Chancellor's Remarks to Faculty Union (UHPA)
April 30, 2009
Mahalo for the opportunity to share information with you today. I know everyone has a lot on their plates right now and these times are stressful, so having this time together is extremely important. I also appreciate the opportunity to hear from J.N. Musto as we all work together to address the pressing budget situation. We are on the same team to ensure the health and well-being of UH Mānoa.
Current Status
I recently sent a message to the campus about the current status and little has changed at this point. 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, legislative conferences and decision-making are still on-going, 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 ongoing budget discussions at the state level.
It is important that we at UH Mānoa recognize that our state is facing significant financial challenges. This is not a normal budget reduction by any means. We are also very grateful for the State's investment in our institution and we do have more people from that investment, especially during the last few years, although some of that was catch-up from prior cuts and also directed hires so we don't feel flush with resources, by any means.
In these tough times for Hawaiʻi and the world, 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 damage our ability to educate people, serve the community, and conduct research–essential activities for creating a stronger future for Hawaiʻi.
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.
The people impact is clearly the most important concern. The Budget Workgroup devised strategic approaches to take the majority ($22 million) of the proposed $33-34 million reduction from central activities but that won't be enough—so colleges/schools have to plan for their share of the remaining $11 million. Our campus deans/directors have been working hard to handle that in the best way possible for their units and the solutions will vary depending on the unit.
With regard to potential reductions that involve people, we are working with the deans to follow Article 13 in our union contract. We do not view this situation as retrenchment, but we understand concerns about a worsening economy which would mean more restrictions on our budget. We respect the difficulty of the "maybe" land folks are in right now but we are trying to hold on as long as possible to get a better idea about the budget, but we also have the obligation to be honest with folks about what the situation is and whether we can meet the obligations we make. That means we have to provide notice if we don't know whether we can continue folks and also not renew until we have a clearer picture. There have been a number of questions about why other UH institutions are not doing the same as UH Mānoa—well the other institutions did not receive the high level of reductions that our campus did so they aren't facing the same situation we are. We are trying to keep people well-informed as to where we are in a time of uncertainty.
We also want the State to recognize that 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 UH Mānoa reduces our "generator" effect. I do believe we are part of the solution for Hawaiʻi's economic future and we want to remain capable of contributing in that way.
We also must be committed to making strategic changes to reduce costs. We had been planning for the $19.5 million 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 in many other ways, including great 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.
I will close with a quote that I have found helpful in tough times—Ralph Waldo Emerson said, "The sun shines after every storm; there is a solution to every problem, and the soul's highest duty is to be of good cheer."
Being of good cheer in tough times is not easy, but what our University accomplishes is truly important to this state. So mahalo for your efforts and I look forward to working with you as we address these serious challenges together.