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. Our guiding principle in making
these cuts was to not affect the basis of who we are as an academic medical
center on the move. We have trimmed some branches, but our roots are strong.
Tuesdays announcement came on the heels of a special Legislative session
in July, during which lawmakers cut the 2002-2003 University of Nebraska
appropriation for third time in the past year. In all, UNMCs state general
fund budget was reduced by $6.7 million, or 6.7 percent. These cuts occurred
through legislative reduction of state general fund support and university-wide
reallocation.
On Tuesday, Dr. Maurer announced the following steps to reduce the budget:
–Eliminate state funding for the Division of Biomedical Communications.
The division provides educational support services for UNMC faculty and
staff. These services include audio/visual support, graphic assistance
and video production. These reductions will amount to $527,543 in state
general fund savings, and staff positions totaling 11.5 full-time equivalency
(FTE) will be eliminated.
–Eliminate state funding for medical resident malpractice insurance.
UNMC will work with its clinical partner, Nebraska Health System (NHS),
to cover these costs. The savings will amount to $326,349 in state general
funds.
–Eliminate a proposed satellite education site for senior students
in the College of Pharmacy, producing a savings of $250,000 in state general
funds. With the reductions, 2.5 FTE faculty positions will be eliminated.
–Eliminate state general fund support of $217,500 for four residencies
in the College of Medicine.
–Reduce Business and Finance costs. UNMC hopes to achieve a $1 million
savings in state general fund money by reducing its utility consumption
and decreasing the amount of money used for utility maintenance. The university
also will save another $382,500 by reducing Business and Finance operations,
including facilities costs and collaborative cuts in purchasing with the
University of Nebraska at Omaha.
–Decrease UNMC subsidies to contracted state social services. UNMC
has contracts with the state to provide these services. In addition, UNMC
provides resources beyond those that are stipulated by the contracts. Those
subsidies are being reduced by $150,000 of general fund money.
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–Eliminate state general fund support for the UNMC Alumni Office.
A $200,000 savings will be realized, and 3.6 FTE staff positions will be
eliminated.
–Eliminate ongoing state support for Grand Island College Park, generating
a state general fund savings of $15,000. UNMC services at College Park
will be used on a pay as you go basis.
Dr. Maurer said that several factors were considered when making the
budget reductions. He said that UNMC must protect its core, mission-critical
areas. Although UNMC will be a less accessible and, most likely, a less-affordable
institution, it will emerge from these difficult times a more vibrant campus,
Dr. Maurer said.
The Chancellors Council will assist me in carrying out these budget-cutting
proposals, Dr. Maurer said. While these cuts are difficult, it is now
time to begin the process of implementing them. We must unite and move
forward to maintain our trajectory toward becoming a world-class academic
health sciences center.
UNMC is the only public health science center in the state. Its educational
programs are responsible for training more health professionals practicing
in Nebraska than any other institution. Through its commitment to research,
education, outreach and patient care, UNMC has established itself as one
of the country’s leading centers in cancer, cardiovascular diseases, bioterrorism
preparedness, genetics, neurodegenerative diseases, transplantation biology,
biomedical technology and arthritis. In the past year, UNMCs research
funding increased by 23 percent and now exceeds $50.8 million.
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UNMC Questions and Answers
Q: What was UNMCs 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 doesnt have duplication of programs. For instance,
the UNMC College of Medicine serves the entire state. If the College of
Medicines 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: How does UNMC expect to save $1 million in its utility budget
over the next year?
A: Just recently, UNMC began an energy-savings campaign on its
Omaha campus. UNMC has reduced the amount of decorative lighting across
campus, held energy-saving forums with the Omaha Public Power District
and sent did you save energy today reminders to employees. Thus far,
UNMC is seeing reductions in energy use by up to 5 percent. Campus officials
are hopeful and confident that these energy-saving measures will become
habit for UNMC employees. In addition, utility savings over this past decade
have been used to keep UNMCs utility infrastructure principally steam,
chilled water and electrical facilities modernized and efficient. With
these cuts, these recurring utility savings will no longer be available,
at least in the near future, for this purpose.
Q: When will faculty and employees affected by these cuts no
longer be employed at UNMC?
A: That hasnt been determined, specifically. All faculty and
employees who are affected by these cuts will receive a 90-day job elimination
notice. 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 the eliminated programs will be.
Q: What will result from the cut of state support to Biomedical
Communications?
A: Biomedical Communications provides educational support services
to UNMC colleges, institutes and other units. These services include audio/visual
support, graphic assistance and video production. Some services of Biomedical
Communications already are self-supporting, and the rest of the division
will become self-supporting.
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.
Q: Could these cuts have been avoided, had UNMC not given salary
increases this past year?
A: This year, UNMC did reduce the size of the pool for salary
increases to 4 percent, from 6.2 percent for faculty and 5 percent for
employees and staff. However, Chancellor Maurer and the Chancellors Council
have been adamant that raises need to be given, if UNMC is to continue
on its trajectory to becoming a world-class academic health sciences center.
To ensure a quality of excellence in the workplace and to reward faculty
and employees for their accomplishments and hard work, the 4 percent raise,
on average, was given. We dont want to go to the lowest common denominator,
Chancellor Maurer said. We want to be at the top tier of medical centers.
To go there, we must pay people what they deserve.
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: With its state support eliminated, what is the future of the
UNMC Alumni Affairs Office?
A: Alternative sources of funding are being sought for the UNMC
Alumni Affairs Office.
Q: Are these the final budget-cutting measures that UNMC likely
will face over the next few years?
A: Regrettably, no. Because of the states budget situation,
cuts in 2003-2005 are likely. Additional cuts would mean sacrificing more
programs, which could jeopardize accreditation in some cases.
University of Nebraska Medical Center
Proposed Budget Reduction for 2002-03
Employee
Filled/
Description
Category
FTE
Vacant
Amount
Eliminate state funding for Biomedical
Staff
11.5
F
$527,543
Communications
Eliminate state funding for Medical Resident
$326,349
Malpractice Insurance
Eliminate College of Pharmacy proposed satellite
Faculty
2.5
V
$250,000
location for training some senior students
Eliminate state support for four residencies
Residents
4.0
V
$217,500
in the College of Medicine
Reduce Business and Finance
Staff
2.0
F
— reduce utility consumption
$1,000,000
— reduce Business and Finance operations including
$382,500
facilities and collaborative cuts in purchasing and accounts
payable
Reduce UNMC subsidies for contracted state social
TBD
$150,000
services
Eliminate state funding for the Alumni Office
Staff
3.5
F
$200,000
Staff 0.1 V
Eliminate ongoing state support for
15,000
Grand Island College Park
Total 23.6
$3,068,892
Key:
F = filled position
V = vacant position
TBD = to be determined