Last Thursday the University of Tennessee announced potential cuts of up to 777 positions statewide, in addition to several possible program cuts- with worse case scenarios of cuts of up to $91 million. If these cuts are implemented, the quality of education and delivery of services at UT will be drastically hurt.  Additionally, these cuts will continue the downward spiral of the recession we face. 

The proposed cuts also violate the spirit of the recently passed federal economic stimulus package.  Outgoing President John Petersen stated that the economic stimulus package provides only a short term fix and won’t stop the universities’ financial crisis.  However, the “American Recovery and Reinvestment Act of 2009”, also known as the economic stimulus bill that the federal government just passed, contains “Title XIV- State Fiscal Stabilization Fund”, which allocates close to $54 billion in part to prevent massive cuts to education.  The stimulus package in general, and the education funds specifically are intended to be a bridge to better economic times and to prevent the further downward spiral in our nation’s economy.  The intent of the stimulus package is to avoid the kinds of cuts proposed at last week’s Trustees’ meeting.

The proposed cuts are short-sighted in many ways: first, economic recovery will not be achieved by laying more people off, and second the federal government recognizes that education is central to reviving the economy.

Finally, the intent of the economic stimulus bill is to stimulate the economy in such a way that in two years the economy will have regained its dynamism and ability to create more jobs.  In many ways, the federal stimulus package mirrors the intent of the state rainy day fund, which we also urge the Governor Bredesen and the legislature to tap.

Some state government officials recognize the federal government’s intentions with the stimulus package.  The Thursday, February 19th edition of the Knoxville News Sentinel quoted Governor Bredesen’s Finance Commissioner David Goetz as saying, “the federal economic stimulus will provide enough money for higher education in Tennessee to offset two years of budget cuts and eliminate expected cuts next year.”  Additionally, during our meetings with various state legislators long before anyone knew the actual content of the stimulus package, those officials recognized that the depth of the proposed cuts would gut the University and hurt working people.

Governor Bredesen is required to present a budget to the legislature by March 31, and then the legislature must pass it.  If the state of Tennessee is to accept the federal stimulus package, both the governor and the legislature are bound to increase funding for higher education.  The fight now must focus on how to use that money.  It makes no sense to spend strictly on bricks and mortar, creating new buildings while the staff to maintain them, administer them, and teach in them are laid off.

Additionally, efforts to close loopholes in corporate tax reporting could generate several hundred million dollars to stave off cuts- and the state’s rainy day fund should be used as a bridge for better times.

If cuts must be made, efforts should be focused on cutting from the top down- state-wide at UT there are more than 100 administrative positions carrying a title of President, Vice President, Chancellor, Vice Chancellor, Provost, with a median salary of $132,000 (source, UT 2008-2009 Budget document.) Reductions in pay at the top must occur before reductions in force.  Some peer institutions in the southeast have voluntarily taken 10-20% reductions in pay to offset job cuts.

Statement on proposed cuts to higher education

From the United Campus Workers

CWA local 3865

With the recently passed stimulus package and significant funds marked for education, now is not the time to hand out pink slips to staff and faculty who can least afford it.  With assistance on the way such cuts are premature and irresponsible prompting many questions about how much money will be available and where and how the funds can be used.

In addition, when planning on where to make “strategic cuts” to the university’s budget, these cuts should start at the top, where people can most afford them. 

This is a time when we should save as many jobs as possible not cut them before we even know if it will be necessary.  There are strategic ways to trim the budget and make the university a more streamlined institution, and it starts at the top.

Cut from the top down, not the bottom up.

Top administration, especially at the system level, has grown at a much faster rate in the last five years than have staff and faculty.  Statewide, there are more than 100 system administration positions carrying a title of President, Vice President, Chancellor, Vice Chancellor, Provost, etc. The median salary for these positions is $132,000.  The median salary for all other non-student employees, system-wide, is less than $40,000.

On the Knoxville campus alone, expenditures for “institutional support” (administration) rose nearly 180% from 2004-2008 and salaries rose by almost 190%.  During the same period, total expenditures and salaries for the areas of “instruction” and “academic support” increased by less than 20% (total).  Changes in expenditures and salaries in other functional areas (research, public service, student services, scholarships / fellowships, and physical plant / maintenance) were similar to those in instruction and academic support.

Implement reductions in pay at the top before any reduction in force.

A 5 percent pay cut by the UT President’s top staff was a token gesture at best.  Some peer institutions in the southeast have voluntarily taken 10 percent to 20 percent pay cuts to help reduce the potential job losses.  CEOs of major corporations have also taken substantial pay cuts in order to save jobs.  NFL Commissioner Roger Goodell took a 20 percent voluntary pay cut for 2008.  This is one aspect of the “business model” the administration should embrace.  Consider that a 10 percent cut from a $150,000 salary would very nearly pay the annual salary of the average housekeeper.

Cutting from the bottom is poor planning, both in the short and long term.

The people who maintain the facilities, clean the buildings, support the technology centers, and teach the students are the ones who keep the university operating.  Putting these people out of work will affect all aspects of maintaining a decent and healthy learning environment.

Save the lecturers and adjunct professors.

Lecturers and adjunct professors teach nearly fifty percent of undergraduate courses and have a direct impact on our students’ ability to graduate.  These appointments are annual so the administration can simply fail to renew the contracts.  Cutting these jobs directly and immediately affects students’ ability to get a decent education and will increase graduation time dramatically.

The University of Tennessee and the other institutions of higher learning contribute to the economic health of our state in many ways, from improving the educational level in our state, to providing jobs, to providing resources to farmers, businesses, and local governments. Laying off employees moves workers to the unemployment rolls, moves insured people to Tenncare, and reduces tax revenues.