Chancellor discusses budget issues at town hall

Chancellor Jeffrey P. Gold, M.D., pledged open communication and transparency as UNMC, UNO and the University of Nebraska system navigate a budget shortfall brought on by fiscal challenges facing the State of Nebraska.

Speaking at a town hall meeting on the UNMC campus Wednesday morning, Dr. Gold stressed that “great organizations grow their way through difficult times, they do not cut their way through difficult times.”

He acknowledged that challenges lay ahead. Cuts in state funding combined with rising costs will create a $49 million budget gap for the university by summer 2019. Closing a gap of that scale will result in job losses — through attrition wherever possible — and will have a broad impact across the university.

Dr. Gold added, though, that the university’s proactive approach to reducing spending is paying off. A university-wide effort to identify reductions in operational areas like procurement, facilities and IT is expected to yield significant savings in the years ahead that will allow academic programs and student affordability to be protected contingent upon no further cuts from the state.

The 2017-18 operating budget approved by the Board of Regents earlier this month preserves those priorities by assuming approximately $30 million in savings from the “Budget Response Team” process that began in January.

The university is moving toward implementation as decisions on reductions are finalized and communicated to the NU community. Changes will include new structures, processes and efficiencies, many of which will take time to put in place. Dr. Gold praised the work of Budget Response Team members, including many UNMC and UNO staff, who devoted significant time to the challenging work of re-thinking the way the university does business in order to preserve the campuses’ long-term momentum and competitiveness.

“There’s no question in my mind that some substantial efficiencies and benefits will come from this, but there’s also no question in my mind that there will be some pain associated with it as well,” he said.

“My own approach to this is pretty simple,” he said. “Through looking at position turnover — retirements, people who move for career and family reasons — we’re going to look at every single position that comes open as a result. That’s the most humane and strategic way to manage this phase of the process. We will work closely with each BRT and the other campuses.”

He also noted that in the last two weeks, the state’s forecasting board is continuing to project less revenue over the biennium.

“We’re watching this extremely carefully,” he said, adding that the possibility of further cuts exist.

The chancellor was realistic but struck a hopeful tone as he spoke of the university’s mission and the community’s morale. Despite budgetary challenges, faculty, staff and students should feel optimistic about the university’s future and the vital role each campus will play in transforming lives and growing Nebraska’s economy, Dr. Gold said.

“The budget is a tool — and by the way, just one tool — to fulfill our mission, and we can’t lose track of that. We are a mission-driven organization and will always remain so.

“The most concerning aspect of all of this to me is not what we end up doing as a result of this budget process,” he said. “The most damage that could be inflicted on this institution would be to demoralize the institution, to demoralize any one of you, because you are all key parts of our family. Anything that results in the loss of our great momentum, the confidence of our learners and patients or change in the learning and clinical environment of our campus, will be tragic and enduring.”

Nebraskans can stay up-to-date on the university’s budget efforts by visiting the university’s budget information website. Dr. Gold invited all members of the university community to contact him directly via email with questions and feedback.