The Red and Black

Issue date: 5/1/09 Section: News

ADAMS

Fees, furloughs and increased tuition - just a few of this semester's budget buzz words.

Students, faculty, staff and administrators all have been affected by the economic downturn and resulting budget cuts at the University.

University President Adams told The Red & Black in January there are no safeguards against further cuts in the budget.

"While we've had financial challenges before, this one is deeper and tougher than probably anything we've faced in the last 20 to 25 years," Adams said.

About 450 faculty and staff positions at the University were cut through attrition - a reduction of labor involving voluntary quits or retirement - rather than layoffs or furloughs.

"At present we are not anticipating any furloughs, but the state could order them," said Tom Jackson, vice president of Public Affairs for the University.

In March, University System administrators asked their legal offices to investigate "any options available to us to give us flexibility in our faculty contracts," said Board of Regents spokesman John Millsaps. Since tenured professor contracts employ clauses protecting against furloughs, this was a way to find out what the system's options were.

As it turns out, the University System can, in fact, implement furloughs - or time off without pay - if the Board of Regents declares a state of exigency, a concept similar to bankruptcy.

"If all employees were furloughed for one day, the University would save about $2.5 million," Arnett Mace, provost and senior vice president for Academic Affairs told The Red & Black.

Adams worked to secure funding from areas other than the University's main operating budget. In February he announced 2 percent of auxiliary revenues would be assessed to redirect funds "to academic support to try and save jobs in academics."

The 2 percent fee - imposed on athletics, housing, student activities, food services, transportation and parking - amounts to $5 million or $6 million, Adams said. Auxiliary services at the University generally bring in $300 million in revenue each year.

In an expected effort to bring in additional funds to the University, the Board of Regents approved a hefty tuition increase in April for students not covered by the "Fixed for Four" tuition guarantee.

Adams told the University Council the 25 percent in-state and 15 percent out-of-state tuition increases will create $14 million in additional revenue for the University. The Board of Regents also voted to extend the $100 special institution fee for the next academic year - yielding $7 million for the University.

The budget in 2010 - beginning July 1 - will operate at a level consistent to 2009, pending unforeseen circumstances, Adams said.

"My position remains that we will cooperate with state leadership, and we will do whatever we have to do to make the budget balance," he said. "We will also cooperate in whatever form the cuts are required."

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