Dany Nebel, Editor-in-Chief
At 4:45pm on Fri., Feb. 9, 2024, all SMU Faculty and Adjunct Faculty received an email from the ‘23-24 Faculty Pres. Ian Werrett. The subject line reads: “Update – Faculty President – Friday, February 9.” The email gives some a few updates on the current budget crisis, as well as a brief update on the continuing Presidential Search. In his email to all faculty, Werrett mentions the (re)formation of the Budget committee and University Council, which met on Thurs., Feb. 8, to discuss the challenges at hand. In his email, Werrett states that the committee, “will continue to meet for the foreseeable future.” In addition to this and the Presidential Search, the email updates faculty on the budget options for the next year. The Belltower Staff have included this section of the email in its entirety below for our readers.
Budget Options – Academic Year 24/25
On Friday, February 2, I met with the interim co-presidents and provost to discuss the short and long-term challenges we face as a university. Although we talked about many difficult issues, the tone of this meeting was overwhelmingly collegial and positive. I learned several things at last Friday’s meeting, but one the biggest takeaways for me was a sense that the administration is genuinely interested in working with the faculty and staff to achieve a common goal – to secure and strengthen the academic and financial well-being of our university. As a reflection of this attitude, I’m pleased to report that the provost and co-presidents have (re)formed the Budget Committee and University Council, which met yesterday afternoon. Additionally, the co-presidents have written a letter outlining some of the issues we are facing in the coming year (attached). This letter, which was discussed by the Faculty Senate yesterday morning, contains a request for a formal response by February 29. That said, I will be reaching out to you in the coming days with a request for feedback about the letter and it’s invitation to engage in shared governance.
We are also including the entire letter to the Faculty Senate from the Interim Co-Presidents Roy Heynderickx and Fr. Kilian Malvey:
February 2, 2024
Dr. lan Werrett, Faculty President Saint Martin's University Faculty Senate
Subject: Request for Input on Budget Options - Letter to Faculty Senate
Dear Dr. Werrett,
Last Fall semester we informed you of a financial crisis of a significant magnitude comprised of both lower enrollment and unfunded budget decisions. Certain budget changes were made to help balance this year's budget; all non-compensation budgets are now at a minimum amount and realistically cannot be further reduced. This Spring semester we continue to experience lower retention of continuing students (Fall to Spring) than experienced in recent memory. The outlook for next year's budget (2024-25) will likely require severe additional measures to be balanced. Even with new retention efforts and a stable entering new student class, this year's lower retention will cause a multi-year enrollment issue. This situation fully meets the definition of a "bona fide financial crisis" for the University as referenced in the faculty handbook.
We are forecasting next year's budget will be short by as much as $3.5 million. The anticipated shortfall is the result of the combination ofa carryover of this year's proposed salary cuts ($500,000) and actual retirement contribution cuts ($800,000), an enrollıment decline primarily due to the compounding impacts of lower enrollment this year with the forecasted decline being up to 150 students ($2.2 million), and other fixed cost increases for which we have no choice (S500,000) with litle new net tuition revenue ($500,000). While we hope and pray the shortfall is less than this forecast, we must face the fact that decisions need to be made to balance next year's revenue streams with expenditures.
Each of you is part of the fabric that makes up the university community, helping us fulfill our sacred mission. Today, we are asking for the input of you and the faculty on these weighty decisions. The University budget committee will meet muliple times in February to help in this deliberation. Staff will be asked similar questions in a separate process.
So that we have time to consider all options, please respond in writing by Thursday, February 29, to the following measures. Please provide your preferences and order of decisions for each of the items identified below. The University Board of Trustees will ultimately make the decisions, as they are required to approve a balanced budget.
