News

Regents take on budget

By Nikie Johnson
Senior Staff Writer

A $20 million donation to UH, announced at Tuesdayis Board of Regents Committee meeting, helped counter the grim mood as the regents discussed the Universityis planned $11.4 million in budget cuts.

George and Cynthia Woods Mitchell have pledged the donation, which will come in over five years, to create a new arts center at UH.

The Cynthia Woods Mitchell Center for the Arts, if it gets regent approval, will integrate the School of Theatre, the Moores School of Music, the Creative Writing Program, the Department of Art and the Blaffer Gallery.

Not all financial news was good, though. Smith told the regents that he will be deferring maintenance on campus buildings and asking all the vice presidents to cut 2 percent from their budgets for the rest of the year.

The cuts are being made to comply with Gov. Rick Perryis request that all state agencies cut their general revenue appropriations for Fiscal Year 2003 by 7 percent.

The request came down after State Comptroller Carole Keeton Rylander announced Jan. 13 that Texas is facing a $1.8 billion budget shortfall for FY03, in addition to a shortfall of at least $9.9 billion next year.

UH was budgeted to receive $162 million in general revenue appropriations from the Texas Legislature in FY03. That was to be 30.5 percent of UHis total operating budget of $532 million.

"This was a very important percentage," Smith told the regents.

The "terrible suddenness" of the request made complying with it difficult, Smith said.

"We are being asked to achieve a reduction of this startling magnitude with only seven months remaining in FY03, and with the spring semester already well under way," Smith said in a memorandum sent Monday to the UH community detailing his plan. "It will certainly not be easy, and it will be painful, but we will do what we have to."

Smith said UH could save $7.1 million by holding off on non-critical building maintenance.

"This is the easiest recourse," Smith told the regents. "In the long run, it will cost more. However, this is an immediate problem, and we have to deal with it in an immediate way."

Another $1 million will be taken from the lapsed salary account. All salaries are included in the budget, so when a position is vacant and that salary isnit being paid to anyone, it goes into the lapsed salary account.

The last $3.3 million needed for the cuts will be left up to UHis vice presidents, who will have the discretion to make the cuts specific to each department based on its needs.

As Perry directed, travel from general revenue funds will be prohibited, and Smithis "express approval" will be needed to hire any consultants or professional services. Smith said UH spent almost $1 million on those activities during FY02. The savings will be part of the vice presidentsi cuts. Other savings might come from hiring freezes, "selective reductions in force" or reductions in non-personnel expenses, Smith suggested.

In addition, Smith said in the memo that "although its budget contains no general revenue funds, the Department of Athletics is asked to prepare and submit plans for an overall 2 percent reduction in expenditures for the current fiscal year."

Smith stressed throughout his report to the regents that academic quality was his top priority, and he was doing what he could to make the "minimum impact on students."

However, Provost and Vice President of Academic Affairs Edward Sheridan has to cut 2 percent from his budget, and Smith warned the regents that some summer classes may be bigger than would be ideal, and some classes with only a few students might not be offered.

In other business, the Administration and Finance Committee voted on a measure that would increase parking at UH. The original proposal called for 1,040 spaces to be added to four lots and along Calhoun Road, at a cost of $2.3 million. However, some of the regents objected to parking lots being built on Cullen Road for aesthetic reasons.

Regent Thad "Bo" Smith suggested that UH instead address the parking problem by looking into buying property north of Interstate 45 or building a parking garage.

Three aspects of the project, which accounted for 510 spaces, passed the committee, and the two on Cullen were tabled for further discussion.

That committee also voted to recommend a $3.3 million renovation to Melcher Hall and a $3.9 million budgetary increase to the M.D. Anderson Memorial Library expansion project, as well as a plan that would allow the University to deposit studentsi financial aid awards directly into their bank accounts, instead of sending checks to students.

The Academic and Student Affairs Committee voted to recommend that the College of Technology be reorganized into three departments from its current four.

The regents also heard presentations on UHis alliance with the University of Texas, which is meant to help the schools educate teachers who will work in urban areas. Another presentation discussed the amount of research funding UH received during the first quarter of FY03, which was up 17.4 percent from the same period in FY02. It also touched on the amount of private donations received during the first quarter, which was down 39.1 percent from last year.

The committeesi recommendations will be voted on at the next Board of Regents meeting Feb. 20.
 

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