Budget Update

To: Knoxville Campus Faculty and Staff
From: Interim Chancellor Jan Simek
Subject: Budget update

I know that most of you are concerned about how our funding challenges will impact UT Knoxville employees.

While I don't have complete answers to that question yet, I want to share information that is available.

As you know, UT Knoxville has weathered budget cuts of $17 million that have affected students, faculty and staff.

The campus administration is planning for additional cuts in this next year. To prepare, we have started the budget planning earlier this year.
Deans and unit leaders are submitting requests in November that include plans for overall cuts of 3 percent and 5 percent, respectively.
However, that number could be higher as we continue to hear bad news about the state's economy.

Budget hearings will be held in early December, rather than March as has been our practice. This allows us to spend more time exploring options for the anticipated reductions and to assist Chancellor Jimmy Cheek with the transition when he arrives Feb. 1.

Additionally, the provost is working closely with the newly-formed Faculty Senate Task Force on Criteria and Procedures for Academic Program Evaluation. The group is addressing the possibility of additional program cuts or reductions in the coming year.

As we wait for additional instructions, we're encouraging departments to be strategic in reallocating resources, finding new revenue sources and making decisions that preserve our core academic functions. We also are advising departments to leave vacant positions unfilled unless it is absolutely necessary to fill them.

January will be a significant month as sales tax revenue collections are reported from the holiday season and the governor presents his annual budget address to the General Assembly. It could, however, be February, March or even later before we know specific information for the 2009-10 budget.

I encourage you to conserve university resources in every way possible, as the campus deals with rising energy costs that have a significant impact on operating budgets.

I also hope that you will continue to share your ideas for improving efficiency and cutting costs. Campus employees have generated more than 200 ideas. Your feedback has been thoughtful and insightful and I plan to share more news about our plans soon.

There's no question this is a tough time for the University of Tennessee, Knoxville, but we will get through this with your help and we will emerge stronger if we make smart decisions now. Thank you for all that you do for the University of Tennessee, Knoxville.

Posted November 20, 2008