Yesterday I provided you with what information I had available concerning the budget for fiscal year 2009-2010, which we officially begin today.  Later in the day, Dr. Randy Moffett provided me with the first set of figures indicating the scope of our budget cut, and I can now report that the reduction figure Dr. Moffett provided is approximately $3 million, or 8.6% of last year’s state funding.  Including our midyear budget reduction, the total reduction from the beginning of 2008-2009 is a little over $4.4 million or 12.3% of state funding.

We will now begin the allocation process for the new year.  However, most of the changes made as a result of the budget reductions will remain in place.  We have a commitment of $1.1 million to pay the faculty that were given a one year notice because their program was eliminated.  We plan to eliminate any furloughs mainly because Nicholls was the only institution in the system that did not have money last year to provide pay increases for faculty or staff.  Also, since everyone will be asked to do more, we do not want them to do it for less and in less time.  We also have areas such as insurance, contracts and utilities that will be increased without any increase in funding to cover them.
As we begin this new year, there are a few points I wish to address.  The first is that the process that we just went through was neither pleasant nor university-initiated, but it was something that we had to do in order to protect the integrity of Nicholls State University.  As a result, some campus offices today are staffed with fewer and different people than they were yesterday.  To those who are no longer with us, I offer them my sincere best wishes.  I also join the rest of the campus in thanking them for their dedicated service to Nicholls during their tenure.  We wish them well as they seek new opportunities.

To those who have moved to different positions on campus, I also wish you success in your new position.  While your former co-workers will miss you, you have an opportunity to continue making valuable contributions to our success in pursuing the educational mission of Nicholls State University.  I hope that you find satisfaction in your new role.

Finally, I want to stress that this is not a time for any of us to turn away from our commitment to this university.  While we do hear talk of additional cuts to higher education in the near future, we must go about our daily work in pursuit of excellence in educating our students and in serving our region.  I want you to know that my commitment to this university is just as strong and my hope for its future is just as positive as the day that I arrived and assumed its presidency six years ago.  While the challenges may be greater and the future somewhat uncertain, I want to join each of you in making Nicholls the best regional institution that it can possibly become.  We owe the students and the people of this region nothing less.

Stephen T. Hulbert
President

I know that most of you, like me, have followed the news reports about the just-concluded legislative session in Baton Rouge with a mixture of hope and apprehension. We all hoped that the governor’s proposed cuts to our university’s budget for 2009-10 might somehow be restored, and that the budget reduction plan I announced this spring might not have to be implemented to its full extent.

Thankfully, higher education in our state has been spared the full brunt of the proposed budget cuts. Even though the state has managed to restore some of the funds we were warned might be taken away, the cuts are a fact and they are going to have a significant effect.  The state is no longer providing a level of support that enables Nicholls to fully fund our educational programs and pay our operating expenses as we have in recent years.

None of us will know the precise amount of state funding for higher education in 2009-10 until the governor signs the new state budget into law. When he does, the Board of Regents will work with the board of the University of Louisiana System to determine how state funds will be allocated among Nicholls and its sister institutions.  Only then will we know exactly how much money Nicholls stands to receive—and how much our budget reduction will be—for the fiscal year that starts July 1.

I regret to say that we must implement the campus budget reduction plan as it stands. The uncertainty of the 2009-10 and future state budgets, the funding of salaries and fringe benefits for the 20 faculty that were given a one year notice, the ever-increasing costs for such expenses as insurance and utilities—all of these factors mean that Nicholls must curtail spending, even though the cuts in state funding for our university may not be as severe as had been indicated.

As soon as we learn more, I will give you an update. Until then, we must prepare ourselves to accept the changes that are about to happen at Nicholls.

Stephen T. Hulbert
President

Last week, this office released the entire Nicholls State University Budget Reduction Plan, 2009-2010 to the University community and beyond.  That plan, as previously submitted to the Board of Supervisors of the University of Louisiana System, did not include the detail of specific academic programs and administrative services that were subject to elimination or reduction in size nor did it list the specific faculty and staff that were being affected.

