Brown says layoffs will not affect faculty

Following up his letter to Boston University faculty and staff regarding the $10 million budget gap forecasted for the 2010 fiscal year, President Robert Brown addressed about 480 of the 8,500 faculty and staff members to discuss the current economic crisis and its potential effects on the BU community in Metcalf Hall Thursday.’

Layoffs will be necessary, although none will involve faculty, Brown said. In order to accomplish his Strategic Plan, Brown said eight different offices need to reorganize and centralize, leaving some audience members uneasy about the stability of their positions.

The budget gap is mostly due to the faltering economy, which led to an increase in financial aid applicants and a substantial drop in BU’s endowment, Brown said.

‘Since September, we have processed over 630 requests for new additional financial aid and over a 100 percent increase in such applications last year,’ he said. ‘We believe this is just the beginning of a difficult period as much more unemployment is expected and will surely impact students and families.’

Brown’s letter, sent via email Jan. 12, proposed a salary freeze if the recession worsens. Senior administrator salaries have already been frozen until July 10, 2010.

BU’s total endowment, which currently stands at $897 million, a 24.1 percent drop from June 2008, is expected to continue its decline in the next year, Brown said. Despite this fact, he reassured the audience that the performance of BU’s endowment is actually better than average, and it is not the major driver of the university’s budget.

‘Income from our endowment contributes for less than 3 percent of our reserves,’ he said.

Brown said he will close the budget gap and maintain the goals of the Strategic Plan by teaming up with deans and senior administrators to reorganize alumni relations, desktop computer services, event coordination, financial administrative services, information technology, publications, research administrations and web-based support.

The Strategic Plan includes eight goals, such as enhancing the faculty and increasing interdisciplinary research.

‘We need to maintain these goals even though achieving them will take a bit longer than we’d hoped,’ Brown said.’ ‘We must maintain the quality of the Boston University education. This is essential because the quality of our programs is the foundation of BU and manages to attract the very best students and faculty.”

Although Brown said he is optimistic, he did cast a slight pall over the audience when he repeated that layoffs were necessary two times.

However, during the question-and-answer session, Brown reassured members of the faculty that they could remain at ease.

‘No faculty layoffs,’ he said.’ ‘In fact, we are continuing faculty hiring.’ Taking the faculty out of classrooms would decrease offerings we have, which would make us less appealing.”

Audience members suggested that BU appeal to alumni and other potential donors to boost BU resources.

Brown responded that the purpose of having alumni is not to ask them to fill the university’s deficiencies.

‘We ask them to support the core mission of the university,’ he said.’ ‘While fundraising is up on a short timescale, it decouples from the issue that we have here.’

School of Theology Director of Administration and Finance Scott Fields said he thinks Brown addressed the issues as well as he could, considering it was the first meeting.

‘Obviously, the reorganizations are the thing that is on everybody’s mind, and you’re not going to get final answers on day one,’ he said.

Fields also said the current economic crisis has not daunted the faculty nor cast any kind of shadow over it.

‘I think that there is a general concern about the fiscal year at the university,’ he said.’ ‘But as of now, the faculty seem to be pretty secure with their stance at the university.’

Information Systems Planning and Support System Administrator Tracy Cheeks said he did not leave the meeting feeling any more optimistic.

‘I don’t think I came out of the meeting with anything that sounded like the university is making any changes that are not going to affect me,’ he said.

‘I am in the information technology department, in which they were talking about making cuts,’ Cheeks said.’ ‘So it is just not knowing specifics that is the hard part.’

Brown stated the works group that is finalizing the Strategic Plan and budget plans for next year would most likely be finalized by March 1.