Budget Reduction Timeline

April 16, 2009

Chancellor Cheek holds a brown bag lunch with students to discuss UT's budget challenges and how the federal stimulus package affects UT.

April 13, 2009

Chancellor Cheek; John Nolt, UT Faculty Senate president; and Jeff Maples, interim vice chancellor for finance and administration participate in a town hall discussion hosted by the UT Central Program Council's Issues Committee.

April 6, 2009

Interim Vice Chancellor Jeff Maples notifies the chancellor's cabinet and deans about how the federal stimulus funds will be applied to the campus' budget and some of the stipulations that apply to the use of those funds.

March 24, 2009

In a statewide address to UT employees and students, Acting President Jan Simek said the university would receive up to $90 million in federal stimulus money. These funds will allow administrators to make planned reductions over two years instead of the next three months.

Read the transcript of the full webcast and view the archived video here.

March 23, 2009

Governor Bredesen presented his proposed budget for Fiscal Year 2009-2010 to the Tennessee General Assembly. The budget includes $470 million in federal stimulus money for higher education over the next three years.

Feb. 25-27, 2009

The Board of Trustees holds its winter meeting in Memphis. UT Knoxville Chancellor Jimmy G. Cheek tells trustees that a 13.9 percent reduction in state appropriations, coupled with a 9 percent tuition increase, would result in the loss of 326 positions on the Knoxville campus.

Feb. 25-27, 2009

The Board of Trustees holds its winter meeting in Memphis. The agenda and other materials for the meeting are available for public review. The Finance & Administration Committee meeting will be webcast beginning at 8 a.m. CST, Feb. 26. The full board meeting will be webcast at 1 p.m. CST, Friday, Feb. 27.

Feb. 22, 2009

A UT spokeswoman tells the Knoxville News Sentinel that UT budget preparations will proceed at the winter Board of Trustees meeting despite the passage of the federal economic stimulus plan.

Feb. 18, 2009

John Petersen announces he will go on administrative leave with pay March 1, 2009, and will resign as president effective June 30. Pending approval by the Board of Trustees, former UT Knoxville interim chancellor Jan Simek will become acting president March 1, and then interim president on July 1. Petersen said it was time to make the change now so that "the person responsible for implementing cuts in next year's budget will be the person leading the difficult budget decisions in the coming months."

Feb. 17, 2009

President Obama signs into law H.R. 1, The American Recovery and Reinvestment Act of 2009 (aka the Economic Stimulus Act). The full text of the law is available to read.

Feb. 9, 2009

Governor Bredesen delivers his State of the State Address.

Feb. 2, 2009

Jimmy G. Cheek begins serving as Chancellor of the UT Knoxville campus. On his first day, he answers tough questions from the media about the university’s budget challenges.

Jan. 30, 2009

President Petersen sends an email message to students explaining the budget process and announcing that unlike the Tennessee Board of Regents, the University of Tennessee system has decided not to pursue removing the tuition cap.

Jan. 14, 2009

The UT Executive and Compensation Committee meet to discuss a report from President Petersen on budget reduction and draft a framework of the process to discontinue academic programs.

President Petersen issues a memo as a follow-up to the Executive and Compensation Committee meeting explaining that no decisions about potential layoffs have been made and that discussion of vacant, unfilled and filled positions that could be affected was based upon preliminary plans turned in by the campuses and institutes. He asks for patience and explains that all units are working on various ways to meet their budget reductions.

Jan. 12, 2009

President Petersen issues memo updating the UT community on the budget situation. Memo outlines an anticipated $66 million budget reduction for fiscal year 2010 and the possibility of an additional $25 million reduction.

Jan. 5, 2009

The UT Committee on Effectiveness and Efficiency for the Future discuss a variety of options for dealing with an anticipated $66.5 million cut across the UT system.

January 2009

The Knoxville campus continues plans for a variety of state appropriation reduction scenarios — at least a $25.6 million or 13.9 percent reduction in state appropriations.

Dec. 18, 2008

President Petersen announces that he and his executive staff will take a voluntary pay cut of 5 percent and will relinquish their university vehicles resulting in savings of $400,000 a year. Athletics Directors donate equivalent of 5 percent of their base pay to support academic programs.

Dec. 15, 2008

Interim Chancellor Simek issues memo updating faculty and staff on budget suggestions and questions from the campus community. In less than two months, over 450 ideas for cutting costs, working smarter and generating new sources of revenue were shared with administration.

The update also includes frequently received questions and suggestions on the Office of the Chancellor Web site.

Additionally, campus administrators ask departments and units to submit new budget scenarios that reduce state appropriations or base funding by 8 percent, to be submitted in early January.

Dec. 10, 2008

State Finance and Administration Commissioner Dave Goetz reports that for the fifth consecutive month sales and corporate income taxes have recorded negative growth rates. December collections, which reflect November spending, also made history for being the largest single negative growth month on record.

Interim Chancellor Simek issues memo to deans, directors and department heads as a follow-up on President Petersen's memo regarding the hiring freeze. Simek explained that much of what Petersen outlined is already in effect on the UT Knoxville campus and that the campus had implemented an administrative review of all requests to search for exempt and non-exempt positions.

Dec. 9, 2008

President Petersen issues memo to freeze hiring, renovations, furniture and equipment purchases, and all non-essential travel.

Dec. 8-9, 2008

Interim Chancellor Simek conducts campus budget hearings to discuss reduction scenarios as well as proposals for generating additional revenue.

Dec. 3, 2008

The UT Committee on Effectiveness and Efficiency for the Future discusses cost-cutting actions already taken and planned by the UT system. Committee members also heard proposals for potential alternative tuition models and potential reduction in workforce measures.

