Budget Reallocation Frequently Asked Questions (FAQ)
The President has announced to the University community the need to reallocate resources to create a strategic investment fund. The process for these reallocations is being finalized in May 2013, incorporating extensive feedback from the University community. Identifying the specific funds that will be reallocated will not happen until next academic year. The President is committed to ensuring that ample voices are heard regarding the process and the recommendations for reallocations. Together, we will decide how to create a fund to invest in the future success of the University.
Frequently Asked Questions:
- Why are we reallocating resources?
- How much money do we plan to reallocate, and where did that number come from?
- Why can't we wait to go through reallocations until we know what strategic investments we want to make and what they will cost?
- Will I be able to finish my degree?
- Do reallocations mean that my son/daughter is getting less education for the money?
- Will financial aid be affected?
- How will we decide what reallocations to make?
- The SPC's plan addresses academic programs; what about a process for administrative functions? Can we bring in an outside perspective?
- I already feel like my office is running with minimal staff. How can we give our students the "Pacific experience" if we are cut further?
- Will Athletics have to contribute to the Strategic Investment Fund? Will Pacific consider moving to Division III to save money?
- Have Cabinet and the President already decided what reallocations they want to make?
- What if we wind up not needing the entire fund? Will the units get their money back?
- Can we use the Powell gift to pay for strategic investments?
- Can't we just fundraise for $15 million?
- When will we launch a new fundraising campaign?
- How can I communicate with University leadership about reallocations?
- Who is on the Institutional Priorities Committee?
- Will the liberal arts continue to be an important part of a Pacific education?
- Will we keep our commitment to whole student learning?
- Will we eliminate programs?
- Will we eliminate jobs?
- Will the University offer incentives?
- What happens next?
- Where can I learn more about higher education reallocations?
We are reallocating to fund the bold course charted in the Pacific 2020 strategic plan, and also to be a more focused, efficient and effective organization in these uncertain and changing times in higher education.
We are committed to enhancing the education University of the Pacific provides and ensuring that it is a good value for our students. That means we must invest in strengthening our education while keeping tuition increases low and using every tuition dollar wisely. Through reallocations, we will invest in our areas of strength that are aligned with our future, as identified in Pacific 2020. In the process, we will focus our efforts on what we do best and reduce inefficiencies. This will enable University of the Pacific to maximize its educational value and student service, while staying nimble in the face of change.
The President has determined that reallocating about $15 million from the University's unrestricted base budget (e.g. the total budget minus the portion of the budget with restricted uses such as grants, clinics, and donor-specified uses) will provide a fund that will allow Pacific to make progress on strategic initiatives. A $15 million base add will be substantial enough to fund significant initiatives and change, but not so large as to disrupt the fundamental operations of the University. We will not know the specific uses of this fund until FY 2015, when strategic initiatives aligned with Pacific 2020 have been proposed by units within the University.
Why can't we wait to go through reallocations until we know what strategic investments we want to make and what they will cost?
While some units have already proposed strategic investments (e.g. Academic Affairs has proposed Food Studies and Music Therapy programs in San Francisco, a Master of Science in Law program in Sacramento, and a Physician's Assistant program), the majority of proposals will be developed over the next year. Proposals will then be evaluated through a strategic investment decision process to be developed in the coming months.
We must plan our strategic investments and identify our reallocation dollars simultaneously. If we wait for strategic initiatives to be proposed, vetted, and budgeted, and only then identify where the funds will come from, we will not be able to take any real actions on programs for two years. Opportunities for colleges and universities in our region are being snapped up too quickly to wait this long.
Pacific is committed to its students, the degrees it has offered to students, and to providing a superior education for its students. Regardless of how the reallocation process affects individual programs, all students currently enrolled in a major will be able to finish their degree in that major. This is one reason the reallocations are phased-in over a period of several years.
Quite the contrary. We will be expanding offerings in high demand areas by making investments in those areas. Moreover, by being as efficient as possible, we will deliver more education for your tuition dollars, while keeping annual tuition increases modest. Our main goal is to ensure that your student is getting the best education for the best value.
The University's financial aid policy and practice will not be influenced by the reallocation effort.
