System Financial Investment in UMD

Dear UMD Colleagues:

In case you have not heard, I am extremely pleased to share with you the announcement President Joan Gabel made Friday morning during the Board of Regents meeting.  President Gabel announced that she is allocating over the next two years approximately $6.8 million in one-time funds to eliminate our sequestered deficit. The sequestered deficit is the negative balance which was created over the past few years by the annual structural imbalances of our O&M budget. The actions we have taken recently on campus will eliminate UMD’s current structural imbalance by the end of Fiscal Year 2021, and President Gabel’s actions will also eliminate the sequestered deficit by the end of Fiscal Year 2021.  

Elimination of these deficits puts UMD on a much firmer financial foundation and positions us to respond with more creativity and innovation to the financial challenges we will likely face in the future. However, our work is not done. Tuition revenues and state funding are critical to our ongoing success, and we must be diligent in our focus on recruitment and retention. In addition, we will continue to partner with President Gabel, Senior Vice President Burnett, members of the Board of Regents, and our elected officials to advocate for additional state funding coming to UMD. As we have done in the past, we will work with the UMD Strategic Planning and Budget Committee to help us refine our plans and strategies for the future. 

President Gabel has indicated over the past few months that she will partner with UMD to address our budget challenges. Her actions Friday are a major step forward in this process, and her statements indicate her tremendous empathy for what we are experiencing and her commitment to UMD as a core part of the University of Minnesota System. We appreciate her commitment to UMD and the support we are receiving from Senior Vice President Burnett, other System leaders, and the Board of Regents.

Please contact me or one of the UMD Vice Chancellors if you have questions or would like additional information.

Sincerely,
 

Chancellor Black

New Financial Investment in UMD

Colleagues,

Our budget situation at the University of Minnesota Duluth (UMD) has few easy answers. Structural change, as you are experiencing, is extremely difficult, and I have tremendous empathy for what you are going through, both professionally and personally.

Duluth has been front of mind for me since becoming President on July 1. UMD is a core part of our mission. I believe in what you’re doing, and I'm grateful for the tremendous value you bring to the table for all Minnesotans. With the budget reductions announced last week, UMD has taken difficult but necessary steps to balance the annual structural imbalance. It is therefore important to me that the structural changes you are undertaking receive support from decisions the System can make to strengthen Duluth and accelerate future success.

Accordingly, I have asked that the System, over the next two years, contribute approximately $6.8 million in one time dollars to eliminate UMD’s current sequestered debt, which has accumulated over the last few years. I don't make this decision lightly. Eliminating this debt allows for new investments and next chapters to truly focus on the future.

Chancellor Black will follow-up with additional details. We need UMD to be successful and believe strongly that this investment will help the UMD community move forward.

Warm regards,

Joan Gabel

Wishing You an Enjoyable Semester Break

Good afternoon,   Thank you to all who were able to join us at the end of semester buffet. Your contributions brought in $518.95 for the Union Gospel Mission, 196 pounds of food plus a monetary donation for Champ’s Cupboard, and 197 pounds of food for the CHUM food shelf. Your generosity is sincerely appreciated!   I hope you enjoy the attached video featuring a light-hearted look at Dr. Arshia Khan’s robots, which are created to conduct serious research in helping people deal with significant life issues, like dementia and elder care.    You have my best wishes for a well-deserved break between semesters. We’re working in difficult times, and this has been a challenging semester. However, I am impressed with the outstanding accomplishments this fall of our students, faculty, and staff. Thank you for all you do for UMD.

Sincerely,   Chancellor Black

Campus Budget Reductions

Dear Colleagues, 

Over the last few months, the vice chancellors and I have worked with deans and directors across campus to identify $5.2 million in recurring funding reductions. As you may recall from my October budget update to campus, we are working to start our new fiscal year on July 1, 2020 with a balanced budget. In order to do this, we need to reduce O&M (operations and maintenance) expenditures by $5.2 million to cover the $4 million annual imbalance and a required $1.2 million systemwide reduction. 

This is difficult. While there are solid financial reasons for doing this work, it does not reduce the pain that our employees will feel and the concern from our students and community. These are tough decisions and reflect the challenges that universities across the nation face.

We are committed to:

• Minimizing the impact to students.
• Preserving academic programs and student support as much as possible.
• Providing support and resources for those individuals directly affected. 

Leaders across campus have received approval for their budget reductions and are working to communicate and implement them as appropriate. In summary:

• Around 29 faculty and staff are directly affected through either full lay-off or reduction in contracts; plus 13 graduate teaching assistant positions. This equates to 24.7 full-time equivalents. 
• Leadership was able to lessen the impact by utilizing alternative funding, open positions, and retirements, a total of about 30 full-time equivalents.
• Zero academic programs are completely eliminated. Jazz studies will change from a standalone major to a concentration. Early childhood studies (unified early childhood studies dual licensure and early childhood studies non-licensure) will be temporarily suspended and positioned for a successful relaunch.
• Masters in English will suspend new admissions to the program for the next two years.
• The Center for Excellence in Teaching and Learning will be eliminated; however, leadership will continue to offer faculty development in partnership with the Twin Cities’ Center for Educational Innovation and other administrative units at UMD.
• The College of Liberal Arts and the School of Fine Arts will merge allowing us to realize operational and administrative efficiencies while also preserving and optimizing program offerings. 
• Facilities Management decreased their repair and renovation budget by $225,000.

I want to address recent conversation around the value of the fine and liberal arts at UMD. Let me assure you that both the fine arts and liberal arts are critical components to UMD and will continue to be central to our mission, as well as our artistic and academic experiences. As someone with a theater background, I know first-hand the positive impact that the arts can have on a person, a campus, and a community. There are indeed many career opportunities for arts and liberal arts graduates, and these disciplines provide invaluable skills and enrichment regardless of one one’s career path. Merging CLA and SFA not only helps to preserve programs and faculty lines, but it may bring further collaboration and opportunities for students, faculty, and staff. 

Ultimately, these budget decisions will strengthen UMD’s financial position and are necessary steps to best position UMD for an outstanding future. I ask for your support as we navigate these difficult times. Please be assured that while we are moving ahead with these reductions, I continue to advocate for additional resources for UMD both within system leadership and at the state Capitol. I appreciate your advocacy and passion for UMD.

Sincerely,
 
Lendley C. Black
Chancellor