Six to Ten Million in Fiscal Year '10

[professorjackson]

An email faculty just received:

To the University Community:

On a personal level, the fall semester at BGSU has been intellectually
stimulating and filled with many opportunities to meet BGSU faculty,
staff, students and supporters. Thank you for stepping forward to make
me feel a part of the community very quickly. I appreciate the warm
welcome and the knowledge that there is a strong commitment to our
mission and an understanding of the teamwork required for success as
we go forward. We need to call on that commitment and spirit of
support now more than ever as we deal with unprecedented economic
issues in our nation and our state. As the semester comes to an end,
and each day brings more news of serious financial troubles, there are
many questions about how the national economy will impact the budget
for the state of Ohio and the possible consequences for the BGSU budget.

Throughout the semester, I have updated our community when there was
relevant new information. I am writing now to share the latest
information from Governor Strickland and to tell you about our
planning process for dealing with the BGSU budget. It is
understandable that the volatile nature of the economy, and the
uncertainty about how it will affect us, creates feelings of anxiety.
While we don't know everything that we need to know to develop the
BGSU budget for the next fiscal year (FY10--the budget year that
begins on July 1, 2009), this message will provide information about
what is currently known and what we are doing to plan the FY10 budget
for BGSU. In addition, we believe that the economy will not rebound
quickly and, therefore, we must plan for further reductions in FY11.

Budget planning must be based on the clearest possible understanding
about priorities. While we are in the midst of developing a new
strategic plan, we have a clear understanding of what really matters
to BGSU, and those values will guide us going forward: access to
higher education, a commitment to quality programs, and a strong focus
on student success. In addition to priorities, budget planning is
based on estimating our sources of revenue and our likely expenses.
Our two major sources of revenue for the basic operating budget of the
University are state support (which is called State Share of
Instruction or SSI), and tuition and fees. Both of these sources are
driven by enrollment. Therefore, the three major assumptions that we
must make to develop the budget are:

1. the increase or decrease in the SSI
2. the amount of any tuition increase
3. estimates about enrollment for the next year

At this time, none of these items are certain.

We will have a better idea about the level of SSI after the Governor
releases his budget proposal in January 2009. We will not have
specific final information until the General Assembly passes the
budget and the Governor signs the new budget bill. The entire process
likely will conclude at the end of June 2009. Our current best
estimates are that we should plan for a major decrease in SSI. Until
about two weeks ago, we were planning with an assumption of no
increase--a flat SSI--for next year. However, with the Governor's most
recent press release about the significant shortfalls in the state
budget for the current fiscal year and the likely state economy for
the next fiscal year, we believe that using an assumption about a
decrease in SSI is prudent.

As we think about tuition, we are reluctant to make up the possible
decline in SSI with a large tuition increase. We are committed to
tuition constraint because we know that higher education is the way
out of this national economic crisis, and we want students to be able
to participate in earning their degrees. The typical BGSU student is
concerned about the cost of attendance, and we need to keep that in
mind when recommending tuition increases. For the purposes of budget
building, we have to make some assumptions about this important source
of revenue and we have chosen to model a modest tuition increase. This
is not a final decision--the Board of Trustees will make a final
decision at a spring semester Board meeting.

I also noted that we have to make estimates about enrollment because
our two sources of revenue are based on enrollment. While the
Noel-Levitz consultation is already yielding important analyses and
understandings about both recruitment and retention, we know that it
will take time to "grow out" of our current enrollment position.
Estimating enrollment for next fall is complicated by the national
economy because many individuals are re-thinking their higher
education choices in light of the levels of unemployment and the
availability of loans. Based on historic trends and current levels of
interest in BGSU, we are estimating a continuing enrollment decline
for next year for budget planning purposes. We will continue to work
vigorously to improve enrollment and will adjust our estimates as
needed throughout the planning process. Significant work is underway
throughout the BGSU community to engage in an enrollment improvement
campaign and I extend thanks to all of you who are participating in
improving our recruitment and retention programs.

Working with these three estimates, we are projecting a budget
reduction of between $6 million and $10 million for FY10. Every
division (Academic Affairs; Student Affairs, including Athletics;
Advancement; Finance and Administration; President's Office) has a
target budget reduction, with the expectation that the Cabinet will
discuss proposed reductions, determine cross-divisional implications,
and advise me about the final reduction proposals. Because the
information from the Governor changed dramatically within the past two
weeks, we were forced to revise our assumptions downward and asked the
Provost and Vice Presidents to plan for greater budget reductions.

We have chosen not to make reductions in an across-the-board manner.
We are asking those with budget authority to work with the Provost and
Vice Presidents in recommending reductions that sustain our core
mission and priorities to the greatest extent possible. For example,
the deans will work with their chairs and directors and other senior
leaders in the colleges to recommend to the Provost how they will meet
their reduction targets based on agreed-upon priorities and estimated
enrollments in the colleges.

