Planning for Budget Reductions

Achieving 5% savings/reductions for fiscal year 2017-18 and beyond
 

The President’s Cabinet has discussed a wide range of possibilities for budget reductions and engaged in several thought provoking dialogues considering questions such as:
  1. What is HSU doing that is not core to the mission and vision (and therefore could be stopped)?
  2. What services, processes, and structures at HSU have outlived their original purpose and need to be redesigned or eliminated?
  3. What services are not achieving the desired results and could be redesigned to enhance effectiveness?

In addition to Cabinet discussions, divisional vice presidents developed preliminary lists of potential reductions. These ideas have been reviewed and discussed by the Cabinet. An overarching priority as reductions were reviewed and discussed was to minimize the negative impact to students. In addition, we focused on ways to make sustainable organizational change by eliminating services and activities that are not in direct alignment with our core mission, identifying operational efficiencies, and enhancing revenue.

While we have made progress, there is still much work to be done. In some cases, the amount of potential savings is not yet clear. In other cases, reduction recommendations have not yet been discussed with subject matter experts and stakeholders, and further campus engagement is necessary to move these ideas forward. In addition, we also identified some instances where the cost-savings associated with a particular change will be limited, but will free up needed time to reinvest in higher priority activities. These recommendations reflect necessary improvements, but may not yield immediate financial savings.

Phase 1 Planning (details)

A preliminary list of ideas were evaluated to create a Phase 1 list of reductions and savings ideas for implementation. This implementation includes the development of new revenue opportunities and funding sources, budget savings, the reduction and/or cessation of services and the thoughtful elimination of positions as vacancies are created. Portions of this implementation are already in progress. While most of the Phase 1 reductions and savings will be realized by 2017-18, some savings will not be realized until 2018-19 due to anticipated process changes that must occur prior to implementation.

Phase 2 Planning

Identifying and implementing Phase 2 options will require interactive work with the campus community. Several of the proposed reductions transcend divisions – and need to be assessed for unintended consequences prior to moving forward. Our initial list of Phase 2 options reflect big picture redesign concepts, complete with preliminary savings targets. The Phase 2 designation for these options is reflective of the need for further dialogue around these topics and is not meant to indicate that progress on Phase 2 options should wait until the completion of Phase 1. We recommend progress on Phase 2 options begin now so there is sufficient time to vet, implement, and achieve savings by 2018-19.
 
Supporting documents: