Bulger seeks $118.5m hike for contract costs

by Daniel J. Fitzgibbons, Chronicle staff

fiscal 2004 budget request submitted to the governor by President William M. Bulger seeks $118,551,204 in new funding to pay for collective bargaining agreements reached with unions representing faculty and staff across the University system. Combined with nearly $4.6 million sought for non-unit salary hikes, the request reflects a 28 percent increase over this year's base appropriation of $445.6 million.

     Citing a 10 percent reduction in total state funds to the University since fiscal 2001, Bulger said the FY04 request "is aimed at stabilizing the University's financial condition and meeting contractual agreements with employees." Earlier this year, Acting Gov. Jane Swift vetoed funding for the union contracts because of concerns about the state's shaky financial situation.

     According to the document, the $568.7 million request "reflects no increased funding for general operations" and adds only the cost of the collective bargaining agreements, including $53.2 million for retroactive pay for fiscal years 2002 and 2003, $59.4 million for base adjustments next year and $5.9 million in one-time professional development funds.

     "The requested budget does not address general inflationary pressures such as increased energy costs nor does it allow for enrollment increases, program expansion or additional investments in other important areas of the academic or research enterprise," noted Bulger.

     Bulger bolstered his argument for support by citing the University's role as a "revenue generator" for the state. Those revenue sources include $275 million in annual external research funding, $95 million in tuition remitted to the state General Funds, and $3 billion in economic activity directly related to the University. Bulger also highlighted the University's ongoing partnerships with state agencies and the system's A+ bond ratings.

     On the needs side, the request also identifies $40 million in University operating funds being used this year to service the debt on repairs and improvements to buildings as well as the loss of 940 employees, including 301 faculty, through the Early Retirement Incentive Program implemented last year to trim the state's personnel costs. Bulger also noted that state appropriation reductions last year spurred the Board of Trustees to raise some student charges.

     Along with the general appropriation request, Bulger also is seeking funding for several line items, including:

• $10 million for the Endowment Incentive Program to match private fund-raising for endowed professorships.
• $2.8 million for Commonwealth College, an increase of $1.05 million "to meet growing enrollment demands and to increase support for the statewide network of honors programs supported by the college.
• $1.7 million for the Toxics Use Reduction Institute in Lowell.
• $3.7 million for the New Bedford Star Store, which houses studios and galleries for the College of Visual and Performing Arts at the Dartmouth campus as well as classrooms and offices for University programs and others offered by Bristol Community College.
• $1.9 million for the Fall River Advanced Technology and Manufacturing Center, an incubator for emerging technology firms in Southeastern Massachusetts. Operated by UMass Dartmouth, the facility also has a conference center.

     The University's budget request is one of many that will be awaiting Governor-elect Mitt Romney when he takes office on Jan. 2. Romney must recommend a fiscal 2004 budget to the House of Representatives by late January.