To:       University Community, Chancellor’s Council of Advisors, Foundation Board, Cars Board, Board of Regents, UWS President and Vice Presidents, OSA Student Leaders
Date:    August 30, 2005
From:     Chancellor Richard Wells
Re:      Budget update on Governor’s vetoes

Update on the 2005-2007 Biennial Budget

As you may recall, the Board of Regents presented the UW System budget to Governor Jim Doyle early in 2005. The Governor cut and reallocated funds amounting to $2.6 M for UW Oshkosh and then passed his budget along to the Legislature. As part of our regular, open, inclusive, campus-wide budget development process, we made plans to cover the $2.6 M. in the Governor’s budget proposal.  Please see related memos under Communications at:  http://www.uwosh.edu/departments/admin_serv/budgets.htm

The Legislature, after working through the budget, doubled the Governor’s cuts and reallocations to the UW System budget, amounting to $5.2M for UW Oshkosh. The budget then went back to the Governor, who used his veto power to remove some of the Legislature’s additional cuts and reallocations to the UW system budget. As a result of the Governor’s vetoes, the cuts and reallocations to the UW Oshkosh budget were reduced from $5.2M to $3.6M, thus avoiding the devastating consequences, such as a large number of layoffs, that a potential $5.2M reduction had posed. 

Governor’s Vetoes (Final Budget)

In addressing the legislative budget, the Governor’s vetoes assured among other things that 
·         $34 million of additional GPR cuts will not be implemented,
·         $8 million in student financial aid would be restored
·         1.5 percent retirement contribution for the UW faculty and staff would be eliminated.

While this is welcome news, the Governor did not veto all of the additional legislative cuts leaving UW Oshkosh with an additional biennial cut of $1,066,457. This is an additional $653,176 cut in 2005-2006 including an on-going base cut of approximately $413,281 in 2006-2007. 

As I noted in my July 13 memo, we set aside $237,000 for unanticipated base cuts in our initial budget planning exercise. In addition, we will generate $224,000 in one-time funds through canceling of administrative searches and use of fringe benefit credits. Two Associate Vice Chancellor searches have been cancelled in order to help meet these additional budget cuts.

Consequently, due to the good planning and excellent cooperation of the campus, we have covered all but $192,000 of budget cuts in 2005-2006, and we do not anticipate a need to reduce already over-taxed departmental budgets further during the 2005-06 year. Barring any catastrophic financial events this next year, minor adjustments to meet priorities might be necessary for 2006-07, and they will be made through our normal budget planning process, and as usual, your input will be requested.  

Compensation

We can also report that on July 19 the Legislature’s Joint Committee on Employment Relations (JCOER) met and approved a 2% increase in July of 2005, a 2% increase in July of 2006, and a 1% increase in April of 2007 for faculty and academic staff.  This does not include individuals assigned to the Senior Executive Salary Groups (1-9). The compensation increase will be retroactive to July 1, 2005 and paid on Oct. 1.

I want to take this opportunity to thank everyone for their participation, patience and advocacy related to the 2005-2007 biennial budget. Unfortunately, the budget outcomes do not do justice to the extensive, high quality contributions made by our faculty, staff and students to the state of Wisconsin. We can hope for a brighter future, but we must continue our efforts to find better ways to make the UW institutions’ students, faculty and staff one of the very highest priorities for our state.