About the President
Points of Pride
A Special Place
Dille Fund for Excellence
President's Remarks & Updates
Vision Task Force
University Reaccreditation 2007
Office of the President
203 Owens Hall
1104 Seventh Ave. S.
Moorhead, MN 56563
Overview of University Wide Budget Reduction Process
March 2, 2009
The magnitude of our current budget crises suggests that we must make some cuts to just about every program as well as reduce, eliminate, or restructure some units. Quite simply, we must downsize. Through the following sections, we provide an overview of the current activities:
- Program Review Process
- Role of University Planning and Budget Committee
- Presidential Decision Plan
Multiple processes are underway to help us to downsize. We believe that the solution to our budget deficit, currently estimated at $9.2M will come from a combination of the following measures.
Program Review Process
Consistent with the Dickeson (1999) book, there are different processes
for the instructional and non-instructional parts of the university.
Each process has the following common elements:
specific criteria for unit level reports
provisions for some open meeting in which members
of the unit can react to the reports and the rating of those reports
inclusion of reactions in reports that go to the
a divisional level committee including
representatives from bargaining units
prioritization at the divisional level, either by
VP with reaction from divisional committee or by divisional
committee, into five quintiles. Those quintiles must be equal in
The following table outlines the divisional level
||Responsible VP(s) or Dean
|Academic Affairs Budget
||All academic departments and units. First
level roll up will be through colleges.
|Library and Technology
||Library, Instructional Technology, Distance
Learning, Continuing Studies, Instructional Media
|AAcademic and Student
Affairs Support and Others
||Midgarden and Wiese
||Records, ARO, Admissions, Financial Aid and
Scholarships, Counseling and Career Services, International
Programs, National Student Exchange, Orientation and
Transitions, Data/Planning, Services to Students with
Disabilities, Multicultural Student Affairs, General Area
Administration, the Alumni Foundation, Athletics, and the
Presidentís Office including Advancement, Publications, and
|Revenue Fund and
||Student Union and Activities, Housing and
Residential Life, Bookstore, Hendrix Health Center, and the
||IInformation Technology, Veterans Services,
Physical Plant, Capital Planning and Construction, General
Administrative Affairs, Business Office, including Accounting,
Human Resources and Payroll, Security
Role of University Planning and Budget Committee
The UPBC will receive reports from all five divisions that prioritized
programs into quintiles within the divisions. The task of UPBC is to
sort through all of those reports and to recommend to the president
which programs and services should be assigned to the bottom two
quintiles and thus further considered for elimination or reduction.
Issues of quality, effectiveness, and cost will have
been addressed at the divisional level. In their tasks, the UPBC is
asked to give special consideration to the following:
Revenue generation (Does the program produce
adequate revenue for the resources allocated? What are the
Mission centrality (Is this program central to the
mission and vision of the university?)
Safety and security (Would eliminating this
program compromise the safety and security of the campus and its
Contribution to the overall functioning and well
being of the university (How does the unit support or otherwise
contribute to the campus as a whole?)
Presidential Decision Plan
The President will review all materials and recommendations from the
UPBC and the Divisional Committees, including the materials prepared at
the unit level and reactions from subsequent levels. From this exercise
and consultation with the VPs, the president will develop a prioritized
list of potential program or service cuts, along with the savings that
will be accomplished by each such cut.
At the same time, the president will work with the VPs
to determine what additional cuts can be made throughout each division.
She will also work with the MnSCU system to learn the actual magnitude
of the required budget reduction from the state, noting that $4.2M of
MSUMís deficit is specific to the institution. Cuts will be planned in
such a way as to combine program closures and reductions with other cuts
as well as voluntary hour reductions and other cost cutting measures in
such a way as to maximally preserve the future vitality of the
university and its service to students.
With the assistance of the VPs, the budget officer,
and the Chancellorís Office staff, the president will take the following
Determine final budget projections, which will not
be available until very late Spring or early Summer and will depend
Tuition revenue will be impacted by review by
the Board of Trustees of the MSUM proposal to revise the tuition
and fees structure, the Boardís consideration of overall tuition
rates, and MSUMís student credit hour projections.
Compensation projections will depend on
settlements of various union contracts.
The state appropriation will depend on how the
stateís revenue deficit and the federal stimulus interact and
impact the MnSCU appropriation.
Develop a plan for accomplishing cuts by combining
VP recommended cuts with program closures and reductions in such a
way as to maximally preserve the future vitality of the university
with a sustainable fiscal model.
UPBC reviews all programs and prioritized lists from divisions. UPBC recommends to the President those programs to be placed in the lowest two quintiles, with the programs in the lowest quintile prioritized to the extent possible.
||President holds initial meet and confer meetings with bargaining units to explain those programs under consideration for closure or reduction. The president also lists layoffs resulting from the initial VP across the board reductions.
||President holds subsequent meet and confer meetings with bargaining units regarding potential layoffs.
|May 20 Ė
||President meets with the Chancellor with the prioritized list for layoffs and program closures.
||President awaits final MSUM budget reduction numbers from MNSCU and issues layoff notices as necessary to reduce base budget accordingly.