President Petersen issues memo updating the UT community on the budget situation and praises those who have submitted ideas and suggestions about how the university can save money.

Dec. 1, 2008

Interim Chancellor Simek along with leaders of the Faculty Senate, Student Government Association and Graduate Student Senate, announce to faculty, staff and students a new energy conservation policy that would result in a 10 percent reduction of energy cost per year and a savings of up to $2 million annually.

Nov. 26, 2008

President Petersen issues memo about Gov. Bredesen's hearing in Nashville regarding the estimated 10 to 15 percent reduction in higher education funding.

Nov. 25, 2008

President Petersen appears at state budget hearings. He notifies members of the UT community about his stated goals for protecting the core mission and quality of programs, keeping tuition affordable and preserving the university's ability to impact economic development for the state.

Nov. 21, 2008

President Petersen issues memo implementing a selective hiring process and directs campuses and institutes to develop plans for reductions in force in coordination with human resources and the Office of the General Counsel. Memo also limits travel and equipment purchases.

Interim Chancellor Simek issues a memo to deans, directors and department heads about conserving university resources. The memo directs all units to plan for larger reductions and includes a system-wide memo about immediate actions that campuses must take to conserve resources.

Nov. 20, 2008

Interim Chancellor Simek addresses the growing concern about funding challenges and potential impact on employees. Memo also explains that the budget planning process will start sooner to allow more time to explore options and assist with the transition of new Chancellor Jimmy G. Cheek in February.

Oct. 23-24, 2008

The Board of Trustees approves the plan to shift funding for the Department of Audiology and Speech Pathology to the College of Allied Health Sciences at the UT Health Science Center in Memphis.

Board approves the hiring of Dr. Jimmy G. Cheek, of the University of Florida, to serve as chancellor of the Knoxville campus, beginning Feb. 1, 2009.

Oct. 18, 2008

The UT Committee on Effectiveness and Efficiency for the Future meets to discuss appropriations for fiscal year 2009 and discuss how to move forward in the budget reduction process.

Oct. 9, 2008

Administrators cut the campus budget by $6 million. Although the cut is termed a temporary "rescission," administrators are advised to prepare for making them permanent along with an even larger anticipated reduction for the next fiscal year. This cut results in the reduction of travel and field experience opportunities for students, elimination of plans for purchase of modern teaching tools due to high costs of technology and reduction in faculty research support, among other cut backs.

Interim Chancellor Simek encourages UT Knoxville faculty and staff to be diligent in seeking the most strategic ways to reduce the impact of cuts on campus. He asks for faculty and staff to share with administration ideas and suggestions for how the university can save money or what is being done to help UT become more cost efficient.

Oct. 6, 2008

President Petersen announces state mandate to trim an additional $17 million from current year budget due to significant revenue shortfalls.

Sept. 29, 2008

The UT Committee on Effectiveness and Efficiency for the Future holds its first meeting to discuss committee organization and purpose.

Board of Trustees formed the subcommittee earlier in the year to identify savings and new revenue initiatives for the long term.

Sept. 18, 2008

Interim Chancellor Simek issues memo about President Petersen's recommendation to the Board of Trustees that involves shifting funds for the Department of Audiology and Speech Pathology to the College of Allied Health Sciences at the UT Health Science Center in Memphis. The department had been recommended for phase-out from the College of Arts and Sciences as part of UT Knoxville's budget cut fiscal year 2009.

July 1, 2008

UT Knoxville begins the fiscal year with $11.1 million less in state appropriations. This represents a 5.7 percent cut in the base or more specifically the recurring unrestricted education and general (E & G) funds to the campus.

Campus cuts involve a total of $4.4 million from departments and units and the elimination of 44 unfilled faculty and staff positions. The administration also significantly scales back plans for maintenance and repairs, contracted services and other maintenance and improvement projects.

June 20, 2008

The UT Board of Trustees approves and increases undergraduate tuition at each campus by 6 percent.

June 4, 2008

President Petersen shares news of the confirmation of a $21.2 million reduction for the UT system. The Knoxville campus reduction will total $11.1 million.

Interim Chancellor Simek also issues details about for the mandated $11.1 million budget cut. Memo outlines proposal to phase-out the Department of Audiology and Speech Pathology, Industrial and Organizational Psychology graduate program and the minor concentration dance program.

May 20, 2008

President Petersen issues memo to UT faculty and staff discussing strategic approaches taken at UT's campuses and institutes to prepare for the state's revenue shortfall. President Petersen also announces his recommendation to the Board of Trustees to increase tuition by 6 percent at all undergraduate campuses.

May 16, 2008

UT Knoxville Interim Chancellor Simek issues memo detailing preparations for the 5.7 percent base funding cut for UT Knoxville for the 2008-2009 fiscal year.

May 14, 2008

President Petersen announces proposed reduction in operating funding of $21.2 million for UT. Reduction will be taken from 2009 fiscal year budget that begins July 1.

May 12, 2008

Gov. Bredesen addresses the General Assembly about substantial revenue shortfall and announces higher education will be cut by $56 million in the fiscal year 2010 budget.

See:

• Bredesen Outlines Budget: "Taxpayers Expect Us To Live Within Our Means"
• Transcript of Bredesen's address to the General Assembly

May 7, 2008

UT President Petersen issues memo notifying UT faculty and staff that Governor Bredesen is in the process of presenting a budget to the legislature that will include a reduction in funding available to UT.

 

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Also, read about the feedback received, including answers to some of the most frequently asked questions.