Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, June 29, 1990 TAG: 9006290703
SECTION: VIRGINIA PAGE: B-1 EDITION: NEW RIVER VALLEY
SOURCE: NEAL THOMPSON NEW RIVER VALLEY BUREAU
DATELINE: LENGTH: Medium
The two universities - and all state colleges and universities - must submit contingency plans to the state next month to show how they would further reduce operating costs over the next two years.
Some Tech officials predict that further cuts into an already lean budget would be a serious blow to enrollment, the quality of education and the local economy.
"It's the most severe fiscal challenge of the past quarter century. . . . Continued economic battering threatens every program we have," Darrel Martin, assistant to President James McComas, said Thursday.
Tech officials announced Thursday that a hiring freeze, which had been lifted a few months ago, was back in effect Wednesday in anticipation of more cuts.
Tech also may have to limit future enrollment if further personnel cuts are required, officials said at a news conference.
Tech has eliminated 267 jobs - including 130 faculty positions - through attrition since a 5 percent (about $20 million) budget cut in February.
But if forced to cut another 2 percent or more from its 1990-92 budget, "People are going in the street, there's no doubt about it," Tech spokesman Dave Nutter said.
"There are no simple solutions here," he said. "There's no leeway in the operating budget, and it will have to come out of personnel."
And if professors are lost, that means larger class sizes.
"In an era where we are trying to reduce class sizes, the elimination of faculty positions will create larger class sizes," said Vice Provost for Academic Affairs James Wolfe. "That's inconsistent with what we're trying to do here."
Enrollment this fall will not be affected. But if budget cuts are imposed and employees are laid off, it could affect enrollment as early as January, Wolfe said.
The budget cuts should not, however, increase tuition.
At Radford, officials have been discussing the possible cuts but said it was too soon to comment, said Deborah Brown, director of public information. Radford's budget for the 1990-92 biennium is $126 million.
"We're not announcing anything right now," Brown said. But she said Radford, which added 32 positions for the 1990-91 school year, has no hiring freeze.
Last week, Tech and other state agencies were told by the state Department of Planning and Budget that they must develop three sets of budget-reduction plans to show how they would cut their budgets by 1 percent, 3 percent or 5 percent.
The cuts are needed to account for an estimated shortfall of $100 million in general fund revenue collections, according to a memo the planning department sent to state agencies last Friday.
For Tech, the possible effect of those three plans would be budget cuts of $1.9 million, $5.6 million or $9.3 million for fiscal year 1990, which begins Sunday.
Reduction plans must be submitted to state budget officials by July 16. State officials will decide in late August or September which, if any, of the three budget-cutting plans they will ask agencies to impose.
"We fully anticipate that further reductions are on the way," Martin said.
In February, Tech began eliminating jobs through attrition when it learned of a proposed cut of about $20 million its $806 million operating budget for the 1990-92 biennium. Tech has about 6,000 employees.
So far, layoffs have not been necessary. But if more cuts are imposed, Tech's 7 percent turnover rate - about 350 people per year - would not be enough to accommodate the number of jobs that would need to be trimmed.
Martin said Tech, and all the state's colleges and universities, perform well, but are stressed and stretched as far as they can go.
"And when you start imposing cuts of millions upon millions of dollars, something's got to give," Martin said.
Another concern is the domino effect, he said.
If jobs are lost - especially $50,000-a-year professors' jobs - it could hurt the local economy.
Bill Ellenbogen, local restauranteur and spokesman for the 21-member Citizens for Regional Progress group, said budget cuts are a threat to local businesses.
"I am very concerned as a business person in the community about what budget cuts at Tech are going to do to the economy," he said.
Ellenbogen's group has been working to encourage Tech to increase its enrollment to 30,000 in the next 15 years.
But he said the threat of budget cuts should not affect the group's long-term goal.
by CNB