent raise announced earlier by the state has been removed from the governor's budget, compensation planning will remain a top strategic priority for this campus. We will reevaluate our ability to continue compensation planning in January 2009 once we know more about the fiscal picture after fall enrollment and mid-year fiscal projections from the state.

As more information is available, we will distribute to the campus. I encourage you to share this email with those who do not have email access.

If you have questions about the budget, I encourage you to contact Richard Brown or Debbie Parker. They are continually monitoring the fiscal health of this campus as well as staying up-to-date on discussions at the system and state levels regarding upcoming budget news.

I know that this is not good news, and I suspect that we will be facing this fiscal situation for an extended period, but I have confidence in the faculty and staff of this campus. We will find ways to overcome these financial concerns and provide outstanding education and service to our students and community.

We shall achieve.

Sincerely,
Roger Brown
Chancellor, The University of Tennessee at Chattanooga