The university hopes to roll out a plan soon to allow faculty and staff to make contributions to their area as a means of easing the impact of budget reductions.
The proposal was presented March 30 at a second town hall meeting as about 200 staff, faculty and students gathered with University of Western Ontario administrators to discuss budgetary issues.
Provost and Vice-President (Academic) Fred Longstaffe said staff and faculty will be able to contribute to their area of employment – in essence making a donation.
“I think it would be great if there’s some way to demonstrate a sense of solidarity and get the ball rolling,” Statistical & Actuarial Sciences professor David Stanford said at the meeting.
Under the plan outlined at the meeting, one-time or staggered donations would be returned directly to a faculty or department to potentially assist deans and chairs with budget considerations.
The plan and other measures being taken offered some hope of reducing the number of layoffs to meet budget shortfalls, but the university believes they may not be enough to take them off the table completely.
“The issues in front of us are difficult ones; ones that involve people’s jobs and lives,” said Western President Paul Davenport. “I’d like to pull a rabbit out of my hat and make it all disappear, but I can’t.”
Davenport added there is “a new card in the deck”, referring to $150 million in infrastructure spending announced in last week’s provincial budget, but the university is still waiting to learn its share – which early estimates have at $6 million.
Longstaffe said he hopes to find modest improvements, but one-time provincial funds will not eliminate layoffs.
“We will take and use this money in the best way possible to try and reduce the impact,” said Longstaffe. “But the problem with these one-time funds is that it doesn’t address the fact that expenses continue to rise higher than revenues. I can’t see, whatever the amount will be, mitigating any of the changes we need to make, including layoffs.”
So far, under a related initiative, 35 early retirement packages have being approved (20 UWOSA and 15 PMA). As well, about a dozen faculty members are considering the modified phased retirement option.
When asked whether the approved packages will eliminate the need for layoffs, Vice-President (Resources & Operations) Gitta Kulczycki said “the answer is no. But does it make a difference, the answer is yes.”
Kulczycki said it is difficult to know the total number of layoffs at this point. She expects the university to have a clearer picture after the end of April.
Some in attendance were looking for guidance in handling university priorities during a period of fiscal restraint.
With the university’s commitment to graduate expansion, Statistical and Actuarial Sciences administrative officer Jennifer Dungavell asked “how are we going to keep doing what we are doing with less people?”
One suggestion from the audience called for borrowing money to avoid layoffs, then addressing the situation next year when the economic situation is clearer.
Davenport stressed the Board of Governors’ policy of keeping a $2.5-million surplus is the right course for the university.
“Are we being overly conservative, I don’t think so,” he said. “We have been aggressive in spending, but there is a limit. We can’t drive up the deficit and leave it for someone else to worry about. I don’t see it being wise management to simply run past that $2.5-million level.”
An expected 2008-09 deficit of $1.1 million lowers the operating reserve to just over $24 million, said Davenport. But over the next two years, running projected deficits of $11.3 million and $10.6 million will drag the reserve down to its $2.5-million level.
University of Western Ontario Faculty Association (UWOFA) President Mike Carroll asked whether the justification for layoffs and the blame laid on the downturn of the equity markets covers up a dramatic restructuring of the university.
Professional and Managerial Association President Hallie McClelland said her members are aware of the situation the university is in and are prepared to get involved in finding solutions.
“Our message is that we are ready and willing to work with the university for a fair solution for all,” she said. “But all groups must be part of the solution.”
Similarly, University of Western Ontario Staff Association (UWOSA) president David Empey said the association is willing to sit down with university administration to discuss alternative solutions.
“If there is a solution out there, come talk to us,” he said. “The decisions made by the administrators of this university are impacting these people in a very real way, in a dramatic way, and I hope that will be on your minds when you make decisions over the next month or so.”
The proposed budget will be presented to Senate in April and the Board of Governors is expected to make a final decision at the end of the month.