From: Acting President Emerson H. Fly
To: Faculty, staff, and students on all UT campuses

I want to give you my take on two processes that directly affect our future
as an institution: the current legislative session and the on-going search
for a new UT president.

First, the legislative session. Since the legislature reconvened on January
8, I have made a number of trips to Nashville to talk to legislators
individually and in groups. I've also used other occasions to have
one-on-one conversations with many of the 132 members of the Senate and
House.

These discussions have left me with very mixed feelings. On the one hand, I
firmly believe that the vast majority of the legislators have heard the
message that UT is seriously underfunded and accept this as truth. The
consistent work of faculty, staff, students, alumni and other supporters
over the past few years has caused the acceptance of this fact.
Unfortunately, the legislators are so polarized in their positions on
funding options that the stalemate continues with the ultimate resolution
unknown.

Because of this situation, plans are being made by executive and
legislative branch leaders to address this year's budget shortfall ($300 to
$350 million) and craft a budget for 2002-2003 (about $850 million in
mandatory increases) if no new revenues are generated beyond normal growth
in existing state tax collections (now estimated at about $190 million).
The actions required to balance the current budget will not be pretty;
those required to balance next year's budget without a tax increase will be
devastating to the state.

As you are aware, K-12 and higher education account for 43 percent of the
total budget funded from state collected taxes. Therefore, any budget
proposal for the next year that is built on no new revenue sources will
require deep cuts in education.

It is imperative that all members of the UT family monitor this situation
closely. As more information becomes available, we will share it with you
quickly. More importantly, you must communicate your concerns to your
legislators and ask family and friends to do so as well. UT cannot sustain
any cuts in our base appropriation without causing irreparable harm to the
institution. You and others have made a difference in changing the
perceptions about higher education's funding situation. Now, you must be
prepared to ensure that the "no new revenue" budget that will be unveiled
in the next week or so does not become reality. I'm confident that good
judgment on the part of legislators and your efforts with them will result
in a positive solution.

Now, let me shift to another important topic, the presidential search. I
know each of you wants the process to produce a good president. I am
confident that it will. I want to assure you that Governor Sundquist, Mr.
Funk and others are working diligently to recruit the best possible
candidates for the position. The process that was set forth and approved
last fall is being followed with some changes suggested by members of the
Search Advisory Council. One of these changes will permit interested
faculty and staff to view by webcast the interviews of the candidates by
the Search Committee. Governor Sundquist is committed to attracting the
best possible candidates, and I'm confident that we will be pleased with
the results when the new President is selected.

As I have said time after time during the past challenging year, I am
grateful for your commitment to the University. Thank you for all your
efforts to realize our potential to educate and serve the citizens of
Tennessee.