U of M outlines $7M plan in first move to cut deficit

No faculty layoffs in ‘hard decisions’ to whittle $20M gap

University of Memphis Provost M. David Rudd unveiled plans Friday to consolidate four colleges into two and to relinquish control of a speech therapy clinic as part of an effort to reduce the univer- sity’s $20 million budget deficit by about $7 million.

Rudd’s presentation to the faculty Senate laid to rest — for now — a week of worry and rumor over possible faculty layoffs.

However, Rudd’s plan, which he characterized as a recommendation for the Senate’s review, no doubt will face painful choices as officials look to plug an additional $13 million hole in the projected $20 million deficit for the next academic year.

“These are hard decisions,’’ Rudd said during an at-times testy, hour-long presentation to about 30 faculty members. “But we need to be thoughtful about the ones we make.’’

Rudd has instructed deans to find additional savings in their budgets, and he said he was expecting written reports later

Friday. Based on those reports, he intends to give his next deficit reduction “update’’ by Christmas.

He welcomed feedback from Senate members, but said any counterproposals will need to be received and discussed by January in anticipation of the university’s budget proposal to the Tennessee Board of Regents by March.

Rudd’s proposals were generally well received, yet exchanges between him and faculty at times were intense.

Associate professor of art Cedar Nordbye said he believes the university should wait to make cuts when a full-time president is picked to replace the recently retired Shirley Raines.

“I disagree with a very fundamental premise: That we can’t kick this can down the road,’’ Nordbye said to intense stares and rounds of laughter.

“We don’t have the money to kick the can down the road,’’ Rudd replied, explaining that the deficit was triggered by a loss in federal stimulus funds and demands immediate attention.

Key elements of Rudd’s plan include:

Reducing the deficit by $7 million by tapping $2.9 million through administrative reductions, $3.2 million from unexpended tuition reserves and $1 million in cuts in graduate assistant stipends.

Collapsing four colleges — the School of Nursing, the School of Public Health, the School of Communication Sciences and Disorders, and the College of Education, Health and Human Sciences — into two: the College of Education and a new College of Health Sciences.

Turning over control of the Communication Sciences and Disorders’ speech therapy clinic to the University of Tennessee Health Science Center.

Rudd said in an interview he plans to discuss that move next week with UTHSC chancellor Dr. Steve J. Schwab. If the clinic is transferred, it could save the university $1.3 million a year.

A study directed by Rudd ranked the School of Communication Sciences and Disorders as the second-least efficient of more than 40 academic programs in terms of expenses per degree: The university spends $122,250 for each CSD degree.

That does not mean, however, that all departments that ranked near the bottom of the efficiency study will be targeted for cuts. Under Rudd’s “strategic budget’’ review, there won’t be across-the-board cuts, and key programs such as nursing, engineering and research will be grown, he said.

Rudd corrected one faculty member who said he understands a 15 percent cut is slated for some programs.

“That’s not accurate,’’ he said. “There’s a lot of misinformation. There’s a lot of misunderstanding.’’

Rudd said he hopes to offset part of the deficit through improved student recruitment and also by working harder to retain students already enrolled.

As many as 25 percent of the university’s freshmen leave school before their sophomore year, and another 18 to 20 percent leave after their sophomore year — most because they can’t afford it.

Another 17 percent of rising seniors also quit, he said.

“The No. 1 problem for us is financial challenges for students,’’ he said.

Rudd said he is working with unnamed private donors to raise scholarship funds for these students. The so- called “Ninetyplus Initiative’’ reaches out to nearly 2,100 students who have left the university in the past five years with 90 or more earned credit hours.