01-24-2009, 01:31 AM
President's Report - January 23, 2009To: Faculty, Staff and Students
University of South Florida
From: Judy Genshaft, President
Subject: Budget projections; hiring freeze
The University of South Florida enters 2009 with a firm mandate to be part of rebuilding the economy of our state and nation. But at the same time, we are being asked to do more with less. I’m deeply proud of how all of you have responded to the call to lead the economic recovery for our state and nation. As a university, we will not retreat. Budget pressure means we need to be more disciplined and more focused on our strategic plan. And it means we will continue to argue that investing in higher education is the single best way to stimulate the economy.
The state currently has expenses greater than its revenue, and a Special Session of the Florida Legislature concluded last week with additional budget cuts to redress the shortfall. This letter spells out the hiring and spending freeze USF must enact immediately, and details our response to the cuts to date.
Results from the Legislature’s Special Session
As you have seen and read, the Special Session has mandated cuts for the current fiscal year, 2008-2009. The full details of those cuts may be found on the SUS ’09 Reduction Report.
The bottom line is the following. One year ago, USF prudently anticipated a 15% cut in its state general revenue support. That amount has turned out to be accurate, and since July 1, 2007, we have sustained a loss of approximately $52 million in general revenue support from the state. The cuts were made in two pieces: We started this fiscal year with a 10.6% cut, and now the Special Session has made a further permanent 4% cut, adding up to approximately the 15% we predicted a year ago. (During the year, the state has been withholding that 4% anyway – the Special Session made the withholding permanent.) In addition, the Special Session mandated cuts to Centers of Excellence and the Energy Consortium, all of which are detailed in the SUS ’09 Reduction Report.
Preparing for fiscal year 2009-2010: Hiring and Spending Freeze
Now we must turn to the future. Last year, I said I hoped the 15% cut over two years would be enough – and we were correct. Unfortunately, there is likely to be a new cut for the fiscal year beginning July 1, 2009, due to further shortfalls in revenue to the state.
At this time, we do not know how much of a cut we will face in July 2009 for the fiscal year that starts July 1. But we know we must be prepared.
As a result, USF must preserve maximum flexibility in meeting our academic goals as we prepare to reduce budgets again. For that reason, I'm implementing an immediate hiring and spending freeze for the university, effective today, Friday January 23.
Hiring freeze:
This means that hiring for vacant permanent positions is frozen except as approved by me. The university has enacted hiring freezes several times in the past few years, and the vice presidents already have mechanisms to seek exemptions. Searches currently underway may be completed. Grant funded positions are exempted.
Spending freeze:
Purchasing and other spending must be limited to essential items, with the expectation that travel and capital expenditures will be limited. Once again, each vice president will be responsible for a plan for exemptions.
Principles for budget cuts
In implementing this hiring and spending freeze, USF will continue to make decisions based on the principles we articulated in the spring. My full budget report from 2008 is available here.
In 2008, we agreed to make cuts and investment decisions based on the following principles, in summary:
To preserve academic excellence;
To follow the USF strategic plan as a guide;
To include the entire USF system in the budget planning;
To ensure that currently enrolled students progress toward timely graduation;
To apply our best ideas for strategic organization of the university;
To protect the faculty’s research and innovation activities;
To secure the financial integrity of the institution;
To evaluate our academic offerings, and all programs, based on: Quality, Centrality, Demand and Viability;
To maximize effectiveness in institutional practices;
And most importantly, to care about the people affected in the process.
These principles have not changed and they will continue to guide us. The University of South Florida will continue to be the champion of a new economy by producing the intellectual capital of our graduates, our research and our service. We will continue to celebrate the champions of change within our faculty and staff. We will continue to enjoy the success of our students. And we will continue to build the university of the future around a comprehensive plan for excellence.
The challenge is greater than it has ever been. And the need is equally acute. Our shared belief in the strength of this university, and of higher education, will ensure we meet this challenge. Thank you again for everything you do to make the University of South Florida a great institution and a critical element in the future of our state, country and globe.
University of South Florida
From: Judy Genshaft, President
Subject: Budget projections; hiring freeze
The University of South Florida enters 2009 with a firm mandate to be part of rebuilding the economy of our state and nation. But at the same time, we are being asked to do more with less. I’m deeply proud of how all of you have responded to the call to lead the economic recovery for our state and nation. As a university, we will not retreat. Budget pressure means we need to be more disciplined and more focused on our strategic plan. And it means we will continue to argue that investing in higher education is the single best way to stimulate the economy.
The state currently has expenses greater than its revenue, and a Special Session of the Florida Legislature concluded last week with additional budget cuts to redress the shortfall. This letter spells out the hiring and spending freeze USF must enact immediately, and details our response to the cuts to date.
Results from the Legislature’s Special Session
As you have seen and read, the Special Session has mandated cuts for the current fiscal year, 2008-2009. The full details of those cuts may be found on the SUS ’09 Reduction Report.
The bottom line is the following. One year ago, USF prudently anticipated a 15% cut in its state general revenue support. That amount has turned out to be accurate, and since July 1, 2007, we have sustained a loss of approximately $52 million in general revenue support from the state. The cuts were made in two pieces: We started this fiscal year with a 10.6% cut, and now the Special Session has made a further permanent 4% cut, adding up to approximately the 15% we predicted a year ago. (During the year, the state has been withholding that 4% anyway – the Special Session made the withholding permanent.) In addition, the Special Session mandated cuts to Centers of Excellence and the Energy Consortium, all of which are detailed in the SUS ’09 Reduction Report.
Preparing for fiscal year 2009-2010: Hiring and Spending Freeze
Now we must turn to the future. Last year, I said I hoped the 15% cut over two years would be enough – and we were correct. Unfortunately, there is likely to be a new cut for the fiscal year beginning July 1, 2009, due to further shortfalls in revenue to the state.
At this time, we do not know how much of a cut we will face in July 2009 for the fiscal year that starts July 1. But we know we must be prepared.
As a result, USF must preserve maximum flexibility in meeting our academic goals as we prepare to reduce budgets again. For that reason, I'm implementing an immediate hiring and spending freeze for the university, effective today, Friday January 23.
Hiring freeze:
This means that hiring for vacant permanent positions is frozen except as approved by me. The university has enacted hiring freezes several times in the past few years, and the vice presidents already have mechanisms to seek exemptions. Searches currently underway may be completed. Grant funded positions are exempted.
Spending freeze:
Purchasing and other spending must be limited to essential items, with the expectation that travel and capital expenditures will be limited. Once again, each vice president will be responsible for a plan for exemptions.
Principles for budget cuts
In implementing this hiring and spending freeze, USF will continue to make decisions based on the principles we articulated in the spring. My full budget report from 2008 is available here.
In 2008, we agreed to make cuts and investment decisions based on the following principles, in summary:
To preserve academic excellence;
To follow the USF strategic plan as a guide;
To include the entire USF system in the budget planning;
To ensure that currently enrolled students progress toward timely graduation;
To apply our best ideas for strategic organization of the university;
To protect the faculty’s research and innovation activities;
To secure the financial integrity of the institution;
To evaluate our academic offerings, and all programs, based on: Quality, Centrality, Demand and Viability;
To maximize effectiveness in institutional practices;
And most importantly, to care about the people affected in the process.
These principles have not changed and they will continue to guide us. The University of South Florida will continue to be the champion of a new economy by producing the intellectual capital of our graduates, our research and our service. We will continue to celebrate the champions of change within our faculty and staff. We will continue to enjoy the success of our students. And we will continue to build the university of the future around a comprehensive plan for excellence.
The challenge is greater than it has ever been. And the need is equally acute. Our shared belief in the strength of this university, and of higher education, will ensure we meet this challenge. Thank you again for everything you do to make the University of South Florida a great institution and a critical element in the future of our state, country and globe.