Uphold goals, says Hogan in State of University address

President Michael Hogan has reaffirmed the University’s commitment to its strategic goals despite the difficult economic climate.

Speaking to an audience of faculty, staff, and students during his first State of the University address on April 20, Hogan said, “Our first priority is to preserve the exceptional standard of education we’ve all worked so hard to achieve.”

He said the Academic Plan will guide the difficult decisions that must be made, and predicted that by adhering to the vision outlined in the plan, the University will emerge from the current financial constraints stronger.

Hogan said the University has been particularly hard hit by the state budget cuts because, by comparison with many other public universities “where tuition long ago surpassed state appropriations as the major source of revenue,” UConn receives a relatively high percentage – 34 percent – of its funding from the state.

“The generosity of the state in funding over one-third of our operation means that we feel any cut in our appropriation more deeply than most,” he said.

Thanks to the cost-saving recommendations of the CORE task force and to careful planning at the time of the 3 percent rescission in the fall, Hogan said, the University has been able to cope with the recent rescission of an additional 2 percent of the current state budget.

Although some have hoped the federal stimulus package might help the University, the package is essentially a “two-year bridging program,” he said.

“It’s not a permanent solution for state budget cuts that are basically permanent.” The stimulus funds may buy some time, but they won’t eliminate the need to make some difficult choices, he added.

He noted that other sources of revenue, such as private fund-raising and auxiliary services, have limited potential to offset cuts in state funding; research funding is growing increasingly competitive; and the 6 percent tuition increase still leaves a funding gap of $15 million for next year.

With spending reductions and a potential wage freeze, Hogan said, the University should be able to manage the gap next year; but the following year may be “very challenging,” with another budget gap of between $10 million and $15 million.

He said the University will need to be strategic in managing the deficit, and the Academic Plan will guide decision-making.

“Our goals for undergraduate, graduate, and professional education, for research, scholarship, and creative activity, for diversity and public engagement are still our goals,” he said.