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BANGOR — University of Maine System Chancellor Richard Pattenaude presented a plan titled “The University of Maine System and the Future of Maine” to the system’s Board of Trustees on Monday. The plan, which Pattenaude said will balance the system’s budget and ensure long-term viability, has not been approved by the board and is still subject to change.
In prepared remarks, Pattenaude said the plan is “bold in that it both reduces costs significantly through careful use of technology, strategic cost reductions and the many talents of our people, and simultaneously invests resources in key priorities facing the state of Maine.”
The report presents an action plan for the short-term — 2010 or sooner — and long-term — 2011 or later — future of the system.
Short-term goals include “Contain the cost of compensation and benefits at current levels for FY10 & FY11,” which is expected to save $13.8 million in fiscal year 2013, and “Create strategic investment fund,” which is expected to require a $5.6 million investment for an undecided return.
Long-term goals include “Develop a front end portal and virtual self service center for MaineStreet,” which is expected to cost $3 to $4 million for undefined returns, “Review and eliminate courses with enrollment of 12 or fewer,” which is expected to save $2 million in fiscal year 2013, and “Implement seamless student transfer of credit hours within UMS.”
The plan suggests the system contain employee compensation and generate a public agenda to more effectively lobby for funds.
Before the trustees approve the plan, there will be public meetings on each of the seven system campuses and at the system office in Bangor. The board will use input gathered at these meetings when making its decision on whether or not to adopt Pattenaude’s plan. Pattenaude said he hopes the board will approve the plan by November.
“[The plan] is very critical, first of all, because in these economic times, we have to be financially very, very careful, and we have to balance our budgets,” Pattenaude told reporters after addressing the board. “But also, the future of Maine depends upon an educated work force, so we need to continue to contribute and evolve so we do that. So it’s about the strength of the system, but it’s also about the strength of the state.”
Joe Wishcamper, the chair of the Board of Trustees, said the current structure is not sustainable. “We’re a state which is not growing in population,” Wishcamper said after the meeting. “We’re really in a position where our costs are continuing to escalate, and our enrollments are not growing to keep pace with the escalation of costs. So it’s crucial we address the fact that our trend lines are not going in the right direction, and that has to do not only with the financial stability of our system, but it really has to do with the viability of our higher education enterprise in the state of Maine.”
According to Wishcamper, if the system were to continue business as usual, “within four years, we’d have a structural gap somewhere in excess of $40 million annually.” The system’s annual budget is about $600 million.
“We’re taking this occasion where we really need to address our financial issues to address how to get better as a system,” Wishcamper said. “The economics of our system are essentially providing not only the opportunity but the necessity for us to analyze and address all our ways of operating.”
University of Maine President Robert Kennedy said he is pleased with the process thus far and is looking forward to the conclusion of the restructuring process.
“I think all of us are pleased to be at this stage in the process,” Kennedy said. “[After the] public comment period, it means this process will be done, and I’m looking forward to the outcome.”
“The concerns that we had … revolved mostly around the funding for the university and the centralization of services,” Kennedy said. “We’ve been quite proactive in … stating our concerns.”
“One of the things I’ve been pleased with is that the chancellor and the board of trustees and his staff have heard us,” he said.
Pattenaude said the decision of which classes to eliminate won’t be made just by the number of enrollees. “Each class we look at, [we ask] ‘Is it needed?’ ‘Is it part of a curriculum?’ ‘Do students need it for graduation?’ ‘Are there alternatives available?’ This is not a hard and fast rule; it’s a review process to make sure we are not unnecessarily running small classes,” Pattenaude said.
Kennedy said it is hard to make across-the-board decisions about class size. “It really varies from subject area to subject area,” Kennedy said in a phone interview. “It’s hard to make blanket decisions.” Kennedy went on to say, “On average, the University of Maine is at or above the level recommended in the document for our peer institutions.” He did not state what that level was.
Pattenaude said the restructuring will make transfers between system universities easier, and more classes will be offered online. Increased use of MaineStreet will lead to streamlining administrative staff. While the University of Maine System “will always keep the capacity for face to face,” Pattenaude said he likes the ideal of a student who never has to go to an administrative building because he or she can do everything online.