Unfortunately, we cannot provide every detail about how the reductions
will be made at this time. Based on the hiring freeze, we have been
holding positions vacant, and that will enable us to eliminate many
positions without eliminating individuals. However, we cannot meet our
reduction targets by focusing only on vacant positions. Because of the
notification requirements for non-renewal of our administrative staff,
individuals whose positions are being eliminated for the FY10 budget
year (beginning July 1, 2009) have already been notified or will be
notified before the end of December 2008. When we are ready to
announce classified position reductions, we will do so at the same
time because of the ripple or "bumping" effects that these reductions
will have with our classified staff.

It is never pleasant to deliver messages such as this one. It is
especially difficult during this time of holiday celebrations and
expectations for joy and fun with family and friends. Unfortunately,
these are our current realities and we must face them to ensure a
strong future for BGSU. The leadership team is committed to making the
best possible recommendations to serve our mission and maintain
quality. We are working together to protect what is most important and
to ensure that we understand how cuts in one area might impact
unfavorably on another. We will engage those who need to be consulted
as we develop proposals for dealing with budget cuts. We are committed
to creating a plan that allows BGSU to emerge stronger and better
positioned to serve our mission in the future.

I will write again as new information is available and as our planning
progresses. In the meantime, I appreciate the suggestions for savings
and efficiencies received to date and welcome more suggestions.

Thank you for your continued support of our mission.

Carol A. Cartwright

[1987alum]

Same song, different church. Every organization is tightening its belt.

Hopefully, BG will be in a position to quickly rebound when the economy kicks back into gear.

[Globetrotter]

What is going on with enrollment? Why is it going down?

[Ineedbotox]

Maybe it's just me, but is Memaw Cartwright the best we can do to lead the University at this point?

[dforde]

In your eyes, what is Dr. Cartwright not doing that she should be doing?

[1987alum]

I haven't heard any negative buzz about Cartwright. On the contrary, reports have all been good.

Short of a massive federal bailout, BG will experience economic pain no matter who is at the helm.

[PGY Tiercel]

Could be worse. UK has taken a 20million dollar cut in the past 12 months, plus the potential for another 12million coming up. UofL is looking at about 16million in last years cuts and the proposed new one.

[dforde]

Could any of us afford to send our kids to BGSU if we lost our jobs? Probably not. The economy is probably the worst it's been in 70 years. Our financial support form the state is going down and this is nobody's fault. People are not spending money and the state is not generating sales tax etc. It's a very tough enrollment climate right now and it's no anybody's fault except the fact that thousands of people are losing their jobs. Dr. Cartwright is a good person and is doing the very best she can in an incredibly difficult situation.

[Lord_Byron]

What is going on with enrollment? Why is it going down?

In addition to the previously mentioned economy and difficulty getting loans, the populaiton of available US college age students starts to decline after next year's graduating class.

US Birth Rates

[1987alum]

The populaiton of available US college age students starts to decline after next year's graduating class.

It's about d**n time!

[factman]

Owens CC is taking their fair share too, due to the cheaper tuition for the first two years, which ties right back into the economy.

[professorjackson]

Dear Faculty and Staff,

I am writing to let you know that Shirley Baugher has resigned as
provost and vice president for academic affairs. She is leaving BGSU
for family reasons.

While her resignation is effective Dec. 22, she has agreed to assist
me with the transition and other key projects over the next 90 days.

Mark Gromko will serve as interim provost for the spring 2009
semester. I know I can count on all of you to support and assist Mark
during this critical time for the University.

During her tenure here, Shirley has been instrumental in launching a
number of initiatives that are absolutely essential to BGSU's future.
I appreciate her work preparing the University to meet the
opportunities of the new state system of higher education.

I respect Shirley's decision to put her family first, and hope you
will join me in wishing her well.


Sincerely,

Carol A. Cartwright
Interim President

[Ineedbotox]

In your eyes, what is Dr. Cartwright not doing that she should be doing?

Apparently, not maintaining a cohesive administration & faculty.

[PGY Tiercel]

In your eyes, what is Dr. Cartwright not doing that she should be doing?

Apparently, not maintaining a cohesive administration & faculty.

I get the impression that the post of above yours may help in that aspect.

[bghockeyfan]

[quote="PGY Tiercel"][quote="Ineedbotox"][quote="dforde"]In your eyes, what is Dr. Cartwright not doing that she should be doing?[/quote]

Apparently, not maintaining a cohesive administration & faculty.[/quote]

I get the impression that the post of above yours may help in that aspect.[/quote]

http://media.www.bgnews.com/media/stora ... 2193.shtml