The President has asked for input from the University community to create a fair, smart and efficient process for identifying these reallocations. In late March, the deans and the Institutional Priorities Committee (IPC) released their comments on a proposed reallocation process framework drafted by the Cabinet. In April, the Strategic Planning Committee (SPC) released a draft process for prioritizing academic programs. The President and Cabinet sought formal feedback from the Academic Council, Staff Advisory Council, ASUop, the Council of Deans, the President's Advisory Council and other groups. They also solicited feedback from individuals through a web-based feedback form and via email at email@example.com. The Cabinet is evaluating the extensive feedback they received and working with the Strategic Planning Committee, Institutional Priorities Committee and other groups to finalize the process this month.
Whatever the process's final form, the guiding principles will be that reallocations are:
- University-wide (with the exception of the McGeorge School of Law, which will have gone through a budget reduction in 2013-2014 due to a steep decline in enrollments, reflecting national trends)
- Made both by using resources more efficiently and by phasing out/reducing programs and efforts that are redundant or not aligned with our strategic vision.
The SPC's plan addresses academic programs; what about a process for administrative functions? Can we bring in an outside perspective?
Yes, administrative functions will be reviewed using a formal process. The Cabinet, Strategic Planning Committee and Institutional Effectiveness Committee (IEC) are collaborating on a draft administrative review process and a draft three-city administrative review process, seeking input from the Council of Deans, Staff Advisory Council and Academic Council. This process will be part of the final reallocation process announced in May 2013.
I already feel like my office is running with minimal staff. How can we give our students the "Pacific experience" if we are cut further?
This is why we are asking the divisions to make the recommendations on reallocation decisions rather than doing an "across the board" reduction. Depending on the essential nature of an office or a program, contributions to the Strategic Investment Fund may or may not be expected. We are counting on department heads, directors and divisional leaders to make informed, and sometimes hard, decisions about what functions should continue as is, become more efficient, have more investment to improve, or be eliminated.
Will Athletics have to contribute to the Strategic Investment Fund? Will Pacific consider moving to Division III to save money?
Intercollegiate Athletics is expected to contribute its share to the Strategic Investment Fund, as all divisions are.
Pacific will not consider moving to Division III athletics. There are too many advantages that come to the University as a result of our DI program, particularly now that Pacific is joining the West Coast Conference. Our media visibility in key west coast recruiting markets will be much higher as a result of WCC media coverage. Moreover, being affiliated with the WCC schools will increase our reputation for academics and athletics of the greatest quality and integrity. A visible athletics program will also deepen alumni ties to their alma mater and enhance the spirit and pride that our students and our community members feel for our University. Finally, the Regents would not consider a shift to Division III athletics at this time.
While Division I non-football athletic programs are costly, as they lack the revenues from football bowl conferences, we have benchmarked our Athletics program costs (both net dollar contribution to Athletics and net dollar contribution to Athletics as a percent of total University expenses) to other DI non-football programs in the West Coast Conference and found that our expenditures are actually lower. There are no plans to increase future University contributions to the Athletics budget, except for any University-wide merit and benefit increases to personnel paid from University funds. The President will hold Pacific Athletics accountable for increasing their external fund raising.
No specific programs have been identified for reduction or elimination, and no specific administrative inefficiencies have been identified for reallocation. The University will follow a thoughtful and collaborative process to reach these decisions. Proposed reallocation and academic program prioritization processes are currently open for University comment. The process of identifying reallocations will begin in fall 2013, and final decisions will not be made until April 2014.
The bold plans in Pacific 2020 will clearly cost more than $15 million. We will need to prioritize the items in the strategic plan to decide where to begin. Over the years, we can begin to implement other items in the plan as new revenue streams and fundraising allow.
Robert and Jeannette Powell's generous estate gift was given with specific intentions. The Powells indicated that it should be used primarily to increase talented students' access to Pacific in the form of scholarships (other uses that they approved for specific amounts will be announced once the gift has been received). The gift will predominantly be invested in our endowment and will primarily be used to support scholarships.
The $15 million strategic investment fund is not a one-time pool we can fundraise for. It is a "base add" to the University's budget. This means that the line item will appear year after year. (To illustrate: If some small fraction of the $15 million were used to fund a new employee position, for example, the employee would need to be paid every year, not just once.) Moreover, in order to raise enough endowment to fund $15 million/year in new operating budget, we would need to raise more than $350 million. Another thing to keep in mind is that as we look at donor motivation to fund university initiatives, the dominant area of interest is in student financial aid. It is critical that any fundraising programs are consistent with demonstrated donor motivation.
