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Implications of the State Budget Forecast for the University of Minnesota

A message to University faculty and staff:

December 4, 2008

Thursday's state budget forecast is the most recent indicator that Minnesota – and thus the University – will face substantial economic challenges in the coming years. A revenue shortfall for 2010-11 of $4.8 billion, plus a current state budget deficit of $426 million, cannot be addressed without all publicly funded enterprises being impacted. The University of Minnesota will have to do its share to help solve this extremely serious state budget problem.

For the past several months we have been modeling potential budget scenarios, ranging from the approval of our proposed biennial budget request to a budget shortfall so substantial that the state reduces our appropriation for this current budget year. To date, we have been modeling budget options without knowing the severity of the state budget crisis. Now we know that the current budget forecast presents a historic and unprecedented challenge. As solutions to the current state financial crisis emerge from Minnesota's elected political leaders, we will continue to focus our efforts on reducing costs, increasing productivity, streamlining operations, and avoiding unnecessary job losses.

Careful planning and prudent action have always been part of the fabric of this great university, and we will all be challenged once again to respond to this crisis. In keeping with that tradition, our response must ensure that we collectively maintain the core strength and quality of the University and help the state regain its financial footing. Our plans necessarily change in difficult times, but our principles do not. We remain steadfast in our commitment to do all we can to maintain and enhance the University's quality and competitiveness; to compensate, support, and retain high-performing faculty and staff; to improve access and affordability for students at all levels of study; and to increase productivity by reducing costs while improving service and efficiency.

Certainly we will be challenged to deliver on the full potential of these principles, but it is my unwavering belief that the path out of Minnesota's current crisis, and a return to a vibrant and growth-oriented economy, lies directly through the classrooms, laboratories, libraries, and halls of our great educational institutions. I want to assure all members of the University community that I will continue to carry this message to the citizens of Minnesota and our elected leaders.

We've managed our way through similar straits before—reforming health care and construction management processes, reorganizing colleges and Extension, increasing student support to record levels, and more—and we've emerged a stronger University. I have communicated with University leaders that we must do everything we can to save money and preserve that strength, much of which resides in you, our faculty and staff. Each of you has daily opportunities to save money in small ways, and many of you have bigger ideas regarding savings in your offices, units, and programs. I encourage you to share them with your director, vice president, or dean. It is critically important that we recognize we are in this together and can each make a difference – your efforts to save resources locally can help us reduce costs systemwide, preserve jobs, and temper tuition increases for our students.

The economic outlook remains very fluid and will continue to change between now and the next state budget forecast in February. We are making necessary adjustments to both our current and future budgets, and we are working hard to preserve the strength of the University and moderate the impact on faculty, staff, and students. I appreciate your help in these efforts – thank you for your dedication and support.

Sincerely,

Robert H. Bruininks