As the university’s financial team reviews 2013-14 results, they have also been calculating progress made towards closing the projected gap between our annual expenses and revenues. Based on actions taken in 2012-13 and 13-14, about $32 million in permanent budget adjustments has been achieved through a combination of measures, with about $12.5 million remaining, based on our original projections, to be achieved through either additional net revenue or expense reductions, or a combination.
Savings in the first two years of operating budget adjustments (2012-13 and 13-14) are a result of:
- Workforce planning actions: $9.8 million
- Projected net savings from the incentive plan for retirement for faculty, after strategic faculty reinvestment : $7.6 million
- Changes to our investment strategy and increased reliance on investment revenues in our operating budget: $6.6 million
- Changes in institutional practices and other initiatives, such as two up one down (temperature control) and non-salary cuts: $8 million
Given the progress that has been made to date, changes in university leadership and the concerns raised about the pace of the change process, university leaders are taking some time over the summer to determine next steps. The president and vice-presidents will spend this time working with deans, executive directors, associate vice-presidents and unit leaders to assess which actions will proceed right away and which require further discussion or consultation. More information on next steps will be provided in the fall.
In the meantime, I will be using the blog over the summer to continue the discussion on financial sustainability, to accept feedback, and to provide information. If there is a topic you would like to hear about, please let me know.
Although the past few years have been challenging, and change is never easy, the university has achieved real progress due to the hard work of many on our university campus. I want to thank you for your patience as we determine what more is needed to ensure the ongoing financial sustainability and renewal of our university.