UH takes budget hit
By David Shapiro
The House sent a pointed message to the University of Hawai'i about its labor agreement with faculty by passing a budget yesterday that slashes another $10 million from the university's budget.
Most unionized state workers are taking furloughs that amount to 8 percent pay cuts for two years with no promises of making up the the loss in the future.
UH agreed to a contract with professors calling for 6.7 percent cuts that return to the current rate in 18 months, with all lost pay then restored in a series of lump sum payments. In the final two years of the contract, faculty will receive 3 percent pay raises.
Gov. Linda Lingle approved the agreemet, but made clear that UH will get no additional general fund money to pay the raises and will have to either increase tuition or cut programs.
The next governor isn't bound by Lingle's caveat, but unless he has a good printing press he'll have a hard time finding money to fund UH pay raises and reimbursements ahead of other state workers who have suffered greater losses.
House Finance Chairman Marcus Oshiro, in defending the $10 million cut, seemed to suggest that if UH can afford to promise raises in this economy then it can afford to contribute more to reducing the state's record budget deficit.
UH President M.R.C. Greenwood hasn't explained how she plans to pay for the faculty reimbursements and raises. Unless the economy comes booming back faster and bigger than expected, drastic tuition increases or program cuts appear likely.
Greenwood seems to be holding out for more general fund support despite what Lingle and legislators are telling her.
In response to the Finance Committee's cuts, she said, "We're optimistic that as the process moves along, our state legislators will recognize the importance of the university to the state's overall economy and the need to proactively invest in the state's sole public higher education system.
"Not only do we bring in hundreds of millions of dollars in research and training revenue, we also contribute educational capital."
They'd better get busy bringing in more of those hundreds of millions they're always talking about because they're probably going to need the dough to pay those raises.
Volcanic Ash
March 9th, 2010 at 3:41 am
Am starting to think that applying for federal govt grants be it from the Ag Dept, DoD or wherever was sort of robbing Peter to pay Paul. Hmm, must be a little cynical today.
March 9th, 2010 at 8:27 am
Is there any private company that has made such a promise to their employer? It is an absurd concept on the part of UH staff to expect a reimbursement of cut pay in the future. Be glad that you have a job!
March 9th, 2010 at 9:55 am
With the release of Coach Bob Nash and extra sum of money will be lost to end his contract. I would say let him finish his contract and not renew it. At least 4th season may be worthwhile and things change for the better. At least if one is to be paid let him work for it. Seems like free money.
This I would say is a bad investment. Now they lose not 1 salary but will lose 2 to the person who replaces Bob Nash. Money UH does not have to waste.
March 9th, 2010 at 11:11 am
There was a letter to the editor about a month ago decrying the proposed merger of the UH travel industry management school with the school of business. It was pointed out that there would essentially be no real savings in that merger, or in other proposed mergers.
This is an alarming development. These are top professional programs that directly impact Hawaii. This type of proposed merger seems to be a misguided effort to "don't just stand there, do something." It misses the whole point of merging departments, which is not really to save money on administrators. The point is humane, long-term downsizing of departments that are doomed anyway.
When this recession initially hit in 2008, there was talk of merging low-ranking departments at UH. Those departments were at risk for elimination, and their faculty under threat of losing their jobs.
This threat may still exist, even though the immediate crisis has passed and the world economy has stabilized. This is because Hawaii remains vulnerable to continuing shocks and the current recession could be merely a symptom of longer term economic trends.
Merger of low-ranking departments at UH remains a viable way of protecting faculty jobs while making tough choices at UH. It is a middle path with trade-offs. No one gets fired, but it cannot be business as usual at UH. Merged departments would not have layoffs, but they would not be expanded in the future and new hiring would be limited. Merging low-ranking departments is a humane way of consolidating and rationalizing and eventually downsizing programs that were created in a mood of "irrational exuberance". This policy would be a bitter pill for those of us who believe in higher education and support it, but it might be better than the long-term alternative, which is simply firing people. These departments are basically doomed anyway; the idea is to make a compromise by merging and slowly downsizing in order to prevent layoffs in the future.
But merging top-ranking departments to save a few bucks by eliminating a few administrative positions is loco.
March 9th, 2010 at 3:41 pm
Michael, I've always been a huge fan of Bob Nash's as a class guy, but I'm afraid this is one of those cases where it probably would cost way more than $240,000 in lost season ticket sales and attendance in general if no change is made. When the job was last open, the candidates they attracted other than Nash weren't very impressive. I hope they do better this time.
March 10th, 2010 at 8:52 am
4th time may be the charmer. We'll never know now.
Alot extra costs involved. I agree they will be no cheap solution.
Quicksand.
March 15th, 2010 at 3:55 pm
You get what you pay for. Of course, even if you pay top dollar it doesn't mean you'll get a great coach but the odds are much better than if you pay way below market value and hope you'll get a great coach.