Since last Friday, my senior administrative colleagues and I have been notifying affected faculty, administrators, and staff.  Our intent was to allow those Nicholls colleagues to hear the difficult news from us rather than through Baton Rouge or the media.  While that process of notification is continuing, we are now releasing a more specific listing of programs, services and positions affected by the budget reduction initiative.

Please note that while identifying positions to be affected, we are still not naming individuals.  This approach is being taken because we consider the actual personnel transactions to be covered by privacy requirements through action to be approved by the University of Louisiana System Board of Supervisors.

One final point needs to be made here and that is the reality that the $5.3 million Budget Reduction Plan contains $1,062,365 of tenured and tenure-track faculty each of whom require one year of notice.  As such, the Nicholls budget plan is not balanced.  If there is no reduction to the proposed budget cut, steps will have to be taken to cut the University budget another $1,062,365 or to generate and/or identify other revenue sources.

Every effort is being made to work with current and newly applied students who are affected by these program eliminations.  We are writing directly to each new student indicating that we will work to find another appropriate area of study.  For current students, we are indicating that they have until May 2010 to complete major course work toward their degree requirements and until May 2012 to complete the remaining requirements (general education and/or electives).  Each affected student is being referred to the Academic Advising Center for personalized service focused on their particular needs.

As indicated in past communications, none of us know what the funding outcome will be for the 2009-2010 fiscal year ahead.  Nicholls State University remains a strong, healthy university.  It is the state of Louisiana that is financially challenged and forcing these difficult budget reductions on the University, its staff and students.  Together we will work to minimize to the greatest extent possible the impact of this loss in state support upon the University, its programs, staff and students.

Download:

• Summary of budget actions general (PDF)
• Summary of budget actions general (DOC)

It has been more than a week since the Jindal Administration submitted its 2009-10 Executive Budget to the legislature and, in doing so moved to cut higher education by $219 million.  As part of administrative strategy, the total higher education allocation was assigned to the Board of Regents, with the charge that the Regents allocate the revenues, or shall we say, the budget reduction across the state’s two and four year institutions.

Over the past seven days, I have awaited formal guidance of some sort from either the Board of Regents or our own University of Louisiana System.  I have now heard from Dr. Randy Moffett, President of the University of Louisiana System, providing the general direction that we move to plan against the lower 15.8 percent budget reduction figure that was provided in January.

To that end, a two pronged participatory process is being undertaken involving faculty, staff and student leadership.  First, Dr. Carroll Falcon, Provost and Vice President for Academic Affairs, has initiated a review of academic programs through Faculty Senate.  This process will permit faculty comment and suggestions against a defined set of planning criteria and a very brief response period.

At the same time, each of the administrative divisions will undertake a review of all administrative and student support services.  That review will include Intercollegiate Athletics, the academic centers, Upward Bound and the overall organizational structure of the University.  Representatives of constituent groups, the Student Government Association, Faculty Senate, the Unclassified Staff Advisory Council, and the Classified Staff Advisory Committee, will be invited to offer comments and advice during this review.

Several weeks ago the University introduced a question and answer vehicle at http://www.nicholls.edu/president/your-questions-answered, as a means of inviting students, faculty, and staff alike to make inquiries and to ask questions.  I encourage use of this communication vehicle, especially as it relates to cost containment and/or efficiency measures.
You may have learned through media coverage that the Jindal Administration’s cut to higher education amounts to 7.7 percent.  However, if one considers just state appropriation, and that has been the means of comparison in past years, the cut is 15.8 percent.  It becomes a 19.7 percent reduction against that of 2008-09 when one takes into account the 4.6 percent mid-year cut of January 2009.

Like many of you with whom I have spoken over the past week and more, I too, cannot believe that “at the end of the day” the Jindal Administration and/or the state legislature will implement such a drastic and damaging reduction in support of higher education, its people, programs and services.  This is especially the case when one listens to the leaders of the state talk about their continuing commitment to economic and workforce development, and to holding higher education to the established standards of performance and accountability, i.e. higher graduation rates and shorter lengths of time to graduation, among others.

