Campus faces $15m in cuts in new budget

by Daniel J. Fitzgibbons, Chronicle staff

racing for a expected funding reduction of up to $15 million, campus executive areas this week began preparing scenarios for budget cuts of 5 percent for the current fiscal year.

     The reviews were ordered after the Legislature last week approved a $22.6 billion state budget package that cuts funding for the University system by about $19.5 million or 4 percent. The budget, which was approved four months late, was passed on to Acting Gov. Jane Swift, who is expected to veto or suggest changes in some sections and send the measure back to the Legislature. Swift, who offered her own recovery budget several weeks ago, called the legislative plan a "mess."

     Public higher education was among several areas, including human services, local aid and health care, that sustained huge hits in the final compromise budget that raises overall state spending by just 2 percent over last year. Some analysts predicted the cutbacks could trigger the elimination of thousands of state jobs.

     Overall, higher education was cut by some $50 million, as legislators slashed spending on library materials, scholarships and statewide programs administered by the Board of Higher Education. In addition, lawmakers prohibited the Board of Higher Education from reducing tuition at public campuses.

     Along with the $19.5 million cut in its $464.1 million state maintenance appropriation, the University saw several related line items reduced. Those cuts include Commonwealth College, where funding was cut by $35,000 from $1.75 million to $1.715 million. At the Lowell campus, the Toxic Use Reduction Institute also had its funding trimmed by $35,000 to $1.7 million. Two Dartmouth campus projects - the Star Store conversion in New Bedford and the Advanced Technology Center in Fall River - were funded at levels "that do appear sufficient to meet lease payments," according to a President's Office analysis.

     The five chancellors are slated to meet with President William M. Bulger next week to discuss the impact of the budget package, but it appears that the Amherst campus faces a shortfall of about $15 million for the current year.

     That estimate is based on the traditional funding split within the University system, wherein the Amherst campus receives slightly less than half of the system appropriation. If the cuts are made on the same basis, campus officials estimate a loss of about $9 million.

     Another $3 million is factored in because of the Legislature's reduction for the Education and Reference Materials reserve from $14 million last year to $5 million this year. Since the campus usually receives 30 percent of the reserve, the cutback is expected to translate into a loss of $3 million for the Library system.

     The remaining $3 million in the projected shortfall results from planning based on earlier estimates for state funding - calculations made before the economic downturn forced a complete review of state spending.

     Although some of the funding numbers are not yet finalized, interim Chancellor Marcellette Williams this week instructed her executive team to prepare scenarios for budget cuts of up to 5 percent. In addition, all campus hiring is now under review for possible savings. Interim Provost Charlena Seymour is reviewing all hiring under Academic Affairs, including the Research and Outreach areas. Hiring in all other areas is being scrutinized by interim Deputy Chancellor John Dubach.

     Williams acknowledged that the state's worsening fiscal picture was bound to impact the campus, but expressed hope that lawmakers will recognize the need to continue investment in the institution.

     "We also believe it is our responsibility to communicate to the Commonwealth and its citizens that severe and sustained cuts to the University jeopardize its investment and weaken the longer-term prognosis for the Commonwealth," she warned. "We hope that together we will be vigilant in striving to restore the University's budget, thus helping to protect the state's investment in its future health and well-being."

     Meanwhile, some other budget questions remain, including the status of new union contracts for campus employees. The Governor's Office submitted the collective bargaining agreements to the House Ways and Means Committee last week.

     Swift also filed legislation to create an early retirement program for 6,700 state employees by allowing them to add either five years to their age or years of service. Under the plan, participants would be required to retire by next May 31.

     Neither the collective bargaining agreements nor the early retirement plan have been acted upon by lawmakers, though the measures could be considered next week when the Legislature meets to respond to Swift's actions on the budget.

     Those actions could include an attempt to raise the share of health insurance costs paid by state employees from the current 15 percent to either 20 percent or 25 percent. House Speaker Thomas Finneran has reportedly vowed to lead an override of such an increase.