Budget balancing on thin margin, travel eyed
by Cindy AbolePublic Relations
MUSC President Ray Greenberg, M.D., Ph.D., cited tremendous progress in balancing the university's budget for the first time in three years. His remarks were made during his Jan. 31 Faculty Town Hall meeting. At the same time, there is a need to build reserves in anticipation of potential cuts in the state budget next year.
“We're balancing on one of the thinnest of margins,” said Greenberg, addressing a tempered and restless, standing-room-only crowd.
Greenberg described dramatic changes in the university and medical center’s financial picture from fiscal year 1997 to present, citing a dramatic “reversal of fortune” which has attempted to turn around a negative $70 million-plus deficit within just two years.
“It's been both heroic and painful to make this happen,” Greenberg said, an exceptional feat for a state governmental agency. “It sends a very positive message.”
Dr.
Biemann Othersen Jr, professor, Department of Surgery, talks during the
Faculty Town Hall meeting.
Yet, he warned the crowd of the real possibility of falling into the red by June, or next year if state appropriations are cut. Some of the present situation relates to cash flow challenges within UMA.
UMA’s CEO, Marion Woodbury, explained the backlog of uncollected charges and turnover of clinical faculty members helped to contribute to this possible deficit.
Currently, the university is ahead of its $4 million fiscal year budget by $1.6 million. After six months, records report a $3.6 million budget for the university, while the medical center boasts a $3 million balanced figure.
Driving the pressure is Governor Jim Hodges’ 15 percent across-the-board cut for agencies in the state’s budget. This scenario has forced MUSC and other higher education institutions to tighten their belts even more.
To help curb spending measures, MUSC strengthened its freeze on hiring, postponed equipment purchases and initially imposed a halt to out-of-state travel using state and UMA funds.
“This type of move cuts to the core of our work as academic clinicians,” said Wolfgang Radtke, senior interventional pediatric cardiologist, Division of Pediatric Cardiology. Radtke, who was present at the meeting, recounted the value of specialists attending national and international meetings. “Clearly, many of us ‘physician-producers’ and staff are unhappy about the present situation,” he said.
In response and consideration to the sentiments and points made by faculty and staff during recent meetings and the faculty forum, Greenberg has responded by revising the current policy halting travel. In a memo sent to MUSC deans and department heads on Feb. 7, Greenberg issued a revised travel policy empowering departments to have final control over travel. He has committed to work with certain departments that are still seeking travel funding.
“We want our faculty to be at meetings to learn, share research and clinical findings with their peers,” Greenberg said. “We want them to be out there representing the university on a national and international scene.”
Apart from faculty travel issues, Greenberg answered other questions and comments from the audience. Health Administration and Policy professor Anne Kilpatrick wanted to know what staff and faculty can do to contribute ideas and offer solutions for both short-term and long-term strategies.
“We need other ways of tapping into the incredible resource that our faculty has to offer for strategic planning,” said Greenberg, referring to the proactive role of MUSC's faculty senate and hinted at the idea of updating the university's strategic plan.
“Our fundamental goal is to get out of deficit spending,” Greenberg said. “It's not a course that we can continue, and have the university succeed in the future.”
Revision of Travel Policy
As you know, on Jan. 25, the university took several actions to control
expenditures. These actions included a freeze on hiring, a restriction
on the purchase of equipment, and a freeze on out-of-state travel on state
and UMA funds. Since the implementation of this policy, the input of many
individuals has made it clear that travel is handled differently from department
to department. It is difficult, if not impossible, to implement a one-size-fits-all
travel policy. Further, management of travel centrally within the University
is inefficient.
Accordingly, effective immediately, all travel approval will be at made at the departmental level. This will allow departments the freedom to manage their own resources locally. It is our hope that this system will provide greater flexibility to the needs and priorities of individual units. If the use of state or UMA funds is needed for travel in certain departments, they are hereby authorized to use them. In addition, we will continue to work with individual departments to try to identify other sources of funding for travel.
Thanks to the hard work of many faculty and staff, the university has made tremendous progress in its financial performance. We recognize that everyone is being asked to do more with less resources. The last thing that we want to do is aggravate the situation by making it even harder to accomplish the essential work of this university. I regret the impression that was created by the travel policy of Jan. 25 that we do not appreciate or value the sacrifices that have been made by so many faculty and staff. For that, you have my most sincere apology.
The imperative to manage our resources carefully still remains. Working together, we will address these challenges and build a much stronger base for further growth at the Medical University. Thanks for all that you are doing for the Medical University and for the people of South Carolina.
Ray Greenberg
President