Dear Colleagues:
I write to share some important information from this afternoon’s meeting of the Board of Trustees.
Continuing Spending Resolution – FY21
During the meeting, the Board approved a resolution that authorizes our University to continue operations after July 1, 2020, and to continue spending thereafter at the same levels that the Board had approved for the current fiscal year, which ends on June 30, 2020. This resolution authorizes us to prioritize spending on our core mission and to invest one-time resources in health and safety measures that are necessary to resume on-campus instruction and activities in August.
As you know, the pandemic is causing significant financial distress and dislocation for many colleges and universities all across the country, including several institutions in our Midwest region. But for several reasons, our own financial challenges are not as pronounced.
Last Spring, we proactively implemented some expense-reduction measures to produce a balanced budget for FY20. This Spring, as result of the creative and diligent efforts of our faculty and staff, we promptly and effectively transitioned all of our courses to remote learning so that our students could complete their studies. At the same time, we reduced or eliminated a variety of expenditures by, among other things, imposing a “soft” freeze on hiring. As a result of these steps, we now project that we will finish the fiscal year with a positive operating margin.
These one-time financial resources, supplemented by some federal funds that we will receive through the CARES Act, will enable us to make critical investments to enhance the safety of our campus. For example, we will be able to invest in a comprehensive, on-campus testing program; modifications to some of our classrooms and other spaces; increased cleaning and sanitizing of our facilities; purchasing personal protective equipment (e.g., face masks and shields and plexiglass barriers); and purchasing technology for faculty and students to make online instruction more effective and accessible. These resources may also enable us to provide additional emergency financial assistance to students during this economic crisis.
We recently learned, however, that our state appropriation will be reduced by 7% next year. That amounts to a reduction of nearly $10 million to our operating budget. As a result of this reduction, as well as the continued uncertainty about Fall 2020 enrollment, the Board directed us to complete the preparation of a more austere budget for FY21.
In order to fulfill our fiscal responsibility, I asked each vice president to prepare a budget reduction plan for her or his division for FY21. In order to implement those plans, we will take the following steps:
- “Soft” freeze on hiring: Until further notice, we will not conduct searches to fill any vacancies, unless I determine that the position is vital to our mission.
- Salaries: There will be no annual merit salary increases next year.
- Non-personnel expenses: We will continue to reduce or eliminate non-essential expenditures.
- Personnel: Based on our strategic priorities, we will eliminate some vacant positions. We will also eliminate a relatively small number of filled administrative and staff positions, and we will not renew the contracts of a very small number of faculty members. The individuals who are personally affected by these decisions will be notified as soon as practicable, but no later than July 31.
The members of our leadership team, including our academic deans, recognize that some of these decisions will have an adverse impact on our colleagues. But we believe that these strategic, yet difficult decisions—which will directly affect less than 2% of our employees—are necessary to maintain our capacity to fulfill our mission and to prepare for the future.
Expanded Phased Retirement Program
During the meeting today, the Board approved our recommendation that we expand the existing phased retirement for full-time faculty to include full-time professional and staff employees. This expanded program, which will be effective on July 1, will now enable all eligible full-time professional and staff employees to reduce their service as they phase into retirement over a period of one to three years. This phased retirement program is a voluntary arrangement between an employee and our University. The program will enable us to retain the expertise of experienced employees while reducing some recurring personnel expenses.
Room and Board Contracts
During my presentation about our operating budget, I informed the Board that, for the Fall 2020 semester, we will adjust the housing and dining contracts for our students. Consistent with the academic calendar for the Fall semester, students will only be billed for 13 weeks, as opposed to the usual 16-week contract rate. As a result of this appropriate accommodation to our students, they and their families will save approximately $5.5 million next Fall.
University Police Department
At the suggestion of Renae Conley, who serves as the Chair of the Board, Ro-Anne Royer Engle, our vice president of student affairs, discussed the community policing program developed by our University Police Department. Ro-Anne and Jimmy Duckham, our director of public safety, described how this program has established a culture of trust between our officers and the members of our campus community.
During this timely presentation, Dr. Marsha McGriff, our associate vice president for inclusive excellence, also described the training that her office has provided to our officers. This training has helped to ensure that our officers contribute to our efforts to foster a campus culture where every member of our community is treated with dignity, fairness, and respect. Marsha has recently been invited to provide this implicit bias training to the officers in the Muncie Police Department and the Delaware County Sheriff’s Office.
Dean Roy Weaver
At the meeting this afternoon, the Board also honored the many contributions of Dean Roy Weaver, who will officially—and finally—retire on June 30, 2020.
During his service to our University and Teachers College, Roy has demonstrated exemplary leadership. He has been an advocate for diversity and inclusion in the teaching profession, he has provided many opportunities for his faculty and staff to excel, and he helped launch our University’s historic and innovative partnership with the Muncie Community Schools.
I am grateful to Roy for his service to our University—and for his support and guidance to me over the last three years. I will remember with fondness and admiration his courage, his compassion, and his friendship.
Conclusion
In these challenging times, I am also grateful to you for the adjustments and the sacrifices that you continue to make so that we can fulfill our vital mission of transforming the lives of our students and enhancing the vitality of the communities that we serve.
It is a privilege to serve you.
