Chancellor Van Galen's message to campus on January 27, 2015

Dear UW-River Falls Faculty and Staff:

I hope your spring semester is off to a positive start as we welcome our returning and new students to campus.  We face some very challenging times, and we must continue to find joy and meaning in the important role we all play in helping our students learn and succeed.

I want to provide you with an update and perspective on the budget proposal for the University of Wisconsin (UW) System that was announced earlier today by Wisconsin Governor Scott Walker.  As I stated at our campus opening meeting last week, there exists a significant budget deficit in the State of Wisconsin and we have anticipated a possible budget cut to the UW System as part of the Governor’s 2015-2017 state budget proposal.  His proposal also entails giving the UW System “full flexibility of its use of state resources”.  We anticipate learning more about this proposal on or before the Governor’s February 3 budget address.  Although key details are yet to emerge, the main elements of the Governor’s proposal include:

• A $150 million base budget reduction to the UW-System.
• The UW System would receive a true GPR block grant from the state with independent authority over spending. 
• The resident undergraduate tuition freeze will continue for two more years.  After that, the UW System Authority institutions will have flexibility to adjust tuition based on demand.
• The UW System will be allowed to make decisions relating to employee compensation, allowing it to create personnel and compensation structures.   The UW System will also have independent authority to establish policy regarding employee matters, including sick leave, tenure, and shared governance.
• The UW System will be able to use its authorization to negotiate and enter into procurement contracts.
• The UW System will be authorized to plan, design, and manage construction projects funded with tuition, fees, gifts and grants.
• The amount of reporting will be reduced and streamlined, while maintaining necessary state oversight.
• The UW System will manage the Minnesota/Wisconsin student reciprocity program for the state.

For more details, see the Governor’s full press release: http://walker.wi.gov/newsroom/press-release/transforming-education-governor-scott-walker-announces-plan-tuition-freeze

Budget Reduction and Public Authority

The proposed $150 million/year base budget reduction over the biennium for the UW System would undoubtedly have a damaging effect on all UW institutions and, I would argue, on the future of the State of Wisconsin.  If the budget reduction is approved by the legislature and is implemented, the impact on UWRF would be very serious.  System-wide, this cut represents a 17-18% GPR cut (and an 8.5% cut on GPR/tuition fee base).  We will not know our exact reduction for some time, however to provide an estimate, based on historical distributions of budget reductions among UW System campuses we would anticipate a base, recurring budget reduction of approximately $4.2 million for our campus.  This is even more challenging based on last year’s required spend down of university reserves.  Although there is some hope for reducing the budget cut, at this point, our planning should not depend on any significant change to these figures.

Regarding the proposed “public authority” model for the UW System, this has the potential, depending on the details of implementation, to grant us some of the flexibilities we have long sought.  This could include delegating more authority to the UW System and campuses, and providing a more predictable funding source.   At this point, there are many questions around how the UW System as a public authority would operate, and the details are critical.  Certainly, in my view, it will be important to preserve a strong system of shared governance and other policies and practices that have served the UW System so well.  In the attached statement comprising remarks from UW System President Ray Cross, Board of Regents President Michael Falbo, and Board of Regents Vice President Regina Millner, you will see their reactions, which include similar considerations aimed at protecting hallmark principles of the UW System.  It is important to note that the idea of the public authority would not become real until July 1, 2016.  Because of this, we believe Wisconsin – Minnesota tuition reciprocity would remain in its current form through the 2015-16 academic year.

Additional Context and Timeline

The 2015-2017 proposed biennial budget unveiled by Governor Walker represents a significant reduction in public investment in the State’s public universities.  The proposed budget may undergo amendment as it makes its way through the legislature over the next several months.  Although there will continue to be a period of uncertainty concerning the state budget, it is clear that as a campus we must move forward to thoughtfully plan to implement major budget reductions for fiscal year 2016, beginning July 1, 2015.   

Over the past several years, our campus has been fiscally prudent in managing our resources.  However, in all honestly, a budget reduction of this magnitude will involve some very difficult and painful choices and actions.  We must share in the sacrifices we will all be asked to make, persist in our pursuit of the strategic direction this campus has taken, and celebrate the successes we continue to be able to achieve.  I am also committed to the principles of trust and collaboration and ask each of you, starting now, for your help and support.

Actions and Next Steps

Here are the actions that I and others are taking at this point:

• Later this week I will convene a meeting of campus leadership including the Chancellor’s Cabinet, and the leadership of Faculty Senate, Academic Staff Council, Classified Staff Advisory Council and Student Senate.  At this meeting, I will present the latest information and seek feedback on budget reduction principals and process; 
• Two Town Hall Meetings will be scheduled next week to provide the campus community with information on the Governor’s budget proposal, to answer questions, and to hear perspectives.  Additional town halls may be held later to provide updates.  Details will be provided in Falcon Daily;

• There will continue to be strong communication concerning the budget through electronic communications including our university’s website.  A dedicated page which includes links to confirmed news sources has been developed and is already online at the address: http://go.uwrf.edu/budgetinfo; 

• I will continue to communicate and advocate with our regional legislators, including at a regional legislative luncheon on February 9th.  The goal will be to restore a portion of the UW System budget, and to ensure that any public authority model, if adopted, incorporates the critical interests of the UW System and our campus.

It is important that there is opportunity for consultation and input in the budget reduction process, that we adhere to campus and UW System policies, and that the principles of shared governance are respected.  This is the course we will follow.  Within this framework, I also recognize and accept my responsibility as chancellor to make the difficult decisions that are necessary.

These are difficult times.  Working together, always remembering the great value of our work and its impact on the lives of our students, we will meet this challenge.

Sincerely,

Dean Van Galen, Chancellor