Budget Messages

AFSCME membership votes to take unpaid leave

Tuesday, December 1, 2009

Yesterday it was announced that members of the state's American Federation of State, County and Municipal Employees (AFSCME) voted to approve a proposal put forth to them by Gov. Culver and AFSCME leadership regarding mandatory unpaid days. The agreement between the state and AFSCME includes a provision requiring all AFSCME employees in Iowa to take five days of unpaid time off during the remainder of fiscal 2010.

Obviously, this five-day plan is different than the graduated, three-, six- and nine-day approach originally proposed by UNI. How these mandatory unpaid days will be carried out for UNI's AFSCME-represented employees won't be known until further direction is provided by Department of Administrative Services (DAS).

What impact this agreement will have on temporary layoff plans for UNI's other employee groups won't be known until we have details from the DAS and negotiations are completed with United Faculty.  The next meeting between UNI and United Faculty is scheduled for Dec. 2.

Other budget-related updates:

1. Temporary reduction in TIAA-CREF employer contributions
Effective Nov. 30, the university is temporarily reducing its employer retirement contribution to TIAA-CREF. The reduced contribution will remain in effect through the June 30, 2011 payroll.

2. Board of Regents
A motion to recommend a $100 spring-semester tuition surcharge was approved by the Board of Regents at its October meeting and will be voted on at its Dec. 10 meeting. The vote regarding 2010/11 tuition has been postponed until February.

I want to thank you again for your continued patience as we work out budget details. More updates will follow.

Ben Allen

Some Progress to Report

Friday, November 13, 2009

I had hoped to have more information to share with you by now. Unfortunately, processes beyond our control are moving slower than expected. However, I do want to keep you informed about changes since my last message.

1. Temporary reduction in TIAA-CREF employer contributions

As approved by the Board of Regents, State of Iowa, on Oct. 29, effective with the Nov. 30 payroll, the university will temporarily reduce its employer retirement contribution to TIAA-CREF. The reduced contribution will remain in effect through the June 30, 2011 payroll and will be adjusted as follows:

  • The university contribution rate of 6 2/3 percent for the first $4,800 of salary for employees with one through five years of service will be reduced to 5 1/3 percent.
  • The university contribution rate of 10 percent for salary above the first $4,800 for employees with one through five years of service will be reduced to 8 percent.
  • The university contribution rate of 10 percent for employees with more than five years of service, early retirement plan participants, and employees on phased retirement, will be reduced to 8 percent.
  • The employee contribution rate will remain the same.

If you have questions about TIAA-CREF, contact Cindy Webb or Bobbi Petersma.

2. Temporary layoffs

Part of UNI's plan to reduce the budget is to conduct temporary layoffs (unpaid leave) among all employee groups in fiscal 2010. This plan will be graduated based on salary. The specifics of temporary layoffs won't be known until discussions have concluded between the state and AFSCME, and between UNI and United Faculty. We are hopeful discussions will be concluded by the end of the month.

Gov. Culver's office and AFSCME have a tentative agreement. The membership will vote on ratification of the agreement on or before Nov. 25. Whatever is decided at the state level will directly impact AFSCME-represented employees at UNI. That decision also will impact the options available to the university.

Since the last Board of Regents meeting, UNI administrators have met with United Faculty leadership to share information and ask questions pertaining to temporary layoff and temporary salary reduction options. The two groups will meet again on Nov. 16. 

 3. Board of Regents

A motion to recommend a $100 spring-semester tuition surcharge was approved by the Board of Regents at its October meeting and will be voted on at its Dec. 10 meeting.

4. Federal stimulus (ARRA) funds

Since July 2008, state appropriations to UNI have been cut by 23 percent, or $23 million. On the positive side, UNI has received $12.4 million in one-time American Recovery and Reinvestment Act (ARRA) funding for fiscal 2010. We have tentatively committed those funds to a series of projects across campus. These allocations won't be final until the overall university budget has been approved. For detailed information about the ARRA funding and how we intend to use it, see http://www.uni.edu/president/sites/default/files/arra.pdf.

UNI's vice presidents have been sharing information with you about how these actions impact your specific areas. We remain committed to treating all employee groups in an equitable manner. There are many details yet to be determined and we will communicate updates on our progress as available. Thank you for your continued patience and dedication to our students and the state of Iowa.

