
Gerald Hunter has had to weigh a number of options during his short tenure as Vice Chancellor for Finance and Administration.
Throughout most of fiscal year 2009, Winston-Salem State University and the other campuses of the University of North Carolina have had to deal with the impact of the current national economic crisis. With little advanced notice and little time to plan, the university responded to repeated requests to reduce spending from its operating budget.
Most of the actions that were taken, such as hiring freezes, the elimination of discretionary spending and reduced travel, allowed WSSU to meet immediate spending reduction targets. However, the university’s administrative staff has cautioned that the austerity measures that were taken last year are not sustainable over the longer term.
“As revenue production for the State of North Carolina continued to decline and the General Assembly began to wind down its budget process, it became painfully clear that far fewer resources will be available to us over the next several years,” said Gerald Hunter, vice chancellor of finance and administration. “We began working with a projected budget reduction target in the range of seven to eight percent, but quickly realized that the worst case scenario could be as high as 14 percent. Yet, regardless of the final outcome, none of the budget reduction scenarios will allow WSSU to pursue a business-as-usual approach. The new economic environment has required us to develop longer-term solutions that will enable us to continue to pursue our highest priority initiatives.”
The university’s base budget reduction plan focused on aligning existing resources with institutional priorities, which are:
• classroom instruction;
• significantly improve the academic outcomes for students, including improved retention and graduation rates;
• the UNC Tomorrow Initiative;
• enhanced fundraising efforts through advancement; and
•campus safety.
The budget reduction plan that has been developed is designed to reduce the base budget and to reallocate resources to higher priority activities. Areas that will receive additional financial support include University College, University Advancement and Campus Safety.
The budget reduction plan relies upon the elimination of 16 filled positions and approximately 30 vacant positions, the realignment and reorganization of some areas and functions, and the implementation of an on-going savings agenda. All totaled, it is estimated that the plan will generate $7 to $9 million in savings.
Major changes included:
• Phasing out the Child Development Center and Laboratory School to eliminate the approximate $8,000 per child subsidy that was being provided. Even though the Center has been beneficial to students and the community, the availability of other options locally supported the decision to eliminate the nearly $300,000 in annual operational expenses for the Center.
• Reorganizing the Division of Evening Weekend College with key functions moving into Enrollment Services or the academic units so that the program can continue to serve adults completing degrees at night and on weekends.
• Restructuring the School of Graduate Studies and Research (SGSR) by moving some functions into Enrollment Management and reassigning some staff to the academic units.
• Based on studies of other universities and on the needs at WSSU, expanding the Division of Enrollment Management to include Admissions, graduate recruitment and admissions that were moved from SGSR, the Office of the Registrar, and the Recruitment and Enrollment Communications function.
• Reassigning responsibility for the Science, Technology, Engineering and Math (STEM) Scholars Program to a STEM Council comprised of representatives from the academic units for biology, math and computer science.
• Other changes included: having the Center of Excellence in Teaching and Learning report to the Senior Associate Provost and the Center of Excellence for the Elimination of Health Disparities report to the School of Health Sciences; moving the Center for Community Safety into the College of Arts and Sciences; and transferring some staff from reorganized units to the Division of Life-Long Learning.
Work has also begun on a savings agenda that could generate between $1 and $2 million over the next several fiscal years. Some of the reductions include a review of authorized cell phones and cell phone service plans; eliminating unnecessary desktop printer expenses; purchasing standardized office supplies; and reducing facilities services levels.
“In an effort to avoid taking additional actions that could further impact our ability to fulfill our mission, we must re-examine everything we do,” Hunter added. “Given the budget reduction we know we will be facing for at least the next two years, it is essential that we are in a position to provide adequate resources to those areas that provide a high return on our educational investment and support our major priorities.”