In any event, as the time is short before the beginning of the new fiscal year on July 1, 2009, specific measures now have to be taken and, in very short order, in order to consider budget reductions at all levels across the academic program and the administrative support services.  Only in this way will we protect the academic integrity of the university and best serve its students and staff.

Two weeks ago, I shared summary information on the damage that would be caused to Nicholls State University by either an additional 28.5% or 15.8% reduction in state funding.

While I believe that it is unlikely that these draconian reductions will become a reality, I do believe that some additional cuts may well lie ahead.  Since reductions of any magnitude, if spread “evenly” throughout all units and disciplines, would be damaging to the entire university, areas considered must be those which, although a major element of the university, are not part of the core mission of Nicholls.  We must protect, as much as possible, the disciplines and service units that have made Nicholls the viable institution for this region that it has been for many years.  These include those that contribute to our status as SREB 4-Year IV institution, our general education core and the disciplines that are the major source of an educated workforce in this region.  However, please know that should further budget reductions becoming necessary, the Nicholls community will be involved in any necessary planning once any actual decrease is known.

I will continue to inform the university community of the situation as it changes.  To assist in that communication effort, we have set up a site linked to our Nicholls Web Site which will allow questions and comments from the Nicholls community.  Community members can get to “Your Questions Answered” through the Nicholls Homepage, under Administration and Faculty; University Administrators; President; Your Questions Answered or directly through the link http://www.nicholls.edu/president/your-questions-answered. The answer to your question will be posted on this link for all to see.

Below are some key “Talking Points” that community members may want to include in any oral or written communication regarding budget cuts.  We have included the contact information for the local legislators and the governor as well as how to get the contact information for any other legislator.

Nicholls Dilemma:

Number One Issue – Banner Funding (Required to Update Hardware/Software)

• First Year Funding – Approved for 2006-07 at $1.7 million with support of Office of Information Technology, University of Louisiana System Board of Supervisors, Louisiana Board of Regents and the then Blanco Administration.
• Remaining $3.7 million approved by the State’s Office of Information Technology, the University of Louisiana System Board of Supervisors, and the Louisiana Board of Regents but was not included in the Jindal Administration’s 2008-09 Budget Request.
  • The lack of this funding has tied up Academic Enhancement Fund Reserve monies for next 3 years and put the University on the edge of financial exigency.
  • The remaining cost of this initiative has now increased to $4.1 million.
• CRITICAL – $4.1 million from last year’s surplus!!

Nicholls did not receive any of the $34 million of new four-year higher education dollars in 2008-09 to reach the regional average in state funding.

• No flexibility – Perhaps the only university with no faculty and staff pay increase.
• Required to institute “soft” hiring freeze prior to governor’s request because of Gustav and Rita, which impacted enrollment, revenue from canceled athletic events, university closed for over a week, and damage to the university.
  • This prevented using a hiring freeze to help in the 4.6% mid-year budget cut.
  • Any further cut would affect personnel and students directly – Even an additional 3.5% reduction would include the possible elimination of 5 academic programs and the reduction of two others involving approximately 10 faculty/staff positions with a direct impact on at least 120 students!

Higher Education’s Dilemma:

We have been asked to prepare for an additional 15.8% cut to state funding as well as a 28.5% reduction.

These requests are in addition to the 4.6% reduction in state funding that was implemented recently as a mid-year reduction.  That is, we are starting the new year with a 4.6% budget reduction from the beginning of the 2008-09 fiscal year.

The accumulative result of the two scenarios would be approximately a reduction of 20% to 30% of state funding to higher education.

The projected shortfall of $2 billion is less than 7% of the $30 billion state budget.

Higher education is being asked to prepare for over a 30% reduction!

Any further budget reduction does not indicate that higher education is a top priority in this state, even at a time when need for a more educated work force is necessary to improve the state’s economic future!

