Universities poised to pare budgets

Although construction may pick up, school presidents focus on ways to shave costs.

By BARRY KLEIN

© St. Petersburg Times,
published October 9, 2001

Florida's university presidents are placing severe restrictions on hiring, travel and equipment purchases -- the latest fallout from the state's slowing economy.

The presidents said in a conference call Monday that they are trying to avoid measures even more drastic as they struggle to cut at least 5 percent from their budgets.

"We want to protect student services and classroom instruction," said Florida State University president Talbot "Sandy" D'Alemberte. "We want to avoid layoffs for as long as is practical."

State officials expect to have a better idea of the size of Florida's budget hole on Monday. That's when they will get the latest estimate of the damage done to the state economy by last month's terrorist attacks.

Gov. Jeb Bush, who is expected to call a special session of the Legislature for late October, has said he thinks at least $1-billion will have to be cut from state spending. A sizable chunk will undoubtedly come from the universities, which received $2.4-billion this year.

The presidents did get one bit of good news Monday. They were told that Bush wants to accelerate university construction projects in hopes of stimulating the economy.

"Our models show that every dollar spent on capital projects generates 2.5 dollars in impact," said Jim Horne, the state's education secretary.

He told the presidents to look for deferred maintenance or new construction projects that could begin quickly. He said several hundred million dollars should be available, much of it borrowed from future construction budgets.

Several presidents said they have projects ready to go.

University of Florida provost David Colburn said his school is ready to begin work on a museum addition and a new accounting school. University of Central Florida president John Hitt said he would love to break ground on a new school of hospitality.

Hitt suggested that the schools look first for projects at least partly funded by private donors. Many are eligible for matching grants from the state, which means they could provide an extra dose of economic stimulus.

Most of Monday's discussion, however, focused on cuts. Florida's 11 public universities will have to slash $119-million if lawmakers call for a 5 percent budget reduction, which is the early estimate.

UF officials said they would cut $9-million from instruction and research, $2.7-million from library resources and about $13-million from the university's health sciences center. Hitt has ordered an 8 percent cut at UCF. The likely impact is hiring freezes, travel reductions and the elimination of at least some programs.

The University of South Florida has problems on several fronts.

The school already is suffering from a big hit this year in enrollment funding. Lawmakers sent much of the money appropriated for enrollment growth at USF to the school's regional campuses.

That left the main campus with a $10-million shortfall, which has forced cuts in other areas, said Jack Wheat, a top assistant to USF president Judy Genshaft.

Now comes another 5 percent reduction.

"We don't have a lot of fat," Wheat said.

The presidents were unanimous on one point: Once lawmakers decide how much to cut, the universities should decide where the knife falls.

Horne said he will urge lawmakers to grant them that prerogative.

"I certainly think it should be the CEO ... who makes the cuts," he said.

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