In January, UI President David Skorton appointed
an ad hoc committee to make recommendations for $12
million in spending reductions over a two- to three-year
period in certain noncurricular programs receiving
support from the general education fund (GEF). After
reviewing the GEF Task Force report, President Skorton
announced in May $2 million in GEF reductions for
FY05. Where exactly does that leave us, and what
does it mean for the future? fyi solicited and compiled
questions and concerns from a variety of faculty
and staff. Steve Parrott, director of University
Relations, worked with President Skorton and the
vice presidents to address some of the inquiries.
Why
are we looking at a $2 million reduction for
FY05? Was this a directive from the Iowa Legislature?
The $2 million reduction was not a directive from
the Iowa Legislature, but rather a UI administration
target developed in response to a directive from
the Board of Regents to the presidents of The University
of Iowa, Iowa State University, and the University
of Northern Iowa. The Regents directed the presidents
to “propose removal of some or all general
funds and/or increases in service fees for selected
noncurricular, campus-based programs and activities
that mainly serve constituencies other than enrolled
students, with the goal of making such activities
as self-supporting as possible.” This reallocation
was an essential part of balancing the University’s
GEF budget for next year.
Where did the $12 million figure (to be applied
over two to three years) come from?
In January of this year, Gov. Vilsack predicted
that the state’s revenues for fiscal year 2004-05
might require budget reductions in the range of 5
to 7 percent. The University’s state appropriation
for FY04 is about $220 million, so the potential
range of budget reductions was $11 million to $15
million. Following consultation with the provost,
vice presidents, deans, and faculty, staff, and student
leaders, President Skorton decided to seek budget
reductions of $12 million.
If the cuts are to be applied over three years,
are the second and third years subject to changes
as the Iowa Legislature acts, or is this cut designed
to be a fairly certain figure that we can count on?
The budget reductions recommended by the GEF Task
Force are recommendations that will be considered
over the next few months. As always, decisions on
budget cuts in future fiscal years are subject to
change, depending on a number of factors, including
state revenues and actions by the Iowa Legislature
and the governor. However, the GEF Task Force recommendations
will be seriously considered because of the need
to make strategic reallocations in support of the
University’s core educational and research
programs.
What happens in June at the Regents meeting? What
will be decided?
The Board of Regents will be asked to approve the
University’s complete FY05 budget, including
the GEF, University of Iowa Hospitals and Clinics,
the student residence system, and all other units.
Within the GEF, the University is proposing to reallocate
nearly $7.3 million for faculty and staff salary
increases, including costs determined through collective
bargaining agreements.
How will the remaining $10 million in cuts be determined?
Will it be based on the GEF Task Force report?
The GEF Task Force worked very hard to develop its
budget reduction recommendations for the coming fiscal
years, and its recommendations will be given serious
consideration. However, President Skorton will follow
his practice of consulting with the provost, vice
presidents, deans, and faculty, staff, and student
leadership before making final decisions, some of
which could differ from the GEF Task Force’s
recommendations. The goal will remain to help protect
core teaching and scholarly missions and to enable
very selective growth for the most critical academic
initiatives, such as competitive faculty salaries
and replacing faculty positions.
Is
it fair to hold academic areas harmless? This
implies that, as they stand, there’s no waste
in the administrative areas of academic programs
but, presumably, a lot of waste in staff divisions
and departments. Does anyone believe that’s
the case?
Academic units have not been held harmless in the
budget cuts experienced over the past five years.
The University has attempted to preserve academic
quality by assessing a larger percentage of the budget
cuts to administrative units than to academic units.
Likewise, as noted in the answer to one of the questions
above, the Board of Regents directed the University
to propose budget reductions for “selected
noncurricular, campus-based programs and activities
that mainly serve constituencies other than enrolled
students.” Still, academic units have faced
significant cuts. For example, in FY04, the University
reduced general fund budgets by $11.5 million from
July 1, 2003, levels. Collegiate reductions were
$6.9 million, or 60 percent of the total. The only
areas that have been held harmless during this time
are student financial aid and the library acquisitions
budget.
The task force asked for public input, and received
it. Is there an ongoing mechanism for faculty and
staff to offer input and have questions answered
regarding the budget?
Yes. President Skorton asked for and received hundreds
of e-mails following his release of the GEF Task
Force recommendations. Further input can be sent
to president@uiowa.edu.
How will salary increases be decided and funded?
Salary increases for staff members who are in collective
bargaining units were decided through the bargaining
process. For nonunion P&S staff and faculty,
the University’s overall policy has been to
allow colleges and administrative units to have an
average salary increase objective in the range of
1 percent to 2.5 percent, with deans and vice presidents
given discretion within that range. Salary increases
are to be based on performance. Because of the University’s
concern about competitive salaries, the UI administration
is reallocating funds to provide GEF units with enough
money for salary increases of 1.7 percent and is
recommending that deans and directors use these funds
for differential salary increases that address issues
of salary compression and equity. Units may reallocate
other funds to go as high as an average of 2.5 percent.
Individual raises can be as much as 8 percent without
requiring special approval from the UI administration.
How will benefits be affected in FY05? Are there
any specifics yet, such as a reduction in the maximum
vacation accrual?
There are no decisions yet on GEF Task Force recommendations
regarding fringe benefits, including maximum vacation
accrual. Moreover, no decisions will be made without
consulting the appropriate UI charter committees
on these issues. It is possible that some decisions
on changes to benefits will be made in time to be
implemented prior to the end of the 2004 calendar
year, which is when all employees make their decisions
on benefits.
Will there be central support for workforce transitions
for those units that are unable to identify non-GEF
funding sources, or will they simply be forced to
lay off workers?
Units that are unable to identify non-GEF funding
sources may have to eliminate occupied positions,
in addition to vacancies and other means of cost
reduction. In the case of staff members who belong
to collective bargaining units, layoffs are made
in accordance with the contract. For nonunion P&S
staff, the University has a furlough policy that
allows people with career status whose positions
have been eliminated to remain in those positions
for anywhere from six to 12 months following notice
that their position will be eliminated, depending
on their years of career service. Under the furlough
policy, staff members with career status are given
priority when they seek open P&S positions, which
may allow them to continue at the University in another
position. Every effort will be made to avoid or minimize
the impact of layoffs.
If layoffs are inevitable, how are they determined?
How is seniority measured, and what other factors
would be used to determine who stays and who goes?
And, would the University try to find another job
within the University for the dismissed employee?
Decisions about positions to be reduced or eliminated
should be based upon an objective review of the current
and anticipated operational need and function of
the unit. Once the classifications and positions
are identified, departments will work with Human
Resources to follow the applicable procedures. Again,
for staff covered by collective bargaining agreements,
layoffs are made in accordance with the current contract,
but for the most part, they are based on University
seniority within a job classification. For nonunion
P&S staff, individuals affected by a staff reduction
will be given notice to allow them to seek placement
elsewhere within the University with priority status.
To
read the GEF Task Force’s report, see www.uiowa.edu/~gef.
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