MISSOULA –

University of Montana President George M. Dennison unveiled a plan to account for upcoming budget shortfalls Monday, Jan. 25, during a Campus Convocation in the University Theatre.

Dennison said the plan will shore up an expected budget deficit of $500,000 to $2.2 million during the next fiscal year. It also will compensate for the withdrawal of federal stimulus funds at the beginning of the next biennium and maintain a contingency fund for unanticipated challenges.

He said the plan will balance the budget, assure students can get the classes they need, prevent employee layoffs, protect academic programs and maintain momentum in research and graduate education.

Pending Board of Regents approval, the plan will be implemented during the next three years starting in July.

Dennison said revenues are needed, as well as cutting costs. He proposes a 1 percent tuition increase during each of the next three years, which would generate $3 million in revenue. That yield could grow with increased enrollment.

UM students now pay the same tuition when taking 12 to 21 academic credits, which Dennison calls “the flat spot.” He proposes changing the flat spot to nine to 21 credits, so those students taking nine to 11 credits would pay more than they currently do. This would generate about $1.5 million in revenue, and Dennison suggests it would encourage students to take larger loads and finish college more quickly. This flat spot change would not affect the UM College of Technology.

Dennison also suggested changing the state formula for prorated subsidy per student so it follows the student to the campus selected for enrollment. Right now there is an imbalance in the Montana University System in which UM does not receive the subsidy for 1,500 students on the four UM campuses.

“A reallocation going half of the distance will provide $1 million per year to the Missoula campus and $2 million over two years,” Dennison said.

He also suggested several ways to cut expenses. They are:

• Implement a four-day workweek for employees and students, except in those instances when closing facilities would violate UM priorities. This could save $450,000.

• Leave select employee positions vacant in the next two and a half years. This could save $500,000.

• Reduce overtime and extra-compensation pay when possible. This could save $150,000.

• Reduce travel expenses that draw on general funds, implement energy-saving steps, cut operating costs and reduce copying facilities and the like. This could save $250,000.

“To summarize, these revenue and expense changes could generate $7.85 million in base adjustments over the next three years,” Dennison said. “With these adjustments and the continuation of our reform and reinvention effort, we can manage the challenge of the next few years, focus on student success, protect the academic programs and sustain the University in its mission.”

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