Ben Allen

The Board of Regents has approved UNI's budget reduction action plan

Thursday, October 29, 2009

The conversation at today's Board of Regents, State of Iowa meeting regarding UNI's action plan to address the 10-percent budget reduction has concluded.

The Board of Regents has approved the action plan I outlined in my message earlier today.

A motion to recommend a $100 spring semester surcharge was approved by the Board of Regents and will be voted on at the December board meeting.

Today marks a new reality for UNI. While difficult decisions have been made, our priorities and our purpose cannot and will not change.  In the coming days, UNI's vice presidents will share more information with you on how these actions impact your specific areas. There are many details yet to be determined and we will communicate updates on our progress as available.

Ben Allen

Proposal presented to Board of Regents, State of Iowa for 10% budget cuts

Thursday, October 29, 2009

Download President Allen's Presentation  (PDF)

At the Board of Regents, State of Iowa meeting today, the state's public universities will present proposals to address an across-the-board 10-percent state appropriated budget cut for fiscal 2010.

This budget reduction has significant implications for our university. A 10-percent state appropriation reduction has a greater impact on UNI than it does to the state's other public universities, as UNI relies more heavily on state funding. To compound the reality of its impact, this cut, coupled with other recent decreases in state appropriations, represents a reduction in state funds for UNI of $23 million, or 23 percent, since July 2008. 

This budget cut required swift decision-making, in large part, because one-third of our fiscal year has already passed. For the last two weeks, UNI's leadership has met with students, faculty and staff to assist in this difficult process.  To guide strategic decision-making, we focused on both the fiscal 2010 10-percent state appropriation reduction while taking into consideration our anticipated fiscal 2011 budget scenario. With stimulus funds unavailable for fiscal 2011 and the economic outlook still challenging, our proposal employed both permanent and temporary strategies to minimize a potential financial "cliff" in the coming fiscal year.

UNI's proposed action plan to the Board of Regents will address the $8.8 million reduction by initiating the following strategies:

Reallocate unplanned tuition revenue as a result of higher-than-forecasted 2009-2010 enrollment ($2.7 million)

Make permanent budget reductions across the university through divisional cuts, which could include permanent layoffs ($1 million)

Conduct temporary layoffs (unpaid leave) among all employee groups in fiscal 2010 with a graduated plan based on salary ($1.8 million)

Redirect a portion of the ARRA (stimulus) funds ($1 million)

Temporarily reduce TIAA-CREF employer contributions from 10 percent to 8 percent of salary for the remainder of fiscal 2010 and fiscal 2011 ($1 million in savings in fiscal 2010)

Apply a tuition surcharge of $100 per fulltime student for spring 2010 semester with revenue going directly to instruction, financial aid and student-service support ($1 million)

Initiate an across-the-board 10-percent cut to special line-item units at UNI ($400,000)

This action plan is contingent on the Board of Regents approval. 

Thank you for your continued patience and dedication to our students and the state of Iowa.

Ben Allen

Budget update after special Board of Regents meeting

Thursday, October 15, 2009

Yesterday, the Board of Regents, State of Iowa held a special telephonic meeting to discuss how the state's public institutions and special schools will address the recent announcement of a 10 percent across-the-board cut.

During the meeting, the Board of Regents approved the temporary hiring freeze on general fund positions announced last week by President Miles. The hiring freeze is in place until the board approves the university's action plan for the budget reduction on October 29. The moratorium on new building construction announced last week was lifted, allowing UNI to continue with in-progress construction projects.

The Board of Regents also asked the state's public institutions and special schools to consider a number of strategies in developing an action plan to be presented at the October 29 Board of Regents meeting, to be held on our campus. As directed by the Board of Regents yesterday, UNI's proposed action plan to address the $8.8 million reduction should consider the following:

1. Temporary salary reductions

2. Temporary layoffs/furloughs

3. Benefit revisions of a temporary or permanent nature

4. A tuition surcharge for the spring semester of 2010

5. Postponing non-essential deferred maintenance and repairs

6. Refocusing efforts, including potential program eliminations

7. Permanent layoffs

8. Selling non-essential assets to generate one-time funds

Between now and October 29, much collaboration and communication will be necessary. The vice presidents and I will meet with as many on-campus groups and constituents as possible to assist in this difficult decision-making process.

Our primary principles of doing everything we can to maintain academic quality, progress to graduation, student financial aid, and campus safety and security will continue to guide our decision making.

