June 04, 2008
To: All UT Faculty and Staff
From: President John Petersen
The $21.2 million funding reduction for the statewide University of Tennessee System has required our campus and institute leadership to make some difficult decisions about resource allocation. Identification of areas for budget reductions has proceeded with emphasis on making strategic cuts that protect our priorities while minimizing impact on effectiveness.
Proposed budgets also are based on limiting tuition increases to 6 percent, which holds the line on increases to the same as last year’s. Final tuition determination and budgets are subject to approval by the UT Board of Trustees at its June 20 meeting. Elimination of academic departments requires board approval and also will be considered at the June meeting.
The UT Knoxville campus reduction totaled $11.1 million. Included is the phase-out or elimination of three academic programs, which include the Department of Audiology and Speech Pathology in the College of Arts and Sciences; the College of Business’ Industrial and Organizational Psychology graduate program, and a dance program which is a minor concentration in the College of Education, Health and Human Sciences. These specific eliminations of academic programs require board of trustee approval and will be reviewed at the June 19-20 board meeting.
In addition, the Knoxville campus eliminated 44 unfilled faculty and staff positions and made reductions in planned maintenance, repairs, contracted services, travel and purchase of technology and instructional resources.
The state appropriation reductions at UT Chattanooga amounted to $2.6 million, UT Martin totaled $1.9 million and the UT Health Science Center $2.6 million. These expense reductions were primarily in travel, repair and maintenance, unfilled positions and similar elements.
The remaining $3 million appropriation reduction was spread over the Space Institute, Institute for Public Service and Institute of Agriculture, as well as System administration, and a number of smaller initiatives.
In taking a strategic approach, we are looking to the future, recognizing that adequate funding is an ongoing concern. Our first step has been to make immediate reductions to meet the short-term challenge. Going forward we will continue to institute lean management principles and seek to fund our operations on a priority basis.
— John Petersen
