UMass Boston Weathers Tough Budget Cuts; Plans Ahead for New Fiscal Year

By David MacKenzie

From a budget perspective, these are the worst of times. But there are reasons for hope as well.

In recent weeks there has been a lot of bad budget news for the campus and the University of Massachusetts system as a whole. For the second year in a row, the state appropriation has been cut. We will lose about $2.6 million in FY 2003 on the heels of a $4.8 million reduction last year. In addition, funding for collective bargaining pay increases for the previous fiscal year was vetoed by the governor and the veto was not overridden by the legislature. The state library reference materials line item was also reduced to $1.2 million, down from $5.0 million last year and $14.0 million the year before. UMass Boston will probably receive only $116,000 from this appropriation as compared to $1.36 million just two years ago. The campus will have to provide substantial replacement funds in order to keep the library functioning at a respectable level.

In addition, we need to find funds to begin replacing the seventy-four faculty members who retired at the end of the year. And although we will complete the installation of the PeopleSoft administrative systems in the next few months, the implementation of the student systems has barely begun; we need to find $2.0 million to fund this installation each year for the next two years. To make up for a lower-than-anticipated parking fee, we also need to expend about $160,000 from general funds for garage repairs and debt service on funds borrowed for that purpose. This is part of an overall debt service challenge that the campus is facing. Recent borrowings for the campus center, energy conservation, garage repairs, equipment purchases, and the installation of administrative systems have caused a significant increase in our debt service burden, which we have a contractual obligation to meet.

All of these challenges will make balancing the budget difficult this year and next. However, because of the hard work of the Budget Balancing Committee, and really of all departments throughout the rest of the budget process, we believe that we will be able to get through the current fiscal year without any additional budget cuts.

Amidst the gloom of these short-term budget problems, we should not lose sight of the fact that the campus is poised to experience some very remarkable and exciting times. Chancellor Gora has committed to hiring, over the next three years, replacements for eighty percent of the faculty who took early retirement. This hiring opportunity will enable us to significantly strengthen many departments. We will also be strengthened when Dr. Paul Fonteyn brings a new vision and expertise to the position of provost. He will play a pivotal role in the strategic planning process to begin this year.

The campus also is embarking on a number of projects that will have a very positive impact in the long term. These include the construction of our new campus center, which will be completed in December 2003 (and for which legislation providing an additional $10 million was recently passed). We have also received preliminary approval from the Board of Trustees to borrow $91 million for the first phase of our proposed dormitory project. Although we need to have further discussions with our internal and external communities, this vote, along with the receipt of our student housing feasibility study, shows that we are making strides in developing student housing on campus. We also have a three-year plan in place to repair and improve our existing facilities, and the legislature has provided state funds to help us fix the garage.

We have a lot to be optimistic about. Through prudent financial planning we will survive the budget cuts. And through thoughtful planning for the future, we will soon be enjoying the most dynamic period in our history.

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