I will share more information with the campus community as it becomes available.

Ben Allen

Download Board of Regents President David Miles remarks from the October 14 special Board of Regents meeting

New Budget Reductions Coming

Friday, October 9, 2009

On October 7, the state Revenue Estimating Conference lowered its fiscal 2010 revenue projection from nearly $5.8 billion last March to $5.4 billion. This new projection resulted in Gov. Culver's announcement of a 10-percent across-the-board cut to the state's fiscal 2010 budget. Board of Regents President David Miles also announced an immediate hiring freeze for all general fund supported positions and a moratorium on all new building construction projects. These issues will be discussed and presented for ratification at a special telephonic meeting of the Board of Regents, State of Iowa scheduled for October 14.

This new budget reduction equates to an approximately $8.8 million cut for the University of Northern Iowa and now reduces the university's state appropriations by $23.8 million (23.1 percent) since the start of fiscal 2009.

With this news, we continue to face great financial challenges. Difficult decisions were made last year as a result of fiscal 2009 budget reversions and fiscal 2010 state appropriation decreases. I am very aware of the burden these cuts placed on the university.

This will require substantial, structural changes to the university and sizeable cuts to programs and initiatives. Everything is on the table for review.

Yet, our guiding principles must remain intact for this round of budget reductions. We will do everything we can to maintain academic quality, progress to graduation, student financial aid, and campus safety and security. The vice presidents and I will make these reductions as strategically as possible.

As noted during convocation in September, we have to make substantive changes for our university. I encourage each and every university community member to accept these circumstances and take responsibility for the future success of the university. With the limited resources we have, we will need to become much more efficient and effective, innovative and entrepreneurial.

We will get through this challenge, but we must work hard, work smart and work together. Thank you for your continued focus on the work at hand.

Ben Allen

Download Board of Regents President David Miles statement from October 8

Budget update from Board of Regents meeting

Thursday, June 11, 2009

At the meeting of the Board of Regents, State of Iowa, today in Ames, the three public universities will present their preliminary budget plans for FY10. You may view a PDF of the slides UNI will share at http://www.uni.edu/president/budget/BoRpresentation_061109.pdf

Final budgets will be presented at the August meeting. We are committed to making strategic decisions as we move forward during these very challenging budget times. I will continue to provide updates as plans are finalized.

Budget update from Board of Regents meeting

Thursday, April 30, 2009

Today, the Board of Regents, State of Iowa, are meeting at UNI. As I indicated in earlier messages, I was asked to present UNI's fiscal 2010 budget strategy.

The total reduction UNI faces for fiscal 2010 is $15.9 million. This is a consequence of a reduction in General-Fund state appropriations and expected cost increases in financial aid set-aside, utilities, merit staff step-pay increases and faculty promotions.

We are grateful that one-time federal stimulus money will be made available to UNI. The combination of the stimulus funds and new tuition revenue will significantly reduce UNI's budget shortfall.

However, given the one-time nature of the stimulus funds, we are uncertain what our financial situation will look like for fiscal 2011.

Simply put, we must see the federal stimulus funds as a "bridge" to allow UNI more time to make rational and strategic decisions regarding our long-term sustainability and commitment to the priorities of the institution.

Therefore, the Board of Regents directed its institutions to continue to think strategically while preparing for the more challenging times that may lie ahead. At UNI, we will continue the work in progress -- focusing on strategic changes that will provide significant cost-savings or revenue enhancement in human resources, technology and other capital investments, administration and facilities.

Some of the proposed strategies I discussed with the Board of Regents are outlined below.

Proposed Human Resources Strategies

  • Explore extending vesting period for retirement plans
  • Reduce and reorganize UNI's workforce through the continuation of a selective hiring freeze implemented in February, attrition and reallocation, among others

Proposed Technology and Other Capital Investments Strategies

  • Outsource selected services, such as student e-mail to Google
  • Delay purchase of classroom equipment, computer and scientific equipment
  • Delay progress of administrative software development including delaying the progress on the document imaging project and computer facilities management system

Proposed Administrative Strategies

  • Eliminate non-mission-critical programs and services
  • Continue the reduction in out-of-state travel implemented in Feb. 2009
  • Reduce general fund support to auxiliaries
  • Reduce funding to Iowa Public Radio

Proposed Facilities Strategies

  • Delay building maintenance and repair projects
  • Continue implementation of changes to heating and cooling temperatures to reduce expenses implemented in Feb. 2009
  • Consolidate summer classes to fewer buildings

I am pleased to report the Board of Regents approved UNI's early retirement incentive program. The early retirement incentive program aims to provide cost-savings for fiscal 2010 and beyond, while also providing an attractive incentive to the faculty and staff who have provided years of positive contributions to the institution.

