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An Email From President Casteen
U.Va. President John Casteen just sent out a mass e-mail to the entire University community.

To all members of the University Community:

Yesterday, Governor Tim Kaine released his plan to meet the State’s 2009 fiscal shortfall of $973.6 million.

The overall reduction for the University of Virginia is $10.6 million, which equates to 7 percent of our General Funds. In addition, the state’s Equipment Trust Fund has been frozen, which means the University is unable to spend its $10 million allocation for the purchase of equipment needed largely for research.

The Governor also has deferred the 2 percent salary increase scheduled to go into effect Nov. 25. This salary deferment applies to all University employees, both staff and faculty. The Governor’s plan, however, confirms the University’s long-held practice of avoiding layoffs. Layoffs have never been a part of our strategies when faced with budget cuts.

The reduction for the College at Wise is $754,459, which equates to 5 percent of its General Funds. Equipment Trust funds in the amount of $244,009 are frozen. The College also is subject to the 2 percent salary increase deferral; no layoffs will be implemented.

Given the financial instability of the nation’s economy and now this news from the state, I know that each of you is wondering what the impact will be on you personally and on the area in which you work.

First, recall that the Governor alerted the state earlier this fall that there was a strong possibility of budget cuts ranging from 5 to 15 percent. Since that time we have been preparing for these reductions. Your deans and vice presidents have been looking for ways to adjust spending — without affecting services to the students and patients who depend on the University every day. It is important that we do our best to protect our core missions of teaching, research, patient care and public service without noticeable interruptions.

As a public university, we have weathered economic downturns before. There is no doubt that such downturns are disruptive and of deep concern to all of us. And we do not underestimate the impact of the delayed salary increases on you, especially at a time when some departments may be required to keep positions open in order to make necessary budget cuts.

I want to reiterate that we have no plans for layoffs. We will be depending on the strength and resilience of all our employees to help us through these difficult times. The current situation will require us to make tough decisions, but it also may create a new fiscal discipline and greater strategic thinking. In some cases, we will have to decide what we can and cannot do. It is my sense that this discipline and analysis will make us more efficient in how we work.

The University is better positioned than many other institutions because our outstanding fiscal managers handle our resources so well, and because we are the recipients of generous private support. All have helped us create a margin of excellence here that would not have been possible had we to rely primarily on dwindling — and often erratic — state support.

Despite these cuts, we are moving ahead with several health benefit enhancements and six innovative initiatives from the Commission on the Future of the University that will further distinguish U.Va. as a national and global leader in higher education.

I want to reassure each of you that while these are indeed difficult times, the University of Virginia will remain a stable institution and a stable work environment. It is a place that you – and the people we serve – can depend on.

We have always emerged from financial downturns a stronger organization. Working together, we will do that again now.

John Casteen

COMMONWEALTH OF VIRGINIA
Office of the Governor

Timothy M. Kaine
FOR IMMEDIATE RELEASE
Governor
October 9, 2008

Contact: Gordon Hickey
Phone: (804) 225-4260
Cell Phone: (804) 291-8977
Internet: www.governor.virginia.gov

GOVERNOR KAINE ANNOUNCES

REVENUE REFORECAST,

PLAN TO ADDRESS FISCAL YEAR 2009 SHORTFALL

Shortfall for the biennium just over $2.5 billion ~

Reductions, bonds, Stabilization Fund to meet FY 2009 shortfall ~

RICHMOND – Governor Timothy M. Kaine today announced the official revenue reforecast, and immediately announced an executive spending reduction plan to meet the fiscal year 2009 shortfall. The Governor’s plan reduces government spending by making operations more efficient and reducing the scope of some government programs, while protecting K-12 education and other critical government functions, like public safety. The cuts include reductions in the Governor’s office and residence budgets, previously announced.

“Since October of last year, the continuing uncertainty and downturn in the national economy has required us to adjust the revenue forecast downward twice, and thus far, we’ve reduced the state budget by over $1.7 billion, not including the reductions we’re making today,” Governor Kaine said. “Just like families and businesses, state government is feeling the effects of the national economic crisis. And just like Virginia families and businesses, we’re going to have to reduce our spending to make ends meet.”

The official revenue reforecast projects a shortfall of $973.6 million for fiscal year 2009 and $1.54 billion for fiscal year 2010, or just over $2.5 billion for the biennium. Governor Kaine will balance the FY 2009 budget through state agency savings and spending reductions of over $348 million and additional steps, including a withdrawal of about $400 million from the Revenue Stabilization Fund.

The revised revenue estimate is based on a series of meetings the Governor and his Secretary of Finance held with economists, critical industry leaders, and legislative leaders of both parties.

The new forecast predicts a decline in the general fund budget for fiscal year 2009 of 4.0%, and very slow growth – of 3.6% – as the recovery begins in fiscal year 2010.

In anticipation of this shortfall, on September 2nd, the Governor directed his Cabinet secretaries to work with their respective agencies to develop a range of possible spending reductions. This action enabled the Governor to order immediate reductions in spending upon completion of the revenue reforecasting process.

