As the 2005-06 academic year ends, I want to provide you with an update concerning the 2007 Fiscal Year (FY) budget realignment process. The administrative and academic leadership groups have worked together on the budget realignment plan to identify ways to realize savings while retaining essential functions and services.

Meeting the needs of our students was the top priority as we considered the budget realignment. Any potential budget decision that would diminish academic programs or student services was carefully re-examined. As a result, the reduction in the budget during this realignment has been changed from the previously projected $18.6 million to $14.4 million. Of the $4.2 million difference, 75 percent is directed to support academic programs.

We continue to carefully monitor the progress of the voluntary Ohio Public Employees Retirement System (OPERS) Early Retirement Incentive Plan (ERIP) and its effect on the budget realignment process. To date, 79 employees eligible for the OPERS ERIP have signed up for the plan. Of those employees, 72 will retire from the University by or before July 1, 2006, and are eligible for the $10,000 bonus. We have eliminated or merged 19 of the positions vacated by this plan and will have the opportunity to do so with others after some future retirements. At this time, we are not planning additional targeted layoffs. Contracts were not renewed for 14 Group 2, 3, or 4 faculty members; 10.5 administrative and five classified staff positions also were eliminated. Based on early indications, no bumping will occur among the classified staff.

The University community faced difficult funding realities this year. We came together to confront these challenges and seized the opportunity to strategically examine all of our resources – including people, time, and organizational structures. I appreciate the thoughtful contributions from those who shared creative solutions for ways to realign while ensuring a strong future. As we move forward with the budget realignment process, I will continue to provide you with updates.

Thank you for your continued hard work, passion, and determination!

Cordially,
Roderick J. McDavis
President