Human Resource Services will launch a supportive Web site on Monday, May 4 to provide information on this program. This Web site will allow eligible employees to register for informational sessions and request personalized benefits information as it relates to their retirement. Please go to http://www.vpaf.uni.edu/hrs/benefits/index.shtml on May 4 for more information.

At the June Board of Regents meeting, I will present a fiscal 2010 budget summary for review and approval. Campus-wide conversation, involvement and support will be instrumental as we move forward to finalize the fiscal 2010 budget and continue preparations for fiscal 2011 and beyond.

Thank you for your ongoing patience and dedication.

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View President Allen's presentation from the April 30 Board of Regents meeting.

View the Board of Regents budget presentation from the April 30 Board of Regents meeting.

View President Miles remarks from the April 30 Board of Regents meeting.

Pre-Board of Regents meeting budget update

Thursday, April 23, 2009

Over the course of the last few weeks, the campus community has inquired about the status of our fiscal 2010 budget process. While there is little new information to share, there are several steps taking place that will move the budget process forward.

While we still do not know our fiscal 2010 budget, the adjournment of the Iowa General Assembly session, perhaps this week, will move us one step closer to a final budget, including whether or not federal stimulus monies will be directed to the university.

At the end of the month, the revenue enhancement and cost containment task forces will present draft recommendations to me. These groups have been reviewing more than 400 ideas submitted by our campus community, in addition to vetting ideas formulated within the task forces.

Lastly, during the April 30 Board of Regents meeting at UNI, the leaders of Regent institutions will present budget scenarios. This information is not final. We will not know the final budget numbers until this summer.

At that meeting, however, UNI will propose an early retirement incentive program. Program Details

It is important to note that this is purely a proposal. We will be able to provide additional information, after next week's Board of Regents meeting, if the plan is approved.

There are more than 400 faculty and staff at UNI who could take advantage of an incentive program like the one proposed. The proposed plan aims to provide cost-savings for fiscal 2010 and beyond, while also providing an attractive incentive to the faculty and staff who have provided years of positive contributions to the institution.

The final impact the current economic conditions will have on the university is still unknown. As we learn more, I will get back to you with more information.

Updated budget reduction projections

Wednesday, March 11, 2009

We continue to get a better understanding of the economic and financial realities we face as an institution. Based on a few key assumptions and the latest estimates provided, we are projecting our state appropriations for fiscal 2010 will be reduced by 11 percent, resulting in a $10.64 million reduction.

These numbers are still preliminary as the legislative session has not concluded and the fiscal 2010 state budget has not been finalized. However, we must continue making decisions that will affect UNI in a matter of a few months. The divisional vice presidents have received target reductions and have been charged to prepare a fiscal 2010 budget for their respective divisions by the end of March.

The divisions should plan to collectively reduce their fiscal 2010 budget by $5.58 million. Although the total state appropriation reduction is $10.64 million, we have taken steps to mitigate the divisional reductions for the coming fiscal year by utilizing one-time funds, among others. By doing this, the divisions will be able to phase-in the impact of the reductions, allowing the decisions to be more strategic in nature. However, the total reduction will need to be realized over time and will likely result in additional divisional budget reductions during the next few years.

The divisional vice presidents will work with their teams over the next several weeks and will meet with me in late March or early April to present their budget recommendations. Ongoing conversations with the Board of Regents regarding the budget will continue throughout the spring, and in May or June, the fiscal 2010 budget will be officially submitted to the Board for final approval.

Lastly, the Board of Regents will ask Iowa's public universities and special schools to hold flat the salaries for non-bargaining unit employees in fiscal 2010. While individual exceptions may be provided, UNI employees will be making this sacrifice alongside our state peer institutions.

The severity of the impact of the estimated reductions we face remains constant. The vice presidents have been charged to do everything possible to maintain academic quality, student progress to graduation, financial aid and campus safety and security.

Thank you for your continued dedication to serving our students and our state.

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