Notes
Revenue Shortfall $50 Million:
This is the number that the administration used when it calculated the cuts to USFFA members' compensation for FY21. Last November, the administration projected a smaller revenue shortfall of
$17 million for next year (FY22). For FY22, they projected a $21.7 million net shortfall in tuition revenue and a $950,000 shortfall in investment returns, which they project will be offset with $5.6 million in housing net revenue if USF can open dorms at double occupancy.
Source: USFFA weekly update Oct. 13, 2020; FY22 Pro Forma Budget Calculator provided to UBAC
1.
Endowment: the union hired an independent forensic accountant to provide an independent assessment of the USF budget. One of her findings is that $94 million is liquid and available in unrestricted, board-designated endowment, and this was confirmed by Vice Provost Jeff Hamrick. After the Forensic Accountant Report was completed, the FY20 Financial Audit showed that the board-designated unrestricted endowment grew more than $8 million from FY19 to FY20 alone ($99,498,000 to $107,959,000). From FY19 to FY20, total net assets without donor restrictions grew by more than $18 million to $479,072,000.
Source: USFFA Forensic Accountant Report; FY20 Financial Audit.
2.
Reserves: USF allocates operating budget to reserves anually for use in an emergency. It spent $1.2 million from reserves in FY19 and $7.8 million from reserves in FY21 (to date $4,683,000 of the FY21 amount is unspent). The forensic accountant reported that the university allocated $12.7 million in net reserves from FY15 to FY19, but the union needs more transparency.
Source: USFFA Forensic Accountant Report, 21; FY14 to FY19 Activity by Account Category Report CIPE
3.
Internal Bank: USF has created an internal bank by loaning itself money from restricted funds that haven’t been spent yet, which amounts to $40 to $50 million. Vice President of Business and Finance Charlie Cross has said that $30 million has been spent on capital projects, and $15 million currently remains in the internal bank. The university pays back the money it has borrowed with operating funds. Internal bank money is generally spent to prioritize capital projects but is not restricted to capital projects.
Source: Charlie Cross, VP Business and Finance, UBAC training video Dec. 2020
4.
Information Technology Services: a $3.1 million cut would freeze the ITS budget at the FY20 level of $24.2 million and includes the small FY21 cut of $508,329. A $5.4 million cut rolls the ITS budget back to FY18 levels at $21.3 million (still $5.4 million more than the FY15 budget).
Source: Board Approved Budget Docs CIPE; FY21 Placeholder Budget and Amendment to Initially Proposed Fiscal Year 2021 Operating Budget
5.
Athletics: a $1 million cut would make the FY21 base-budget cut permanent at $15.6 million and would roll back the one-time increases that restored the Athletics budget to $16.6 million in FY21. A $5.9 million cut would bring Athletics from the FY21 level back to the FY15 level of $10.7 million.
Source Board Approved Budget Docs CIPE; FY21 Placeholder Budget and Amendment to Initially Proposed Fiscal Year 2021 Operating Budget
6.
Position Budget: for several years, the administration has reduced total compensation by eliminating positions, failing to restore them, and then harvesting savings. When actual compensation expenses have been less than what was budgeted due to leaves, sabbatical, retirement, etc., the administration has harvested those savings as well. The calculator figures are from FY21 and do not include COVID cuts agreed to by the union. The university had decreased total FT faculty and librarian compensation by $4.5 million from FY19 ($66.5 million) to FY20 ($62 million), prior to COVID reductions.
Source: FY21 COVID-19 Unit Savings CIPE 10/14/20; Board Approved Budget Docs CIPE; October FY21 Forecast Narrative
7.
In the spring of 2020, the administration proposed savings of $1-1.5 million from holding all staff trainings online rather than in person.
Source: "Coronavirus-related Sacrifices from Outside Academic Affairs" document provided to the union spring 2020
8.
In the spring of 2020, the administration proposed savings of $1.7 million by postponing ITS technology infrastructure upgrades.
Source: "Coronavirus-related Sacrifices from Outside Academic Affairs" document provided to the union spring 2020
9.
