BANGOR, Maine — Though the University of Maine System and its campuses have taken steps to curb costs and boost revenues, the global economic crisis that is coming to roost in Maine means major changes must still occur to ensure the system’s long-term sustainability.
In a memo issued Wednesday to faculty and staff, Chancellor Richard Pattenaude cited three key reasons for the system’s predicament:
• Dramatic increases in the cost of energy and health insurance, two large expenses over which the system has no control.
• A decline in the number of high school students, a trend projected to continue for the next several that could affect tuition revenues.
System spokesman John Diamond noted that the collapse of global markets also has cut into income from investments and may further eat away at tuition as students may take fewer courses or defer school until the economy improves.
• Economic struggles at the state level that have hindered its ability to increase financial support for higher education.
Pattenaude noted that while developing this year’s budget, which took effect July 1, he and campus presidents cut $19.1 million systemwide, reducing operating costs and freezing pay for 59 senior administrators.
“Everyone was affected at all levels of our system,” he said.
Despite that, the system had to increase tuition and fees “to ensure that our students received the quality education they expect and deserve.”
More recently, the system was asked to dig deeper.
Last month, facing a budget shortfall of $100 million to $150 million, Gov. John Baldacci ordered nearly $80 million in curtailments to state programs, including an $8.3 million cut in UMS’s funding.
Pattenaude said even those steps might not be enough.
“The trustees, presidents and I believe that in light of these factors, our current manner of operation is not financially sustainable over the long run,” Pattenaude wrote in Wednesday’s memo.
“The need for transformational change will be a major topic of the [Jan. 11-12] board of trustees meeting. The focus will be on the conditions we face and then how we might move forward,” the chancellor said.
Meanwhile, several UMS campuses are trying to reduce expenses without cutting staff.
The system’s flagship campus in Orono, which last month was asked to trim $5.4 million from this year’s operating budget, has imposed a variety of measures but is not looking at layoffs, according to spokesman Joe Carr.
Those steps include “a stringent hiring process” for any vacant positions, limits on controllable costs such as for overtime, travel, meals and equipment purchases, and energy conservation measures, Carr said.
In a step unrelated to the governor’s November mandate, the campus privatized its student health center, eliminating the equivalent of about 20 fulltime jobs. The move is expected to save about $1.4 million a year.
At the University of Maine at Machias, there likely will be personnel changes in coming years, spokesman Erik Smith said. Smith said Wednesday that UM Machias cut 1½ positions this year at its outreach center in Calais and is working on a financial plan for the next four years.
But it’s too early to tell what that plan might mean for employees, he said. The school hopes to have a better idea about its future staffing levels by February.
“It’s safe to assume there will be some changes in personnel,” Smith said.
Spokespeople at both the University of Maine at Presque Isle and the University of Maine at Fort Kent said Wednesday that university officials at their schools were looking at ways to cut expenses but that no layoffs are expected at this time.
BDN reporters Jen Lynds in Houlton and Bill Trotter in Ellsworth contributed to this report.
On 12/18/08 at 5:56 AM,
Coolfusion wrote:
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.. Meanwhile the Maine Maritime Academy in Castine maintains and heats their EMPTY $1,600,000 six acre estate recently purchased as a future home for their President and wife to wine and dine his supporters and connected political hacks. Add this to the 8,10,12,14 percent raises for the majority of the administration staff of the MMA in 2007 and a 17% raise for it's president, and you may have to lay off some more eco and health workers next year.
Quotes from the MMA President Tyler:
His CURRENT residence has a reported $72,000 annual maintenance budget and just finished a massive, two-year renovation. Tyler himself has said repairs to the current President's house cost "hundreds of thousands" of taxpayer, donor and student tuition dollars (probably over a million given the fact that it has been going on for over two years and is still underway today). "
In reasons for moving to the NEW president's house, Tyler cited numerous drawbacks to the current location. In the fall, the house is in plain view of the dormitory and sits right next to a classroom building that is often used for lessons which require quiet, something the presidents dog's and grandchildren cannot provide. Castine Patriot (9/27/07)
You can put lipstick on the MMA, but it's still the MMA.
