UMass Boston Addresses Budget Cut Challenges

By Joe Peters and Ed Hayward

A combination of budget cuts that touched all corners of the university and a vote by the University of Massachusetts Board of Trustees to raise student fees brought a turbulent budget season to a close this summer.

A process of examining university revenues and expenditures during the spring and summer resulted in reductions from academic and administrative areas, as well as campus-wide savings proposals such as a one-week furlough for all employees, which will require further negotiation, and an early retirement program that is expected to cut $1.5 million in salaries.

About $7.5 million was trimmed from the campus budget to overcome a cut in state funds, the result of reductions by the legislature to the UMass system's allocation. The economic downturn's clamp on state revenues has brought about a 30 percent reduction in state support to UMass Boston during the last three years.

Cuts could have been much more severe had it not been for three significant developments: economies stemming from changes in the Campus Center opening schedule, the early retirement package that will allow the campus to reduce personnel, and an increase in student fees.

Part of the response to the roughly $80 million cut in state support to the five-campus system was the Board of Trustees' vote on August 6 to increase student fees by $750, effective with the spring 2004 term. From 1995 through 2001, the University of Massachusetts had been one of few higher institutions in the country to reduce student charges. The new increases correspond directly to cuts in funding recommended by the governor's office and the legislature.

On the Boston campus, fees will be used to maintain academic excellence and add approximately $1 million to need-based financial aid for UMass Boston students, said Chancellor Jo Ann Gora.

"There is never a good time to raise student fees,'' the chancellor said. "But these fees will help us preserve services and academic offerings that students rely upon. In addition, we have added $1 million in need--based aid and graduate assistantships with the intention of being able to meet 90 percent of the financial aid need for eligible students."

The budget woes were tempered somewhat by the trustees' decision to raise student fees, which are expected to result in about $5.5 million for the Boston campus. In addition to those new revenues, the campus expects to save about $1.5 million from the early retirement program.

Another $400,000 in savings were derived from a delay in routing additional shuttle buses to the Campus Center, the university's future "front door." The route will shift to the new building in September 2004.

Recommended spending cuts and new revenue measures were debated at a campus-wide town meeting called for by Chancellor Gora in July. Many employees suggested finding savings in the operation of the new center, which is slated to open spring 2004.

Many see the move to delay bus rerouting as a sign that the administration listened to the campus community when it asked for feedback about cuts offered in June by the CURE Committee. The 20-person group, which represented broad areas of the campus and was composed largely of administrators, department heads, and faculty-council representatives, did not suggest the delay in its first report.

"Chancellor Gora called for an open process, and I think that's what everyone got," said Mark Preble, interim director of human resources, who moderated the forum. Preble said the feedback from the town meeting greatly helped the group recognize certain priorities.

"I think it showed the emphasis the campus places on certain areas and services," he said.

But budget cuts do not come easy, and some proposals still require negotiations with campus labor unions, noted Preble.

Tom Goodkind, who spoke on behalf of four unions at the July budget forum, admits to having mixed feelings about the budget process.

"As for the CURE committee itself, they clearly worked very hard, did the best they could, and came up with some decent proposals," said Goodkind.

owever, he believes the process could have been more open to debate, such as the key principles that the CURE Committee were asked to work under. "It appeared that certain areas might have been ‘off-limits,' which did not inspire widespread confidence in their deliberations," he said.

Goodkind says the most significant negotiation probably will be around the proposed furlough. Officials estimate the move could save $1 million. However, it would require employees to give up a week of personal or vacation time so that the campus could close between Christmas and New Year's.

"These decisions have been made only after a thorough discussion and analysis of the ideas and opinions offered both on campus and off campus," said the chancellor in a letter to the campus. "While none of these discussions were easy and may impact the services we offer on campus, we have tried to protect all of our degree programs and preserve course availability."

More information about the report is available at www.umb.edu/news/2003news/general_news/08budget.html.

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