Campus readies for probable budget cuts

In light of the weak economy, Park said she and the other two presidents of the Nebraska State College System have been planning for a reduction of at least 5 percent. In order to keep student costs as low as possible, Park said she hopes to absorb much of the shortfall by budget reductions and keep tuition increases to a modest amount.

The reductions will be made to CSC's $24.9 million general cash fund, the major portion of CSC's total budget which is supported by tuition and state appropriations. Projections indicate that any increase in state appropriations will not be enough to cover rising operating costs, such as salaries and utilities.

The president addressed the situation in a meeting of CSC employees Thursday, Feb. 12.

Park said the decisions of reductions will be made and announced in early March. While stressing that no decisions have been finalized, Park outlined her philosophy behind budget reductions. She said the reductions will be primarily vertical, meaning that cuts will be focused on areas determined to be least viable instead of "nickel and diming" across the board. In the end, the programs that are most vital to the institution retain strength.

"You look at your operation and decide what your most vital pieces are, and you cut whole programs or areas and maintain the vitality of the core of the institution and those things needed to function," she said.

She said the chosen approach may be the most difficult and least popular, but is the best option for the institution.

"In the long run it is the healthiest way, because you don't make every program mediocre," she said.

In December 2008, Park assembled an advisory committee of faculty members to rank programs according to viability. The committee used criteria established by the NSCS and the Coordinating Commission for Postsecondary Education. She also sought input from the vice presidents and deans. All areas of campus, not just academics, are being considered for cuts, she said.

While expressing sympathy for any employees who may lose positions, she said all contracts will be honored and that most faculty members will have more than a year before termination.

Park noted that some people may find it difficult to understand why CSC will be hiring faculty and staff as reductions are made. An overall hiring freeze is not feasible because some vacant positions are vital to the success of the institution and its critical programs, she said.

"Vacancies rarely come in exactly the right areas," she said.

She also said the campus must continue to address its critical needs, such as providing high quality education in its most vital areas, maintaining its facilities, remaining a leader in technology, and improving student retention. It also must implement the new Student Information System which replaces software that has lost vendor support after more than two decades of use. A portion of Gov. Dave Heineman's appropriation for the software was directed toward hiring relief personnel for staff heavily involved with the implementation.

Another challenge facing the institutions is in scholarship offerings. Endowments at CSC and institutions throughout the nation, which are funded by interest earnings from assets, are under extreme duress because of the weak economy.

"Unless there's a significant improvement in the economy, many endowments will not be able to pay out in the coming year," she said.

Despite the trials ahead, Park said members of the CSC community should remain optimistic.

"I don't want any of you to think that the future of Chadron State looks bleak at all," she said. "We will get through this and be a very healthy institution."