General Budget Framework Document - FY 2002 Budget Reductions

APRIL 22, 2002

Office of the Chancellor

The formulation and promulgation of this "General Budget Framework" initiates the process for permanent budget reductions contained in the document entitled "Procedures to be Invoked for Significant Budget Reallocations and Reductions" [hereinafter "Procedures Document"], approved by the Academic Planning Committee on 2/20/93 and referred to in the UNL Bylaws.

I. Nature and Amount of the Reduction

This is Round II of a series of budget reductions imposed by the Legislature to account for a revenue short-fall by the State of Nebraska. The total reduction in the 2002-2003 fiscal year budget is $9.8 million. In addition to reductions already announced and approved, UNL must further reduce its budget by $1,497,959.

II. Principles for the Budget Reduction Process

This further reduction will be subject to the same principles adopted for Round I as articulated in the General Budget Framework of November 29, 2001, and subsequently approved.

III. Allocation of Reduction to Divisions and Units of the University

Units across the University provided a 5% reduction scenario in preparation for Round I. These scenarios have been reaffirmed with the Deans and Directors and have been considered.

IV. Implementation of Reductions

The Legislature completed its session on April 19, 2002. The budget bill was approved and finalized a week before this adjournment. The reductions required must be implemented by July 1, 2002.

V. Time Frame for Making Budget Reduction Decisions

The "Procedures Document" establishes a process for the University of Nebraska-Lincoln for arriving at decisions relating to final budget reductions. It provides that the Chancellor shall establish a time frame within which the procedures are to be implemented. The time frame for these reductions is attached as Appendix A. Because of the urgency of the task, the procedure has been truncated although essential opportunities for community participation have been preserved.