Reduction in compensation
Salary cuts
Across the board salary cuts to faculty and staff Roll back of this year's faculty salary increases
Benefit reductions
Reduce the University contributions to the 403(b) Retirement Plan (Note: the above projection of $3.5 million includes restoring the university contributions back to 8%)
Other
Reduction in faculty lines
Voluntary leaves
Incentivized retirements
Terminal contracts
Reduction in use of adjunct faculty
Reduce/eliminate co-teaching
Reduce cross-listing of courses
Reduce electives taught by adjunct faculty
Reduce course reductions if applicable
While we must plan for a budget shortfall in fiscal year 2025, it is important to remember that faculty are an essential component of the retention of our students. We recognize and deeply appreciate the care and compassion you give to each one of our students. To maximize student success and mitigate potential budgetary challenges, we need all faculty to connect with students, track attendance, and report academic progress in real time. Program assessments are an essential part of retention as the process strengthens the curricula. The Center for Student Success is a resource for students, and its staff has offered to support you in the classroom. The Center for Scholarship and Teaching is also a resource for you. More robust conversation on retention efforts, including new initiatives, with the community will help retain our current students and may help alleviate next year's enrollment issues. Please watch for invitations for faculty to partner with the Office of Admissions to support recruitment this Spring (e.g. representing your department al a Discovery Day and Admitted Saints Day).
This is your opportunity to provide input on these decisions. While we are hopeful next year's actual enrollment is higher and the budget shortfall may be less than currently forecasted, it is prudent to begin with this early projection, especially given the calendar identified in the faculty handbook and bylaws. St. Augustine said some 1,500 years ago that "Catholic" means to be open to the truth, wherever it can be found. We are open to your truth as it balances the conviction that Faith and Reason are mutually illuminating for all of us and for our Catholic, Benedictine mission, and in moving our university onward.
Your help during this difficult time is appreciated. We understand the angst and impact of the above decisions, even just going through this process, will generate. These efforts are critical to ensure a sustainable University moving forward.
Sincerely,
Roy F. Heynderickx, Ph.D. Interim Co-President
Fr. Kilian Malvey, CO.S.B. Interim Co-President
Several days later, on Wed., Feb. 21 at 3:15pm, another email was sent out to all SMU staff from Cynthia Johnson, Associate Vice Pres. Of Human Resources. The subject line reads, “Staff Input Needed!” Attached to the email is a jotform titled, “Staff Survey: Input on Budget Saving Measures.” The emails reads:
My fellow Saints,
The Staff Welfare Committee received a letter from our Interim Co-Presidents Dr. Roy Heynderickx and Father Kilian Malvey O.S.B. regarding the likely budget shortfall for the 2024-25 fiscal year of up to $3.5 million. The Co-President’s recognize the staff have already made great sacrifices within departments that experienced departures resulting in frozen positions as well as the percentage cut to retirement contributions this fiscal year. They are not asking staff to take on additional responsibilities through further reductions of existing positions at this time and do not anticipate staff salary reductions at this time.
Our Co-Presidents are asking for our input on ways to increase revenue and decrease expenses. Below is a survey we are asking all staff to complete so that our voices are heard. Please complete the survey by Monday, February 26.
When staff open the jotform, a paragraph at the top reiterates the same information from the previous email to faculty, as well as the following paragraphs:
On February 9, the Staff Welfare Committee received a letter from Interim Co-Presidents Dr. Roy Heynderickx and Father Kilian Malvey O.S.B. regarding the likely budget shortfall for the 2024-25 fiscal year of up to $3.5 million. Staff were asked to consider ways to reduce and/or reallocate staff salaries and benefits. They recognize the staff have already made great sacrifices within departments that experienced departures resulting in frozen positions as well as the percentage cut to retirement contributions this fiscal year. The University leadership is not asking staff to take on additional responsibilities through further reductions of existing positions at this time and do not anticipate staff salary reductions at this time.
Staff were asked to prioritize and consider the following items that could help next year’s overall budget. This is our opportunity to have a voice in the budget saving measures being considered by university leadership and the Board of Trustees.
The survey asks staff to rank three questions from Most Acceptable (1) to Least Acceptable (4). Staff must choose between continuing to freeze current vacant positions, reducing university 403(b) retirement contributions by a percentage that would be decided on by staff and faculty, and offsetting any health insurance premium increases by increasing co-pays, deductibles, etc. for staff and faculty. In addition to this, staff were given the opportunity to suggest ways to increase revenue and decrease expenses. The jotform concludes with a signature, reading, “Respectfully, Staff Welfare Committee."
The Belltower will continue to keep readers up to date with the latest information on the subject as the situation progresses.
The Belltower 