NOVEMBER 7 , 2019
UIARGONAUT.COM
battling budget ssues UI set to move forward with outsourcing as early as this week
University continues to address projected $22 million deficit Meredith Spelbring
Meredith Spelbring
ARGONAUT
ARGONAUT
As updated enrollment numbers came in, so did expanded university plans to work through the projected deficit. Initial budget cuts implemented to address the university’s initial $14 million shortfall will become permanent cuts as the university continues to address the deficit, now projected to increase to $22 million by Fiscal Year 2022. University of Idaho President C. Scott Green sent out a detailed memo on Oct. 30 explaining the state of the university budget, including plans to balance the budgets and possible areas of reduction. Green said the projected increased deficit stems from an expected decrease in tuition revenue by $8 million over the next two years. This projected decrease in overall tuition revenue is based on the university’s recent status as a full participant in the Western Undergraduate Exchange program, a program that allows students within the region to attend the university at 150% of the cost of in-state tuition. The additional $8 million holdbacks to be made will be done throughout the next two years, UI Director of Communications Jodi Walker said. The updated calculation comes following 2019 enrollment numbers, which showed a slight increase in overall student enrollment. Green said the updated enrollment numbers allowed the university to work on projections and understand where enrollment will be going forward. “If we do this right, I really believe by Fiscal Year 21, we should be balanced. And going into Fiscal 22 we should be balanced,” Green said in an interview with The Argonaut. “I’m hopeful that this gets it addressed, and we are able include these cuts in next year’s Fiscal Year 2021 and that we come out the other side of 21 balanced. And that would account for some of the WUE students issues that we’d have in 22 that already be taken into consideration. That is my hope, and I think we’ll get close.” The total university reserve, while not depleted, is moving the wrong direction, Walker said. A healthy university reserve equates to 5% of the university operating budget. The total university budget is $429 million, making a ‘healthy’ reserve equal $21.5 million. The current total in the reserve is negative $6.6 million. SEE DEFICIT, PAGE 4
The university is set to move forward with outsourcing options in Facility Services as early as this week in one of its next steps in addressing the projected $22 million deficit by Fiscal Year 2022, as confirmed by multiple sources. The university will accept formal requests for proposals (RFP) from commercial providers for four specific units: facilities services, administrative operations, auxiliary services and the Student Recreation Center, according to a memo obtained by The Argonaut sent out by Vice President of Finances Brian Foisy Oct. 30. There is no known timeline on when RFPs will move forward within administrative operations, auxiliary services and the Student Rec Center. “Many of you are aware that I invited various facilities management providers to campus in September to review our operations and offer advice regarding the potential for outsourcing,” Foisy said in the memo. “While the quality of services provided by our in-house teams is excellent, it is imperative that we explore all alternatives to ensure that we are implementing best industry practices within a sustainable budget model.” Outsourcing would bring in a company to supply outside management and operations previously done inhouse. The university would pay the company to figure out how the university can provide the same services on a tighter budget. Foisy notes in the memo sent out to the four departments that although the university will be opening the door to for formal RFPs, it is still possible outsourcing will not be the chosen path. “If the university decides to proceed with outsourcing, we would need to transition operations by July 2020,” Foisy wrote. “The many details and options regarding employment status and the potential transition from UI to contracted employment have yet to be determined. My hope is to provide our employees with as much flexibility and choice as possible, recognizing we have many people who’ve invested heavily in careers at the university.” Outsourcing: What it means University of Idaho Director of Communications Jodi Walker said outsourcing does not mean layoffs, but a focus on the overall management of the services themselves. SEE OUTSOURCING, PAGE 4
Leslie Kiebert | Argonaut
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