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1 Presentation to UVI Faculty and Staff by Dr. LaVerne E. Ragster Thursday, May 1, 2003 UVI Strategy for Securing the Future  Presented by  Dr. LaVerne E. Ragster  President 2 2000-2005 Strategic Plan Focus – Sustainability 3 National Context  All 50 states battling budget deficits  Aggregate deficits = $40 Billion  Worst budget crisis since WW II  Revenues shrinking, Expenditures escalating  States raising taxes, cutting payrolls, closing hospitals, libraries, and reducing services  Declining State Support to Colleges & Universities Continues  College Board study: tuition & fees at 4-year public colleges increased 9.6% for 2002-2003 4 Local Context  VI Deficit: projected at $115 Million  Serious Cash Crunch  Declining Tax Revenues  Borrowing to Meet Payroll  Considering Dramatic Cost Cutting options o Shorter work week & employee furloughs 5 UVI Relationship with VI Government 6 UVI Current Fiscal Situation  2002-2003 Budget Cut by 5%   5% Budget Cut is Permanent for 2003-2004  VI Government Allotments Behind $2.9 Million 7 UVI Current Fiscal Situation  $29.0M Original UVI Appropriation  ( 1.4M) 5% Reduction  $27.6M Adjusted UVI Appropriation  (16.1M) UVI Received  $11.5M Allotment Owed UVI 8 How Will UVI Address 2002-2003 Budget Shortfall ?  Phase I  Cut Travel  Selective Hiring Freeze –Vacant Positions  Cut Professional Development Opportunities – Faculty & Staff  Curtailed Phone Usage, Photocopying, Overtime  Reduced Discretionary Equipment Purchases  9 How Will UVI Address 2002-2003 Budget Shortfall ?  Phase II – Responding to VI Government Cash Crunch  Establish $1.5 Million Line of Credit  Borrow $1.0 Million from UVI Foundation  Borrow $500,000 from Endowment 10 How Will UVI Operate at 95% Budget-Level Going Forward?  All Self-Supporting Enterprises must make a positive revenue contribution ASAP  Bookstore  Reichhold Center  Sports and Fitness Center  Dormitories and Food Service  Summer School **  Workforce Training & Continuing Education  11 How Will UVI Operate at 95% Budget- Level Going Forward?  Restructuring Summer School for Sustainability  Changing Faculty Compensation Model  Offering Courses Based on Enrollment Levels  Cutting Courses with Low Enrollments  Summer 2003 – Objective is to at least break-even 12 Summer School Models  2002 Comp.Model  STT (82,200)  STX ( 8,300)  NRC (90,500)   *2003 rate = $775/credit  2003 Comp. Model*  34,300  53,400  87,700  13 Fundamental Operating Assumptions Going Forward  Future Sustainability & Growth Based on Non-Appropriation Dollars 14 Future Sustainability & Growth Based on Non-Appropriation Dollars  What Must We Do?  We all must share responsibility for meeting the challenge o Faculty  Seek Grants  Seek Partnerships  Recruit/Retain Students  Promote Innovation & Quality– Teaching, Research, Learning, New Programs 15 Future Sustainability & Growth Based on Non-Appropriation Dollars  What Must We Do?  We all must share responsibility for meeting the challenge o Administration  Seek Grants  Seek Partnerships  Solicit Donors, Supporters  Promote & Support Innovation  Interact with Government 16 Future Sustainability & Growth Based on Non-Appropriation Dollars  What Must We Do?  We all must share responsibility for meeting the challenge o Staff  Seek Grants  Seek Partnerships  Improve Service Delivery  Enhance Productivity & Efficiencies  Process Redesign &/or Restructuring 17 Examples of Future Sustainability Initiatives  Research & Technology Park – 3/5 Years  Increasing Fall 2003 Enrollments  VI EPSCoR – January 2004  Workforce Training – Projected $250,000 Revenues by 2005 18 Examples of Future Sustainability Initiatives  New Facilities – Dining Pavilion, Etelman House, Upgrade Dormitories  $100, 000 for Policy Development – Summer 2003  NSF VI Math Partnership-$4.5M pending grant