{"id":47006,"date":"2002-09-10T00:00:00","date_gmt":"2002-09-10T05:00:00","guid":{"rendered":"https:\/\/www.unmc.edu\/newsroom\/2002\/09\/10\/unmc-announces-budget-reduction-strategy-2\/"},"modified":"2022-08-29T10:46:58","modified_gmt":"2022-08-29T15:46:58","slug":"unmc-announces-budget-reduction-strategy-2","status":"publish","type":"post","link":"https:\/\/www.unmc.edu\/newsroom\/2002\/09\/10\/unmc-announces-budget-reduction-strategy-2\/","title":{"rendered":"UNMC announces budget reduction strategy"},"content":{"rendered":"

The University of Nebraska Medical Center today announced the steps<\/p>\n

it plans to take to reduce its 2002-2003 budget by an additional $3.07<\/p>\n

million.<\/p>\n

These cuts are painful, and the decisions behind them were difficult,<\/p>\n

but necessary, to make. We will lose good employees because of these cuts,<\/p>\n

said UNMC Chancellor Harold M. Maurer, M.D. Our guiding principle in making<\/p>\n

these cuts was to not affect the basis of who we are as an academic medical<\/p>\n

center on the move. We have trimmed some branches, but our roots are strong.<\/p>\n

Tuesdays announcement came on the heels of a special Legislative session<\/p>\n

in July, during which lawmakers cut the 2002-2003 University of Nebraska<\/p>\n

appropriation for third time in the past year. In all, UNMCs state general<\/p>\n

fund budget was reduced by $6.7 million, or 6.7 percent. These cuts occurred<\/p>\n

through legislative reduction of state general fund support and university-wide<\/p>\n

reallocation.<\/p>\n

On Tuesday, Dr. Maurer announced the following steps to reduce the budget:<\/p>\n

–Eliminate state funding for the Division of Biomedical Communications.<\/p>\n

The division provides educational support services for UNMC faculty and<\/p>\n

staff. These services include audio\/visual support, graphic assistance<\/p>\n

and video production. These reductions will amount to $527,543 in state<\/p>\n

general fund savings, and staff positions totaling 11.5 full-time equivalency<\/p>\n

(FTE) will be eliminated.<\/p>\n

–Eliminate state funding for medical resident malpractice insurance.<\/p>\n

UNMC will work with its clinical partner, Nebraska Health System (NHS),<\/p>\n

to cover these costs. The savings will amount to $326,349 in state general<\/p>\n

funds.<\/p>\n

–Eliminate a proposed satellite education site for senior students<\/p>\n

in the College of Pharmacy, producing a savings of $250,000 in state general<\/p>\n

funds. With the reductions, 2.5 FTE faculty positions will be eliminated.<\/p>\n

–Eliminate state general fund support of $217,500 for four residencies<\/p>\n

in the College of Medicine.<\/p>\n

–Reduce Business and Finance costs. UNMC hopes to achieve a $1 million<\/p>\n

savings in state general fund money by reducing its utility consumption<\/p>\n

and decreasing the amount of money used for utility maintenance. The university<\/p>\n

also will save another $382,500 by reducing Business and Finance operations,<\/p>\n

including facilities costs and collaborative cuts in purchasing with the<\/p>\n

University of Nebraska at Omaha.<\/p>\n

–Decrease UNMC subsidies to contracted state social services. UNMC<\/p>\n

has contracts with the state to provide these services. In addition, UNMC<\/p>\n

provides resources beyond those that are stipulated by the contracts. Those<\/p>\n

subsidies are being reduced by $150,000 of general fund money.                              <\/p>\n

-over-<\/p>\n

–Eliminate state general fund support for the UNMC Alumni Office.<\/p>\n

A $200,000 savings will be realized, and 3.6 FTE staff positions will be<\/p>\n

eliminated.<\/p>\n

–Eliminate ongoing state support for Grand Island College Park, generating<\/p>\n

a state general fund savings of $15,000. UNMC services at College Park<\/p>\n

will be used on a pay as you go basis.<\/p>\n

Dr. Maurer said that several factors were considered when making the<\/p>\n

budget reductions. He said that UNMC must protect its core, mission-critical<\/p>\n

areas. Although UNMC will be a less accessible and, most likely, a less-affordable<\/p>\n

institution, it will emerge from these difficult times a more vibrant campus,<\/p>\n