Based on the latest figures from the Southern Region Educational Board (SREB) for 2007-2008 school year,

• Louisiana’s state funding per full-time student for 4-year colleges and universities ranked 9th highest of the 16 states in SREB at 96% of the average funding.
• Combined with the second lowest tuition rate (64% of average),
• The total funding for higher education in Louisiana ranked next to last (West Virginia) in total revenue (82% of average).  Even $3,031 less per student than Mississippi!
• With a 30% reduction in state funding we would rank next to last in state funding (67% of average) and dead last in total funding (65% of average) per student!
• Even a 10% reduction (5.4% on top of the 4.6% already realized) would put our state funding 13th of the 16 states (86% of average) and again dead last in total funding (77% of average)!
• Even a 7% overall reduction (2.4% on top of the 4.6% already realized) would still have Louisiana dead last in total funding (78% of average)!

A primary problem is that higher education and health and hospitals are the only major state units whose funding is NOT constitutionally protected.  That is why we get a disproportionate share of any budget reduction!

This would obviously have a devastating effect on student’s progress and success as well as their access to higher education.  Also, the effects on faculty and staff and the region and state would be devastating.

What can we do?  We can notify our legislators and governor’s office by email and/or letter (see attached) not only letting them know our concerns, but also to give them ideas of some things that might be looked at to reduce the effect on higher education.

Possible elements to consider

• Allow for the management boards of higher education to regulate tuition.  We are the only state that requires a 2/3rds vote of the legislature to increase tuition.
• Make TOPS a fixed stipend (say $1,500 per semester for 4-year universities) regardless of which university the student attends and regardless of the tuition at that school.
• Use some stimulus money to offset reduction in higher education’s state funding.
• Convene a Constitutional Convention to aid in prioritizing funding so that reductions could be spread more evenly across all units.  Of course, this will not solve the short term problem, but could help in future downturns in revenue.
• Do what can be done to spread the budget reduction more evenly throughout all units of state government.  A 7% reduction (2.4% on top of the 4.6% already cut) would be less devastating.
• Use some of the over $800 million of surplus still available from last year to help stave off this disaster.
• After the above surplus funds from last year are expended, the “rainy day fund” could be tapped for over $250 million.  It is certainly raining!

Any comments or correspondence in this matter should be polite, to the point, only to the specific legislator, and in your own words.  They will listen to their constituents!

Attached is the contact information for several of our area legislators as well as the web sites for the governor’s office and all legislative contact information.  Please contact them!

Thank you for your contributions to the Nicholls community and please continue your efforts as we work our way through this tough situation.

Download: 2009 Contact Information for Louisiana Governor and Legislators (PDF)

The University of Louisiana System office will submit its 2009-2010 proposed budget reduction working document and those of its eight member institutions to the Division of Administration on Monday, February 9, 2009.  I want to give the Nicholls campus a preview of the working document submitted to the University of Louisiana System.

As instructed by the Jindal administration, Nicholls created two scenarios: one detailing the impact of a 15.8 percent or $4.7 million budget reduction and the other detailing the impact of a 28.5 percent or $8.6 million budget reduction.

Either would have a devastating impact on Nicholls and everyone it serves. Obviously, programs and personnel would be affected immediately should these situations occur, and we can only begin to try to project the long term effect not just on students, but on the entire region served by Nicholls.

The working document outlines the worst-case scenario, a 28.5 percent budget reduction that would result in the elimination of 17 academic programs, two student service centers and four academic support services. Reductions would be made to four academic services, six support services and 11 operational/administrative support services. A total of 123 employees would be affected:  45 faculty, 37 unclassified staff and 41 classified staff.

The working document also outlines the 15.8 percent budget reduction that would result in the elimination of eight academic programs, one student service center and one academic support service. Reductions would be made to three academic programs, two academic services, three support services, one student service center and nine operational/administrative support services. A total of 58 employees would be affected:  23 faculty, 15 unclassified staff and 20 classified staff.

We must keep in mind that this was created and compiled hastily to meet the criteria requested by the Jindal administration and any implementation of a budget cut at any level will require much thought, planning and input from interested parties before being finalized. When all is said and done, it is not likely that what we have submitted will become reality.

I want to caution students, faculty and staff from “jumping to conclusions” prior to any actual action that may be taken. Again, no actions of any kind have been finalized, nor will they be, before involving the Nicholls community.

I will continue to keep you informed as events occur.

