Walking through the Portland campus these days, it’s hard to believe that USM is in a budget crisis. The constant drone of heavy machinery and glass-paneled brilliance of the Wishcamper Center seem like signs of a university on its way up.
The $8.2 million loan recently granted to the school tells a different story.
On January 14, the University of Maine System Board of Trustees approved the internal loan that will allow the school to continue to function. The Trustees also approved a repayment schedule for the loan that outlined full repayment by the 2014 fiscal year.
The loan, which comes from the University of Maine System contingency fund will “significantly deplete the fund,” said Marie Follayttar, USM’s Board of Trustees student representative, which means that other schools in the UMaine system can’t fall back on it.
USM already used its own contingency fund to cover the school’s early budget deficits.
The $8.2 million figure reflects the current deficit of $5 million, as well as the of $3.2 million deficit projected for the next two years.
Repayment of the loan is going to come directly from budget reductions and cost savings, says Follayttar, who sits on the BOT’s finance committee.
These reductions and savings, according to USM Chief Financial Officer Dick Campbell, will come largely by eliminating 30 positions in the upcoming fiscal year, and a total of 90 positions over the next few years.
In his “Moving Forward” series of press releases, USM Interim President Joe Wood cites low spring enrollment, predicted low future enrollment, and high energy costs as the main culprits for the current budget deficit.
Wood claims the school is “moving towards longer-term savings through layoffs and reorganization of programs.”
The specifics of these layoffs and reorganizations have not been released yet, but details are expected by late winter/early spring.
How does this affect the average USM student? Michael Hamilton, a political science professor and member of the Faculty Senate, can think of no shortage of ways.
“One professor translates into 9-12 sections taught per year. If you eliminate just one position, you are losing that many sections of classes.”
At a university where desirable and necessary classes fill up quickly, this can become a real issue.
“Fewer sections also means less class scheduling flexibility,” Hamilton added. “At a school where 85 percent of students have jobs, this just ends up hurting them.”
Mathematics professor Maurice Chabot also sees students as victims of the fragile budget.
With fewer professors, some departments are forced to cancel classes, “some of which are necessary to graduate,” Chabot says. “Some of the majors are really suffering.”
Chabot also mentions the community college system as a major draw for students who might otherwise enroll at USM.
“You can go to SMCC and pay much less per credit hour, save yourself some money, and then transfer to USM,” he says. “Student’s finances are such that it just makes sense.”
The university is also using a system of “phased retirement,” in which professors teach gradually fewer and fewer classes until they leave USM altogether.
“We have been told these retiring faculty members might not be replaced,” said Hamilton.
“Many departments are down two or three positions in the last few years,” Hamilton said, pointing to Physics, Chemistry, and Linguistics as examples. “This hurts small departments rather than large ones.”
Follayttar suggests that the university is considering freezing enrollment into some majors in which there is not an adequate number of faculty. “It’s a big concern for students: will they be able to finish their degree on time?”
Hamilton sees the budget crises as affecting everything from enrollment to the search for the next President. “I would prefer someone with some experience with a poor financial situation.”
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Budget Reductions for 2008
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| Academic Affairs | $1,083,683 |
| Enrollment Management | 10,474 |
| Finance & Administration | 169,746 |
| Human Resources | 87,654 |
| Information Technology | 170,878 |
| President’s Office/Diversity | 37,587 |
| Student & University Life | 98,274 |
| Out-of-State Travel | 96,710 |
| Equipment | 120,600 |
| Other Expenses | 139,250 |
| Total | $2,014,856 |