Wednesday, May 06, 2009

Cash Deficit at MUM

From a recent M.U.M.mailing signed by Morris and Haglin:

"Dear Alumni and friends,

Along with colleges, universities, and businesses around the country, we are facing a financial challenge as a result of the economic recession.

We want to tell you what we are doing in response--and invite your help as our partner in this urgent situation.

The challenge

The downturn in the job market has slowed the hiring of our Computer Science co-op students. These students bring a major revenue stream to the University--but the lion's share comes when they are hired by a US company, enabling them to take out a bank loan and pay their full tuition, room, and board fees. The slower pace of hiring means a cash flow deficit of about $2 million this fiscal year.

The letter goes on to say that certain steps have been taken to address the issue:

"-- Salary reductions--We have implemented across-the board salary reductions (10-15%) for faculty and staff.

--Other expense reduction--We have reduced the food service budget by 10% and are deferring spending wherever possible.

The reductions in salaries and food service spending should save around $750,000 annually.

--Lines of credit--We have increased our lines of credit by $1 million and are seeking more.

--Energy conservation--We have launched a campus-wide program to reduce energy usage, including presentations in every classroom. -

--Administrative streamlining--We have identified areas where we can reduce cost and increase efficiency by consolidating functions.

--Revenue enhancement--We have launched a campaign to boost contributions to the Golden Dome Support Fund, among other measures."

The remainder of the letter is a solicitation for funds. Even though there currently are no dome fees all sidhas who are doing program in the dome are now being asked to contribute a minimum of $30 a month. I assume this includes those on the $700 Settle grant. Money is tight for the folks on the grant programs and will be getting tighter. Money is tight for faculty and staff and these cuts will really hurt.

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