UMS faces $27 million in reductions

The financial state of the University of Maine System was very much on the minds of system board of trustees who met Sunday and Monday at the Farmington campus to hear reports on how students, programs and operations could be affected by the situation.

The system will face at least $27.1 million in reductions for the current fiscal year because of an overall decline in enrollment, trouble in the financial markets and state budget reductions.

The university adopted $19.1 million in self-imposed cuts earlier this year, and last month announced a series of spending control measures including deferred salary increases, restrictions on hiring and filling some positions, and regulating temperatures in system buildings.

Chancellor Richard Pattenaude told trustees the decline in the financial markets has led to an estimated $6.7 million net loss of investment revenue related to operating funds, which are used to support systemwide services such as payroll, human resources and information technologies. A slight decrease in enrollment has created a corresponding tuition loss at several of the system’s seven university campuses.

Those deficiencies total about $8 million, system spokesman John Diamond said. That amount in addition to the $19.1 million of self-imposed cuts translates to $27.1 million.

“Like most households, businesses and the state itself, the University of Maine System is experiencing the damaging consequences of the global financial crisis,” Pattenaude said in a statement.

Enrollment is down systemwide, although the numbers at the University of Maine’s flagship campus in Orono went up for the 11th year in a row.

The UMaine system, along with other state-affiliated departments, agencies and institutions, also could face a midyear curtailment order recently proposed by Gov. John Baldacci. The system has been asked to plan for a 5.3 percent reduction of its annual state appropriation, which would mean a reduction of $10.6 million.

In other actions, trustees approved a $60 million capital improvements plan to cover the years 2010-2012. The plan has been submitted to the Baldacci administration for consideration as part of its 2009 bond package. If approved by the governor and two-thirds of the Legislature, the package would go to voters for approval.

Wyke said the funds would be used to replace outdated and inefficient energy systems and improve the functionality and accessibility of classrooms, laboratories and libraries.

The trustees also heard a presentation about the university system’s initiative to address Maine’s shortage of working-age residents with strong academic backgrounds. The initiative seeks to increase the number of university graduates with backgrounds in science, technology, engineering and math, increasing competency in world languages in kindergarten through grade 12, and increase the reading, writing and learning skills of Maine’s pre-kindergarten through 12th-grade students.

jbloch@bangordailynews.net

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