The Governor’s savings actions include

recovering over $40 million in balances from fiscal year 2008;

capturing savings of over $24 million resulting from Governor’s directives to agencies in August to immediately implement a hiring freeze and cuts in discretionary spending; and

reducing agency spending by over $323 million, based primarily on the recommendations made by state agencies in their 5, 10, and 15 percent reduction strategies, including the delay of the planned 2% state employee salary increase.

The Governor’s reduction strategies include

$100 million in improved business practices and efficiencies

nearly $32 million in the reduction or elimination of current services

over $27 million in reduced personnel costs

over $13 million in reduced discretionary expenses

For example, the Department of Forestry will save $50,000 by sharing the cost of a hydrologist with Virginia Tech; the Science Museum will save $100,000 by closing for an additional day each week; the Department of Taxation will save over $1.7 million by reducing technology costs; and the Department of Mental Health, Mental Retardation, and Substance Abuse services will save over $2 million by consolidating certain targeted administrative services regionally for their mental health treatment centers.

Governor Kaine will propose addressing the remaining portion of the $973.6 million shortfall through bonding nearly $250 million in capital outlay that had been planned for cash payments and through a withdrawal of around $400 million from the Revenue Stabilization Fund, which currently holds over $1 billion. These actions must be approved by the General Assembly.

Use of the Revenue Stabilization Fund in fiscal year 2009 enables state leaders to protect certain critical services from 2009 cuts, most prominently, K-12 education.

“While no agency can expect complete exemption from cuts, it is important to protect crucial state services as much as possible,” said Governor Kaine. “By employing the Revenue Stabilization Fund, we can avoid fiscal year 2009 cuts in K-12 education. This action avoids a devastating impact on classrooms with the school year already underway.”

Major actions in the Governor’s announced fiscal year 2009 reduction plan include:

About 570 layoffs, the elimination of more than 800 additional positions that are currently unfilled, holding about one-third of all at-will positions vacant, and the imposition of a continued freeze on new hiring.

The delay of a previously planned 2% salary increase for state employees, to July 2009 from November 2008

Reductions of 5 or 7 percent to institutions of higher education.

Administrative efficiencies in Medicaid, the Department of Aging, and Community Service Boards that will prevent deeper cuts in direct service delivery.

Restructuring Department of Corrections facilities, closing several older facilities.

Previously announced reductions in the Governor’s office and mansion budget, including a continued reduction in the Governor’s own salary.

“*I know that the layoffs associated with these cuts come at a challenging time for state employees, and I regret that they are necessary,” Governor Kaine said. “I have instructed the Virginia Employment Commission and our Human Resources Department to help those state employees who are laid off through this difficult transition*.”

The Governor noted that some strategies, like delaying the 2% state employee raises, would be reconsidered as further reductions for 2010 are considered. Reductions to address the $1.54 billion shortfall in fiscal year 2010 will be announced in the coming months and are expected to include further layoffs and structural changes.

“The shortfall for 2010 is projected to be even greater, and while I will work to protect items like employee raises, we must keep open the possibility that they may have to be eliminated altogether as we make additional reductions,” said Governor Kaine. “We will continue to examine every government expenditure for performance and efficiency, but we will have to look at new ways of doing things and ask ourselves hard questions about all of our programs.”

“No one would wish for a crisis like this, and as we move forward, there will be more difficult choices to make,” the Governor continued. “But we should embrace the opportunity to critically evaluate how we’re spending taxpayer money, and whether every program is delivering the results people deserve.”

SUMMER 2008 MEETING SCHEDULE
NO MEETINGS DURING THE SUMMER

ALL MEETINGS ARE HELD AT THE WESTMINSTER CHURCH ON RUGBY ROAD-5:30PM-6:30PM

GOT A PROBLEM? HAVE YOU WITNESSED FRAUD, ABUSE OR WASTE WITHIN YOUR WORKPLACE? CALL THE EMPLOYEE FRAUD AND ABUSE HOTLINE 1-800-723-1615. ALL CALLS ARE ANONYMOUS.

WANT TO FILE A GRIEVANCE? fIRED? WRITTEN UP? BEEN DISCRIMINATED AGAINST? SUUVA/CWA WILL FILE GRIEVANCES FOR UNION MEMBERS, ATTEND GRIEVANCE MEETINGS AND HEARINGS

THE STAFF UNION WILL FILE OSHA, JCAHO, AND HIPAA VIOLATIONS FOR UJION MEMBERS. This helps employees to be free of retaliation for their reporting actions and assures their workplace is safe and patient records are kept confidential.

OUTSOURCING????

Board member Warren M. Thompson suggested that the university outsource some jobs that have little direct impact on student’s education, including housekeeping and grounds care. Minding the university’s pocketbook could prevent unnecessary tuition increases, he said. The Daily Progress

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SERVING UNIVERSITY AND HOSPITAL EMPLOYEES SINCE 2002!

Pay The Workers a Living Wage

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Title 40.1-58 Policy of Article

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Home | About | Articles | Resources | Photos | Contact

WELCOME FACULTY!

Mission Statement

SERVING UNIVERSITY AND HOSPITAL EMPLOYEES SINCE 2002!

Pay The Workers a Living Wage

The LAW

Code of Virginia Title 40.1-58 Policy of Article

Meetings & Events:

Recent Articles:

Code of Virginia
Title 40.1-58 Policy of Article