University Development is working quickly on plans for a new campaign to begin in about a year. The campaign will focus on building our endowment (in order to fund student financial aid, program and faculty support), and some limited capital projects. More details will be available in the fall. It is anticipated that we will launch a mini-campaign focusing on the Powell Match as soon as the gift is received by the University. Pacific's development efforts are on an upswing. As this source of revenue continues to increase it will play an ever-increasing role in helping to "Fund our Future."
President Eibeck pledges to communicate openly and often to the broad University community throughout the reallocation process. She will give frequent updates in the Pacific Insider, the University's e-newsletter for faculty and staff, which comes out on Mondays.
The President will hold the following in-person discussions this spring:
Spring 2013 All-Faculty Meeting
Tuesday, Feb. 26, 1-2pm
Arthur A. Dugoni School of Dentistry, room 511B; live broadcast to the Library Community Room on the Stockton campus, and to the Human Resources Training and Conference Room on the McGeorge campus.
IPC's annual open budget forum
Tuesday, Feb. 26, 3-5pm
Grace Covell Hall
President Eibeck will attend from 3-4pm to make remarks and answer questions
McGeorge School of Law Town Hall
March 13, 2-3pm
President's Student Office Hours
Tuesday, March 19, 4:30-6pm
Student Open Forum
Tuesday, March 19, 6:30pm
Grace Covell Hall
ASUop Senate Meeting
Wednesday, March 20, 4:30-6:30pm
DeRosa University Center, room 211
The Senate meeting is open to all students
Gladys L. Benerd School of Education/School of Engineering and Computer Science Forum
Thursday, April 4, 11am-12pm
School of Education room 208
Eberhardt School of Business/Conservatory of Music Forum
Wednesday, April 10, 4-5pm
Stockton Campus Town Hall (webcast live at http://go.pacific.edu/webcast)
Thursday, April 11, 12-1:30pm
DeRosa University Center ballroom
Thomas J. Long School of Pharmacy & Health Sciences Forum
Monday, April 15, 9-10am
PHS Room C104
College of the Pacific/School of International Studies Forum
Tuesday, April 16, 11 am-12pm
Biological Sciences Building
Arthur A. Dugoni School of Dentistry Town Hall
Thursday, April 25, 1pm
Division of Student Life Forum
Friday, April 26, 11am-12pm
Grace Covell Hall
The IPC is the primary planning and budgeting group of the University. It comprises faculty, staff, students and administrators from all three campuses. More details can be found here.
Absolutely. Pacific 2020 clearly embraces the liberal arts as part of the University's core and an essential part of a college education. While Pacific plans to build on its reputation in health, it will keep and celebrate its commitment to the liberal arts and to other professional programs.
Yes, without question. The hallmark of a Pacific education is that all aspects of a student's development are nurtured and educated, including their ethical, social, spiritual and emotional development. This has been part of Pacific's mission since Methodist ministers founded the University in 1851, and it will remain part of our mission even in this time of change.
Cuts will come both from reducing and eliminating programs/activities and cutting administrative costs.
It is likely that positions will be affected that are either 1) associated with programs being reduced or eliminated, or 2) in areas where Pacific is creating greater administrative efficiency. The University is committed to a well communicated, transparent and compassionate process for identifying personnel changes and supporting our people as strongly as possible.
No specific plans are in place at this time.
Feedback on draft reallocation and academic program prioritization processes (including prioritization criteria) was due April 22. The President requested formal feedback on these proposed processes from the Academic Council, the Council of Deans, the President's Advisory Council, the Staff Advisory Council, and ASUop. Individual staff, faculty and students were also strongly encouraged to provide feedback through a web-based feedback form or via email. All feedback was read by Cabinet and is available on Inside Pacific (under the "Focusing on Our Future" tab).
The Cabient is currently working with joint administrative/faculty committees (the Strategic Planning Committee and Institutional Effectiveness Committee) to finalize the reallocation process. It will be announced later in May. Please note that no specific reallocations will have been decided, only the process the University will use next year to decide what reallocations to make.
Robert C. Dickeson's Prioritizing Academic Programs and Services: Reallocating Resources to Achieve Strategic Balance (John Wiley & Sons, 2010) is an excellent and approachable guide to reallocating resources in tough times. Two copies are currently on reserve in the University Library on the Stockton campus; an e-book is available through Pacificat. While this approach will inform University of the Pacific's reallocation process, Pacific's process will be customized by the Institutional Priorities Committee (IPC), the Strategic Planning Committee (SPC), and feedback from University stakeholders.