The University of Toledo is estimating a need to adjust the fiscal year 2013 budget in response to increased operating costs.
A projected $13 million shortfall, or 1.6 percent of the $797.6 million University budget, could need to be trimmed, and University administration is looking into possible areas to absorb the additional costs, primarily through re-engineering and consolidation, David Dabney, chief financial officer and vice president for finance, told the UT Board of Trustees last week.
The shortfall is projected in response to a combination of a reduction in state support, increases in labor costs, and the University’s decision to tighten enrollment standards to ensure its students are prepared for the academic rigors of a college education, UT leaders said.
The fiscal year 2013 budget reflects a $7.6 million reduction in state subsidy, but also a $15 million investment in state capital dollars used to fund routine maintenance and an $8 million savings due to strategic position control. Because many of these cost-saving measures in the current budget were financed with one-time dollars not available in the coming year, the University is projecting a $36 million shortfall for fiscal year 2014. That budget process is beginning and will include input from across the University.
UT already has committed to no increase in tuition and fees for the 2013-14 academic year and also is offering a 25 percent housing discount for current full-time freshmen living on campus this year who return to live in the residence halls next year as sophomores.
In other business, the board approved a constitution for a University Council that the trustees have designated as the principal body for shared governance at the institution. Composed of representatives of faculty, students, staff, alumni and administrators, the University Council will allow key stakeholders to provide input to the Board of Trustees on matters relevant to the strategic goals of UT.
Trustees also approved 2012-13 Distinguished University Professors: Dr. Robert M. Blumenthal, professor of medicinal microbiology and immunology; Dr. Charlene M. Czerniak, professor of science education; Dr. Paul W. Erhardt, professor of medicinal chemistry; Dr. Carol A. Stepien, professor of ecology; and Dr. Gretchen E. Tietjen, professor of neurology.
Dr. Ali Fatemi, Distinguished University Professor of Mechanical, Industrial and Manufacturing Engineering, and Susan R. Martyn, Distinguished University Professor of Law and the Stoepler Professor of Law and Values in the College of Law, received the honorary title in April.