Wilson has a downturn strategy for UMass

By Kristin Palpini
Staff Writer

Published on December 05, 2008

University of Massachusetts President Jack M. Wilson has a strategy to help the university to weather the recession and looming, additional budget cuts- protect the students and, above all, don't panic.

"We're doing well in most parts," Wilson told the Gazette Monday. "If we panic and start thrashing about then we'll be putting ourselves at risk."

UMass is grappling with a $25 million budget cut, the university's share of $1 billion in mid-year reductions made by the governor in October to help offset a statewide $1.4 billion operating budget gap.

While Wilson said he hasn't heard of any additional reductions for this year, he expects deeper cuts to be on the way for fiscal year 2010, which begins July 1.

UMass is trimming various department budgets, eyeing consolidations, weighing expenditures, instituting hiring freezes and- at least in the president's office- laying off employees, among other belt tightening actions.

<h4>Unpaid furloughs</h4>

As a cost savings measure, on Monday Wilson announced that members of his staff would take two week, mandatory, unpaid furloughs this academic year. This move is expected to save UMass $45,600.

Coupled with other cost saving measures, the central services budget has been reduced by $2.1 million this year.

While dealing with state aid reductions, Wilson said it is important not to make the five-campus university system appear desperate.

As Wilson noted, except for the state's reduction, other university revenue streams, such as grants and student fees, are making significant contributions.

"We don't want to go through what we did years ago with the ‘Save UMass' or other well meaning, but really misguided efforts to help the university," said Wilson in reference to a campaign launched in 2002 that railed against state budget cuts.

UMass is anticipating an 8.07 percent, or approximately $38 million, decrease in state aid for next fiscal year.

Students may have to pick up a portion of this cut.

Over the past five years, the university has kept annual fee increases below the rate of inflation. Last year fees at the flagship campus rose by 3.8 percent or $311. The same may not be true for next academic year. "I'm not sure we can stay within that boundary this year," Wilson said, although he pledged to increase student aid.

Campus officials are already being asked to prepare for next year's cut.

<h4>Holub's task force</h4>

In Amherst, Chancellor Robert C. Holub has convened a Budget Task Force to eye cost saving measures such as using grants to pay some faculty salary, combining colleges and re-tooling first-year seminars.

"It's better to get them done sooner rather than later," Wilson said of potential reductions. "It would be foolish to wait until July to implement them so we urge the chancellors to move quickly on that."

Maintaining and improving students' experiences will also be important as demand for UMass- which charges students less than half the attendance of many private colleges- is expected to rise, Wilson said.

Although regular application data is not yet available, UMass Amherst is reporting a 27 percent increase in early action applications. The flagship received about 7,900 early action applications this year, 1,678 more than last year.

While the numbers indicate interest in UMass, Edward F. Blaguszewski cautioned that the university's early action program is only four years old and part of the increase could be due to people simply learning that the program exists.

"It's hard to tell if the numbers this year are being driven by the economy, but they are certainly a good sign of interest in UMass Amherst," Blaguszewski said.

As the university's strategy develops, Wilson said some actions have already been decided.

For example:

n Central services, which includes the president's office, is making $2.1 million in reductions to make ends meet.

In addition to mandatory furloughs, last week the office announced 17 layoffs and one full-time position was reduced to part-time, saving the department $1.16 in salaries. In October, the president's office decided to close an administrative floor occupied by UMass in Boston and move most of his 69- person staff to university offices in Shrewsbury for a savings of $896,000 per year in rent.

n The amount of financial aid the university sets aside for UMass students will increase. UMass spent an estimated $85 million on financial aid for students last year. Over the last five years the university has increased its contributions to student financial aid by 61 percent, or $32.5 million.

n UMass will also concentrate more heavily on pulling in research grants and fundraising. The five-campus system pulled in $492 million in grants and contracts last year.

n The university will look to cut energy costs. Energy conservation has been a university staple for at least four years. Since this time the Amherst campus has been able to cut its energy expenditure by $5 million per year due to energy conservation measures.

n The system's $2.56 billion capital plan will also likely proceed at a slower clip than anticipated when the five-year plan was approved in September. Wilson did not outline specific projects that might be put on hold, but said that projects now underway are fully funded and would be completed. This includes the UMass Amherst recreation center and Integrated Science Building.

"In a lot of places there is not going to be a silver bullet," Wilson said. "We're just trying to do the best we can do to cope with the circumstances without hurting the students."