On 12/18/08 at 7:02 AM,
HeartOfSky wrote:
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It is time to eliminate the University of Maine "System"
I defy any spokesperson from the UM "System Office" to justify their existence here. The UM System educates no one, performs no research, and performs no public service.
On 12/18/08 at 8:09 AM,
getitdone wrote:
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UMS could start by eliminating the AdvantageU program that is allowing automatic transfer of Community College students. Baldacci's special task force, while engaging in groupthink not only came up with a plan that could financially devestate the UMS, but they signed it into effect. When looking at it through the eyes of the average working class citizen, it is quite clear that it will have the exact opposite effect of what they claimed.
On 12/18/08 at 8:24 AM,
areader wrote:
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I am willing to bet that UMM could have eliminated a bit more than the 1 1/2 people from their outreach center in Calais. Don't tell me they don't have at least 20 people in Machias simply walking around in that do nothing. Yet the 1 1/2 people in Calais are the ONLY people there are. And as for the UMS system educating no one...I don't know what that is about, but I guess the people that come out of the UMS system with their degrees and have well paying jobs & work in important fields are just stupid..?
The UMS system had a outreach center in Calais which was originally UMA Calais center. They had well over 100 students & was growing. However, when WCCC got a new president, who happened to be a brother to the president at UMM, they came up with this 'plan'. A plan to have students go to WCCC for the first 2yrs, then transfer to UMM. At that point, the UMA center lost their building and the UMA students lost their site. Now they are located at the UMM Calais center which is located @ WCCC. The brothers' plan backfired. Enrollments for UMM is nothing compared to UMA. Students are refusing to take part in their scheme. Now they are trying to block the students from taking any class if WCCC offers it. So, I guess maybe the UMS system isn't educating anyone if they are trying to send their students elsewhere. Washington County is in desperate need of a place to offer education. The 2 women that ran the Calais center kept it flourishing. But thanks to our Governor, UMM & WCCC presidents they are driving people away. What kind of service does that do? UMM is going to continue to see their numbers drop.
On 12/18/08 at 12:11 PM,
David889327 wrote:
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The U. Maine (Orono) Campus should gradually, over a period of 25 to 50 years, be privatized. When it was established here in the 1860s, it was established because there were no other institutions of higher learning, other than Bangor Theological Seminary, in Penobscot County, and local citizens sought state assistance in establishing UM, primarily for agricultural training, which was then very important for northern Maine's economy. Today, Bangor has a number of institutions of higher education - Husson, Beals and EMCC. Perhaps UM and Husson could merge over the period. Government should only be involved in education as a last resort.
On 12/18/08 at 1:15 PM,
choppahdave wrote:
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They are trying desparately to preserve their system of bottling up education and making it for sale. A lot of these classes could be put on dvd and then a have a nice early retirement party for the professors. Open up testing centers and start giving people credit for what they learn. It just might be that the ol' institution needs to change.
On 12/18/08 at 3:21 PM,
chemaine wrote:
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"It is time to eliminate the University of Maine "System"
maybe. 7 campuses in a small state is a joke
On 12/18/08 at 6:42 PM,
onthefence wrote:
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Chermaine: 7 campuses in a very large state! Considering the cost of dorms/meal tickets (about 7k per year) at UMO, if my kid wanted to go to UMO and we lived in PI or Portland, I'd be darned glad there was a University Campus locally. And you can already take UMO classes through Video/teleconference at the Hutchinson Center in Belfast, Midcoast in Rockland, etc. etc. I don't consider any one of these campuses 'a joke', as each one has something to offer of and in itself. If nothing else, they make commuting so much easie for those who cannot live on campus. Maybe there are ways to consolidate state-funded and private secondary schools, but until that can be accomplished, become more informed as to what these 7 campuses offer before you comment further.
On 12/20/08 at 12:19 AM,
Mainecommenter wrote:
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onthefence: Ah, if we all could all have a campus in our backyard. Please.
Chemaine was not referring to the cost-effective satellite centers...rather, it's the fact that Maine has seven independent public universities, each with their own President, administrative staff, etc. Many states with greater geographic areas and greater populations have fewer universities. This is simply unsustainable...and ridiculous.
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