The economic crisis hit hard at ETSU Monday afternoon, taking the form of a total budget reversion of $3,239,800, to be implemented Nov. 1.
Tuition increases, program cuts and layoffs are not expected at this time, but university officials say the cut is still a very serious matter.
ETSU President Paul Stanton met with university officials, and presidents of the Faculty Senate, Staff Senate and Student Government Association Tuesday morning to brief them on the situation.
Shortly after, a university-wide e-mail detailed the necessity of the budget reversion.
This 3.44 percent cut is necessary due to a state funding deficit, said Tennessee Board of Regents Chancellor Dr. Charles Manning on Oct. 7.
“It is a tough time, but it is an understandable situation,” Manning said in a phone interview. “The state doesn’t have the money, it can’t spend money it doesn’t have and we have to accommodate to that.”
The order came to Manning from the office of Gov. Phil Bredesen on Friday afternoon. The Tennessee Board of Regents system has been ordered to cut a total of $25 million from its budget. The UT system, a smaller academic system, is being cut by $17 million and is facing the possibility of program cuts, Manning said.
The academic year began with a 5.8 percent reduction on July 1. The two cuts total a 9.24 percent reduction in budget, comparable to the more than 9 percent reduction that took place in 2003. All TBR institutions were ordered to cut the same amount – 3.44 percent – from their budget.
ETSU is faced with a $2,061,800 reversion, the J. H. Quillen College of Medicine faces a $985,000 cut and ETSU Family Practice will be cut an additional $193,000.
The Bill Gatton College of Pharmacy will not see a reduction because it is funded through private donations, Stanton said, and the General Shale Brick Natural History Museum is funded by the federal government.
While the reversion is serious, Stanton said that when put in the context of the current economic downturn, it was expected.
“In some ways we have been quietly preparing,” Stanton said in a phone interview on Oct. 7. “I have been charging our vice presidents and directors to be very (fiscally) conservative.”
The money that has been saved from university departments overall is yet to be determined, but Stanton said that they could lessen the amount that needs to be cut from the budget.
“We have truly instructed everyone to be very tight (with money) because of the likelihood of what is now happening,” he said.
The hope, he said, is to lessen the economic impact across campus.
“I think we’re prepared enough that we won’t have to eliminate programs,” Stanton said. “We will not eliminate classes this semester . I don’t want to negatively impact you guys.”
The university president said that his goal is to not have this budget reduction disrupt academic life at ETSU. “The most sacred thing is instruction,” he said. “I want to have the least negative impact on instruction.”
Layoffs are something that the university president said he also wanted to avoid, but added, “If we have future problems of this magnitude, we will probably have to go to layoffs.”
Provost for Academic Affairs Bert Bach expressed similar views on avoiding layoffs. “It’s going to mean that we’re going to have vacant positions that will go unfilled, but we hope at this time that we can avoid any terminations, any rifts that are a result of this issue.”
Reduction in the hours that adjunct faculty and part-time employees work is also possible “under the worst circumstances,” Stanton said, adding, “Part-time faculty are critical to teaching in certain departments. When you give us your tuition . we have a pretty big obligation to teach you.”
The current budget reversion will likely concern “any place we can save resources,” according to Stanton. For example, faculty and staff positions that are currently unfilled will likely remain unfilled, or could possibly be cut from the budget. Travel is another area that could see a significant reduction.
“We have to hope that we’re close enough,” Stanton said of the money that has been saved. “I worry more about future takedowns than I do about what’s happened already.”
For this academic year, no funds for new capital projects were allocated by the state, but funds for maintenance were left intact.
For the 2009-2010 academic year, no capital projects or maintenance projects will be funded by the state.
“Capital and maintenance is something that is effective over a long period of time,” Manning said. “One year shouldn’t impact students right away.”
This means that the Fine Arts Center has been placed on the backburner again, Stanton said, and construction on that building may not begin for another two years.
A one-time bonus of $400 for all university employees has not been suspended. Employees will receive this bonus at the end of October.
“We’ve already planned for that, it’s in our budget,” Stanton said, adding that next year there will likely be no raises.
The budget cuts should not residence halls, or the Phase II Apartment Complex that is currently being built.
“That’s a different stream of money entirely.”
Another budget reversion could have greater consequences for ETSU.
“They’re saying, ‘get ready – be prepared for more,’ ” Stanton said.
If the economy continues to be as bleak, he warned, more drastic cutbacks are to be expected.

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