Dean Goddard sent this message to CLAS faculty and staff on Wednesday, June 17:
Dear CLAS Faculty and Staff Colleagues:
As President Harreld noted in his budget message on June 8, the University of Iowa is facing a serious budget shortfall, due to the impacts of shutting down campus to mitigate COVID-19. Tough choices have to be made in every area of the UI, including the College of Liberal Arts and Sciences.
We are pleased that even though there were obvious disruptions to campus life and operations, the UI directed that funding should continue through the spring 2020 semester. As a result, our students were able to continue their progress toward graduation, and our staff and faculty functions proceeded as normally as possible during that time.
But the financial impact of the coronavirus shutdown, while deferred a few months, necessitates budget cuts for fiscal year 2021 (FY21), which starts on July 1. As the largest UI college, CLAS is responsible for about two-thirds of the UI’s undergraduate student instruction as well as almost half of the graduate-level instruction. Accordingly, per the UI budget model, CLAS is particularly impacted by the decrease in student enrollment for the fall. We anticipate about 13% fewer non-residents and 5% fewer residents in Fall 2020. This drop in enrollment constitutes the bulk of what we call the Tier I budget cut, which totals $15 million per year for the next 3-5 years, as that smaller-than-normal class matriculates to graduation (a.k.a. the "pipeline effect").
UI leadership has asked that we also develop strategies for reductions in state appropriations at the levels of 10% and 20%, which we call Tier II and Tier III budget cuts. Our Tier II cut totals $20M and includes the Tier I cuts. Our Tier III cut totals $25M and includes the cuts from both Tiers I and II. The state appropriation cuts will be long lasting, and we may never recover the funding once the deappropriation is made.
At this point in time, pending gubernatorial action, the State of Iowa has reduced appropriations to Iowa’s three public universities, collectively, by $8 million for FY21. It should be noted, however, that the members of Iowa’s Revenue Estimating Conference were exceedingly cautious with their estimate as the real economic consequences of the pandemic are still unknown. Thus, we need to act prudently today in case there is a need to perform a midyear reduction due to an additional cut by the state in the first months of 2021.
I am hopeful that Tier III cuts will not take effect until FY22 (July 1, 2021), if they occur at all. We have structured Tier III cuts to consist of mostly non-recurring cuts (i.e., temporary), because I am hoping that by FY23 or FY24, we will start to recover from the decreased enrollment that drove Tier I cuts.
Guiding principles and process. Following advice from the Executive Committee and DEOs, we began the budget-cutting process by documenting our guiding principles and process:
Our top priority is continuation of our mission of excellence and impact in teaching; researchand artistic production; and service to our communities, state, and society.
We are proceeding in alignment with the CLAS strategic plan.
We have consulted frequently with department chairs and the college’s elected Executive Committee.
We have also consulted with the Office of the Provost, UI Human Resources, and other applicable central administration units.
To summarize, we were tasked to identify cuts of $15M (Tier I), $20M (Tier II), and $25M (Tier III). Eighty-six percent of the college’s budget is dedicated to salaries and benefits, making it difficult to identify sufficient cuts in places other than those that impact faculty and staff. Nonetheless, CLAS is committed to protecting our faculty and staff to the greatest extent possible from the impact of these large, mandated cuts.
It is important to understand that temporary salary reductions help with short-term budget reductions to fill a gap in a given fiscal year, but they do not address the long-term budget cuts we are facing.
Working with department chairs and the college’s Executive Committee, collegiate leadership was able to meet the mandated cuts through the following actions, which will take place at different times throughout the year as the situation warrants.
Tier I ($15M): These cuts are certain, and go into effect on July 1, 2020.
Implementing indirect cost-saving strategies, such as reductions in renovation and instructional equipment allocations;
Reducing discretionary funds, and fully utilizing all other resources available beyond general education funds;
Eliminating January 2021 merit increases;
Reducing compensation for faculty teaching additional courses, and for converting courses to online;
Reducing visitor and adjunct faculty budget allocations, along with summer 2020 budget allocation;
Deferring non-critical Instructional Track faculty and Staff hiring;
Limiting the renewal of some Instructional Track faculty and Assistants in Instruction, impacting 15 of 205 Lecturers;
Enabling voluntary reduction in effort;
Enabling unpaid furlough days.
Tier II (up to an additional $5M): These cuts may become necessary later in 2020-21, depending on state appropriation decisions, and some steps require immediate action.
Offsetting some centrally funded student financial aid with donor-funded scholarships;
Reducing General Education Fund support for the English as a Second Language Program, to match decreased demand;
Limiting the renewal of additional Instructional Track faculty and Assistants in Instruction in FY 21, 22, and 23 as needed;
Strategically redeploying P&S staff to meet shifting demands;
Reducing the use of outside services;
Expanding and leveraging shared research shops (i.e., machine shop, electronics shop, etc.);
Right-sizing PhD programs to meet shifting demand;
Eliminating duplication in majors or elective courses.
Tier III (dollar amount TBD; anticipate up to an additional $5M): These are last-resort measures, and are listed here in order of priority.
Temporary mandatory reductions in administrative supplements (for Senior Leadership and DEOs/Directors);
Temporary mandatory reductions in summer DEO salaries;
Closing or combining programs or departments;
Temporary, mandatory reductions in staff and faculty salaries;
Delaying faculty Career Development Awards (i.e., research leave) for two years.
Again, our top priority is continuation of our mission of excellence and impact in teaching; research and artistic production; and service to our communities, state, and society. Thank you for all you do toward realizing that goal.
Sincerely,
Steve
Steve Goddard
UI Alumni Association Dean’s Chair
in the Liberal Arts and Sciences