Fall 2008
To all members of the University Community:
Yesterday, Governor Tim Kaine released his plan to meet the State's 2009 fiscal shortfall of $973.6 million.
The overall reduction for the University of Virginia is $10.6 million, which equates to 7 percent of our General Funds. In addition, the state's Equipment Trust Fund has been frozen, which means the University is unable to spend its $10 million allocation for the purchase of equipment needed largely for research.
The Governor also has deferred the 2 percent salary increase scheduled to go into effect Nov. 25. This salary deferment applies to all University employees, both staff and faculty. The Governor's plan, however, confirms the University's long-held practice of avoiding layoffs. Layoffs have never been a part of our strategies when faced with budget cuts.
The reduction for the College at Wise is $754,459, which equates to 5 percent of its General Funds. Equipment Trust funds in the amount of $244,009 are frozen. The College also is subject to the 2 percent salary increase deferral; no layoffs will be implemented.
Given the financial instability of the nation's economy and now this news from the state, I know that each of you is wondering what the impact will be on you personally and on the area in which you work.
First, recall that the Governor alerted the state earlier this fall that there was a strong possibility of budget cuts ranging from 5 to 15 percent. Since that time we have been preparing for these reductions. Your deans and vice presidents have been looking for ways to adjust spending -- without affecting services to the students and patients who depend on the University every day. It is important that we do our best to protect our core missions of teaching, research, patient care and public service without noticeable interruptions.
As a public university, we have weathered economic downturns before. There is no doubt that such downturns are disruptive and of deep concern to all of us. And we do not underestimate the impact of the delayed salary increases on you, especially at a time when some departments may be required to keep positions open in order to make necessary budget cuts.
I want to reiterate that we have no plans for layoffs. We will be depending on the strength and resilience of all our employees to help us through these difficult times. The current situation will require us to make tough decisions, but it also may create a new fiscal discipline and greater strategic thinking. In some cases, we will have to decide what we can and cannot do. It is my sense that this discipline and analysis will make us more efficient in how we work.
The University is better positioned than many other institutions because our outstanding fiscal managers handle our resources so well, and because we are the recipients of generous private support. All have helped us create a margin of excellence here that would not have been possible had we to rely primarily on dwindling -- and often erratic -- state support.
Despite these cuts, we are moving ahead with several health benefit enhancements and six innovative initiatives from the Commission on the Future of the University that will further distinguish U.Va. as a national and global leader in higher education.
I want to reassure each of you that while these are indeed difficult times, the University of Virginia will remain a stable institution and a stable work environment. It is a place that you - and the people we serve - can depend on.
We have always emerged from financial downturns a stronger organization. Working together, we will do that again now.
John T. Casteen III