Officials: Budget cuts to be deep, ‘difficult’
Immediate cuts to help balance Wright State University’s hemorrhaging budget were announced Friday, but harsher measures will
come at the end of the month in the form of layoffs and salary reductions. Up to 20 administrators could
lose their jobs and the number of staff members who will be cut in an upcoming round of layoffs will be “far more” than the number of faculty members, school leaders said.
“The measures we must take will be difficult and will require great effort, patience and cooperation from our faculty, staff, and administration. Facing change is never easy, especially in times of hardship,” Interim President Curtis McCray said.
Wright State administrators have said the university needs to cut $25 million from its upcoming budget while also boosting reserve funds by $5 million.
On Friday, the university put an
immediate stop to all overnight travel, minor construction projects, catering, personal membership payments, replacement of computers and tablets, consulting agree
ments, buying furniture and cell phone payments. The university has no estimate of how much it will save by the cuts initiated, said Jeff Ulliman, vice president for business and finance.
Wright State’s budget crisis is worse than Central State University problems were during its financial crisis in the 1990s, said Doug Fecher,
chairman of the board of trustees finance committee. In the mid-1990s, then-Gov. George Voinovich asked all Central State board members to resign so he could put in new leadership to turn the school’s finances around.
“If you look at the math ratios, it’s probably a little worse,” Fecher said. “Even though the math says it’s a weaker position we will turn it around because we have the resources.”
Fecher emphasized that budget cuts would not harm the education available to students at Wright State. He and McCray said that everyone seems to be “pulling for” Wright State to overcome its financial problems.
“I think the cost cutting measures are unfortunately necessary due to the previous president and his admin- istration’s severe financial mismanagement,” said State Rep. Niraj Antani, a Miamisburg Republican who also serves as vice chairman of the Statehouse’s committee on higher education. “I think the interim president and trustees are taking needed steps to restore the univer
sity’s fiscal health.” The university has spent
more money than it has taken in every year since 2012. WSU is projected to overspend again this year by about $40 million, some- thing that cannot happen again, Fecher said.
The cuts WSU are about to make should have been made in “small doses,” Fecher said, but since they were not they have to be made all at once, creating a larger impact at once.
“It’s frustrating and it’s maddening to the board,” Fecher said. “We share the students’ frustration.”
People in charge of budgets or “budget heads” should be punished for overspending, McCray and other WSU officials said during a finance committee meeting of the board of trustees Friday.
“I think there are plenty of things we can do to punish
budget heads to stay within budget,” McCray said.
Fecher and Chairman Michael Bridges have ques- tioned why trustees did not know sooner about financial difficulties facing the univer- sity. Bridges said the board was unaware that overspend- ing had become a problem until mid-2016.
The board and administration should have done more to prevent the crisis, Bridges said last week.
“Still, the signs were there and leadership was lacking by not paying attention to the clouds on the horizon,” Fecher said.
School leaders on Friday could not say how many fac
ulty and staff will be laid off at the end of April or in early May. McCray will be charged with implementing further cuts before Cheryl Schrader becomes president in July.
are not waiting until July 1 to pull the trigger on these things...I expect these things to begin no later than May,” Ulliman said.
As a last resort, furloughs for remaining employees could also be implemented, Ulliman said.
Despite the budget cuts announced and discussed Friday, Fecher urged the campus community to unite.
Feelings of anger and disgust toward the administra- tion by some on campus is “all deserved,” Fecher said. He said he does not blame the students who were set to protest the meeting today.
Between 80 and 100 students took part in a protest before the meeting, organizers said. They held signs in the back of the room saying things such as “Release the Audit” and “Cut Administration Not Education.”
Max Carone, a mechanical engineering sophomore, said students are concerned with the administration at Wright State.
“The biggest thing we want to convey right now during this budget and finance meet
ing is just remind them to put education first,” Carone said.