To the advisors of the Chancellor regarding the budget case.

If a half million short fall is anticipated out of 3 million allocated for
expenditures, I would assume that 16.6% across the board freeze will do the
job.  Providing some percentage freeze and leaving the  adjustment of
expenses  to department heads and similar unit directors might be an avenue
to consider.  If across the board freeze is not possible because certain
departments cannot realistically take any freeze, then those departments
could be excused, and the remaining departments could be assessed a higher
but across the board percentage freeze.

 (The 8% freeze I advocated at the meeting was based on different numbers.
Please note that I am writing this note because I opened my mouth at that
meeting. Otherwise I would have spared you from reapting what everyone
knows only to well).

Respectfully submitted.






>Dear Colleagues,
>
>Confirming my report to the Faculty Meeting today, I pass along these
>comments to the university community.  Monitoring the university's $61.8
>million unrestricted E & G budget performance, I have discovered a
>potential underperforming of the revenue estimates and a potential spending
>beyond expenditure authority.  The range of this discrepancy in
>revenue/expenditures could be from $200,000 to $900,000. Our best analysis
>is that we probably face a 1% variance in our budget planning.
>
>I feel it prudent to avoid spending some $500,000 previously authorized.
>That $500,000 expenditure reduction plus an extra effort to produce revenue
>expected through fundraising/gift goals will keep us fiscally where we must
>be -- in the "black".
>
>Remaining unspent and unencumbered March 1 is approximately $3,000,000 of the
>$61,800,000.  We must reach into that $3,000,000 and cancel spending some
>$500,000.  While I have identified the target of expenditure reduction, I
>have not identifed the precise targets nor strategies.  Those are being
>formulated with advice of the Budget Committee, Vice Chancellors, and
>Deans. Among options are reducing travel, end of year supplies/equipment
>purchase, communications expense, leaving vacant staff positions vacant the
>rest of the year, etc.
>
>We have not interrupted faculty searches, and travel and other expenses
>necessary to recruit the 35 open faculty positions must continue. We have,
>however, delayed filling any staff vacancy currently existing until July 1.
>
>More details will be communicated shortly.  For a day or two, there will be
>hesitation to approve any expenditure until budget coordinators know
>exactly the precise targets and strategies of non-expenditures.
>
>Thank you for your patience and for your willingness to know fully our
>fiscal affairs. While certainly inconvenient to figure out how to avoid
>spending $500,000 now, it is certainly to be preferred over the much more
>difficult and uncertain strategy of "hope" that revenue will suddenly
>materialize.
>
>Bill Stacy