Dear faculty and staff,
Over the past several weeks, Interim Provost Thomas Jeitschko, Executive Vice President for Administration Vennie Gore and I have worked with unit and college leaders to review their proposed budget reduction plans. Our reviews are now complete, and I write to share our observations and next steps.
Navigating uncertainty
Our goal remains to do our best to support our people while advancing Michigan State’s long-term success. Today, Michigan State faces external pressures such as rising employee health care costs and increased operating costs due to inflation. We also expect to receive less money from the federal government due to research cuts and restrictions on international enrollments, although the magnitude of those impacts is uncertain. Additionally, we’re monitoring appropriations proposals very carefully as the state works to finalize its budget.
We’ve also held tuition increase rates to the lowest level of all Michigan public universities over the past 10 years while consistently increasing university-funded financial aid. These align with our values as a proudly public and inclusive university.
Next steps
This convergence of factors, however, requires us to adapt by putting the university on a firmer financial footing. As we’ve worked to reduce general fund spending by 9% over the next two years, I’ve appreciated the efforts of our colleges and units to prioritize non-personnel budget reductions. Those include travel, vendor services and programs not providing necessary value, as well as restraint in new hires.
Unfortunately, we will still have to eliminate some positions, the extent of which will vary by colleges and units. Although many units looked first to identify existing vacancies that could not be filled, there also will be some direct reductions in currently filled positions. The impacts of these losses will surely touch all of us, but of course, none more so than those directly affected. I am grateful for the contributions of every Michigan State faculty and staff member, but we concluded that some workforce reductions are unavoidable to situate us to navigate our challenges and opportunities.
The next phase of this process starts in July, when colleges and units begin communicating directly with employees and implementing their plans. We will continue working with our employee unions, as well as on potential voluntary retirement incentive plans for some tenure stream faculty. We also will provide outplacement services to impacted employees, and the Employee Assistance Program continues to be available for free, confidential counseling services to all current employees.
We are determined that budget changes still protect the Spartan student experience, including delivery of courses and instruction. We will continue to invest in students, ensuring a high-quality, high-value education. We will maintain vital services such as police, food service and payroll at necessary levels to serve such a large, sophisticated organization. And we will continue to prioritize health and well-being and other support services so all Spartans can flourish.
Addressing challenges proactively
By recalibrating our financial planning, we will bolster the financial resilience needed to thrive in the years ahead. We will ensure the university has the resources to uphold our excellence across our missions of education, research and outreach. And we will maintain the accessibility of an MSU education.
I will continue to keep you apprised of notable developments, but activity will now center within our colleges and administrative units. I want to thank you all for your commitment to working as one team as we strengthen MSU’s place as Michigan’s state university now and in the future.
Sincerely,
Kevin M. Guskiewicz, Ph.D.
President
Professor, Department of Kinesiology