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June 10, 2005
Contact: Ross Feltz – 724-738-2919; e-mail:
ross.feltz@sru.edu; cell: 724-679-1376
SRU BUDGET CHALLENGE: SERVING MORE STUDENTS
WITH LESS REVENUE
THAN FOUR YEARS AGO, TRUSTEES
TOLD
CRANBERRY, Pa.
-- Slippery Rock University trustees heard university
president Robert M. Smith explain the challenge of overcoming a
more than $4 million shortfall for 2005-06 from expected lower
state appropriations and the governor’s desire for the
Pennsylvania State System of Higher Education Board of Governors to
not raise tuition.
The council
of trustees held its quarterly meeting today at the Regional
Learning Alliance in Cranberry Woods Corporate Office Park, a
concept conceived by SRU.
In discussing
the budget, Smith explained “this year’s SRU allocation
from the legislative appropriation is 95 percent of what was
received five years ago. Yet we have grown by 12 percent in those
years to serve nearly 1,100 more students. We quietly balanced last
year’s budget through reductions in management positions,
non-contractual assignments for faculty and a new phone system that
significantly reduced our phone maintenance operating
costs.”
“This
coming fiscal year presents more serious challenges,” he
said. “The projected budget shortfall is more than $4
million.”
Smith
explained salaries and benefits comprise $4 of every $5 of the
university’s budget and contractual obligations for increases
next year amount to 86 percent of the $4 million shortfall.
“The increases for the following year are even more
severe,” he said. “Based on no tuition increase, the
shortfall in 2006-07 could be $8.9 million.”
“We
have to reduce costs and do so immediately where strategically
feasible and then set in motion a series of strategies for reducing
costs in 2006-07. One of the major cost categories that must be
considered is personnel,” he said. “The largest
category and the source of the largest increase in personnel costs
is faculty. However, the faculty is the primary source of revenue,
so every faculty position eliminated represents less opportunity to
teach students. Consequently, any strategy to reduce the faculty
has to be fine-tuned so that we do not set off unintended
reductions in our budget, triggering further cost-cutting
spirals.”
Smith
emphasized, however, that budget decisions at SRU will be made with
a focus on two primary goals: “First, we remain committed to
our long-range goal of enhancing the value of the Slippery Rock
University degree. And, we remain resolved to gaining control over
our destiny.
“As for
the first goal, we have worked very hard to enhance the academic
reputation of Slippery Rock University and have invested
significantly in gaining stature in the national academic
community,” he said. “We cannot let our efforts be
wasted by not continuing investment in academic quality and the
student experience.
“For
the second goal, we have to significantly step up our efforts to
acquire more funds through our fund- raising work and increase
income from our strategic lines of business,” he
said.
New officers elected
Council elected Dr.
Dennis Murray, superintendent of Altoona Area School District and a
1963 SRU graduate who has served as a trustee since 1997, as chair;
Suzanne Vessella, a resident of Ellwood City and an operations
auditor for the Pennsylvania Turnpike Commission, as vice chair;
and Angele Waugaman, a senior from Kittanning, pursuing majors in
accounting and marketing, as secretary. The council has one
trustee who is a student, and Waugaman is the first to serve as one
of the three council officers at SRU.
In other
action, council approved contracts, fixed asset additions, service
and supply purchase orders and reviewed the annual inspection of
facilities.
Retirements:
Trustees were
informed of the following retirements:
Dr. Kenneth
Calhoun, associate professor, School of Business, from Pittsburgh,
with 18 years service;
Dr. James Hughes,
professor, geography, geology and the environment, from Grove City,
with 34 years;
Dr. Elizabeth
Joseph, associate professor, secondary education/foundations of
education, from Allison Park, with 17 years;
Dr. Paulette La
Doux, associate professor, counseling and development, from
Harmony, with 21 years;
Francis Manfredi,
assistant professor, special education, from New Castle, with 36
years;
Dr. Dineshnandini
Manocha, assistant professor, special education, from Warren, Ohio,
with 19 years;
Dr. Erich
Vierthaler, assistant professor, sociology/anthropology/social
work, from Butler, with 15 years;
Linda Beatty,
student health services, from Grove City, with 25 years;
Dr. Duncan Sargent,
graduate studies, from Slippery Rock, with 10 years;
Donald Bickel,
finance and administration, from Grove City, with 17
years;
James North,
information systems and technologies, from Slippery Rock with 34
years;
Janet Croll,
retention services, from Slippery Rock, with 16 years;
Leslie Edwards,
student health services, from Slippery Rock, with 16
years;
Madlyn Englehart,
physical eduation, from Grove City, with 31 years;
Cathy Lake,
financial aid, from Slippery Rock, with 31 years;
Karen McKnight,
graduate studies, from Harrisville, with 36 years;
Jack Thompson,
facilities, from Petrolia, with 32 years; and
James Wallace,
facilities, from Butler, with 19 years.
Professor Emeritus
Trustees also were
informed that Dr. Albert Ward, retired professor, geography,
geology and the environment, was award professor emeritus
status.
The next meeting of
the council is 1:30 p.m. Sept. 9.
# # #
Ross C. Feltz -- PN, PgN, WPN, PR, S
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