In his first open forum yesterday, TTU President Bob Bell answered questions prepared by the American Association of University Professors and Faculty Senate representatives, and he outlined the university’s awkward position of trying to prepare for a budget that has yet to be set.

About 250 faculty members, staff and a few students attended the forum in Derryberry Auditorium during dead hour. Questions submitted anonymously through a web site were reviewed and selected for discussion by AAUP and senate representatives, then provided to Bell in advance.

With regards to many of the budget cuts mentioned in recent press coverage, Bell said it is really too early in the process to discuss those cuts. “We do not have a state budget for next year. We don’t even have a proposed budget yet.”

Bell said several variables that will affect our budget for next fiscal year are still unknown, including the impact of the proposed federal stimulus package. He said he believes the current version being debated would provide aid for students and funding for state facilities and infrastructure. While not a direct infusion of money for higher education, federal stimulus funds for those infrastructure projects may loosen up some state support for colleges and universities, but it will have only a two-year impact, not permanent funding.

“All it does is soften the landing on very hard ground,” said Bell. “It doesn’t permanently address our long-term problems with funding.”

Other unknown variables that will affect TTU’s budget are state tax revenues, any tuition increases (tuition is typically not set by the Tennessee Board of Regents until June), our enrollment numbers, and new leadership in the state legislature.

Despite those unknowns, the university was required to submit a couple of budget reduction scenarios to the state in December. The first scenario, Tier 1, included reductions of about $5.2 million, most of which would be taken from operations, administrative costs and non-academic personnel. The Tier 2 scenario was more draconian, Bell said, with an $8.6 million reduction (about 20–25 percent of our state appropriation), which could affect academics. “I’m not saying either is likely,” said Bell. “It’s just too early to tell.”

In addition to the budget advisory committee, Bell also created eight task forces to consider possible cost-reduction strategies associated with units or processes that have frequently been suggested for review. Task forces have been set up to review administrative costs, printing services, athletics, extra service pay/reassigned time, custodial services, scholarships (not reducing, but more efficiently funding), non-credit programs and possible enrollment caps.

Questions asked and Bell’s responses are summarized below:

Question regarding the removal of the 12 credit-hour tuition cap

“I think we all agree with the premise that we must provide access at a reasonable cost to all students,” Bell said. The issue of fairness drove the removal of the tuition cap by the Tennessee Board of Regents. Under the current system, Bell said, the part-time students — many of whom are in the workforce or single mothers trying to take a few classes at a time — pay a much higher rate per credit hour than the full-time students. The tuition cap removal for TBR was intended to be an equity issue. He said he expects much discussion about the cap removal to continue and feels support may exist for a change to a 15-hour tuition cap and the possibility of a phased-in approach over the next couple of years.

Question about details of the proposed buyout plan

President Bell asked Human Resources Director Mike Cowan to provide details of a proposed voluntary buyout program. Both stressed the program has not been approved by the TBR, a process that is required before the buyout can be offered. Both also stressed that the program would be completely voluntary. A draft of the program, which is very similar to the University of Memphis buyout approved last fall, has passed legal review and now awaits approval by the board, which will likely come at the March 24 TBR meeting. The voluntary program would target a 4 percent workforce reduction, including 14 faculty positions, 16 hourly positions and 10 administrative/professional/executive positions. If approved, details would be communicated to the campus and the application period could begin March 30 through May 15 with a targeted separation date of June 30.

Question about allowing part-time instructors to share the faculty title

Some policy frameworks at the TBR level have to define who can be termed faculty, Bell said. Adjunct instructors at the community college campuses may be different than those at the university, so the different campuses must also have an opportunity to discuss that framework. Provost Armistead has raised the issue with TBR staff already, and Bell will encourage the discussions at the presidents’ council and academic sub-council. He said about 28 percent of the student credit hours at TTU are taught by adjunct instructors.

Question comparing the percentage of budget reductions for administrative areas versus academic areas

“No, they will not be matched and they have not been matched in some time,” Bell said. “They have been significantly higher and that will continue to be our policy. The administrative cuts, the non-instructional cuts, have been and will be higher than the academic cuts.” TTU benchmarks funding compared to the Ohio Valley Conference, TBR and THEC and used the Delaware Study for administrative cost reviews. When looking at comparative data among those peers, a relative portion of TTU’s administrative costs are less than other schools. Addressing questions about salary inversion progress and the suggestion that the university administration should shoulder salary reductions, Bell said the most recent funds applied to inversion distributed more than $700,000 in equity and merit pay, and that plan specifically excluded those earning $100,000 or more. He said if a list of the highest 10 to 25 paid people on campus were compiled, faculty would make up at least half of that list.

Question about the possibility of staggering any proposed furloughs

Bell said he and his cabinet members had already discussed the idea of staggering furloughs when the budget concerns began last fall. He reminded everyone that a furlough can attempt to address short-term cuts and would only be effective in the year it is implemented. If a furlough is planned, Bell said he fully expects those at the higher levels to take extra days. He warned that state-wide furloughs may be mandated across-the-board, which would leave little campus discretion. At this point, however, no furloughs are planned.

Question addressing the amount of state funding TTU spends on intercollegiate athletics

As part of its general budget, TTU invests about $4 million in athletics each year, but about $3.9 million of that brings scholarship students (and their academic support) to academic units across the campus, Bell said. The diversity of the student body is dramatically affected by those students. Student athletes, as a group, also graduate at a higher rate than the student body and earn a higher GPA than the general student body. “I cannot imagine our campus without intercollegiate athletics,” Bell said. “It would be a dramatically different place.” He stressed the Athletic Department would take reductions at a higher rate than academics.

Question about where TTU will take its commitment to science in the next few years

In the university’s budget model, engineering and science already carry priority because of our unique mission and goals, Bell answered. He stressed the university’s current construction of the Millard Oakley Science, Technology, Engineering and Math facility and also discussed long-term plans for the next major construction project: a four-building science complex. He said he expected significant investments in science facilities within the next decade.

In conclusion, Bell emphasized his commitment to open communication. “We have a strong history of shared governance in place on this campus, and that will continue. A lot of folks are participating in these budget discussions. We will be facing some cuts. We just want to approach them deliberately.”

Bell and the budget advisory committee are planning to hold similar forums for facilities and clerical/support staff soon.