We received very disappointing news from the state Department of Administration (DOA) in the last few days regarding the state biennial budget. Additional, one-time budgetary lapses will demand more deep sacrifice from our University of Wisconsin System and UW Oshkosh. (See UW System statement on the 2011-13 budget lapse).

The DOA has signaled the need for an at-least, additional $174.3 million budgetary lapse for the current fiscal year from many sectors of state government, including the UW System. The DOA’s request asks that state agencies prepare a budget reduction plan factoring a lapse of between $174 million and $300 million.

While word of a budget lapse is not unexpected, other UW System administrators, Chancellors and I are surprised and confused, if not a bit bewildered, by the scope of the disproportionate reductions expected from us.

The UW System traditionally represents 7 percent of the state’s general purpose revenue (GPR) expenditures, yet it is being asked to absorb 38 percent of this cut, a far larger share of the lapse compared to other state government agencies. For example, UW System’s cut is nearly five times the size of the cut required of the Department of Corrections, which commands a comparable share of GPR funding.

Our current, best estimate suggests this means, to help close its share of the UW System lapse, UW Oshkosh is required by DOA to provide an additional 2011-13 biennial budget reduction plan of between $3.2 million and approximately $5.5 million.

On a year-by-year basis, this equates to a reduction of between $2.3 million and $3.7 million in Year One – or the current year — of the biennium, followed by a reduction between $960,000 and $1.9 million in Year Two. This is on top of the more than $12 million our campus community is reducing as part of the UW System’s 2011-13 biennial budget cut of $250 million. So, factoring the required lapse, UW Oshkosh’s additional cut requirement could increase its total 2011-13 biennial budget cut by 25 to 46 percent, bringing the grand total reduction to between $15 million and $17.5 million.

The additional cut required due to the budget lapse will not be known until new state revenue projections are released over the next several months.

Nevertheless, rest assured I have already expressed major disappointment over the level of these reductions and higher education’s standing in our state administration’s and legislature’s list of funding priorities. Collectively, UW System leaders and Chancellors will express these feelings and concerns as we engage in meetings and budget-reduction negotiations with state political leaders in the days and weeks ahead. Our goal is a significant reduction in the UW System’s required cut.

Meanwhile, at UW Oshkosh, we all can be certain about this: Whatever additional budget reduction is called for, our campus community will collaboratively seek and reach solutions, as we did in our 2011-13 biennial budget planning process earlier this year. Furthermore, as we have in the past, we pledge to communicate all information in a timely and transparent way.

We will do all we can to maintain our commitments currently within our 2011-12 academic year budget. Given our strong financial planning practices and collaborations at UW Oshkosh, we are confident we can get through this year with no layoffs. However, depending on the amount of required budgetary lapse, there will be tremendous challenge for our institution in 2012-13.

The short timeline set by the state for the current budget lapse closure is a challenge on its own.

The DOA is requiring all state entities affected by the budgetary lapse to submit reduction plans by Nov. 7. While this provides UW Oshkosh with only a few weeks to make another round of significant budget cuts, we are as committed as ever to following our shared governance process.

We are now scheduling a meeting with our UPLAN council, composed of officers of the Faculty Senate, the Oshkosh Student Association, the Senate of Academic Staff and the Classified Staff Advisory Council. As always, this meeting will provide an opportunity for us to share information and obtain feedback, advice and direction to help us meet our share of the one-time lapse.

We must not let the potential magnitude and timing of this new challenge distract us from the five core budget principles that guide our decision making here. They guide us to:

• Value employees and abide by contracts, policies and established procedures.
• Budget for activities that are central to the mission, add value, or are required.
• Protect the direct instructional undergraduate and graduate teaching mission.
• Protect the integrity of services supporting the University’s mission.
• Continue the commitment to the University’s strategic plan and established priorities.