E-mail message to the Campus
June 8, 2005

REMARKS AND ESSAYS:
State budget update 2005-07
Chancellor Bruce Shepard shared the following e-mail message with the UW-Green Bay campus

Colleagues:
Just a quick update on the budget situation. Earlier, I provided a general report on the effects of the recent action by the Joint Finance Committee (JFC) relative to the UW budgets. Late yesterday, UW System provided us with preliminary information on what the consequences are projected to be for each campus. I want to share what we learned about UWGB's projected budget reduction.
    Here are the numbers. JFC added $25 million in reductions to the $65 million cut that was in the Governor's budget. We did, this spring, go through budgeting processes to address our share of the $65 million reduction. We now must address the additional $25 million reduction.
    What does $25 million mean for UWGB? Those are the numbers we received yesterday, and they are preliminary but, likely, close to what will eventually be approved by the Regents. We were advised to expect that, for the biennium, we will have to reduce our total expenditures by another $542,000.
    That is a biennial number and biennial arithmetic can be complicated. Here's how I look at it. Year 1, the fiscal year we are about to enter, we have to reduce our base budget by $209,500 and also make one time cuts of $123,000. That's it, nothing additional for year 2. (Carry over the ongoing $209,000 cut into year 2 and you get the biennial figure of $542,000 that I gave earlier.)
    There are several differences between the recent JFC action and the earlier reduction. In the Governor's proposal, we were required to make reductions only in those areas not directly involved in delivering instruction. That limitation does not apply to the new, additional reduction.
    Also, the new reduction does specify a significant and larger percentage reduction to central UW System Administration. (Combining the Governor's and the JFC's reductions, the central System administration takes a 15% reduction compared to 3% for each of the campuses). Such large central System reductions will inevitably affect services and programs available to our campus as well as the lives and careers of valued colleagues.
    At UWGB, our focus will be on the $209,500 base budget reduction. I believe we will be able to handle the new one-time reduction centrally. And, although the base budget reduction must be made effective the fiscal year we are about to enter, we will draw upon our contingency fund for the first year in order that we may address the base budget reduction through the normal, annual budgeting process, that process beginning this month and continuing through next fall. In other words, we are not going to try to make the $209,500 cut in the next month.
    Whenever reductions are in the air, anxieties abound. However, by allowing the time to follow the normal budgeting processes, I believe we will gain the benefits of involving the broader campus wisdom and obtain the additional flexibility necessary to minimize impacts, particularly on occupied positions. Our customary strategic budget processes do, of course, involve our various governance groups.
    JFC took other actions that will affect our university and our students. We do not know exactly how at this stage but, for completeness, I will note that they include reductions in student aid, reductions in our tuition revenues following from tuition benefits the JFC proposes extending to certain veterans and their families, elimination of the Governor's proposal to extend resident tuition rates to graduates of Wisconsin high schools who cannot document their citizenship, and surcharges for retaking failed classes.
    One last caution: the budget is not yet final and will not be final until the Governor and the legislature come to agreement. That has not happened and it is conceivable that it might not happen for some time.
    Thank you, as always, for your patience and good work on behalf of UWGB and the important mission we are here to serve.

Bruce

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