Enterprise Investment Program bares the brunt of state cuts
Enrollment won’t be capped in the foreseeable future, though it’s not out of the picture.
Published July 6, 2011
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2011 at University Hall. Retirement benefits and the budget reduction were the major topics the Board of Curators talked about during its June meeting.
The Missouri Executive Budget was released for the 2012 fiscal year June 10 announcing that, among other programs, funding for higher education would be significantly cut causing the UM System to discuss ways of cutting costs on campus in the future school years.
According to the budget, the system will receive about $4.37 million less than what was appropriated in 2011 based on Gov. Jay Nixon’s recommendations. It was up to the system administration where to cut funds and it has been decided that the majority of cuts will be from the Enterprise Investment Program, a program created to invest in small businesses in order to enhance many campus technologies.
Funding for the program will drop from $5 million to $2.8 million.
“While the university will be able to fulfill its commitment for the first round of pending investments in early-stage companies, the cut will adversely affect future funding of collaborative ventures among the university, entrepreneurs and businesses,” Interim System President Steve Owens said in a news release.
Each of the system’s administration, its four campuses and MU Extension will deal with the cuts on a proportional basis the best way that they see fit. These groups will produce the other half of the reduction not covered by the Enterprise Investment Program cuts. During June’s Board of Curators meeting, ways of dealing with the budget cuts were discussed. The potential of capping freshmen enrollment in the future was brought up, but has since been dismissed.
“We are not planning on capping the number of freshmen admitted to MU,” Vice Provost for Enrollment Services Ann Korschgen said. Owens said the idea of capping enrollment isn’t completely out of the picture for the future.
It was agreed upon that though the state might be cutting funding for the system, the students and faculty should not have to suffer for it. “We cannot continue to take more and more students while state support declines,” Owens said. “Without adequate resources, the quality of our academic and research programs is at risk.”
Student fee surcharges and reduction in financial aid was also over passed along with decreasing employee salaries.
“We continue to strive to keep education affordable and I do not believe that students should bear the brunt of the latest reduction in state support,” Owens said in a letter. “I do not intend to reduce the 2 percent salary merit pool for employees. We recognize that our faculty and staff are already undercompensated and that we suffer competitively as a result.”
The 2012 budget cuts are in addition to previous government cuts of $8.7 million and $53.2 million cuts made by the system in order to balance the budget.
3:58 p.m., July 7, 2011
MIlan Moravec said:
Wage concessions at University of California close deficit gap: lessons learned for UM system. University of California faces massive budget shortfalls. It is dismaying Calif. Governor Brown. President Yudof and Board of Regents have, once again, been unable to agree on a package of wage, benefit concessions to close the deficit. Californians face foreclosure, unemployment, depressed wages, loss of retirement, medical, unemployment benefits, higher taxes: UC Board of Regents Regent Lansing, President Yudof need to demonstrated leadership by curbing wages, benefits. As a Californian, I don't care what others earn at private, public universities. If wages better elsewhere, chancellors, vice chancellors, tenured, non tenured faculty, UCOP should apply for the positions. If wages commit employees to UC, leave for better paying position. The sky above UC will not fall. Californians suffer from greatest deficit of modern times. UC wages must reflect California's ability to pay, not what others are paid. Campus chancellors, tenured & non-tenured faculty, UCOP are replaceable by more talented academics Wage concessions for UC President, Faculty, Chancellors, Vice Chancellors, UCOP: No furloughs 18 percent reduction in UCOP salaries & $50 million cut. 18 percent prune of campus chancellors', vice chancellors' salaries. 15 percent trim of tenured faculty salaries, increased teaching load 10 percent decrease in non-tenured faculty salaries, as well as increase research, teaching load 100% elimination of all Academic Senate, Academic Council costs, wages. (17,000 UC paid employees earn more than $100,000) Overly optimistic predictions of future revenues do not solve the deficit. However, rose bushes bloom after pruning. UC Board of Regents Sherry Lansing, President Yudof can bridge the public trust gap by offering reassurances that UC salaries reflect depressed wages in California. The sky will not fall on UC Californians are reasonable people. Levy no new taxes until an approved balanced budget: let the Governor/Legislature lead - make the tough-minded (not cold hearted) decisions of elected leadership. Afterwards come to public for continuing, specified taxes. Once again, we call upon UC President, Chancellors, Vice Chancellors, Faculty, UCOP to stand up for California and ‘pitch in’ for Californians with wage concessions