Final Legislative Budget

[posted June 10, 2003]

Dear Colleagues,

The Legislative budget approved and sent to the Governor for review apparently requires the maximum budget reduction from the University of Massachusetts, approximately 18.5%. Our share of that reduction for the Amherst campus, following traditional practices in the UMass system, will reach about $41 million. This is a dramatic reduction, especially so since it follows the last two year’s reductions totaling $25.8 million. To put this in perspective, it means that this campus must eliminate programs and activities equivalent to almost $67 million or 29% of our 2001 state appropriation. We are sorely disappointed that the legislature could not identify a middle ground between the Senate and the House proposals that would have moderated this damaging reduction. While the final budget approved by the legislature does provide some opportunity for future revenue growth through the retention of tuition paid by out-of-state students, the gains from this measure will provide only modest relief in future years.

In summary, then, the budget reduction process accomplished so far at great cost to the breadth of our programs and to the detriment of many of our employees has removed approximately $15.8 million of the new total of $41 million. We must now find $25.2 million in additional savings and revenue.

Everyone who has followed the painful and difficult reductions in the Category I, II, and IIIa process, knows that a reduction of an additional $25.2 million would dramatically and irreparably damage the core functions of our university. This grim perspective requires us to request that the President consider asking the Trustees to approve a student fee increase. Before establishing a fee increase request, we will make one more review of every budget reduction possibility in Categories I, II, and IIIa. While we will be able to identify additional reductions, almost everything we do in these areas will have serious consequences for programs central to many of our students, faculty, staff, or statewide constituencies.

To resolve the remaining reduction required by the legislature will require us to request a fee increase of at least $500 and perhaps as much as $750 per semester. This is a significant increase that reflects a dramatic shift of responsibility for the cost of public higher education from the Commonwealth to students and their parents and families.

We still do not know for sure whether we will have done enough to meet the demands of the state. The current budget numbers remain approximate until the Governor completes his review and the legislature considers his changes. Our campus reduction process will not be complete until July 1. The Trustees have not yet considered a fee increase request. Until we can resolve some of these issues, we cannot complete the process and we will not know whether I must consider the even more difficult and damaging process identified as Category IIIb program reductions.

In the meantime, I will post the proposed additional Categories I, II, IIIa reductions on the website by 6 pm Tuesday, June 24th. Given the many thoughtful comments I have already received about the items in these categories, we can complete our comment period by 6 pm on Thursday, June 26nd. Please write me any comments by email to lombardi@umass.edu and I will review all comments and post the final, additional reductions on the web site by 6 pm on Friday. An updated schedule is on this web site.

On June 30th, the Management Council and the President’s Council meet in Boston, and at that time the chancellors will discuss with the president’s management team and with the President the measures the campuses have taken, those that the central office has taken, and the options for requesting a fee increase. If, after this meeting, it appears reasonable to assume for planning purposes that the trustees might consider a fee increase, we will incorporate an estimate of the yield from an increase into our planning. By July 1, we should have received the budget reduction plans from each unit as required by the process, and with this information I can write the campus on July 2 with an update that will either indicate that we have resolved the budget issues or that I believe it likely the campus will need to go to Category IIIb and begin a retrenchment process that will have an impact on academic programs and faculty contracts.

All of us wish that this extremely difficult process could be resolved more easily, but given the size of the reductions demanded of us, there is no easy way to manage this without moving carefully to do the minimum damage. Damage will occur, for these reductions are precedent setting in size, but by careful reductions, subject to multiple reviews, I believe we can keep the considerable damage done to our academic enterprise to the minimum possible.

Again, my thanks to everyone whose suggestions and comments have helped keep this process properly oriented even under these extreme circumstances.

John V. Lombardi




FY07 Budget Update Amherst 250 Plan: Step One, An Interim Report Amherst 250 Plan Financial Master Plan Budget Document Archive Home		Final Legislative Budget [posted June 10, 2003] Dear Colleagues, The Legislative budget approved and sent to the Governor for review apparently requires the maximum budget reduction from the University of Massachusetts, approximately 18.5%. Our share of that reduction for the Amherst campus, following traditional practices in the UMass system, will reach about $41 million. This is a dramatic reduction, especially so since it follows the last two year’s reductions totaling $25.8 million. To put this in perspective, it means that this campus must eliminate programs and activities equivalent to almost $67 million or 29% of our 2001 state appropriation. We are sorely disappointed that the legislature could not identify a middle ground between the Senate and the House proposals that would have moderated this damaging reduction. While the final budget approved by the legislature does provide some opportunity for future revenue growth through the retention of tuition paid by out-of-state students, the gains from this measure will provide only modest relief in future years. In summary, then, the budget reduction process accomplished so far at great cost to the breadth of our programs and to the detriment of many of our employees has removed approximately $15.8 million of the new total of $41 million. We must now find $25.2 million in additional savings and revenue. Everyone who has followed the painful and difficult reductions in the Category I, II, and IIIa process, knows that a reduction of an additional $25.2 million would dramatically and irreparably damage the core functions of our university. This grim perspective requires us to request that the President consider asking the Trustees to approve a student fee increase. Before establishing a fee increase request, we will make one more review of every budget reduction possibility in Categories I, II, and IIIa. While we will be able to identify additional reductions, almost everything we do in these areas will have serious consequences for programs central to many of our students, faculty, staff, or statewide constituencies. To resolve the remaining reduction required by the legislature will require us to request a fee increase of at least $500 and perhaps as much as $750 per semester. This is a significant increase that reflects a dramatic shift of responsibility for the cost of public higher education from the Commonwealth to students and their parents and families. We still do not know for sure whether we will have done enough to meet the demands of the state. The current budget numbers remain approximate until the Governor completes his review and the legislature considers his changes. Our campus reduction process will not be complete until July 1. The Trustees have not yet considered a fee increase request. Until we can resolve some of these issues, we cannot complete the process and we will not know whether I must consider the even more difficult and damaging process identified as Category IIIb program reductions. In the meantime, I will post the proposed additional Categories I, II, IIIa reductions on the website by 6 pm Tuesday, June 24th. Given the many thoughtful comments I have already received about the items in these categories, we can complete our comment period by 6 pm on Thursday, June 26nd. Please write me any comments by email to lombardi@umass.edu and I will review all comments and post the final, additional reductions on the web site by 6 pm on Friday. An updated schedule is on this web site. On June 30th, the Management Council and the President’s Council meet in Boston, and at that time the chancellors will discuss with the president’s management team and with the President the measures the campuses have taken, those that the central office has taken, and the options for requesting a fee increase. If, after this meeting, it appears reasonable to assume for planning purposes that the trustees might consider a fee increase, we will incorporate an estimate of the yield from an increase into our planning. By July 1, we should have received the budget reduction plans from each unit as required by the process, and with this information I can write the campus on July 2 with an update that will either indicate that we have resolved the budget issues or that I believe it likely the campus will need to go to Category IIIb and begin a retrenchment process that will have an impact on academic programs and faculty contracts. All of us wish that this extremely difficult process could be resolved more easily, but given the size of the reductions demanded of us, there is no easy way to manage this without moving carefully to do the minimum damage. Damage will occur, for these reductions are precedent setting in size, but by careful reductions, subject to multiple reviews, I believe we can keep the considerable damage done to our academic enterprise to the minimum possible. Again, my thanks to everyone whose suggestions and comments have helped keep this process properly oriented even under these extreme circumstances. John V. Lombardi


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