NSCS chancellor outlines budget challenges

The Nebraska Legislature's Appropriations Committee, in February, recommended a 1.5 percent increase to the NSCS budget for each of the next two years. This followed the Governor's recommended 1 percent increase for higher education. However, that recommendation came prior to last week's projection, by the Nebraska Revenue Forecasting Board, anticipating a decrease in state tax revenue in each of the next two years. Carpenter estimates that even if the 1.5 percent recommendation holds, the NSCS will be at least $6.7 million short of paying for salary increases and the rising cost of utilities, insurance and other core obligations.

More recently, the results of the recent bargaining process have added additional strain on the NSCS's budget.

A special master ruled for a 7 percent hike for faculty member pay in the first year of the biennium and a 4 percent increase in the second year. The same special master also awarded professional staff employees a 3.5 percent pay increase each of the next two years. Support staff employees will receive a raise of $500 each year of the biennium.

Earlier this week, the three colleges solicited voluntary offers of reduced work schedules and voluntary layoffs. Carpenter has also asked each college president to reduce the academic affairs budget by 10 percent in addition to reductions in other areas, to seek approval from him before hiring new faculty, and to save 3 percent of this year's operating budget for use next year.

"These measures may seem drastic, but I believe in the Nebraska State College System and its people," Carpenter wrote. "I am convinced that even though we may emerge a bit leaner from these dark economic times, we will emerge more focused on our mission of providing affordable quality programs and services to our students."

Carpenter said he does not believe the system will be able to fix the situation with horizontal cuts, as in years past. Instead, he said, the three institutions may need to identify their most essential programs and services, possibly eliminate the least essential programs, and allocate funds to programs that are "mission critical."

"Our goal is to get through the biennium with no significant harm to our colleges and to assure that we continue to meet our strategic objectives," Carpenter said.

CSC President Janie Park told CSC employees in mid-February that the three Nebraska State Colleges want to keep tuition increases to a modest amount and address the shortfall through reductions in order to continue the mission of student access.