Final Category IIIa and Additional Category I and II Budget Reductions

[posted June 27, 2003]

Dear Colleagues,

This message concludes the major phase of our budget reduction process made necessary as everyone knows by the legislatively mandated reductions. By now, no one on campus or affiliated with our institution remains untouched by these severe reductions. Faculty, staff, students, parents, alumni, and friends, all have followed the painful path we have taken. They have shared the disbelief as important programs disappeared or major activities shrink in size. They know that these reductions not only affect the services we offer so many people on and off campus but also will result in lost jobs and reduced opportunities for so many others. Our appreciation for the careful and responsible approach everyone has taken to this challenge is muted by our shared understanding of the loss we have suffered. We can admire the strength and leadership of this campus’ people without for a moment minimizing our understanding of the damage these reductions do to us.

The table below identifies the final numbers for the additional Categories I and II reductions and those identified for Category IIIa. At this time we do not anticipate a Category IIIb process. In the next several days I will review the plans from each of our units affected by all of these measures to ensure that we can implement the reductions identified in this process. While we will do our best to moderate the impact of the reductions over a period of time as we complete commitments and provide adequate notice to people affected by these actions, the campus resources for this purpose are of course limited. We will need to use a substantial portion of reserves to pay for the costs of readjustment, and we will need to implement our reductions as fast as possible to stay within our resources.

We still have a few other issues outstanding as all of you know. We expect to resolve the student fee issue by the first of next week, and we do not anticipate additional bad news from the governor or the legislature. The impact of the early retirement programs for faculty and staff will remain unknown until the early fall. By early next week, probably on July 3rd, I will have enough information from the budget reduction plans submitted from across the campus to provide you with a more complete and detailed review of the impact of these reductions on the various units and programs of the university. In addition, at that time I will provide a review of the administrative and organizational changes that I will implement to readjust to the changed circumstances of the institution.

As we complete this process at the beginning of our new fiscal year, all of us will need to become vigilant budget managers. The reductions I have identified and the fee increases I will ask for put us at the very edge of our fiscal capacity. While I could have taken more out of our programs and services to create a margin, the advice of colleagues throughout the university has made it abundantly clear that I have pushed the campus as far as possible. This leaves us with a remaining annual deficit in our accounts estimated at perhaps $2 or $3 million. I believe we can make up this shortfall through careful management and intense focus on alternative revenue from grants and contracts, private fundraising, continuing and distance education, commercialization of intellectual property, enrollment growth, and other revenue generating activities of our academic enterprise.

In any event, next week the summary of the steps the campus has had to take in the face of these unusually painful economic circumstances will make clear where we stand and what we must do to ensure the continued development of this university’s quality in teaching, research, and service.

With best wishes for us all,

John V. Lombardi
Chancellor

FY04 Budget Final Category IIIa and Additional Category I and II Reductions (PDF)




FY07 Budget Update Amherst 250 Plan: Step One, An Interim Report Amherst 250 Plan Financial Master Plan Budget Document Archive Home	Final Category IIIa and Additional Category I and II Budget Reductions [posted June 27, 2003] Dear Colleagues, This message concludes the major phase of our budget reduction process made necessary as everyone knows by the legislatively mandated reductions. By now, no one on campus or affiliated with our institution remains untouched by these severe reductions. Faculty, staff, students, parents, alumni, and friends, all have followed the painful path we have taken. They have shared the disbelief as important programs disappeared or major activities shrink in size. They know that these reductions not only affect the services we offer so many people on and off campus but also will result in lost jobs and reduced opportunities for so many others. Our appreciation for the careful and responsible approach everyone has taken to this challenge is muted by our shared understanding of the loss we have suffered. We can admire the strength and leadership of this campus’ people without for a moment minimizing our understanding of the damage these reductions do to us. The table below identifies the final numbers for the additional Categories I and II reductions and those identified for Category IIIa. At this time we do not anticipate a Category IIIb process. In the next several days I will review the plans from each of our units affected by all of these measures to ensure that we can implement the reductions identified in this process. While we will do our best to moderate the impact of the reductions over a period of time as we complete commitments and provide adequate notice to people affected by these actions, the campus resources for this purpose are of course limited. We will need to use a substantial portion of reserves to pay for the costs of readjustment, and we will need to implement our reductions as fast as possible to stay within our resources. We still have a few other issues outstanding as all of you know. We expect to resolve the student fee issue by the first of next week, and we do not anticipate additional bad news from the governor or the legislature. The impact of the early retirement programs for faculty and staff will remain unknown until the early fall. By early next week, probably on July 3rd, I will have enough information from the budget reduction plans submitted from across the campus to provide you with a more complete and detailed review of the impact of these reductions on the various units and programs of the university. In addition, at that time I will provide a review of the administrative and organizational changes that I will implement to readjust to the changed circumstances of the institution. As we complete this process at the beginning of our new fiscal year, all of us will need to become vigilant budget managers. The reductions I have identified and the fee increases I will ask for put us at the very edge of our fiscal capacity. While I could have taken more out of our programs and services to create a margin, the advice of colleagues throughout the university has made it abundantly clear that I have pushed the campus as far as possible. This leaves us with a remaining annual deficit in our accounts estimated at perhaps $2 or $3 million. I believe we can make up this shortfall through careful management and intense focus on alternative revenue from grants and contracts, private fundraising, continuing and distance education, commercialization of intellectual property, enrollment growth, and other revenue generating activities of our academic enterprise. In any event, next week the summary of the steps the campus has had to take in the face of these unusually painful economic circumstances will make clear where we stand and what we must do to ensure the continued development of this university’s quality in teaching, research, and service. With best wishes for us all, John V. Lombardi Chancellor	FY04 Budget Final Category IIIa and Additional Category I and II Reductions (PDF)


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