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WKU Announces Budget Cuts

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Bowling Green, KY (WNKY-TV) On Wednesday President Gary Ransdell announced his budget cut plans. He said his main goal was not to affect students or cut any jobs. Some of the changes include raising tuition by 4.5 percent or $215 a semester.  Another way they are cutting spending is by shifting items from permanent spending to one-time funding which saves over $2.3 million. The arguably biggest change however affects 202 employees. The building services and grounds employees are going to private contract with Sodexo, meaning they are no longer WKU employees. Those employees will all get a $1.00 raise, but they will lose some of the benefits of being a WKU employee. The workers will still have the option for tuition breaks for their kids if they are 16 or older.
If they chose not to outsource the jobs WKU officials say 25 people would no longer be employed. In the midst of trying to save $6,039,200, President Randell says all full time employees will receive a 3 percent raise over a 12 month period. Those involved say making the cuts weren't easy, but they did what was best for all at WKU.

"If anybody takes from this that this has been easy, no sweat, then they are badly mistaken. Lives are being affected. This is difficult but we will deal with it and we will close the book on it and we will move on to positive constructive things that are in the best interest of our students, faculty and staff," says Gary Ransdell President of WKU.  

As far as the new amendment to the Sodexo contract that should be in place before July 1, 2016. 

Full list of cuts:

2016-17  UNAVOIDABLE COST AND COMMITMENT ALLOCATIONS        
        
1% Salary Increase, Filled, FT Positions       1,823,000     *
        
Estimated Fixed Cost Increases        
        
Faculty Promotions      428,000     

Health Insurance Effective Jan. 2016 (From $558 in FY15 to $575 in FY16)       400,000     
FICA/MQFE Federal Requirement Jan. 2017 (1/2 yr.)      225,000     
Retirement System Credits      30,000     
Fringe Benefits on Supplemental Pay      15,000     
KERS Rate Increase (From 38.77% to 48.59%)       1,877,000     
        
Utilities & M&O      82,000     
        
Contractual Obligations:        
IT      168,000     
Chief Facilities Officer      54,000     
Subtotal Contractual Obligations      222,000     
        
Property Insurance (5% increase)      120,000     
Graduate Studies Yearly Maintenance Fee E-Catalog      17,000     
Academic Works - Scholarship Management (CHF agreed to fund 1 yr.)       25,000     
        
Scholarships (based on CPE increase in undergrad resident rate)        
Scholarships Departmental      316,000     
State Mandated Tuition Waivers      421,000     
Athletic Scholarships      354,000     
Graduate Fellowships       278,000     
Scholarships Institutional       556,000     
Subtotal Scholarships      1,925,000     
        
Other Commitments        
University Indirect Cost Recovery, Grants and Contracts, Central Budget Replacement      200,000     
Certified Police Officers Retention Adjustment      73,000     
Indian Initiative - Instructional Cost to Academic Affairs      36,000     
Gatton Academy  Growth - Instructional Costs      257,000     
Total Fixed Cost Increase (excluding 1% salary increase)      5,932,000     
        
Total Unavoidable Costs and Commitments      7,755,000     
Projected Tuition Revenue Growth      8,308,000     
Difference      553,000      ** 
        
*1% increase in July 1, 2016 permanently funded, 1% January 1, 2017 to be funded from one-time sources and        
  permanently funded July 1, 2017 with equity funding.          
 **To be allocated for compensation in FY2017-18         

 2016-17 BUDGET REDUCTION PLAN        
        
Revenue Reallocation to Central Funding        
Increase Tuition Surcharge for Online Courses Taken by FT U/G ($21 / CH)      600,000 
        
Administrative Reorganization        
Alive Center & ICSR Consolidation      151,000 
Office of Diversity & Inclusion      50,000 
Enrollment Management (Reports to Provost)      56,700 
Subtotal      257,700 
        
Cost Containment/Efficiencies        
Add DFM Bldg Svcs and Grounds Employees to SODEXO Contract      745,000 
Academic Administrative Budgeted Positions, Salary Reductions on Vacant Lines      277,000 
Part Time Faculty  Budget       85,000 
Eliminate Vacant Faculty Positions Strategically       942,000 
Action Agenda Funds      31,000 
Academic Affair's Divisional Funds      62,000 
Subtotal      2,142,000 
        
Shift Funding from Permanent to One-Time or Other Sources        
Transitional Retirement Program      1,237,000 
Employee Wellness Program Manager (Fund by Health Insurance Program)      75,400 
Faculty Computer Replacement      199,300 
Honors College Development & Travel Abroad Awards      51,000 
Facilities Reserve (Replace with Increased C/F Assessment)      400,000 
Student Health Education (Allocate Profit Sharing from GGC@WKU)      166,100 
Center for Research and Development Maintenance Budget (Fund with Leasing Revenue)      150,000 
Central Funding of Salary Increases for Degrees / Completions      35,000 
Subtotal      2,313,800 
        
Program Reductions        
Align Dependent Child Tuition Benefit Program With KEES, Starting with Freshmen Class      42,000 
Gatton Academy (4.5%)      221,700 
Transit Services      50,000 
Track and Field Programs (Six Programs in Total)      200,000 
Subtotal      513,700 
        
Program Eliminations        
Spouse Tuition Benefit (Fall 2016)      112,000 
Student Legal Services      40,000 
Pre-doctoral Interns in Counseling & Testing      60,000 
Subtotal      212,000 
        
TOTAL          6,039,200 
 

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