As updated enrollment numbers came in, so did expanded university plans to work through the projected deficit.
Initial budget cuts implemented to address the university’s initial $14 million shortfall will become permanent cuts as the university continues to address the deficit, now projected to increase to $22 million by Fiscal Year 2022.
University of Idaho President C. Scott Green sent out a detailed memo on Oct. 30 explaining the state of the university budget, including plans to balance the budgets and possible areas of reduction.
Green said the projected increased deficit stems from an expected decrease in tuition revenue by $8 million over the next two years. This projected decrease in overall tuition revenue is based on the university’s recent status as a full participant in the Western Undergraduate Exchange program, a program that allows students within the region to attend the university at 150% of the cost of in-state tuition.
The additional $8 million holdbacks to be made will be done throughout the next two years, UI Director of Communications Jodi Walker said. The updated calculation comes following 2019 enrollment numbers, which showed a slight increase in overall student enrollment. Green said the updated enrollment numbers allowed the university to work on projections and understand where enrollment will be going forward.
ICYMI: Initial reporting on the budget deficit, April 2013
“If we do this right, I really believe by Fiscal Year 21, we should be balanced. And going into Fiscal 22 we should be balanced,” Green said in an interview with The Argonaut. “I’m hopeful that this gets it addressed, and we are able include these cuts in next year’s Fiscal Year 2021 and that we come out the other side of 21 balanced. And that would account for some of the WUE students issues that we’d have in 22 that already be taken into consideration. That is my hope, and I think we’ll get close.”
The total university reserve, while not depleted, is moving the wrong direction, Walker said. A healthy university reserve equates to 5% of the university operating budget. The total university budget is $429 million, making a ‘healthy’ reserve equal $21.5 million. The current total in the reserve is negative $6.6 million.
University ‘Next Steps’ in addressing further budget reductions
The memo included possible budget reduction strategies to implement going forward as former one-time cuts become permanent and an additional $8 million needs to be cut.
- Academic program eliminations
- Centralizing services across the university
- Contract non-renewals and layoffs
- Early retirement and voluntary separation incentives
- Not filling vacant positions
- Organizational restructuring
- Outsourcing/contracting some services
- Salary reductions and furloughs
Walker said the university is looking into any and all ways to tighten, but nothing is confirmed or moving forward at this point. Decisions will not be made at a university-wide level on where and how to tighten funds, Walker said, but instead will be on individual departments to figure out how best to address their portion of budget cuts.
The university will move forward with looking into outsourcing options in four different departments: Facilities Services, Administrative Operations, Auxiliary Services and the Student Recreation Center.
Walker said if the university choses to move forward with outsourcing, it would only impact a small percentage of employees working custodial, grounds and maintenance trade.
Outsourcing would bring in a company to supply outside management and operations previously done in-house. The university would pay the company to figure out how the university can provide the same services on a tighter budget. Walker said the university exploring outsourcing does not necessarily entail layoffs, but a better way of managing and running services.
Watch the ArgoCast Special on the budget deficit
Green said while everything is on the table, nothing is moving forward as of now. If an academic program were to be cut, it would be folded into another program or continued until all current students get their degree in the desired program.
“I would just ask them (students) to reach out and talk to us and be calm about it and not make any rash decisions because there’s really not a lot to be concerned about. Will they see impacts? Yes. But we’ll never leave a student hanging,” Green said. “I understand the concern. I would be concerned not knowing if your program is going to be impacted. I can’t even tell you where and what would be impacted yet until we dig down and understand what the plans are from each of the teams.”
Addressing plans to grow enrollment
Green said as the university moves forward in navigating the budget issues, there is still money allocated to marketing to attract more students from within the region. The university marketing budget is currently $556,728, according to Walker. This marketing budget is funds allocated from the total operating budget.
ICYMI: University of Idaho student enrollment sees slight increase
This marketing budget has been put toward billboards, bus wrappings and regional commercials, Green said.
“You can’t really cut your way to prosperity, we have to balance our budget so that’s the only real option right now but if we get more students on our campus we’ll grow our way out of some of the budget issues that we have,” Green said. “Time will tell, proof will be in the numbers next fall but you know we’ve got a great university here, we’re a crown jewel of the state and I truly believe that if we get that story out there, we’re going to increase our numbers.”
UI’s committee for a sustainable financial model
Green said he knew about the university’s financial challenges while in the interview process for the position, where he was asked how he would go about addressing it. Green said he would address the issue in a “collaborative manner,” pulling on his financial background.
The established committee includes a collection of experts and representatives from across campus, co-chaired by Provost and Executive Vice President John Wiencek and Vice President of Finance and Administration Brian Foisy. The committee includes 10 internal representatives across groups and departments, as well as four external representatives.
Walker said the group was compiled to get a collection of information and create a more long-term sustainable financial model.
“I’m looking for recommendation on a sustainable financial model that will work for us,” Green said of his plans for the group. “Because the one we currently have doesn’t work all that well. It’s why we’re in the mess we’re in.”
This article has been corrected to reflect if the university choses to go forward with outsourcing, only a small percentage of employees working custodial, grounds and maintenance trade would be considered.
Meredith Spelbring can be reached at [email protected] or on Twitter @mere0415