Washburn University FY 09 Budget - Crisis or Not?
Economists understand that hard economic times separate the weak from the strong. Poorly run companies fail and strong companies flourish with the loss of weak competitors. With Washburn University facing significant enrollment decreases for the second year in a row, this administration is being tested.
While other state universities in Kansas have offered specific plans to address the 2-7% potential cut in state funding, WU’s administrators have only offered to have professors look at what can be reduced within each department. These are the same departments that have not had any increases in their operating expense budgets for over seven years.
President Farley has specifically suggested that adjusting thermostats and turning off lights may help make up the $2.5 million budget shortfall. Hopefully students and faculty will actively engage in helping the administration find their way out of this budget crisis.
There are three easy places to look for this money without touching class sizes or offerings.
1. Vacant Positions
The fact that the FY 09 operating budget contains almost $2.5 million for vacant positions is the primary reason that President Farley believes that the potential $2.5 million in lost revenues is not a “life and death crisis.” This annual surplus in the operating budget allows the university to spend indiscriminately, since it is impossible to keep an institution of this size fully staffed. So, while the actual vacant positions will vary throughout the year, the fact that there is a $2.5 million budget savings from not filling all of the positions is constant.
These surplus budget dollars have been the source of operating funds for capital projects, including the new Washburn Endowment Association offices on MacVicar, the Art Building, Stoffer Hall and the most recent renovations to Whiting Hall. The lost revenues should reduce the funding available for capital projects before class sizes are increased or class offerings reduced.
2. Information Technology Services
In June, 2000, the Academic Computer Center was merged with Administrative Data Processing, with one of the stated goals being to achieve “long-term savings through economies of scale.” Over a six year period of time the resources for these combined services tripled (from $886,000 to almost $2.8 million) and the headcount doubled (from 18 to 37 full-time persons). The $500,000 annual technology equipment budget that was used to fund specific educational department needs has been taken back by the administration to purchase replacement PC’s every three years.
While this administration insists on classifying the budget for Information Technology Services as “academic support” rather than “administrative,” faculty and students know that WU’s Academic Computing Center died subsequent to the 2000 merger. Compare the WU computing environment with the Virtual Computing Lab at North Carolina State University where the students and faculty use Web-based services from a central cluster of servers in a virtual lab that never closes.
No one is getting their money’s worth from this huge investment. And streamlining it should be a top priority.
3. Washburn Transformational Experience (WTE)
Earlier this year, the administration retained a consultant to study the factors contributing to the decline in new enrollments. This consultant, Paskill Stapleton & Lord, issued an insightful and extensive report to the WU administration in April, 2008. This report was far reaching and should be read, studied, discussed and used by the faculty, students, coaches, alumni and administrators to develop a real action plan to address declining enrollments immediately.
It’s interesting to note that President Farley has specifically mentioned continuing the Washburn Transformational Experience (WTE), in spite of the fact that enrollment started its sharp decline when this graduation requirement was adopted. While the program has obvious benefits for some students, it has been suggested in the Paskill enrollment report that this mandate could be reducing the number of transfer enrollments at WU. With over $550,000 in the FY 09 budget for this program and the recent enrollment losses, faculty, students and this administration must determine whether it is advisable to retain the “requirement” aspect of this program.
Summary
This administration can not be left alone to solve the enrollment and budget problems that are currently facing the WU community. Real solutions cannot be found for these challenges without active and meaningful involvement by the students and faculty.