Budget Update
April 20, 2009 
Aloha!
I want to keep you updated on the news regarding the budget. The Senate and the House have both unfortunately proposed $33-34 million in reductions for UH Mānoa, plus several bills still remain that could further negatively impact us by "sweeping" amounts we use through special and revolving accounts. However, there are two weeks left of legislative conferences and decision-making, so the process is not yet done. The good news is that federal stimulus money for education could assist in meeting this reduction; however, we don't yet know how much might be available to UH Mānoa. At this point, we have to plan responsibly for reductions yet keep attuned to the on-going budget discussions at the state level.
A number of you responded to my prior message regarding the budget by asking as to what points we all might want to share with our friends and colleagues about the damaging impact of the projected cuts on UH Mānoa.
Here are some suggested points of emphasis:
1. UH Mānoa recognizes that our state is facing significant financial challenges.
The first word I always say to all Hawaiʻi citizens is "mahalo" because, as a public research university, we are very grateful for the State's investment in our institution. Also, in these tough times, we know that UH Mānoa has to do its part in the financial tightening needed—we are committed to doing that. The size of these proposed budget cuts over the next two years, however, will hurt our ability to educate people, serve the community and conduct research–essential activities for creating a stronger future for Hawaiʻi.
2. The cuts will hurt.
The cuts of $33-34 million proposed by the House and Senate represent a 13 percent reduction in general funds which support our people and will require the loss of valuable personnel, such as administrative staff, instructors and temporary staff. These proposed reductions seem disproportionately high for UH Mānoa compared to other State agencies and will result in reduced services, fewer course section offerings, and larger classes—this clearly is an outcome that UH Mānoa is working hard to avoid.
3. UH Mānoa is an economic generator.
Every dollar invested in UH Mānoa generates $5.34 in spending in Hawaiʻi, ranging from student expenditures to research purchases—few enterprises offer that type of return. Cutting dollars to Mānoa reduces our "generator" effect. We also contribute by preparing an educated population, serving the community and generating research advances that create new careers and improve our lives. So our goal is to be part of the solution for Hawaiʻi's economic future.
4. UH Mānoa is committed to making strategic changes to reduce costs.
We have been planning for the $19.5M reduction originally proposed and, although that level of reduction certainly impacts on our campus, cuts beyond that amount impact increasingly on the people we employ. UH Mānoa is already leading initiatives to cut costs by: implementing conservation practices and accomplishing much needed mechanical upgrades to reduce energy use; streamlining our administration to reduce bureaucracy and save time; and many others, including ideas suggested by our campus members.
In addition, our campus is currently undergoing a prioritization process to identify programs and processes for future strengthening which will guide us in using our resources in the most strategic manner to serve the State of Hawaiʻi.
Mahalo for all that each of you contributes to UH Mānoa and to Hawaiʻi.
Virginia S. Hinshaw
Chancellor