Conserving University Resources
To: Deans, Directors, and Department Heads
From: Interim Chancellor Jan Simek
Subject: Conserving University Resources
The University of Tennessee, Knoxville received $196.3 million of recurring unrestricted E&G funds from the State of Tennessee for Fiscal 2008. For Fiscal 2009, the base appropriation was reduced by $11.1 million (5.7 percent). Three months into the fiscal year, another $6.1 million (3.53 percent) reduction was announced by the state.
The state has further indicated that additional reductions are likely. Given the current uncertain economic conditions, preparations need to be made for the possibility of a larger reduction for Fiscal 2010 – 3, 5 or 7 percent. Since the Knoxville campus handled the 3.53 percent as a one-time reduction, the recurring reduction may be 6.53, 8.53 or 10.53 percent.
The Knoxville campus is engaged in several initiatives to identify and implement short-term and long-term financial and operational solutions that preserve and enhance our core mission.
Attached is a document from President Petersen and his staff on actions campuses must implement to conserve resources. Please contact the Budget & Finance Office, 974-4204, if you have questions.
Thank you for your dedication and commitment to the campus.
Application of Reduced Resources
The University of Tennessee, Knoxville
Fiscal 2009 and Beyond
November 21, 2008
The Office of the President’s Policy statement amended by italicized and bolded statements added for campus clarification.
Effective immediately, the system, campuses and institutes shall adhere to the following fiscal management policies for the balance of the fiscal year and until further notice:
1) Select Hiring – A selective hiring process is imposed on current and future E&G vacant positions. Hiring will be allowed in limited areas necessary for the continuity of critical teaching, research and support functions. These hiring exceptions must be requested in writing and approved by the campus/institute Chancellor/Vice President or his/her designee. Chancellor Simek has delegated this authority to the Deans or other unit leaders and the Provost/Vice Chancellor of each area.
2) Reductions-in-Force – Campuses/Institutes should develop a process for review/implementation of any potential reductions-in-force. The appropriate administrator (e.g., Chancellor/Vice President, Chief Academic and Student Affairs Officers, Business Officers) need to work in concert with the Human Resources Officer and General Counsel to evaluate any potential adverse impact, provide appropriate advance training and support for managers and establish support services for affected staff. Human Resources Officers will have guidelines and tools for implementing activities associated with any necessary reduction-in-force. Faculty reductions-in-force must include Faculty Handbook provisions. Please direct questions regarding non-faculty reductions-in-force to Human Resources, 974-5151. Please direct questions regarding faculty reductions-in-force to the Provost Office, 974-9033.
3) Out-of-State Travel (including international travel) – Use of E&G funds for out- of-state travel is limited to emergency or mandatory situations critical to University business. Department heads should limit out-of-state travel requests under the emergency and mandatory exceptions to the following circumstances:
a) Travel required to deliver program services or present at out-of-state meetings and/or conferences, utilizing the minimum number of employees required.
b) Travel required to comply with statutory, judicial, federal program, and contractual obligations, utilizing the minimum number of employees required.
4) In-state Travel – Department heads must limit in-state travel to the maximum extent possible.
5) Student Travel – Use of E&G funds to sponsor student travel, excluding athletic teams, should be limited to activities that meet the criteria outlined in item 3 (above).
6) In-state Group Meetings – Department heads should review all plans for in-state group meetings and, where practical, cancel any in-state group meetings not essential to the circumstances specified above in item 3. Use of teleconferencing and video-conferencing should be maximized.
7) Equipment Purchases – A limitation is imposed on equipment purchases using E&G funds. Department heads should review equipment purchases in process and those planned for later in the year to determine if they are required to address an emergency or otherwise essential circumstance. Only equipment required to perform critical tasks should be approved.
8) Other Program Requirements – Campuses and institutes must manage the expenditure of all other program funds as conservatively as possible. Department heads should limit any discretionary spending to expenses required for mandatory program service delivery and which will not circumvent the legislative intent in the appropriation of funds.
9) Energy Conservation – Campuses and institutes must encourage energy conservation to the maximum extent possible. The use of university vehicles shall be limited to those programs, services, and activities central to the institution’s core mission. Carpooling on trips should be encouraged. Extra efforts should be undertaken on the campus to reduce electricity and fuel consumption.
Posted November 21, 2008