Faculty and staff are waiting to hear the university’s plan to cut costs over the next two years.

Because of this year’s lower freshman enrollment, Dr. Phil Schubert, president of the university, and his Senior Leadership Team expect to propose more budget cuts to the Board of Trustees for fall 2012. The next board meeting will take place Nov. 11-12, and results of its decisions could be announced as soon as mid-November.

The university already made cuts to its annual budget over the summer in anticipation of the lower enrollment.

Last month, Schubert and the SLT asked division heads, including faculty chairs, to come up with 15 percent reduction plans in each of their areas as part of an exercise to help identify where cuts could be made. The STL includes Schubert, Dr. Jeanine Varner, provost, and other members of the administration.

Varner said the SLT is looking at the plans submitted by each department chair and will create a detailed plan to lower university spending.
Schubert said he has a “pretty significant concern about the instability and volatility in our economy.”

Schubert said the SLT is taking the steps to be proactive and working with ACU’s divisions and departments across campus to look at a range of potential ways to achieve savings.

“Obviously we are going to be focused on those areas where we can save money and reduce cost that don’t have an adverse impact – on the student experience, on learning in the classroom and on the heart of what we do here at ACU,” Schubert said. “We want to focus instead on looking at peripheral areas of the university’s operations that don’t have a direct impact on students and being able to reduce cost as much in those areas.”

Because about 70 percent of the university’s expenses go toward salaries, Schubert said any significant cuts would likely affect jobs.

“We realize the sensitivity, and we will do everything we can to try and minimize the impact on jobs,” he said. “This is a place where personnel is at the heart of what we do.”

Dr. Rusty Towell, chair of the Faculty Senate and chair of the Department of Physics, said reaction among faculty to the prospect of more cuts in university spending has been varied.

“They’ve heard or interpreted the different statements individually,” Towell said. “Some faculty are very concerned – there’s a chance for reduced funding. Other faculty are less concerned because they are busy teaching classes and focusing  their job. It spans the whole gamut.”

Varner said budget concerns began in 2008, but the university chose not to make any reductions in hopes of an “uptick” in enrollment.

“We are at a point where we feel like we have to make some pretty substantial budget reductions, so our budget will be balanced for the future,” Varner said.

Overall fall enrollment fell by 170 students, much of that attributed by university officials to a sharp decline in the total number of graduate students. Freshmen enrollment fell by about 12 percent year-to-year, the largest decline in more than 20 years.

“We did see a bit of a drop-off in the size of our freshman class,” Schubert said. “Our budget is fine for the current year – we feel very confident we will achieve the goals and be in a very healthy position – but that is not our concern.”

Schubert said his greatest concern is the university being prepared for the future. Towell said faculty members have shown an interest in being involved in the process. Last week, Faculty Senate passed a resolution suggesting that proposed budgetary realignments be justified in terms of the university’s vision and mission.

“Everyone cares about the university and sees it from a slightly different angle,” Towell said. “Faculty want to make sure what is central to the university is supported and maintained. Perhaps other things, even if they are desirable, will have to be cut.”