Dr. Maurer said.<\/p>\n

The Chancellors Council will assist me in carrying out these budget-cutting<\/p>\n

proposals, Dr. Maurer said. While these cuts are difficult, it is now<\/p>\n

time to begin the process of implementing them. We must unite and move<\/p>\n

forward to maintain our trajectory toward becoming a world-class academic<\/p>\n

health sciences center.<\/p>\n

UNMC is the only public health science center in the state. Its educational<\/p>\n

programs are responsible for training more health professionals practicing<\/p>\n

in Nebraska than any other institution. Through its commitment to research,<\/p>\n

education, outreach and patient care, UNMC has established itself as one<\/p>\n

of the country’s leading centers in cancer, cardiovascular diseases, bioterrorism<\/p>\n

preparedness, genetics, neurodegenerative diseases, transplantation biology,<\/p>\n

biomedical technology and arthritis. In the past year, UNMCs research<\/p>\n

funding increased by 23 percent and now exceeds $50.8 million.<\/p>\n

-30-<\/p>\n

UNMC Questions and Answers<\/p>\n

Q<\/b>: What was UNMCs rationale in making these budget-cutting decisions?<\/p>\n

A<\/b>:  These cuts were not easy. The goal of Chancellor Harold<\/p>\n

M. Maurer, M.D., in making these cuts was not to affect the foundation<\/p>\n

of UNMC as an academic medical center. No horizontal, across-the-board<\/p>\n

cuts are included in these budget reductions.<\/p>\n

The Medical Center doesnt have duplication of programs. For instance,<\/p>\n

the UNMC College of Medicine serves the entire state. If the College of<\/p>\n

Medicines department of cell biology, anatomy and genetics were eliminated,<\/p>\n

the College of Medicine could lose accreditation. This would leave Nebraska<\/p>\n

students without an in-state, public university to earn a medical degree.<\/p>\n

If UNMC were a tree, these cuts would eliminate some of its branches,<\/p>\n

but the base of the tree would continue to be nourished, so that the remaining<\/p>\n

branches would grow and flourish. UNMC will continue to be a vibrant medical<\/p>\n

center.<\/p>\n

Q<\/b>: How does UNMC expect to save $1 million in its utility budget<\/p>\n

over the next year?<\/p>\n

A<\/b>: Just recently, UNMC began an energy-savings campaign on its<\/p>\n

Omaha campus. UNMC has reduced the amount of decorative lighting across<\/p>\n

campus, held energy-saving forums with the Omaha Public Power District<\/p>\n

and sent did you save energy today reminders to employees. Thus far,<\/p>\n

UNMC is seeing reductions in energy use by up to 5 percent. Campus officials<\/p>\n

are hopeful and confident that these energy-saving measures will become<\/p>\n

habit for UNMC employees. In addition, utility savings over this past decade<\/p>\n

have been used to keep UNMCs utility infrastructure principally steam,<\/p>\n

chilled water and electrical facilities modernized and efficient. With<\/p>\n

these cuts, these recurring utility savings will no longer be available,<\/p>\n

at least in the near future, for this purpose.<\/p>\n

Q<\/b>: When will faculty and employees affected by these cuts no<\/p>\n

longer be employed at UNMC?<\/p>\n

A<\/b>: That hasnt been determined, specifically. All faculty and<\/p>\n

employees who are affected by these cuts will receive a 90-day job elimination<\/p>\n

notice. No notices have been sent, as of yet. Contracts with outside agencies,<\/p>\n

the flow of students through a program and other factors will help determine<\/p>\n

how long the phase-out period for the eliminated programs will be.<\/p>\n

Q<\/b>: What will result from the cut of state support to Biomedical<\/p>\n

Communications?<\/p>\n

A<\/b>: Biomedical Communications provides educational support services<\/p>\n

to UNMC colleges, institutes and other units. These services include audio\/visual<\/p>\n

support, graphic assistance and video production. Some services of Biomedical<\/p>\n

Communications already are self-supporting, and the rest of the division<\/p>\n

will become self-supporting.<\/p>\n

Q<\/b>: How will UNMC assist the employees whose positions will be<\/p>\n

eliminated?<\/p>\n

A<\/b>: UNMC plans to assist these employees in several ways. UNMC<\/p>\n

Human Resources-Employee Relations will provide transition assistance to<\/p>\n

impacted employees. The Faculty\/Employee Assistance Program also will be<\/p>\n

available to provide support to affected employees and their families.<\/p>\n

In addition, UNMC has developed a Career Search packet, which explains<\/p>\n

the employment\/application process for UNMC jobs and contains many self-help<\/p>\n

tips\/worksheets for resume writing, networking and interviewing. Familiarization<\/p>\n

with these materials should assist in identifying the right opportunities<\/p>\n

for employment. Employees who are impacted are eligible to apply for any<\/p>\n

and all UNMC positions for which they are qualified, and they will receive<\/p>\n

preferential consideration during the application process.<\/p>\n

Q<\/b>: Could these cuts have been avoided, had UNMC not given salary<\/p>\n

increases this past year?<\/p>\n

A<\/b>: This year, UNMC did reduce the size of the pool for salary<\/p>\n

increases to 4 percent, from 6.2 percent for faculty and 5 percent for<\/p>\n

employees and staff. However, Chancellor Maurer and the Chancellors Council<\/p>\n

have been adamant that raises need to be given, if UNMC is to continue<\/p>\n

on its trajectory to becoming a world-class academic health sciences center.<\/p>\n

