StarBulletin.com

Cuts force UH to adapt


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POSTED: Saturday, October 18, 2008

University of Hawaii administrators in Hawaii Hall and Bachman Hall already go without air conditioning when they work late or on weekends.

               

     

 

 

Proposed Budget Cuts

        The University of Hawaii plans to freeze most hiring, conserve electricity and cut spending to address a projected state budget shortfall. A savings breakdown:

       

» UH-Manoa: $7.88 million

       

» UH-Hilo: $1.22 million

       

» UH-West Oahu: $191,078

       

» Community colleges: $3.5 million

       

» UH system: $700,703

       

       

To save $3 million in electricity costs, other offices and classrooms will become more energy efficient, and the air conditioning will be shut off on weekends.

It is all part of about $30.6 million in savings being proposed to reduce the UH budget over the next two years—including $9 million in actual budget cuts. The remainder of savings, or $21.6 million, would come from transferring expenses from the state taxpayer-supported general fund to other sources, including tuition revenues and federal funding.

But the $9 million in cuts means a hiring freeze for most vacant jobs and a reduction in travel and other expenses.

The state general fund accounts for a little less than half of the UH budget. Tuition covers about 10 percent, and research grants and other contracts bring in about 28 percent.

Gov. Linda Lingle asked all state departments to propose cuts of between 10 to 20 percent of their general fund discretionary spending to deal with the state's projected $900 million budget shortfall.

At UH the cuts range from $13.5 million to $30.6 million.

This year, state taxpayer funds will pay for $728 million of the cost to operate the 10-campus system.

No layoffs are anticipated, and the cuts will not affect the classroom, UH President David McClain said yesterday.

He said enrollment is up this year to a record 53,500 students.

In putting together the budget, administrators tried to make sure services to students were preserved, McClain said.

“;We're different than the typical business,”; McClain said. “;As the economy worsens, demand for our services is up by about 6 percent over last year.”;

The university is also preserving spending on repair and maintenance, he said.

During the last recession in the 1990s, the university cut $90 million over three years from its budget by deferring building repairs, he noted.

UH is paying for that now, he said. Faculty and students have emphasized that they do not want to cut back on repairs this time.

Repair and maintenance spending is also key to reducing electricity costs, said David Hafner, UH-Manoa assistant vice chancellor for campus services.

The Manoa campus hopes to reduce energy consumption from 112.7 million kilowatt-hours in 2006 to 92 million kilowatt-hours this fiscal year.

Hafner said about 40 UH-Manoa buildings will have air conditioning shut off on weekends, nights and holidays, and the university is also beginning an educational campaign to get people to turn off the lights when offices are not in use.

Lingle has also asked state departments to accelerate construction spending as a way to stimulate the economy.

UH is asking for about $276 million in new construction spending over the next two years, mostly for repairs and modernization of existing buildings. That money would be paid back over the long term by issuing bonds.

UH-Manoa Faculty Senate Chairman Klaus Keil said the proposed cuts to the operating budget will still preserve the quality of education and research.

“;We can probably survive that,”; he said. But he said if there are further cuts, “;the picture is grim.”;

The proposed budget also does not account for pay raises for faculty and staff. The unions for UH employees are still negotiating with the administration and the state over new contracts. Lingle said her budget to the Legislature will not include pay raises.

“;I think most people believe the revenue forecast is going to be lower,”; said McClain, who is also an economist. “;It's absolutely possible there's an even larger (budget cut) scenario out there.”;

The Board of Regents will vote on the proposed budget at a meeting Thursday.