UH-Clear Lake administrators, President William Staples, Provost Edward Hayes and Vice President Michelle Dotter addressed cutback concerns and provided updates during a joint-sponsored budget presentation by the University Planning Committee and the Facilities and Resources Committee March 18.

Staples outlined his budget reduction planning principles, which include minimizing the impact on students, faculty and staff, while meeting accreditation expectations. Conversely, budget reduction planning options range from leaving vacant positions open to implementing a reduction-in-force, depending on the severity of the budget cut.

"Don't underestimate the magnitude of a double-digit decrease," said Staples during the budget presentation.

A glimmer of light is being shed, however, on the current fiscal year. Summer class offerings in 2003 have been increased from 81 percent to 93.5 percent of the classes offered last summer. Potential class cuts are still undetermined for fall 2003 and for the next biennium.

The Summer/Fall 2003 Semester Course Schedule will be released online March 31; the printed schedule will be available April 7. Staples urges students to work closely with their academic advisers to ensure their ability to complete their degree requirements in a timely manner.

Howard Eisner, associate dean of academic affairs in the school of Human Sciences and Humanities, said in regard to HSH, he expects the printed schedule for summer will be accurate, yet the printed schedule for fall will potentially undergo major modifications.

"If we have to cut schedules dramatically, the faculty and I will do everything possible to accommodate a graduating student in his or her last semester to meet requirements," Eisner said. This accommodation can include modifying graduation requirements for students up for graduation only.

Since the fall schedule is still uncertain and courses may be canceled, students should refer to the online fall schedule, which will be updated real-time, as revisions are made.

"We are working on having the schedule available without logging onto PeopleSoft," said Colleen Zlomke, administrative assistant in the Office of Enrollment Services. "We expect this to be in the next couple of months."

The university no longer charges students for changing course schedules; course drop and add fees were canceled with the arrival of the online registration system. Late registers are charged a late fee of $50, yet students making schedule changes due to course cancellations during late registration will not incur this fee Zlomke said.

"The budget outlook for the next biennium is still uncertain," Staples said. "Although initial recommendations for higher education may be made by the House Appropriations and Senate Finance Committees in the coming weeks, final budget figures for all state agencies will not be available until after the closing of this year's legislative session."

The regular session for the 78th Texas Legislature is underway and is scheduled to end June 2, unless additional special sessions are called by Gov. Rick Perry. Of the 800 bills introduced by the March 14 deadline, one of significance to students and educators being considered is the deregulation of tuition and fees. If passed, the state's cap on higher education costs will be eliminated, and the authority for setting tuition and fee ceilings will be rolled to the university.

"It is too early to determine what the ceiling might be if the bill passes," Staples said. "Would we do $55 a credit hour? I'm not willing to do that. At the same time, I'm not willing to leave it at $46."

Uncertainties that riddle ongoing budgetary planning are the state comptroller's revenue forecast, possible uncapped tuition and fee increases and potential tax increases.

A decline in sales tax revenue, which makes up more than half of the state's budget, is being blamed as the culprit of the current financial dismay. According to the Biennial Revenue Estimate 2004-2005, slow national economic growth, weak corporate earnings and franchise tax credits are among the reasons for the decline.

Although the report, issued January 2003, estimates an increase of 4 percent in sales tax revenue for biennium 2004-05, the trend in franchise tax and gas and oil tax revenues is expected to together drop 20.1 percent, which offsets the increase projected in sales taxes.

"Our sales tax revenue was meeting our predictions through the end of 2002 fiscal year in August of last year," said Sheila Clancy, spokesperson for State Comptroller's Office. "Last fall, however, during that critical period when sales tend to peak during the holidays, sales tax revenue didn't reach our expectations at all."

Clancy explained that Texas is not the only state that is facing this kind of deficit; the fall in state revenue is being felt nationwide.

"We are expecting about a $10 billion shortfall," Clancy said, "that is the difference between what existing services now cost and what it will cost to continue that level of services over the next two years."

Looking to current affairs for a glimpse of what potential threats to economic growth may exist, many unknowns still remain. Determining whether revenues predicted earlier in the year could potentially wane with war is indefinite.

"Nobody in our agency is predicting what effect the war will have on our economy," Clancy said. "Reviewing what occurred during Desert Storm in 1991, these numbers show a flattening of sales tax income and a decline in consumers' purchasing activities."

Staples said actual sales tax revenue in the upcoming months will be a critical factor in budget forecasting for 2003-05.

In the meantime, both Staples and the UPC are organizing separate lists of funding priorities. While list details have not been revealed for comparison, both vow that the two major funding priorities include instruction and academic support services. Setting instruction and academic support services at the top of the agenda of funding priorities coincides with a resolution unanimously approved by the Faculty Senate Committee March 12, which outlines its main support to students and faculty.

"The budget crisis is a national issue, and the cost of higher education is expected to increase across the country," Staples said. "UHCL will remain strongly committed to minimizing the adverse effects on students including tuition and/or fees, course offerings and student support services."

Budget Reduction Planning Options

1. Differential percentage budget reductions across the entire university.
2. Increase in student tuition and/or fees beyond traditionalincreases.
3. Use of university and department reserves.
4. Leaving vacant positions open.
5. Deferral of expenditures to a later year.
6. Review of all low enrollment courses and programs.
7. Explore alternatives for utility cost savings.
8. Implementation of across-the-board reductions in wages and/or salaries.
9. Explore feasibility of early retirement incentives.
10. Implement a reduction-in-force.

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