Freezes on hiring and spending ordered

by Sarah R. Buchholz, Chronicle staff

The freezes

     As of April 25, non-temporary positions funded by state, general operating and research overhead funds have been frozen. Existing offers and positions deemed critical will be reviewed and must be approved by the appropriate upper-level administrator before a hire could take place.

     On April 28, spending for non-payroll and non-recharge items on research trust fund (RTF) return funds managed by deans and department heads also were frozen. Budgets will temporarily show negative amounts to prevent spending, but revenue reports will continue to show account accruals and the negative budget will be reversed before the end of the fiscal year.

      "This action does not apply to the principal investigator funds," interim Vice Chancellor for Administration and Finance Joyce Hatch wrote in an April 28 memo. Hatch said emergency expenditure of such funds should be discussed with Fred Byron, interim Vice Chancellor for Research.

     In addition, current balances in all units will be held centrally in a contingency account until the beginning of the next fiscal year.

     "When more information and budget decisions are known, these funds may be returned to the areas or, if necessary, used to buffer next year's shortfall," Hatch said. "Balances under review are those in general operating funds and research overhead funds."

The call

     Lombardi urged the friends of higher education in the state to contact their representatives in the legislature to "express their profound disappointment that this commonwealth could not find a better way of addressing our state's fiscal crisis." Citing plans of many higher education supporters to visit legislators and discuss "this dramatic withdrawal of support," Lombardi said the campus expects that an increased understanding of the effects of such a withdrawal would lead senators and representatives to "find a better way to address the fiscal crisis."

     "We cannot allow this proposal to become a reality," he said.

The changes

     "Over the past two years the University has already suffered significant budget reductions that we met with effective programs of efficient management, higher productivity by faculty and staff, and increased economies in services," Lombardi wrote in a statement read by Deputy Chancellor John Dubach at the Faculty Senate April 24.

     "All of us will need to find ways to increase our effectiveness and readjust our programs to meet the reasonable fiscal requirements of the state," Lombardi said. "We ... know that this campus must sustain the quality of its programs, students, faculty, facilities and staff. Whatever the final result of the state's complex budget process, we must be ready to take the actions that will preserve our effectiveness and sustain our commitment to the exceptional quality of our university."

     Lombardi said the size of the reduction being proposed necessitates a consideration of options for restructuring.

     "This is a complex, critical, and difficult process," he said. "Over the next few weeks I will engage a conversation with the Faculty Senate to solicit advice on the alternatives and to create a continuing conversation that will help guide us as the actual circumstances of next year's budget become clear."

     Lombardi said he also would consult graduate students, undergraduates and other segments of the campus community.

     "Once [the Legislature's] process has reached a stage where we know what level of action we must take, we can then, in consultation with our constituencies, take the appropriate actions that will almost surely require major changes in the structure of our institution to ensure our continued quality."