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To counteract an expected $33 million in budget cuts, University of Hawai'i at Mānoa Chancellor Virginia Hinshaw plans to reduce spending by scratching course offerings and staff positions, including those held by students.
After legislators in the state House approved a financial package calling for a 13 percent reduction in UH Mānoa's $256 million general fund budget, Hinshaw directed university administrators to trim their expenses by 4 percent. Approximately $11 million will be saved by the reductions, which could entail terminating the contracts of non-tenured personnel and canceling hundreds of class sections.
"Our goal, of course, is to reduce costs, but minimize the impact on our programs," Hinshaw said in an e-mail to faculty and students. "However, at this level of reduction, we are facing a significant challenge, particularly with regard to maintaining the number of people we support on general funds."
Course cutbacks and the loss of on-campus job opportunities are pressing concerns for students, many of whom are already facing financial hardship, said Jamie Sohn, president of the Associated Students of the University of Hawai'i.
"When administrators are talking about cutting temporary employees, they're talking about cutting student employment positions, which fall under that category," Sohn said. "ASUH is monitoring the situation closely, but, ultimately, some tough decisions are inevitably going to have to be made by colleges and programs, and also the students enrolled in those programs."
Proposals to downsize specific departments are still being reviewed, according to UH Mānoa spokesperson Gregg Takayama, who said that any changes made by the university are meant to ensure class availability and personnel requirements for the coming year.
"It's too soon to provide numbers of instructors and staff that we're losing," he said. "We're doing our best to minimize the impact on instructional services, but it's highly likely that there will be fewer sections of classes offered, larger class sizes and reduced administrative services to students and faculty."
University officials have projected further spending reductions to cover the remaining $22 million shortfall, according to Takayama.
"These estimated $22 million in cuts will be strategically allocated, as opposed to being across the board," he said. "They're yet to be determined, but will likely involve the elimination or consolidation of programs, reducing operating costs by more building shutdowns to conserve energy, tapping of revenue sources such as tuition and research funds, and other moves."
Although the budgetary restrictions proposed by the state Legislature have not been finalized, Takayama believes that administrators must be proactive in preparing for any financial fallout.
"Planning must begin now for the fall semester, for which registration begins later this month," he said. "The magnitude of the budget cuts requires that we take painful steps now to prepare for reduced resources in the next two fiscal years, which begin this July."
Campus Security, maintenance projects and the Hawai'inui?kea School of Hawaiian Knowledge will not be affected by the cuts, which administrators are weighing against the prerogatives outlined by the prioritization process mandated for all campus departments.
"We're still catching up with a long backlog of overdue repair and maintenance projects and this is not the time to lose the momentum we've gained in making campus improvements," Takayama said. "Additionally, we will not make cuts to the School of Hawaiian Knowledge because it is still in development as the youngest school at UH Mānoa and because of our commitment to supporting the study of our host culture."
Kathy Cutshaw, vice chancellor for administration, finance and operations, agreed, adding that prioritization reports will be helpful in formulating future business plans for the university.
"The campus-wide prioritization process has already been important in helping the Budget Workgroup identify the priorities of our campus and where our resources should be invested," she said. "But it is a long-term examination of all our programs on the basis of how they fulfill UH Mānoa's strategic priorities. Its recommendations, if enacted, will not take effect for two to three years."
An upturn in statewide economic conditions could relieve some of the constraints facing the institution, Cutshaw said. Also, the sale of $100 million in university revenue bonds, completed on April 6, will provide funding for capital improvement projects at the state's flagship campus, including $16.5 million for student housing renovations and $22.5 million for an addition to UH Mānoa's Biomedical Sciences Building.
"By financing these projects with our own revenue streams, the university is moving to improve the quality of facilities used by our students and faculty, and demonstrating that we are part of the solution to Hawai'i's economic challenges," said UH President David McClain.
Other administrators hope that state lawmakers will leave UH Mānoa's budget untouched at the end of the legislative session because of the institution's effect on the local economy.
"We certainly hope that our decision-makers recognize that UH Mānoa is a generator of resources for the state, as indicated by a recent report from the University of Hawai'i Economic Research Organization showing that every dollar invested at our school generates $5.34 in spending here in Hawai'i," Takayama said. "Few enterprises offer that type of return."
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