Learn more about UNMC’s budget-cutting plans in this Q & A.
Q: How will UNMC announce its budget-cutting plans?
A: We anticipate rolling the budget cuts out in three phases. The first phase is being announced today (March 10). The second round of cuts will be announced in mid- to late April. The final cuts will be made at the end of June when the legislative session concludes, and we know the final legislative appropriation to the University of Nebraska and the rate of tuition approved by the NU Board of Regents for UNMC students. The first phase of cuts represent only about 25 percent of the potential cuts UNMC could experience during this round of reductions.
Q: What does the first phase of the cuts entail?
A: In its initial cuts, UNMC is announcing plans to reduce its budget by $2 million. The state support of two areas, academic support services and faculty support, is being reduced in this cut.
Q: What are academic support services?
A: Academic support services are everything that support academic programs other than faculty salaries. These include, but are not limited to, such vital units as the Office of Student Services and the Office of Sponsored Programs.
Q: How many people will lose their jobs?
A: State support for 34 full-time equivalent (FTE) positions is being eliminated. Of those, 8.5 FTE are faculty, and 25.5 FTE are non-faculty. UNMC will look for other sources of revenue to support these positions. UNMC will not know how many people will lose their jobs until all phases of the budget cuts have concluded.
Q: Will there be salary increases this year?
A: That is not known. UNMC Chancellor Harold M. Maurer, M.D., has said that he believes UNMC employees deserve a pay raise. Whether appropriate levels of funding will be available after all of the budget cuts is not known at this time.
Q: Will any tenured faculty lose their jobs?
A: Only 43 percent of the faculty at UNMC is tenured. During this round of cuts, UNMC will not eliminate the state support for any of those faculty members at UNMC. However, should further cuts be necessary, there is a possibility that UNMC would have to look at the restructuring or elimination of specific academic programs or units. In that case, tenured faculty likely would be affected.
Q: What criteria are being used to make budget reduction decisions?
A: These decisions are being made on the basis of a set of guidelines adopted by the Chancellor’s Council. These guidelines include: not endangering UNMC’s core mission, accreditation, or vision to become world class; maintaining strategic focus; preserving programs that generate funds for new program development; and avoiding across the board cuts.
Q: Are we exploring combining services with the University of Nebraska at Omaha or Nebraska Health System?
A: We are working closely with UNO. As an example, the purchasing departments of our two campuses have been combined. We also are working closely with NHS, our clinical partner. It must be remembered, however, that NHS is a relatively young hospital and that it has had little time to accumulate capital reserve. In addition, smaller reimbursements for medical care have decreased its profit margin.
Q: What was UNMC’s rationale in making these budget-cutting decisions?
A: These cuts were not easy. The goal of Chancellor Harold M. Maurer, M.D., in making these cuts was not to affect the foundation of UNMC as an academic medical center. No horizontal, across-the-board cuts are included in these budget reductions.
The Medical Center doesn’t have duplication of programs. For instance, the UNMC College of Medicine serves the entire state. If the College of Medicine’s department of cell biology, anatomy and genetics were eliminated, the College of Medicine could lose accreditation. This would leave Nebraska students without an in-state, public university to earn a medical degree.
If UNMC were a tree, these cuts would eliminate some of its branches, but the base of the tree would continue to be nourished, so that the remaining branches would grow and flourish. UNMC will continue to be a vibrant medical center.
Q: When will faculty and employees affected by these cuts no longer be employed at UNMC?
A: That hasn’t been determined, specifically. All faculty and employees who are affected by these cuts will receive a 90-day job elimination notice, but that wouldn’t come until at least June. No notices have been sent, as of yet. Contracts with outside agencies, the flow of students through a program and other factors will help determine how long the phase-out period for any eliminated programs will be.
Q: How will UNMC assist the employees whose positions will be eliminated?
A: UNMC plans to assist these employees in several ways. UNMC Human Resources-Employee Relations will provide transition assistance to impacted employees. The Faculty/Employee Assistance Program also will be available to provide support to affected employees and their families. In addition, UNMC has developed a Career Search packet, which explains the employment/application process for UNMC jobs and contains many self-help tips/worksheets for resume writing, networking and interviewing. Familiarization with these materials should assist in identifying the right opportunities for employment. Employees who are impacted are eligible to apply for any and all UNMC positions for which they are qualified, and they will receive preferential consideration during the application process. Call UNMC Human Resources-Employee Relations at (402) 559-5827 for more information.
Q: Can University of Nebraska Foundation funds be used to help UNMC solve these current budget problems?
A: No. The University of Nebraska Foundation exists to provide a margin of excellence for University of Nebraska programs. Its funds come from private donors who wish to provide support for student financial aid, capital projects, endowed faculty chairs and other specific programs. Supporters of the university almost always give funds for specific purposes. Therefore, UNMC cannot use foundation contributions for general operations of the university.
Q: Are these the final budget-cutting measures that UNMC likely will face over the next few years?
A: Regrettably, no. Because of the state’s budget situation, further cuts beyond this legislative session cannot be ruled out. Additional cuts would mean sacrificing more programs, which could jeopardize accreditation in some cases.