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USNH Chancellor Announces Budget Reductions

By Matt Cookson, USNH
September 23, 2009    

The University System of New Hampshire Chancellor’s Office will be reducing its personnel by 10 percent for the fiscal year beginning July 1, 2010 and is making cuts of about $500,000 in the current fiscal year.

These significant expense reductions are being made as a result of the financial pressures USNH faces due to the economic downturn and as part of a larger repositioning of the system office in light of these challenges. 

The system office is the executive arm of the University System’s board of trustees.  It is organized to assist the board in meeting its obligations to govern the university system, which includes Keene State College, Plymouth State University, Granite State College, and UNH. 

The office provides centralized services including those related to human resources and benefits; treasury, budgeting and financial functions; information technology and academic planning; capital planning and project oversight; audit, legal and risk management services; government affairs; and external communications. The system office currently has 96 full-time equivalent positions (FTEs) and will permanently reduce 10 FTEs during  the next several months through a reduction in force and elimination of positions that are or will be vacated in the near term. 

Some reductions will be partially offset with limited outsourcing or contracting for services in strategic areas. Ongoing net savings of these reductions is approximately $700,000 per year.

“The USNH has a national reputation for innovation and prudent use of resources, with administrative expenses significantly lower than comparable universities and colleges.  Despite these achievements, there are constraints on all revenue sources that require us to continue to adapt and reallocate the funds needed to maintain the essential programs and services we provide to the residents of New Hampshire. The System Office is taking a lead role in this effort and every department is being impacted through a reduction in staff and/or increased workload and responsibilities,” said USNH Chancellor Ed MacKay. 

“We will provide assistance to those affected employees to help them prepare for the transition and have planned these moves in a manner that facilitates that process and mitigates the impact on services.  All affected employees have been informed of the reductions, but specific position eliminations are not being publicly announced at this time as the reductions will take place over several months.  This has been a very difficult, but necessary action. There will be tasks we currently perform that we will no longer be able to do because of these cuts, but it is our responsibility to realign our resources to ensure the Board and campuses have the capacity to meet our collective mission,” MacKay added.

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