Virginia Gov. Tim Kaine has asked all state agencies, including the University, to propose three different contingency plans reflecting 5, 10 and 15 percent budget cuts for the 2009-10 fiscal year, said Kaine’s spokesperson Gordon Hickey.
The mandated plans for reduction are the third round of proposed state spending cuts imposed since last October in an attempt to cope with the slowing economy and declining tax collections, Hickey said, noting that the typical sources of government revenue recently have seen decline.
Hickey also confirmed that the University, as well as other Virginia higher education institutions, would be affected by any proposed cuts ordered by the governor in an effort to balance the state budget.
University spokesperson Carol Wood, however, noted that the University initially was unaware that it would be affected by the proposal.
“When the original message came out, we did not receive it,” Wood said. “We didn’t have a copy of the memo, and ... I called the governor’s press secretary, and he assured me that higher ed was not involved. The next day, though, we did receive the e-mail.”
That e-mail, Wood said, asked the University to create the three contingency plans. She said, however, that the University still has not yet received target numbers from the governor’s office, and noted that the University does not yet know exactly how much money it will have to cut from the budget.
“We are now taking the required steps to plan for possible budget cuts,” Wood said. “It’s unlikely to know the actual reduction of the number before October, but we are proceeding in our planning.”
Hickey said the contingency plans are needed for the governor’s office to get a better understanding of the present situation.
“We’re being proactive so that when the time comes in early October, when the re-forecast is done, we will be ready to go,” Hickey said.
Colette Sheehy, vice president for management and budget at the University, said that although the magnitude of cuts will not be known until October, the University is already deferring discretionary expenses and leaving positions vacant.
“We have watched the situation deteriorate,” Sheehy said.
She added that if the budget cuts are substantial, personnel may be affected, even though the University has avoided layoffs in the past.
Wood, meanwhile, said the University “tries very hard to protect the impact [of budget cuts] on the students,” noting that even though budget cuts are a “painful process,” the University has been able to successfully manage such cuts in the past with little to no effect on academic programs.
“We have every expectation that we can do it again,” Wood said, explaining that the University is preparing to slow down its rate of spending. “But that doesn’t mean it’s going to be easy.”
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