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New cutbacks at University of Tennessee on table
(Knoxville News-Sentinel, The (TN) Via Acquire Media NewsEdge) Dec. 4--NASHVILLE -- Cutting sports, expanding online courses and overhauling the tuition system were among budget-cutting proposals discussed Wednesday by a University of Tennessee trustees committee.
Trustees also were told that administrators are putting into place a program to counsel employees who will lose their jobs. About 70 percent of UT's costs come from payroll and benefits, officials said, so it is probable that at least 70 percent of imminent budget cuts will come through layoffs, furloughs or other personnel actions.
Already, UT has abolished 174 vacant job positions as part of reducing the current year's budget by $17 million.
Gov. Phil Bredesen said UT can expect its budget next year to fall at least 10 percent from this year's initial budget because of declining tax revenue, which translates to about $48 million, and perhaps up to 15 percent, or $72 million. The $17 million in reductions or savings already made in this year's budget would be part of those figures, though some of this year's cuts involved "one-time" money and cannot be repeated next year, said UT Chief Financial Officer Gary Rogers.
The 174 abolished positions translated into annual savings of almost $8.2 million, according to figures provided to the committee.
The UT system still has the equivalent of 820 full-time positions vacant, but many of those involve needed faculty or other key positions. An evaluation of all positions is being conducted. Statewide, UT has 10,345 staff positions and 3,480 faculty positions.
UT President John Petersen said he hopes to present Bredesen with a budget-cutting plan by mid-January. Among options presented at the trustees' Committee on Effectiveness and Efficiency for the Future meeting Wednesday:
--Cutting athletics at UT-Martin and UT-Chattanooga, which are subsidized by tax dollars. The state provides about $3.9 million per year for athletics at Martin and about $4.3 million at Chattanooga, officials said. At UT-Knoxville, all athletic programs are covered by the revenue-producing football and basketball programs.
--Charging tuition on a "per credit hour" basis rather than by semester. Officials said this could curb problems with students signing up for hundreds of courses, then dropping them after administrators make faculty and staffing plans based on the sign-up numbers. There also could be higher per-hour tuition charges for courses where expenses are higher or a "drop fee" charged to students for dropping courses.
--Offering more courses online, perhaps with students at Chattanooga, Knoxville and Martin using the same materials and instructors.
UT now spends about $3.3 million per year on online courses and Petersen said that is one item that should not be cut, because it keeps expenses down.
--Evaluating fundraising to determine if some efforts cost more than they bring in and should be eliminated.
--Reviewing the practice of hiring retired UT employees. There are 396 on the payroll. In some cases, the retirees save money, especially when hired for special events or temporary needs, officials said. But in other cases, that may not be the case.
Administrators are developing a program to deal with anticipated layoffs, including training of managers on the process and providing counseling both those who lose their jobs and workers who remain. Those dismissed will be given advice on benefits they can receive and on other job possibilities, according to the plan.
"We're not just going to say, 'You're fired, see ya'," said Jim Murphy, vice chairman of the UT Board of Trustees.
The committee, which will meet again at Martin on Jan. 5, also got a report on reductions or savings made in the current year to meet the $17 million reduction goal.
Besides eliminating vacant positions, those include:
--Moving to reduce energy expenses on the Knoxville campus by 10 percent, which would save $2 million. Petersen noted, however, that such savings can be wiped out if energy costs rise sharply again as they did earlier this year.
--Giving employees electronic, rather than paper, paystubs to save $146,000. Use of electronic billing statements to students is expected to save another $88,000 per year.
To see more of The Knoxville News Sentinel or to subscribe to the newspaper, go to http://www.knoxnews.com.
Copyright (c) 2008, The Knoxville News Sentinel, Tenn.
Distributed by McClatchy-Tribune Information Services.
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