Budget Update

April 21, 2011

Dear UMD Campus Community:

I am writing to give you an update on our campus budgeting process and anticipated results. These results are not definitive until the legislature and governor make final budgetary decisions for the next biennium, which begins July 1, 2011. However, I want to keep you informed as these issues develop.

We continue to anticipate a net 5% reduction, approximately $7.3 million, in our Operations and Maintenance budget. As we have prepared for this reduction, we have followed the budget reduction principles recommended by the Budget Committee of the Campus Assembly, and I have met with this committee several times to ask for their input and to keep them informed. These budget reduction principles guide us to reduce the negative impacts on instruction and student programs, by focusing first on funds held centrally and on administrative areas.

Over $4 million of the $7.3 million reduction will be taken from central funds that would have been used to hire sorely needed faculty and staff. Using these dollars held centrally allows us to reduce the budget cuts to UMD units from 5% to 2.85%. All Vice Chancellor units and my office are taking a cut of 2.85%. In addition, after a major restructuring of some units and other administrative reallocations, the negative impact on the academic colleges and schools was reduced from the original 5% to 1.5% - 2%. These proposed academic cuts were not made across-the-board, but were scaled to help those academic areas with the greatest needs.

So far, our budget reduction process of administrative areas has resulted in layoffs of five individuals and several reassignments. We are in the process of seeking open positions in other areas of campus for the individuals who were laid off.

These budget reductions are painful. As I have stated previously, we will lose the ability to hire approximately 65 faculty and staff members if this budget reduction plan becomes final. These lost positions harm our capacity to meet student needs both in and out of the classroom. Our faculty and staff are already stretched thin, as you deal with more students with fewer resources. At this time, we do not anticipate furloughs or salary reductions for the next fiscal year.

I remain impressed and appreciative of the remarkable work that occurs throughout all areas of UMD. We have received well-deserved attention recently for our national championships in athletics, and we pride ourselves as national champions in many academic, student life and other areas throughout campus.

I will continue to keep you informed as we move closer to a final budget for the next biennium. Thank you again for all you do to make UMD a great university.

Lendley C. Black
Chancellor

Campus Assembly to Review Strategic Planning on April 26

Dear UMD Campus Community:

At this week's Campus Assembly meeting, I introduced UMD's new strategic plan. This document was recommended by the Strategic Planning Steering Committee at its meeting on Monday, April 11. I asked the Campus Assembly to consider endorsing the plan at a special Assembly meeting on April 26.

You may view the text of the plan at:
http://www.d.umn.edu/chancellor/planning/Integrated%20Strategic%20plan%20for%20April%2012%20Campus%20Assembly.pdf

I invite you to provide comments or suggestions on the strategic planning website (www.d.umn.edu/chancellor/planning/), or send me an e-mail at chan@d.umn.edu.

Thank you for your input and your support of our strategic planning process.


Lendley C. Black
Chancellor