June 3, 2002
TO: All UT Faculty and Staff
FROM: Emerson H. Fly, Acting President
SUBJECT: Potential Budget Cuts for UT

You probably have read in your local newspaper about plans for the House
Finance Committee to hold hearings this week on a "no new revenue" budget.
These sessions begin on Tuesday morning. The General Assembly is running
out of time to pass a 2002-2003 budget and thus far is unable to raise new
revenues to even keep operations going next year at the current funding
levels.

Thursday is set aside as the day that UT and the Tennessee Board of Regents
present their responses to "no new revenue" target reduction amounts
established by the House Finance Committee. In UT's case, the number is
$50.6 million or 12.5 percent fewer dollars than we have this year. It goes
without saying that cuts of this magnitude would have a devastating impact
on our institution. Programs would be reduced or eliminated, layoffs would
occur at every campus and institute, and our efforts to make salaries more
competitive would be stifled.

For UT, Thursday's hearing could be the most important discussion in the
three-year debate over new revenues to adequately fund state government and
invest in Tennessee's future. Specific information about the impact of the
cuts on each campus and institute will come from your respective Chancellor
or Vice President.

Now, as never before, you need to make sure that you, your colleagues and
family members let your local legislators know how much you want them to
fix the problem now. The consequences of a "no new revenue" budget will be
devastating for years to come.