Stephen T. Hulbert
President

The university community is beginning to feel the results of the mid-year budget cuts on programs and services.  As I said at Faculty Institute, as well as in conversations with the student, staff, and faculty leadership, while we are seeing the impact of those cuts, we are also seeing new spending initiatives.  For many individuals, not involved in the day-to-day operation of the university, there may seem to be an inconsistency between budget cuts campus-wide and the expenditure of resources for new projects and initiatives.

It is important to understand that funding for each of these initiatives comes from dedicated funds that cannot be reallocated to the mid-year budget cut or to any future budget reduction that may be imposed by the state.  Examples include the following:

1. Beauregard Hall is now undergoing a complete renovation through a state provided capital outlay fund of 14.9 million dollars.
2. The residence hall project is nearing completion with the final stages of clean up after removal of the four old buildings.  The land in question will be graded with new sidewalks and lighting added for the safety of community members.  A coffee shop will be constructed on the corner of Madewood and Ardoyne Drives across from Cheramie and Gouaux Halls, as the final step in this bond funded auxiliary initiative.
3. The clean up and repair work required to correct for damages resulting from Hurricanes Gustav and Ike will lead to the installation of new athletic scoreboards and lighting, a new electronic sign at the front of the campus, on-going roof repair and replacement on dozens of remaining roofs, and the replacement of damaged maintenance facilities.  All of this work is covered by insurance.
4. Nicholls received a special state allocation of 4.6 million dollars for deferred maintenance projects.  Over forty (40) projects are planned involving the majority of buildings on campus. Projects will be combined where feasible to take advantage of cost savings and to maximize the number of projects that we can complete.  Projects include:  HVAC/mechanical repairs and replacement, numerous fire alarm and ADA upgrades, and some structural repairs.  The two most notable projects are the replacement of the HVAC system in Gouaux Hall at a cost of $1.6 million, and the replacement of the passenger lift at Talbot Hall with an ADA compatible elevator at a cost of $600,000.

The above are just a few of the more visible projects that are under way or will be completed in the months ahead.  It is important to me that you are aware of these projects and the procedures and policies that drive them.

Yesterday, Nicholls State University submitted its Budget Reduction Plan for 2009-10.  Since this was a “planning exercise” to be completed over a very short period of time, we did not provide the state with specific programmatic or personnel changes required to meet the 15.8 or 28.5 percent planning strategies.  Simply stated, no final decisions have been made by the state or at this level.

When the state has made a final decision, I will share more detailed information regarding this plan with you, and also offer an opportunity for communication with and input from the entire Nicholls community to finalize the plan.

I have already shared information across the university community to help individuals and groups to express concern over the proposed cuts.  Additionally, I have composed a letter to the editor that has been sent to regional print and electronic media.

Please know that I do appreciate the wide array of suggestions regarding budget cuts or efficiencies that I am receiving from faculty, staff, and students.  I appreciate your patience and consideration as we continue to work through this stressful process.

Members of the university community have asked for a summary of notes concerning the financial challenges facing Nicholls State University and higher education in general.  Please feel free to use the attached information in expressing your views.

Nicholls Financial Challenges 2009-2010 (PDF)

Nicholls Financial Challenges 2009-2010 (MS Word)

Louisiana’s Division of Administration has now instructed higher education to prepare two financial plans or scenarios, that if implemented, would result in a substantial reduction in state appropriation for the 2009-2010 fiscal year ahead.  For the University of Louisiana System (ULS), the lowest proposed reduction is $64,590,813 and the highest is $116,426,425.  In turn, Nicholls State University is facing a lower cut of $4,773,579 or 15.8 percent and a maximum reduction of $8,604,487 or 28.5 percent.

Clearly, a budget cut of either magnitude would be incredibly damaging to the university, its students, faculty, staff, and service area.

Between now and the Monday, January 26th submission deadline, steps will be taken to complete the necessary planning effort to prepare both planning exercises.  In doing so, we will consider potential program reductions while seeking to protect the academic core.  At the same time, we will consider every possible source of additional revenue, before any reduction is actually implemented for FY 2009-2010.

As we move to complete this budget planning document, we will keep the university community informed while also seeking the advice of campus leadership at all levels.