Budget cuts at The University of Memphis are currently creeping their way through the institution, and, according to University officials, things are only going to get worse.
Citing deteriorating economic conditions across the state and lower than expected state revenues, University officials have confirmed that the already cash-strapped University is anticipating yet another reduction in state-appropriated funding.
"With the current economic conditions of the state, I do not see a plausible way that we can avoid impoundment (budget cuts)," said David Zettergren, director of accounting and member of the budget committee at The University.
Amid resurgent budget cuts The University was able to avoid during the booming economic conditions of the 1990s, financial officers at The U of M are warning departments "to set some money aside" to prepare for imminent budget cuts stemming from a statewide economic downslide.
With nearly five months left in the fiscal year, University officials are scrambling to find a way to ease the crunch that could possibly leave The U of M millions of dollars short of what is needed to cover its current expenditures.
In addition, some U of M administrators are upset at the prospect of having to give up millions in "promised" appropriated funding to make up for the state's growing deficit.
"We are working extremely hard and exploring every possible area in order to maximize our fundraising potential," said Dan Beasley, who is actively involved in fundraising at The University.
While fundraising usually generates an additional $10 to $12 million dollars for The University as a whole, the extra revenue is not likely to offset the expected cuts in state funding, according to Beasley.
One of the problems with fundraising is that money from private donors does not benefit all departments equally. Private donations tend to fund only certain programs, while leaving others, perhaps in more need, with nothing.
"The contributors are selective in which programs to finance and what the money will be used for," said Beasley.
Making matters worse, Gov. Don Sundquist recently indicated that schools at all levels will likely feel the pinch of the budget crunch in the fourth quarter of this fiscal year. During his state of the state address to members of the legislative committee last week, Sundquist acknowledged the needs of higher education in the state are being weighed against TennCare, K-12 education and countless other funding needs, leaving The U of M and other state universities in an economic limbo.
The U of M is expecting to receive $97 million in appropriated funds from the state, but officials from the state, as well as The U of M, have expressed doubts that the expected funding will be received in entirety at the end of the fiscal year on June 30.
The majority of the allotted funding from the state is meant to cover the operational cost of The University. The operational budget covers expenses ranging from teachers' salaries to photocopies.
Accordingly, The U of M Budget Committee is preparing for a 3 percent cut and will submit its budget report to the state in mid-April. In turn, the State Appropriations Committee will analyze The University's desired budget and will determine the extent of the expected funding cut.
While the specifics and magnitude of the funding cut will not be known until June, the effects of the looming budget cuts are already being felt in some areas of The University.
In some departments, basic necessities such as library funding and paper allotment are currently being cut back to cushion the blow of the expected shortfall.
"Recently, we are being limited on the number of photocopies we can make," said Melinda Parsons, associate professor of history at The U of M. "If it affects my ability to teach and impedes the students' ability to fully take advantage of the education that they are paying for, then it is a problem," Parsons said.
While the budget committee usually resolves to slice departmental operations in lieu of a mandated budget cut, many members of the faculty feel that the students will absorb much of the blow of the inadequate funding from the state.
Last year, students at The U of M experienced a 9.5 percent tuition hike, partly in response to mandated reductions in state funding and to fund a 3.5 percent pay raise for faculty and staff.
Although University officials have yet to unveil a detailed plan to combat the funding reductions, many feel that the financial momentum gained in recent years will minimize the effects of the expected budget cut.
"We have not received any definite numbers from the state, but we are currently taking appropriate measures to counter any problems that may arise from this," said Ralph Faudree, interim president of The University.
