Message from Ohio University President Robert Glidden
To: The University Community
From: Robert Glidden, President
Gary Schumacher, Interim Provost
As you are aware from recent news releases, the State of Ohio is experiencing a significant reduction in tax revenues due to the nation's economic slowdown. We have been advised that Ohio's universities, in addition to many other state agencies, will receive a reduction of 6% for the current fiscal year. This, for Ohio University, is a reduction of $6.4 million dollars and furthermore, we recognize that if the economy does not turn around quickly we may expect additional cuts this year and next. We have been working on our approach to handling these economic problems for the university. Our solution for the current 2001-2002 problem builds on some important principles and values articulated in the recently released presidential mission statement.
We must make decisions that even in these difficult economic times allow us to move forward on our university mission. To do otherwise would mortgage our future academic and financial integrity. But accomplishing our mission is also built on valuing the people who make up this institution and their economic viability. Therefore, our solution to the current budget reduction will not involve layoffs or severe budget cuts for individual units. Rather, it involves the use of institutional central reserves, delayed or cancelled expenditures, and some prorated cuts to all budget units to assist in completing the solution.
There are several implications and consequences of this approach and an important request to all faculty, staff, and students to work together to reduce costs where possible. Unfortunately, a prudent analysis of the national and state economy suggests that our financial difficulties are likely to last for a few years. We have therefore asked budget unit heads to scrutinize new or replacement staffing decisions carefully since making such commitments will make it more difficult for units to respond to anticipated future budget reductions.
Because our strategy for handling this state budget cut draws upon various centrally budgeted resources, we will not be able to use this same strategy to handle any additional cuts for 2001-2002. Should the State impose additional cuts during this year we will not have central reserves to call upon. We would need to draw on the budget resources of units across campus and we would be forced to employ more severe strategies for cutting costs.
We ask your assistance in helping us to reduce expenditures in a variety of ways. We will be exploring and communicating strategies for such items as reducing utility costs and ask that you help us implement these strategies. Reduction in such expenditures can significantly aid us in meeting these state financial cutbacks.
Our goal as we move through these difficult budget times is to handle state budget cuts prudently, in a manner that allows us, as much as possible, to make progress on important university goals while protecting the financial security of our faculty and staff. We will appreciate your assistance in accomplishing this goal.
