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OFFICE OF THE VICE CHANCELLOR
AND CHIEF FINANCIAL OFFICER 150 E. Sooth College Street
Yellow Sprinp, Ohio 45387-163s
EL: 937-769-1370
OC~O~’^J’-?~~I~
TO: Barbara Stewart
FROM:
Budget
When we met earlier this week, 1 briefed you on the framework that the Board of
Trustees has adopted to restore financia! stability to the University and the
College. Both the University and the College experienced a deficit in 2000-01, and
the Board expects that we will do everything that we reasonably can to avoid a
deficit in the current year. A combination of internal and external circumstances
will make it difficult to produce a balanced budget in 2001-02, but we need to try.
Your help will be essential to this effort, and in the following sections I vili describe
what I would like you to work on during the next three weeks.
Although there are daily changes in the value of the endowment and the possibility
that the stock market will erase the year-todate losses, and while it is possible that
the College and the University will benefit from one or more fortuitous events, so
far there has been nothing that we can count on. Rather than rely on miracles, I
think we need to plan for the worst and hope for the best.
At the moment, it appears that in order to bring the budget into balance before tht*
end of the fiscal year, it will be necessary to cut at least 10% from all operein^
units. Clearly, this cannot be done without trauma for the units, nor will it be
accepted without complaint. It is doubtful that a cut of this size, coming as it does
with only six months left in the fiscal year, can be fully realized. However, unless
we start the process now, we will not be able to achieve the retrenchments
necessary to generate the savings that will be needed in 2002-03. In the current
year, all reductions should be made with an eye towards realizing at least an
additional 5% savings in 2002-03.
I think we should begin by assuming that expenditures for each department or
subunit will be no greater than they were in 1999-2000. That is. we should
substitute the actual 1 999-2000 expenditures for the 2001 -02 budgeted
expenditures. Adjustments for units that have been added or deleted since 1 999-
2000 will be needed, but you should try to keep the total expenditure allocation
within the 1999-2000 actual budget total.
Auxiliary departments and other units that generate revenue to support their
operations must reduce their expenditures to reflect depreciation and to offset any
Barbara Stewart
October 26,2001
Page 2
reduction in revenue resulting from lower enrollment or other declines in service
demand. Otherwise, self-supporting operations may continue to operate within a
balanced budget framework.
I am guessing that at least twenty positions will need to be eliminated across the
College in order to realize the needed savings level. The preferred method will be
by holding budgeted positions vacant or by eliminating those that are made vacant
by turnover; unfortunately, if the necessary position reduction cannot be achieved
by these methods, it may be necessary to resort to retrenchment. As you prepare
your analysis, 1 am not asking you to identify the specific positions that will need to
be vacated. Rather, I need your help to identify the new departmental budget
levels. Once these are known, the committee that will work with the Acting
President will need to deal with the programmatic implications of the dollar
reductions and the potential position reductions. Until such time as the Acting
President is able to present alternatives to the College, everything mentioned in
this paper should be considered for internal discussion only.
To start the across-the-board reallocation planning process, 1 would like you to
develop the account level budget for the College based on the 1999-00 actual
expenditure levels. 1 think a spreadsheet that summarizes the minor accounts at a
reasonable organizational level might make it easier for people to evaluate the
revised budget. Once the spreadsheet is ready, you will need to share it with Jim
Hall- Your written evaluation of any of the particularly problematic situations
contained on the spreadsheet will be of great value to him, and it will help me
catch up after my return.
In addition to the revised budget, there are a number of specific reductions that will
need to be considered by the Acting President and the Executive Vice Chair of the
Board. I would tike you to gather the background data and analyze each of these
proposals separately so that those that are unworkable or impractical can be set
aside without requiring that the whole package be restructured. Again, these
should be considered as proposals for evaluation only.
SPECIFIC REDUCTIONS
Eliminate Slimmer as a Full Academic Term. The enrollment in the summer
has not been adequate to justify the costs of operating the entire College during
the summer months. Assuming that the academic program can be restructured so
that students who would normally be scheduled for on-carnpus matriculation can
move to coop during the summer, significant savings might be achieved.
Please determine the savings that could be realized from the following non-
academic actions:
During the Summer.. .
Close the cafeteria.
Barbara Stewart
October 26,2001
Page 3
Close the dormitories-
= Close other teaching facilities that will not be needed.
= Reduce support staffing to the absolute minimum.
Close the Bookstore, Infirmary, Counseling Center and other operations
that are primarily for the benefit of students.
Reduce housekeeping staff to the absolute minimum.
Eliminate all lighting and air conditioning in closed buildings.
Please determine the summer savings that can be realized from the following
actions involving the academic areas:
= Eliminate the summer institutes.
Close the library, computer labs and other support facilities.
Convert all facuity and academic department staff to ten- or eleven-month
appointments that will save one or two months of salary.
Close all academic buildings.
End Support for the
Eliminate telephone receptionist positions in Main Hall. These positions could
be replaced with automated attendantlvoice mail. What would the savings be, and
how much would the equipment cost?
End Support for the Riding Center. The College should provide no direct or
indirect support, including staffing. If it is essential for an Antioch student to use
the riding facility, the fact that the building and grounds are being leased for $1 -00
per year should in most cases cover all such expenses.
Suspend all Planning for the Development of the “Golf Course.”
Require all Overtime to be Taken Within the Pay Period. Overtime should be
permitted only for emergency situations; work that cannot be completed during a
normal shift must be deferred unless the failure to complete a task would result in
a risk to human life or safety, or to the loss of property. All work assignments
should be prioritized to recognize that the most critical tasks will be completed first.
Suspend all Professional Development Travel
Establish Per Diem Payments for Essential Travel. This policy should extend
to Admissions and Development staffs because they will be doing a lot of the
traveling.
Close tile Kettering Building Greenhouse. This facility is used to grow flowers
and ornamental plants, but the facility is extremely energy-inefficient. Cracks in
the windows allow the wind to blow through, and the single pane glass has no
insulating value. While the College does not pay for the cost of heat and electricity
Barbara Stewart
October 26,2001
Page 4
for the greenhouse, we need to eliminate this waste. Please arrange for the plants
to be removed and the pipes drained.
REVENUE ADDITIONS
Require Payment for Personal Telephone Calls.
Establish Common Area Damage Fees for Students.
Lease or Rent Facilities when not Otherwise Needed. Parts of the Inn, South
Hall, the Gym, Spalt and other buildings could be rented for public events such as
weddings or meetings. In addition to the rental income, added income could be
realized from catering.
OTHER REDUCTIONS AND REVENUE ADDITIONS
With your broad knowledge of the College budget and operations, you are sure to
have a number of ideas for bringing the College’s budget into balance. Please add
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