FHSU Budget Bulletin

May 14, 2009

It was good to see such a large turnout for Wednesday's University Open Forum, in which I was finally able to discuss the completed budget for the fiscal year that begins in July -- as approved by the Kansas Legislature and signed by new Gov. Mark Parkinson -- and explain the ramifications of that budget for our university.

That will be the last budget forum and this will be the last Budget Bulletin unless major new challenges arise. If that should happen, I will again use every possible means to keep you informed.

For those of you who were unable to attend yesterday, here is a summary of the major points I shared.

Faced with a looming revenue shortage somewhere in the range of $1.4 billion, the Kansas Legislature managed to hold what might have been a cut of 20 percent or more in the budgets of Kansas Board of Regents universities to about 12 percent. The cut in the Fiscal Year 2010 budget for FHSU, including the original “Mega Budget” bill that passed in March and the Omnibus bill that passed May 8, was $3.7 million. However, the actual impact when unfunded mandates are included, totals closer to $4.5 million.

We had calculated that a cut of this magnitude would require a reduction of 54 employees. By using the recommendations of budget managers across the campus and following the guiding principles that we had adopted for dealing with this crisis, we were able to soften the impact of this $4.5 million budget reduction through efficiencies, projected enrollment growth and a proposed tuition increase. That meant we were faced with the need to eliminate only 28 positions. Thanks to some retirements, a freeze on some empty positions, an increase in teaching loads and a reduction in hours for just five employees, no one will lose his or her job as a result of the budget cuts.

I am amazed that our university could absorb a $4.5 million cut without having to eliminate any employees. This accomplishment would not have been possible without your support, your ideas and your willingness to take on additional workloads.

As I suggested at the beginning of this bulletin, we still might face difficulties in the weeks and months ahead. Our planned tuition increase -- which would still be under $100 per credit hour and lower than any other state university in the Midwest -- must be approved by the Kansas Board of Regents. The final state budget has a projected ending balance of just $17,000. The ending balance should be in excess of $100 million, and that could create the need for mid-year adjustments. Finally, what happens at FHSU and in the state of Kansas will ultimately depend on the fate of the international and national economies. Even if new financial challenges arise, we can be optimistic because we have already demonstrated what can be accomplished when we work together.

I thank you again for the thoughtful questions and comments submitted on Budget Watch, located on the home page of the FHSU Web site. Here are responses to the last few questions:

Q. You said we would be able to dress differently for summer.
A. We want people to be as comfortable as possible when thermostats are set higher in campus buildings this summer, but it is important to dress appropriately.
In a casual work setting, employees should wear clothing that is comfortable and practical for your work setting. Shorts and flip flops are not appropriate.

Q. Could something like this be implemented by August for the football season? Reducing athletic events admissions would bring more fans and more money into the Athletic Dept. I would rather see fans pay reduced prices at the gate so they would pay more at the concessions and reduce the prices at Tiger Fort.
A. Ticket prices for Tiger athletics are already comparatively low, so lowering the prices would not necessarily cause any significant increase in attendance. In addition, the Athletic Department, like every other department, is dealing with budget cuts and needs the revenue.

Q. Since Student Health was closed for the summer. Shouldn't the library be closed also? That could save a lot in cooling costs, as it wouldn't take much to keep the basement cool for CTELT.
Q. Why is the library open on Fridays and Saturdays if student count is very low or none at all? Sundays are a much busier day that to me would be more effective. This would save money on student help and also utilities.
A. Students need the library. It serves both Virtual College students and on-campus students. The number of on-campus classes this summer has been reduced, but the total student credit hours will be about the same as last summer.

Q. Would it be possible to reduce the amount of grass cutting on campus? Creating areas of natural ground cover and native grasses could reduce the amount of labor, fuel and water used yet still provide aesthetic landscaping.
A. Most of the lawns on campus are buffalo or other native grasses. The Quad is the only part of campus that has cool-season grass, and it is low-maintenance fescue.

Q. Why is the university funding renovations on Picken Hall when we are in a budget crunch? There are faculty and student employment cuts yet enough funds to beautify the facilities. While I understand how important it is to keep our faculties in good working condition, it seems like this project and a few others could be put off until FHSU is in a financially sound place.
A. Thanks for taking the time to ask your question and raise this good issue. The funds we are using for the Picken project can only be used for maintenance and repair projects. They are one-time funds that can't be used in the ongoing base budget where our cuts are coming. We will also be getting over $2 million dollars of stimulus funds that also have this limitation. Our problem is in the State General Fund and our base budget.

Q. What criteria were used to base your decisions on what positions on campus would be eliminated versus those that would be reduced in length of contracts? Are there any positions at the administration level that are being eliminated, such as an assistant to the assistant? Have there been any suggestions to across-the-board pay cuts to reduce the number of positions being lost?
A. The criteria came in the form of recommendations from the budget managers throughout the university, but as I announced at the forum, no current employee will lose his or her job as a result of budget cuts. Yes, some administrative positions are being eliminated. The Legislature decided against across-the-board cuts.

Q. How much additional revenue could be generated by increasing the cost spent for each transcript request? FHSU charges only $2 per transcript when smaller schools like Barton County Community College charge $5 per transcript and larger schools such as Kansas State University charge $8 per transcript.
A. We are increasing the charge for a transcript to $5.