November 26, 2008
You may have read in the paper or seen on television news the serious challenges Gov. Bredesen laid out on Tuesday in Nashville. The obstacles are very real. We are at the beginning of a lengthy process, and we have a lot of work to do on budget planning with an emphasis on preserving programs, jobs and student services during these lean times.
Before Tuesday's hearing, I relayed to you the priorities I intended to take to the governor. The governor acknowledged the need to maintain the integrity of our institutions, and he pressed us to move forward quickly on specific plans for overcoming what he estimated to be a 10-15 percent reduction in higher education funding from the state. That translates to possible reductions of $48 million to $73 million in state funding for UT in the next fiscal year.
He acknowledged the needed capital improvements at the College of Veterinary Medicine and the Health Science Center in Memphis, but he was clear that the state will not have capital projects money. That is disappointing, but we will continue to pursue other resources to address those needs.
Gov. Bredesen was blunt about the difficulties ahead, noting that while tuition increases may be part of the solution, they are not the entire solution. The governor also expects specific plans for cost-cutting, including elimination of programs if necessary.
As you may know, we at the University already are taking steps to both save money and identify areas of previously unrealized savings. These steps include being selective in hiring, reviewing staffing levels, studying the linking or consolidation of programs, limiting purchases and conserving energy.
But these steps alone will not get us over the hurdle, and we have tough decisions to make. Just as families around the state are faced with managing with less money, we at UT are in the same, very serious circumstances.
Our campuses and institutes are large and widespread, and we need your help. We need your cost-saving suggestions - you can make them through your supervisor, to me directly or by clicking on the "Savings Ideas"
button at the UT System website and using the UTALK e-mail feature you'll find there. Your UTALK input is gathered, answered directly and posted online for the benefit and involvement of other web visitors. The most valuable contribution in our efforts moving forward can come from anywhere in the UT System.
I believe this university is great because everyone has a chance to make a difference, and I thank you for all you do for UT.
-John D. Petersen
