Earlier this week, I had the chance to speak to the Faculty Council, where I gave an update on our budget situation. As I mentioned previously in Tower Talk, all state agencies have been asked to prepare a prioritized plan to reduce state general revenue expenditures by 5%. For UT Austin, that means a reduction of $29 million in state funding. Fortunately, last summer we reorganized our Information Technology Services division, resulting in improved services and a savings of more than $5 million. I’ve also arranged for a transfer of $5 million from cash reserves in the trademark licensing and sponsorships account by Intercollegiate Athletics. We will make up the difference with reductions in new hiring, deferring some capital expenditures, and significant budget cuts in the administrative portfolios. To a much lesser extent, we are asking for reductions in the colleges and academic departments.
Combined with declines in income from the Available University Fund and other endowments, this reduction in state funding will have a considerable impact on our budget.
I’ll keep you posted on these developments.