Chancellor Van Galen's message to campus on July 9, 2015

Dear UW-River  Falls Faculty and Staff:

The UW System  Board of Regents met today in Madison and I want to provide you with an update  on actions taken by the Board and provide context on how these actions will  affect our university. 

Falcon  Center Segregated Fee Approved

In approving the UW System 2015-2016 Operating Budget, the  Board approved our campus’ request for a new student fee to support operations  of the Falcon Center, currently under construction on our south campus.  The fee increase is significant at $175  per student for next year, increasing to $200 per student in 2016-2017. The  strong support that our students have demonstrated for this new fee, however,  was compelling, even during a time when increased student costs are under great  scrutiny.  The almost $1  million in dedicated annual revenue from the fee will enable us to equip and  operate a first-class facility that will support academics, recreation and  wellness, and athletics for years to come.  

Distribution  of $25 Million Reduction in GPR Base Cut

As you may be aware, in reducing the 2015-2017 UW System  budget reduction from $300 million to $250 million, the Joint Finance Committee  instructed the UW System to “aid institutions most impacted” by the budget  reduction.  Yesterday, the Board of Regents approved a plan to distribute  the reduction in the base cut that included restoration of $1.39 million for  UW-River Falls.  Thus, our base budget reduction for the fiscal year that  began July 1, including fringe benefit costs that we must absorb, is $3.31  million.  It is noteworthy that our restoration of $1.39 million is about  $700,000 more than “our share” based on the historic formula used to distribute  funds within the UW System and, frankly, is a reflection of the financial  challenges that we face.  Other institutions that received a significantly  enhanced portion of the relief include UW-Green Bay, UW-Parkside, and  UW-Superior.  Complete information can be found at https://www.wisconsin.edu/regents/download/meeting_materials/2015/july_2015/Full-Board-Agenda-and-Supporting-Materials-(Revised-7-8-15).pdf

Important  Factors that Impact the 2015-2016 UW-River Falls Budget

While the  adjustment of our base budget cut is helpful, this still represents a 12.9%  reduction in state support or, importantly, a 17.2% reduction in state support  when state debt service and utilities payments are excluded.  I want to be  certain you are aware of the other major factors that contribute to our  2015-2016 budget situation and, ultimately, to the difficult actions that have  and will need to be taken.  The resident undergraduate tuition freeze has  been confirmed for two more years (2015-2017) thereby not allowing us to  mitigate reductions through greater in-state tuition revenue.   International student enrollment, another meaningful source of tuition revenue  as well as an important global engagement opportunity for those students and  our campus, will experience an unexpected decline beginning this fall.   Last academic year we hosted 178 students from Brazil as part of the Brazilian  Scientific Mobility Program (BSMP).  Recent political and economic strife  in Brazil has resulted in the BSMP program being dramatically scaled back, and  our latest estimate is that we will have about 47 BSMP students for the  2015-2016 year.  This will result in approximate $1.8 million less in  tuition revenue for our campus this coming year compared with last year  (auxiliary revenues will also be seriously impacted).  Because of this,  and the generally declining size of our freshman class over the past four  years, our overall enrollment (and tuition revenue) will be lower this  year.   

On an  encouraging note, our Campaign 2015 efforts focused on student recruitment are  yielding results and we anticipate at least a 9% increase in the size of the  freshman class this fall.  It appears that we will welcome our largest  freshman class since 2012.  Thanks to everyone who contributed to this  success.  This progress, along with the increased retention rates we have  seen, will not solve our immediate budget problem but continued progress over  time will help us to be as vibrant a university as possible. 

Closing  Thoughts

During the  past few months much of my communication has focused on the budget and the  resulting impacts on our campus community.  Obviously, I would much rather  be focusing on the progress we are making on many fronts and on the successes  of our students and colleagues, but I think it is important that I communicate  with you on these matters.  It has been a time of great uncertainty,  anxiety, and at times, even sadness and anger.  Yet, late next month we will  begin to welcome new and returning students to our campus, along with the hopes  and dreams that they wish to pursue at UW-River Falls.  The presence of  those students creates the opportunity for  each of us to be vividly reminded of our mission, our impact, and the value of  our work.  

Best wishes,
Dean

“Education  is the most powerful weapon we can use to change the world.”  - Nelson  Mandela

Dean Van Galen, Ph.D.
Chancellor
University of Wisconsin - River Falls
715.425.3201
www.uwrf.edu