Dear Colleagues,
Today a Channel 12 reporter came to inquire about what effect "Tennessee's
fiscal crisis" might have on the university. She wanted to know how
important the legislature's consideration of the Governor's (and others')
tax proposals was to UTC.
All of us know that when any of us speaks for the university, we need to
realize that our words have consequences. Our words may produce a
cause-effect relationship. I have tried to anticipate what response
viewers, legislators, (even perhaps the Governor), and members of the
university community might attach to my words -- whatever survives the
cutting room.
My words suggested to the reporter that UTC stands to enjoy some fiscal
catch-up if the Governor's tax-increased budget should prevail -- almost
$1.4 million. On the other hand, the Governor has announced that without
revenue augmentation in the state treasury, he will veto nearly 4% of the
budget for the University of Tennessee. Chattanooga's share of that would
be almost $1.5
million. A nearly $3 million swing is what is at stake in the fiscal
considerations in Nashville for us. Each of us knows that such an amount
is huge for us. I have tried to underscore the Governor's message that we
have a fiscal crisis in Tennessee - and that absent some new tax revenue,
the university will clearly suffer in its ability to meet its mission or
serve its students, faculty, staff, and the community as it should.
The reporter's interest in a sound byte that is dramatic wondered how we
might cut budgets if we have to -- including layoffs as was suggested might
happen in some portions or campuses of the University of Tennessee. I
indicated that we -- even with the possibly drastic budget cut -- are not
contemplating layoffs.
Our cuts would probably be a repeat of actions taken many times here and as
recently as this year when we "freeze" vacant positions, delay purchases,
shave operations, including hours, services, and find ourselves limping
along with every cost-avoidance measure that we can determine. Inevitably,
if the campus loses revenue, we would look to offset the loss in state
appropriations with other income. That means Trustees must look to
students' fee hikes of not just 3 or 4% but perhaps 13 to 14%, rather
clearly adding a burden much greater than some of the proposed tax hikes to
many of our student families. Donors usually will give to enhance
excellence for UTC, but they have shown not much interest in giving money
to substitute for what they think the state should have provided.
What prompts my note to you is a request that you help articulate a message
to our students, families, and frankly each other, that the conversations
about a fiscal crisis and a search for additional state revenue in
Nashville are real. Further, the university rather desparately needs an
infusion of catch-up funding for lagging salaries, delayed equipment
purchase, and other attention to maintaining and operating our campus. At
the same time, I do not want to send needless shock waves into our faculty,
staff, and students as a by-product of adding specific examples of UTC's
shortfall to the legislative hearings.
I would appreciate your continuing attention to our University Budget
Committee Hearings - and to the options we will have on the campus once the
legislature and the Governor have worked out their options on tax reform.
If George Ross or I can be of any assistance in budget matters other than
in the Budget Hearings, please feel welcome to let us know. While the
uncertainty and perhaps even the tension over budget will probably increase
over the next few weeks, I am confident that the people at UTC are plenty
capable of good decisions and that, working together, we will once again
serve the people of this area very well in l999-2000. In the mean time,
many of us will continue to urge our elected leaders meeting in Nashville
to consider the very unpopular but necessary matter of increasing the
amount of money Tennessee has to spend for vital state services like
investments in higher education.
Thanks.
Bill Stacy
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