Last summer, I formed an advisory task force to assist the University in developing a plan to prepare for probable reductions in state funding for higher education and to assist the University in developing a new instructional resource model. The task force consists of faculty, academic deans, administrators, and staff.
On December 18, 2010, the task force held an open forum. At that forum, Provost Mearns, who is co-chair of the task force, discussed the status of the task force's efforts to assist in developing a contingency plan for next year's budget. I attended the forum.
This report recommends overall budget target ranges for each of the University's major sectors: academic colleges, academic support units, and university administrative units. I have accepted these sector recommendations. In December, I provided differentiated budget targets to each of the vice presidents who manage university administrative units, and I directed them to prepare a contingency plan to meet their unit's respective target. They have submitted their plans to me, which I am currently reviewing.
The task force's report also provided specific recommendations about differentiated targets for each of the academic colleges. After developing a list of strategic factors and applying those factors to readily available data, the task force assigned each academic college to one of three groups, or bands. As discussed in the report, a college or an administrative unit can meet its proposed budget target through both permanent expense reductions and reliable revenue enhancements.
After reviewing an initial draft of the report, I met at length with Provost Mearns, Vice President George Walker and Tim Long, the University's Budget Director, to review the strategic factors and the data relied upon by the task force to develop its differentiated recommendations for each of the academic colleges. In making my decisions, I relied upon the same strategic factors developed by the task force, including: how a college's programs aligned with the University's primary strategic goals; a college's financial performance relative to the other colleges at the University; the extent to which a college has programs, including doctoral programs, with relatively few students; an assessment of the productivity and impact of the college's research faculty; the success of a college's students as measured by undergraduate retention and graduation rates and post-graduate licensing exams; and the ability of a college to develop differential tuition plans or increase enrollment above existing limits.
After this review, I accepted all of the task force's recommendations with respect to the colleges' budget targets, with one exception. I have delegated to Provost Mearns the responsibility of establishing differentiated targets for the various academic support units that report to him.
Provost Mearns has communicated the college targets to the deans, and he has asked them to provide him with their college's plan by February 22, 2011. He has also directed the deans to consult with their respective faculties and staff in developing their college's plan.
By early March, I anticipate that our collective strategy for meeting this financial challenge will begin to become more clear. Governor Kasich will present his proposed budget to the legislature on or before March 15. I anticipate that, when his budget is released, we will know much more about two of the most important factors that are driving this process: the approximate amount of any reduction in the state subsidy for higher education, and the limit on any possible increase in undergraduate tuition. By that time, we will also have had an opportunity to evaluate the various college and administrative plans that have been submitted.
When we have more information from the Governor, I will hold an open forum in March to discuss our University plan.
I know that this process is difficult and that it is causing some anxiety and uncertainty. I believe, however, that we have established a collaborative and transparent process that will enable the University to overcome this challenge. Indeed, I am encouraged by the constructive contributions that so many of you have already made to our contingency planning process. Therefore, I am confident that we will emerge from this process as a stronger institution -- which is our goal.
Thank you for your service to our students, our University, and our community.