On Monday, September 28, 2020 three WCU leadership groups came together to discuss one of the biggest issues on the minds of many university stakeholders – What is the impact of the global COVID-19 pandemic on WCU’s budget?
To begin answering that question, WCU Vice Chancellor of Administration & Finance Mike Byers issued a challenge to those in attendance. The challenge is in the form of a “Budget Reduction Exercise”. This exercise is NON BINDING and provides the opportunity and space for departments to think about how they will respond.
Staff Senate would like to gather feedback on areas that you believe could be looked at for cost savings and will provide the ANONYMOUS responses to the Division Heads for utilization during this exercise.
Click here to provide your ideas and feedback.
For your reference, below are the instructions which were issued to CLC, BAC, and Dept. Leadership. We invite you to keep these instructions in mind but please think outside of the box in your responses.
Budget Reduction Exercise Instructions
We anticipate that the State of North Carolina may experience a significant decrease in tax
revenue in FY21. This is very likely to impact state funding for UNC System institutions in the
current and future fiscal year(s).
WCU will start planning for this possibility by undergoing a budget reduction exercise, using the
following approach:
• Each division will determine how it would cut recurring spending by 10% in FY2021-22.
• This task can be managed at the division/college-level, or at the department level, at the
discretion of the Vice Chancellor/Dean.
• Numbers will be provided for each area to equate 10% to a dollar figure.
• Reduction planning detail should not be at the position or fund level, but rather should
include a proposed reduction dollar amount associated generally with Salaries &
Benefits, Services, and Supplies & Materials, by department.
• Reductions need to be related to spending. While utilizing reserves or increasing
revenue may be how some units manage actual cuts, those tools won’t be utilized for
this exercise.
A few more important notes:
• This exercise is meant for planning only. The intention is to ready campus leaders for
the task if/when it is required. Further, this will help senior leadership understand the
impact these reductions could have and will help them continue to advocate for
sustained campus funding.
• If/when the campus does experience budget reductions, it is unclear whether the level
might be higher or lower than 10%. We have chosen this level of reduction for the sake
of exercise only.
• All units will engage in this planning, regardless of whether they are state supported, or
supported by fees/receipts.
Timeline:
Divisions will conduct this exercise between mid-October and the end of January.
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