Sat, Aug 30, 2008

Tucson Region

UA looks to make $9.3M in cuts over 2 years

Reductions are attempt at getting away from crisis-mode budgeting
By Eric Swedlund
arizona daily star
Tucson, Arizona | Published: 12.13.2006
The University of Arizona must decide on at least $9.3 million in cuts over the next two years, President Robert Shelton will announce today as he refines a budget stabilization plan aimed at reducing risky year-to-year budgeting.
In a draft memo, Shelton said different areas will receive different cuts rather than across the board.
"All areas of operation are subject to review," Shelton wrote. "There can be no 'sacred cows.' "
Shelton, who was out of town and unavailable Tuesday, will make the announcement this morning as he meets with the Strategic Planning and Budget Advisory Committee. The draft memo was introduced by Provost George Davis at an academic council meeting of college deans Tuesday.
Shelton will direct Davis and Joel D. Valdez, senior vice president for business affairs, to lead the budgeting process, starting in January. They will consult with deans and other administrators, review the programs and return to Shelton a comprehensive recommendation of how the reductions should be managed.
"What he wants from Joel and I is a very clear understanding of what our current capacities are and how we would manage reductions in the base budgets, how this would impact core business," Davis said. Areas that could see cuts are "those programs or activities that are less impactful regarding core mission," he said.
Shelton, who started as the UA's 19th president in July, has already made reductions of $10.3 million in this fiscal year, focused on areas that didn't have permanent funding.
As he made those cuts, roughly 1 percent of the university's total budget, Shelton projected that reductions next year would be 1 percent for the colleges and 0.5 percent for supporting units.
Revenue projections since then have turned downward and the financial burdens facing the university are too great for the stabilization plan to cover over one year, Shelton wrote.
The $9.3 million in reductions will be split over the next two years, with $5.4 million in cuts to identify in fiscal year 2007-2008 and the remainder delayed to 2008-2009.
The budget stabilization plan started as an agreement between the Arizona Board of Regents and former UA President Peter Likins to move the UA away from budgeting in a crisis mode.
"The number of continuing activities at the University of Arizona not supported by permanent funding is excessive," Davis said.
"When Pete Likins developed the budget stabilization plan it was done for a given moment of time and without any assumptions regarding future revenue projections or future cuts," Davis said. Shelton "is examining where that plan is right now with respect to the current realities," he said.
Davis declined to speculate on which areas might face cuts or whether jobs would be lost.
"I don't know exactly what's ahead other than really looking at the capacity of our colleges and really looking at the core business of teaching and research," he said.
● Contact reporter Eric Swedlund at 573-4115 or at eswedlund@azstarnet.com.