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
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