State, UTEP facing budget crisis

Texas legislators will have to deal with a budget shortfall estimated at anywhere between $11 to $17 billion as they head into the 2011 legislative session in January, according to projections from economists and the state comptroller's office.

UTEP students, faculty and staff will certainly feel the impact of this shortfall when the legislature sets the university's budget for the next two years during this session.

The university has already implemented a 5 percent reduction ($8 million) for the current fiscal year that was ordered by the state of Texas last spring.

Student Government Association President Diana Gloria said the budget reductions are a big worry for the SGA, whose concern is mainly for students.

"It's affecting everyone and I am concerned that we're going to have fewer resources," said Gloria, junior organization and corporate communication major. "We are becoming prepared for it, and I hope it doesn't affect our academic areas."

Gloria also said the SGA is concerned about students who work on campus. She said that some students have told her that they are afraid they will lose their jobs because of the budget cuts.

"I've been trying to find a job on campus through the job portal, but nothing opens up," said Gabriela Caro, junior communication studies major. "All positions are filled and perhaps this is why they're not hiring any students on campus."

This summer, Gov. Rick Perry (R-Texas) and other state legislators instructed state agencies, including higher education institutions, to submit plans for proposed budget cuts.

"Because of the economy and revenue shortfalls at the state level, lawmakers issued instructions to state agencies that we needed to return 5 percent of what was appropriated to us back to help pick up that shortfall," said Cynthia Vizcaino Villa, vice president for business affairs.

Lawmakers also instructed all state agencies to prepare for the forthcoming 2012-13 biennium by reducing their budgets by 5 and 10 percent.

A memo was sent from the UTEP President's Office to the members of the campus community to provide an update on the state's budget outlook and its impact on campus.

According to the memo, for the forthcoming 2012-13 biennium years, UTEP would face an approximate reduction of $7.7 million at the 5 percent level and $15.4 million at the 10 percent level.

"We're trying to protect student services, the instruction function of the institution, to minimize direct services to students," Villa said.

According to Richard Padilla, vice president for student affairs, direct cuts have not occurred within student programs.

"We were able to absorb the 5 percent cut as a university because of some of the stimulus funding," Padilla said. "Because we budgeted very conservatively, we were able to absorb it with no direct immediate impact on any student programs that we offer."

Padilla said the current 5 percent reduction cut funding, but not directly toward programs within student service fee-funded areas and student services.

"A lot of the programs that serve students are funded by student service fees," Padilla said. "That money comes in because that's what students are paying so that doesn't get cut. What was cut was state funding so that's a huge factor."

Departments were given until mid-October to submit budget-reduction plans. Villa said that for now they are just plans, and it is better for the university to begin those processes and be prepared to deal with the reductions.

The memo also stated strategies about how the university planned to achieve the projected reductions while minimizing their impact on the university's core academic and research missions and on students, faculty and staff.

"We're working very hard to prepare and to be in a good position to react should these reductions come to pass," Villa said. "We want to be in a good position so it minimizes impact on campus, not just for students, but faculty and staff as well."

Ryan Holmes, assistant dean of students, said students should move forward with their academics despite the situation.

"Texas has been one of the most resilient states financially and fiscally and hopefully continues to be," Holmes said. "Until then, whatever comes, we need to make sure to keep our spirits up and get through things as we always do."

Villa said if instituted, the budget cuts would affect the university's quest to become a tier-one status university.

"We're very concerned because the university is picking up momentum, there's enthusiasm and excitement about moving forward and achieving our tier-one goal," Villa said. "I think the reduction in appropriations will decelerate the momentum we've picked up, but it will not stop us."

Beatriz A. Castañeda may be reached at prospector@utep.edu.