In the spring of 2020, the administration proposed savings of $780,000 by deferring a USF website redesign.
Source: "Coronavirus-related Sacrifices from Outside Academic Affairs" document provided to the union spring 2020
10.
These are the amounts the administration cut full-time faculty and librarian compensation in FY21. FY22 figures are projected to be $1.4 million for step and $3.6 million for COLA increases. To avoid cuts to compensation, do not check these boxes.
Source: FY22 Pro Forma Budget Calculator provided to UBAC
11.
These are the amounts staff compensation was cut, including unionized and non-unionized staff. To target executive compensation cuts, click on box 13 instead. Highly paid administrators are included with unionized workers here because administration documents do not disaggregate staff compensation. The FY22 figure is projected to be a $3.8 million COLA.
Source: the FY22 Pro Forma Budget Calculator provided to UBAC
12.
This is the amount that the administration cut part-time faculty compensation in FY21. The FY22 figure is projected to be a $821,234 COLA. To avoid cuts to compensation, do not check these boxes.
Source: the FY22 Pro Forma Budget Calculator provided to UBAC
13.
These figures were identified by the administration as possible non-academic cuts in the spring of 2020. Figures may differ slightly for FY22. A $1.8 million cut includes "President's Cabinet Merit Compensation Pool $177,000," "President's Cabinet 15% Salary Reduction $923,000," and "Remaining Members of the Leadership Team 15% Salary Reduction $745,000." A $4.4 million cut adds "Merit Compensation Increase Cancelled for Cabinet and Non-represented Exempt Employees $2,577,000" to the total.
Source: "Coronavirus-related Sacrifices from Outside Academic Affairs" document provided to the union
14.
The administration identified $1.5 to $3 million in savings from releasing temporary workers or contractors primarily hired in non-academic service units.
Source: "Coronavirus-related Sacrifices from Outside Academic Affairs" document provided to the union spring 2020
15.
COVID savings on maintenance of academic buildings: $4,300,000 August to May at $430,000 per month.
Source: Mike London, Associate VP Facilities Management, UBAC training video Dec. 2020
16.
Capital: since 2010, a partial list of USF capital projects includes the purchase of 101 Howard in SOMA (recently renovated a second time for an additional $7 million), Lo Schiavo, the purchase of Star Route Farms in Bolinas for $10.4 million, the construction of a $140 million dorm on Lone Mountain, and a $12-13 million Dining area. In addition, USF renovated Memorial Gym, renovated Lone Mountain heating and windows for $14 million, leased and is renovating St. Anne’s Convent in the Sunset for residential space, and is planning on renovating Harney, the Presentation Theater, and the Lone Mountain ramp. The last three projects are currently delayed or under evaluation. A complete list of capital projects with dollar amounts, timelines, and what has or could be delayed is required for more transparency.
Source: Charlie Cross, VP Business and Finance, UBAC training video Dec. 2020
17.
Other Non-Academic Units: there are non-academic units beyond ITS and Athletics that have substantial budgets and projects. These units include Human Resources, Marketing Communications, Facilities, Business and Finance, and Development, for example. More transparency is needed to evaluate large expenditures in non-academic units during the COVID crisis.
18.
Federal Stimulus Funding: President Fitzgerald identified $10.7 million that USF expects to receive from the new federal stimulus funding, of which $3.6 million will go to student financial aid. In his January 8, 2021 email to the university community, he stated: "I am committed to dedicating monies from this new federal appropriation for at least a partial, and one-time, return to salary levels prior to the reduction program." This leaves $7.1 million to restore salary reductions made in FY21. However, USFFA salary reductions were made on a one-year temporary basis, and the current contract is still in force. Consequently, full-time faculty and librarians will already return to salary levels prior to the reduction program with COLA increases unless new cuts are enacted in FY22. To honor his commitment to full-time faculty and librarians, the president must either pay back FY21 salary cuts this year or refrain from salary cuts in FY22, using federal stimulus money rather than salary cuts to reduce the FY22 shortfall.
Source: President Fitzgerald, Jan. 8, 2021 Email