Consolidation, eliminating vacant positions and reducing external contracts are parts of a plan to close the University of Maine’s budget shortfall from $19 million to roughly $3 million, according to an email sent to staff by the university’s cabinet members Wednesday afternoon.
UMaine administrators are still working to find additional revenue or potential cuts to cover the remaining $3 million, according to the email.
More than $1 billion in deferred maintenance costs, uncertainty in federal funding and declining enrollment have been cited as causes for UMaine’s shortfall, which will require layoffs and faculty retrenchment. UMaine’s announcement comes at a time when universities across the country are navigating budget shortfalls and staff and faculty layoffs.
Additional revenue gains and expense cuts have been found in several departments — athletic, student life, research, president’s office, finance and administration and facilities management, and strategic partnerships, resources, innovation and engagement — according to the email. The revenue and expense adjustments to these units equate to roughly $6 million, according to the email.
In addition, academic affairs is reducing its expenses by $10 million, which the university announced last month, bringing the budget shortfall to $3 million.
“Assuming these targets are met, the remaining $3M gap will present a challenge and closing this will be the Cabinet’s main focus over the coming weeks,” the email reads.
Specific funds from cuts were not shared in the email, but $1 million in additional revenue will be budgeted, according to the email. The $1 million comes from a 1% revenue increase from the six units and additional events and conferences being held, according to the email.
Reserve funds, which were used in the current year’s budget to reduce a budget shortfall, will also be used, according to the email.
“While striving to decrease the size of the deficit through ongoing reductions to the base budget such as those noted above, the use of one-time funds is inevitable again in FY28. As always, we are exploring ways to generate new reliable revenue,” the email reads.
Layoffs, funding positions with outside funds, not filling vacant positions, and “automation of tasks to streamline essential, time-consuming, manual functions” were all examples given in the email of how expenses will be reduced.
While the email does not lay out specifics, other options were given as possible examples of what could be done under collective bargaining agreements.
Vacant positions in athletics, student life, the president’s office, and strategic partnerships, resources, innovation and engagement could be left unfilled, according to the email. The length of annual appointments in athletics, student life and the president’s office would also be modified, according to the email.
Research centers and institutes could also be consolidated, according to the email.
The email, which was attributed to cabinet members — UMaine President Joan Ferrini-Mundy, Provost Gabriel Paquette, Chief Business Officer Jenny Boyden, Dean of Students Andrea Gifford, Vice President for Research Giovanna Guidoboni, Director of Athletics Jude Killy, Vice President for Human Resources Nicole Lawrence and Vice President of Strategic Partnerships, Resources, Innovation and Engagement Jake Ward — was sent to UMaine and UMaine at Machias staff members Wednesday.
In a letter last month, Ferrini-Mundy announced the university’s $19 million shortfall, but said that cuts and revenue increases, mostly from academic affairs, had decreased the gap to $5.7 million. Staff layoffs and retrenchment would be needed to fill the remaining costs, according to the letter.
UMaine system unions have asked administrators to review their spending before proposing cuts.
UMaine’s budget will be presented to the University of Maine System Board of Trustees in January.