Stimulus Update

Thank you for your patience during what has been an unprecedented economic challenge for the university. We know that the uncertainty of our budget has had a significant impact on our students, faculty and staff.

I am hosting brown bag lunch sessions about the budget. The one-hour sessions will begin with a short overview and include time for questions.

• The first session for students will be at noon, Thursday, April 16, at the Black Cultural Center.
• The second and third sessions for faculty and staff will be at noon, Thursday, April 23, and at noon, Tuesday, April 28. Both will be held in the Hermitage Room of the University Center.

As you may know, the University of Tennessee, Knoxville, will benefit in the short term through federal stimulus funds to be allocated by the state in the next few months. The allocation to our campus is part of $470 million dedicated to Tennessee's public colleges and universities.

The stimulus will allow us to minimize the impact on students, faculty and staff. We will dedicate funds for instruction to maintain our teaching capacity so students can get the courses they need to graduate. We also can preserve jobs and maintain services that support our students.

Before we knew the full impact of the stimulus, the campus was set to trim $25.6 million from the 2010 budget, which begins July 1. Going forward, stimulus funds will be allocated to campus departments to cover those cuts.

Due to significant reporting requirements and restrictions on spending, these funds will be held and accounted for separately from administrative units' base budgets. See my April 6 announcement for more detail on the regulations.

It is important to note that this one-time allocation must be spent over two years. We must, therefore, continue to prepare for a $25.6 million reduction in fiscal year 2012, which will begin July 1, 2011.

We will work closely with colleges and units on making strategic decisions and taking actions that will enhance effectiveness, protect our assets and take care of our workforce.

I appreciate all of the work that has gone into budget planning. Many thoughtful employees provided insightful suggestions about how to save money, conserve resources and generate new revenue. Campus-wide conservation and other efficiency plans are now in place, and even more initiatives are being considered.

Economic challenges over the next few years will continue to impact us. I ask that our campus community use this time the stimulus has provided to continue on the path we've started. Let us work together by carefully considering how to fulfill our core mission with reduced appropriations.

In the next few months, the legislature will finalize our appropriations, and the UT Board of Trustees will consider our 2010 budget. I will stay in touch as new information develops. In the meantime, please visit the Budget Central Web site for news and related updates. Thank you again for your patience and for all you do for the University of Tennessee, Knoxville.

Posted April 13, 2009