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general budget. Because state revenues have continued to decline since then, Temple is preparing for a larger reduction, equal to 1.5 percent of our educational and general budget or $11.625 million, in anticipation of deeper cuts from the state.
Q: What else are you doing to save money?
A: As announced earlier, the 2 percent inflationary supplement ($1.6 million) in the 2008-2009 budget for non-compensation related costs will be rescinded. Also, each officer will be assigned a target amount by which to reduce his or her budget.
Q: What is a budget reserve?
A: The state expects its revenues to fall, which will result in less support for Temple. As a result, all units and branches are being asked to cut their individual budgets. Money saved from these cuts will be put into a budget reserve and held until the state budget picture becomes clearer.
Q: Does the budget reserve affect all units and branches of Temple?
A: The budget reserve affects all parts of the university except for Temple University Japan and Temple University Health System. All of the university officers will share the responsibility for funding the reserve.
Q: Will there be more budget cuts this year?
A: The need for further budget reserves or cuts will depend on how the economy performs. The reserve plan is intended to safeguard the university in the event of further cuts.
Q: How will these cuts affect Temple’s appropriation in the future?
A: Going forward, budget officials expect that these reductions will have a ripple effect on next year’s and future state appropriations because they will be based on reduced rather than the original appropriations. If this occurs, the budget cuts being made now will become permanent and part of calculating next year’s operating budget.
Q: What percentage of Temple’s funding comes from the state appropriation?
A: About 25 percent of funding comes from state appropriations and 68 percent from tuition.
Q: Has the state cut Temple’s appropriation in the past?
A: Since 1982, the state has made seven cuts to the university’s appropriation ranging from 1 to 4.7 percent, of which the last three were not restored.
Q: Are other universities cutting their budgets?
A: Pennsylvania’s other state-related universities - Penn State, Pittsburgh and Lincoln - are subject to the same cuts as Temple and are taking similar steps.
Q: Will Temple increase its tuition?
A: There are no immediate plans to increase tuition which is typically set toward the end of the fiscal year based on all funding sources, including the state appropriation. However, the university will have to consider the impact of the budget cuts and the economy on all of our funding sources, including tuition.
Q: Has the state appropriation increased according to inflation?
A: No, over the past several decades, the annual increases in the state appropriation have not kept pace with inflation. This year’s appropriation increased just 1.5 percent over the previous year. Budget officials estimate that we’ve lost $35 million in actual buying power from the state appropriation since 2002.
Q: If state appropriations have been declining, what is the university’s plan for long-term financial health?
A: To find new sources of revenue, the university is encouraging entrepreneurial thinking by all schools, colleges and administrative units. Revised budget policies and procedures, currently in progress, will give deans more flexibility in being entrepreneurial, for example, by creating auxiliaries, expanding summer school, and increasing research.
Hiring Freeze
Q: When does the hiring freeze go into effect and how long will it last?
A: The restrictions are effective immediately and barring a significant economic turnaround, will remain in effect until further notice, at least through this fiscal year, unless determined otherwise by the president.
Q: Why did the university decide to freeze hiring and not cut the budget elsewhere?
A: Compensation and benefits make up two-thirds of the university’s expenses making it our biggest cost. Therefore, managing our workforce provides the best opportunity for savings.
Q: Which personnel actions are included?
A: The hiring freeze covers all full-time and part-time positions and applies to new positions, vacant positions, positions that become vacant while the freeze is in effect, promotions and job reclassifications.
Q: Who does the hiring freeze apply to?
A: The hiring freeze applies to all administration and staff, and the provost will review individual tenure track faculty hiring decisions and plans with the deans. All existing assistantship appointments will be honored, but new appointments will need the approval of the Graduate School. Student workers are not subject to the hiring freeze.
Q: What if I am in the middle of filling a position?
A: Personnel actions initiated and approved, including offers that were tendered prior to October 14, 2008, will be processed without requiring an exception.
Q: Are there any other exceptions?
A: Exceptions to the hiring freeze will be considered on a case-by-case basis.
Q: How do I request an exception?
A: A written justification requesting an exception must be submitted to your department’s senior vice president who will then make a determination on which requests to submit to the president. No employment action or position posting will occur before an exception request is approved.
Q: How should I handle overtime and other types of compensation?
A: All department heads are charged with ensuring their departments are operating in the most cost-effective manner, including reviewing and monitoring the use of overtime.
Q: What if a position is funded by a grant?
A: The hiring freeze applies to positions funded from the university’s operating or 10-fund budget only. Positions funded from grants are not subject to the hiring freeze.
Travel restrictions
Q: When do the travel restrictions go into effect and how long will they last?
A: The restrictions are effective immediately and barring a significant economic turnaround, will remain in effect until further notice, at least through this fiscal year, unless determined otherwise by the president.
Q: What kind of travel is restricted?
A: Travel restrictions apply to all university-funded (funded by the university’s operating or 10 and 12 funds only) out-of-state travel by faculty, staff, administration and students to conferences, training and meetings by air, rail or car.
Q: Are there any exceptions?
A: Exceptions will be considered when the travel is paid by a non-Temple source; when the traveler is on a committee or board or presenting or speaking; or when the conference or training is mission critical or less expensive than other options, for example, hiring a consultant.
When exceptions are granted, they will be limited to one person or to the fewest possible people.
Q: How do I request an exception to the travel restriction?
A: Complete the out-of-state travel exception request form (http://webserv.adminsvc.temple.edu/employeeforms/Travel.htm) and submit it to your senior vice president.
Q: What if I’ve already made arrangements?
A: Out-of state travel will be permitted in cases where deposits have been paid and it would be less expensive to allow the traveler to complete the trip than to forfeit the deposit. Effective immediately, no deposits should be paid for out-of-state travel until an exception is granted. However, every effort must be taken to ensure that the travel is accomplished in the most efficient and cost effective manner possible.
Q: Are there other suggestions for saving on travel?
A: Where possible, conference calls and video conferencing should replace travel between campuses (TUA, TUFW, HSC, Main, TUCC, TUH).
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