To ensure a quality of excellence in the workplace and to reward faculty<\/p>\n

and employees for their accomplishments and hard work, the 4 percent raise,<\/p>\n

on average, was given. We dont want to go to the lowest common denominator,<\/p>\n

Chancellor Maurer said. We want to be at the top tier of medical centers.<\/p>\n

To go there, we must pay people what they deserve.<\/p>\n

Q<\/b>: Can University of Nebraska Foundation funds be used to help<\/p>\n

UNMC solve these current budget problems?<\/p>\n

A<\/b>: No. The University of Nebraska Foundation exists to provide<\/p>\n

a margin of excellence for University of Nebraska programs. Its funds come<\/p>\n

from private donors who wish to provide support for student financial aid,<\/p>\n

capital projects, endowed faculty chairs and other specific programs. Supporters<\/p>\n

of the university almost always give funds for specific purposes. Therefore,<\/p>\n

UNMC cannot use foundation contributions for general operations of the<\/p>\n

university.<\/p>\n

Q<\/b>: With its state support eliminated, what is the future of the<\/p>\n

UNMC Alumni Affairs Office?<\/p>\n

A<\/b>: Alternative sources of funding are being sought for the UNMC<\/p>\n

Alumni Affairs Office.<\/p>\n

Q<\/b>: Are these the final budget-cutting measures that UNMC likely<\/p>\n

will face over the next few years?<\/p>\n

A<\/b>: Regrettably, no. Because of the states budget situation,<\/p>\n

cuts in 2003-2005 are likely. Additional cuts would mean sacrificing more<\/p>\n

programs, which could jeopardize accreditation in some cases.<\/p>\n

University of Nebraska Medical Center<\/p>\n

Proposed Budget Reduction for 2002-03<\/p>\n

                                                                             <\/p>\n

Employee                                      <\/p>\n

Filled\/<\/p>\n

Description                                                           <\/p>\n

Category                    <\/p>\n

FTE            <\/p>\n

Vacant                   <\/p>\n

Amount<\/p>\n

 <\/p>\n

Eliminate state funding for Biomedical                     <\/p>\n

Staff                          <\/p>\n

11.5               <\/p>\n

F                        <\/p>\n

$527,543<\/p>\n

   Communications<\/p>\n

 <\/p>\n

Eliminate state funding for Medical Resident                                                                                                <\/p>\n

$326,349<\/p>\n

   Malpractice Insurance<\/p>\n

 <\/p>\n

Eliminate College of Pharmacy proposed satellite   <\/p>\n

Faculty                       <\/p>\n

2.5                <\/p>\n

V                         <\/p>\n

$250,000<\/p>\n

   location for training some senior students<\/p>\n

 <\/p>\n

Eliminate state support for four residencies            <\/p>\n

Residents                    <\/p>\n

4.0                <\/p>\n

V                         <\/p>\n

$217,500<\/p>\n

    in the College of Medicine<\/p>\n

 <\/p>\n

Reduce Business and Finance                                <\/p>\n

Staff                           <\/p>\n

2.0                <\/p>\n

F<\/p>\n

   — reduce utility consumption                                                                                                                 <\/p>\n

$1,000,000<\/p>\n

   — reduce Business and Finance operations including                                                                                 <\/p>\n

$382,500<\/p>\n

   facilities and collaborative cuts in purchasing and accounts<\/p>\n

payable<\/p>\n

 <\/p>\n

Reduce UNMC subsidies for contracted state social                                                      <\/p>\n

TBD                     <\/p>\n

$150,000<\/p>\n

   services<\/p>\n

 <\/p>\n

Eliminate state funding for the Alumni Office           <\/p>\n

Staff                         <\/p>\n

3.5                  <\/p>\n

F                         <\/p>\n

$200,000<\/p>\n

 Staff 0.1 V<\/p>\n

 <\/p>\n

Eliminate ongoing state support for                                                                                                                  <\/p>\n

15,000<\/p>\n

   Grand Island College Park<\/p>\n

 <\/p>\n

                                                                                                    <\/p>\n

Total  23.6                                         <\/p>\n

$3,068,892<\/p>\n

Key:<\/p>\n

F = filled position<\/p>\n

V = vacant position<\/p>\n

TBD = to be determined<\/p>\n

 <\/p>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"

The University of Nebraska Medical Center today announced the steps it plans to take to reduce its 2002-2003 budget by an additional $3.07 million. These cuts are painful, and the decisions behind them were difficult, but necessary, to make. We will lose good employees because of these cuts, said UNMC Chancellor Harold M. Maurer, M.D. […]<\/p>\n","protected":false},"author":79,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-47006","post","type-post","status-publish","format-standard","hentry","category-uncategorized","department-press-release"],"yoast_head":"\nUNMC announces budget reduction strategy<\/title>\n<meta name=\"description\" content=\"The University of Nebraska Medical Center today announced the steps it plans to take to reduce its 2002-2003 budget by an additional $3.07 million. 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