Short-Term Savings Strategies

Western has identified short-term saving strategies to respond to the fact that our tuition revenues for the current year came in below our budget. This means that our revenues are not in line with our budgeted expenditures and short-term strategies are needed to make up the difference. We are implementing the following strategies beginning March 13, 2022; and they will remain in place for the next fiscal year to help offset the need for base budget reductions by reducing our expenditures.  

The following policies are in place:

Vice President (VP) approval required on all state operating funds for purchases above $1,000. Approval flows are being updated in our procurement systems to reflect this restriction. If there is an urgent purchase in the next few days, please attach an email approval from your VP to your transaction. 

Vice President (VP) approval required for all new travel authorizations on state operating funds, with a fresh review of travel that has already been authorized.

Approval flows are being updated in our travel system to reflect this restriction; if there is an urgent authorization needed in the next few days, please attach an email approval from your VP to your transaction. As a reminder, fully approved travel authorizations are required for any university-paid travel or travel reimbursement.

Each time a permanent position funded from state operating funds becomes vacant, four pay periods worth of savings (salaries and benefits) will be transferred into an institutional holding account to prevent fund balances from being overcommitted. 

This will not impact when a hiring manager can initiate the hiring process with HR. Divisions may choose to fill positions sooner where possible but the hiring unit would need to paying both the new employee’s salary and benefits and the four pay period assessment. Divisions may also choose to hold vacancies longer; additional savings above four pay periods would be available to the division.

Western currently maintains $1.2 million in our annual operating budget as a contingency for mid-year needs that exceed our budget, such as when something with institution-wide impact breaks, or to offset lower than expected revenues. This amount will be reduced to $600,000 for the next fiscal year to offset the need for other operating reductions; however, it also lowers our ability to respond to unforeseen events. 

Where there is a one-time lag between receiving new state funding and being able to apply it, such as when a full search must be conducted to fill a new position, those unspent funds will be held centrally.

Receiving new state funding will not reduce the budget gap because new funding comes with increased costs; however, the one-time savings will reduce the need for other operating reductions.

Additionally, every position vacancy regardless of funding source will be evaluated by the Vice Presidents before proceeding. As part of this review, Vice Presidents will consider whether there are opportunities to reorganize operations or delay hiring and ensure positions are appropriately budgeted across potential funding sources.

Fiscal Year 2022-2023 Budget Reduction

In addition to these strategies, base budgets will also be reduced by 3 percent in each division effective July 1. Each Vice President will be working with their division to apply these base, recurring reductions and achieve the associated expenditure reductions in the coming fiscal year. The exact process will vary by division, as each has unique organizational and governance structures. 

Importantly, the 3 percent reductions are to recurring budgets, and the strategies above will not accomplish the budget reductions. The short-term saving strategies generate one-time savings within a given year, but do not resolve the budget gap that occurs year after year if not addressed through a base reduction.

Frequently Asked Questions

State operating funds are identified by 10000-level fund numbers or a Fast Index that begins with the letters "FB".

No, if you already have a contract in place with a vendor the new restrictions are not applicable.

Departments should work through their respective dean or director to get VP approval emails.

A division may choose to fill positions sooner where possible, but the department would be paying both the new employee’s salary and benefits and the four pay period vacancy assessment.

Yes, departments will receive a copy of the journal voucher that will show the amount and date of the transfer from Strategy, Management & Budget.

Yes, savings from travel and purchasing restrictions along with any other cost saving measures will stay in the divisions. There may be other ways to reduce spending at a department level that can be easily implemented to increase divisional savings.

If you have ideas for reducing spending within your department or unit, share your idea with your supervisor and colleagues. Every expenditure matters and there may be ways to reduce spending at a department level that can be easily implemented.

Each division will determine how vacant positions will be evaluated and who will be involved in those conversations.

The 3% budget reduction for FY 2024 will be a reduction to the base, or recurring, budget and is “permanent” in the sense that the base budget at the end of a fiscal year is the starting point for the budget in the following year.

Western fully supports the state’s College Affordability Act to maintain affordable tuition for in-state students and does not plan to drastically increase tuition rates for 2023-2024. Annual tuition rate increases are typically between 2-4%. Instead, we will continue to work with the state to secure sufficient state operating funds while maintaining access.

Departments are not required to wait 60 days before recruiting for a vacant position as long as the divisional Vice President has approved rehiring. Most recruitments take longer than 60 days before a new employee is hired and the savings recapture will not impact this timeline directly.

The evaluation of vacant positions is intended as an opportunity to evaluate the nature of the associated work and possible duplication within departments or divisions. The goal is not to have more work distributed to fewer people; the saving strategies are being implemented to ensure that Western can sustain competitive salaries and benefits and retain valued employees. If you have concerns about your current workload or how a vacancy in your area will impact you, you are encouraged to discuss the situation and your concerns with your supervisor.

There will not be a centralized recapture of year-end fund balances to the institution. It will be up to division Vice Presidents to determine whether fund balances will be recaptured to the division or other organizational levels.

New buildings and other major construction projects are funded from capital appropriations that can only be used for major capital projects. Decreased enrollments impact Western's net tuition revenue which is used to support our operations but not used for building projects.

Additionally, capital projects are addressing urgent State and University needs. In the case of Kaiser Borsari Hall, this project will be imperative in preparing students to work in the high-demand fields of computer science and electrical engineering, where the State is currently experiencing a labor shortage.

Who to Contact for More Specific Information

Information Needed Contact
Procurement and Travel:  
Requirements and procedures for establishing new contracts (existing contracts are not subject to the new restrictions) Andrea Rodger
Questions about an upcoming purchase(s), required approvals, and Western Marketplace approval routing Sarah Schmidt
Information about travel approvals, required documentation, and Concur system routing Sally Parsons
Position Vacancies:  
Information about the process for recapturing vacancy savings when positions become vacant Strategy, Management & Budget
Questions about divisional review of vacant positions review

Dean/Director or
Division Officer

 

Opportunities to Learn More - March Budget Forums

All employees should have received calendar invitations to budget forums that will be held at the end of this month, March 30 and 31. These forums will share greater detail on the budget and financial outlook and include a question-and-answer session.

The presentation portions of these sessions will be identical; the two events are meant to create more opportunities for attendance. Please attend whichever is more convenient for you. Attendance options are both in person and via Zoom, with ASL (American Sign Language) interpretation. The forum will also be recorded and posted online for those who cannot attend.