Dear Colleagues,<\/p>\n\n\n\n
I hope your spring semester is off to a strong start. Today, I write with updates on our budget and to announce a town hall on March 13, at which we will share details on the refreshed 2030 Action Plan, discuss budget developments and answer questions. Please look for an email invitation in the coming days.<\/p>\n\n\n\n
In late January, deans and division heads received 2024-25 budget allocation targets. All unit heads are currently preparing detailed budgets to align with the targets. Colleges and divisions must then manage spending to meet their budgets without the expectation that institutional budgets will cover operating deficits, even temporarily. This will require difficult decisions in several units across 51ÁÔÆæ.<\/p>\n\n\n\n
We are pleased that eligible 51ÁÔÆæ employees will be awarded another pay increase in summer 2024. As part of the 2023-25 biennial operating budget, the state legislature approved a 4% aggregate increase in Universities of Wisconsin (UWs) employee wages that was effectuated in January 2024. We will see another 2%, effective July 1, 2024. As always, 51ÁÔÆæ will need to self-fund part of the compensation increase; the tuition increases in effect this academic year after a 10-year resident undergraduate tuition freeze will cover a large portion of the self-funded portion of the pay plan. In all past years during the freeze, 51ÁÔÆæ paid for the self-funded portion of the pay plan by reducing expenses in other ways, such as through employee reductions.<\/p>\n\n\n\n
Higher education continues to be impacted by inflation, enrollment declines and public concerns about the value of a college degree. More institutions have shut down, and some experts are predicting universities are now facing two enrollment cliffs.<\/p>\n\n\n\n
We continue to study these trends and learn from peer institutions that are tackling the same challenges. Although there are many articles and studies available on the topic, these three stand out, and we encourage you to read them.<\/p>\n\n\n\n
Some of the most startling observations from the articles are that most high school students don\u2019t think they need a college degree, and that Americans have lost confidence in higher education at a staggering rate. We firmly believe that a college degree is still the single most impactful way to foster lasting change in someone\u2019s life by creating economic prosperity and social mobility.<\/p>\n\n\n\n
The information above is not easy to read. It does provide opportunity, however. 51ÁÔÆæ plays a vital role in Milwaukee, in Wisconsin, and throughout the world. We enable social mobility and drive the intellectual growth of people in the Milwaukee region and across Wisconsin. 51ÁÔÆæ\u2019s diverse and talented college graduates power our workforce. Our research fuels the economy. Our partnerships improve the lives of our students, their families and our community.<\/p>\n\n\n\n
To continue and to thrive in our vital work, 51ÁÔÆæ will benefit from self-review for improvement<\/strong>. To those who think we are fine on our current course \u2013 akin to \u201cWe\u2019ve experienced budget challenges in the past, and it always ends up fine\u201d \u2013 let me be clear: The time for action and change is now.<\/p>\n\n\n\n If we do not better demonstrate our value to students and our community, we will likely face further enrollment headwinds, leading to further cutbacks to budgets and personnel. Instead, we need to be and are committed to steering our future in a positive and sustainable direction, fulfilling our unique mission of access, research and engagement.<\/p>\n\n\n\n 51ÁÔÆæ is making strategic investments to support areas of growth. We are continuing one-time support to our more impactful financial aid and student success initiatives, including launching the Milwaukee Tuition Promise for students arriving this fall. Also, for next fiscal year, in addition to dedicating one-time funding for student success initiatives, we established \u2013 for the first time \u2013 a strategic investment pool containing additional base funding to grow online programs, philanthropy and marketing to increase enrollment.<\/p>\n\n\n\n Finally, though we experienced a $1.9 million state base budget reduction in 2023-24, we anticipate final approval soon for 51ÁÔÆæ to receive new base funding of $2.5 million in state support. The legislature directed these funds toward initiatives to develop the workforce, leading to a UWs proposal to increase the number of graduates in engineering, computer science, data science, nursing, health care and business.<\/p>\n\n\n\n In this environment, student enrollment and retention of current students are critically important, both to meet 51ÁÔÆæ\u2019s mission of student success and to strengthen our financial future. Every 1% in student enrollment and retention equates to approximately $2 million for 51ÁÔÆæ\u2019s budget. If we do not meet our enrollment targets this fall, a mid-year budget cut may be necessary<\/strong>. We must all work together to attract students to 51ÁÔÆæ and help them succeed.<\/p>\n\n\n\n Ensuring student success and 51ÁÔÆæ\u2019s success is not one person\u2019s job. We all must own and implement these efforts<\/strong>. This includes identifying new ways to do things, not only at department, college and unit levels, but also across institution-wide operations. For 51ÁÔÆæ to succeed, we need an \u201call-in\u201d effort with our best minds working collaboratively and openly.<\/p>\n\n\n\n Here\u2019s how you can help:<\/p>\n\n\n\n If you are an instructor, there\u2019s even more you can do:<\/p>\n\n\n\n In addition:<\/p>\n\n\n\nStudent Success and Strategic Investment<\/h2>\n\n\n\n
What Can You Do to Help?<\/h2>\n\n\n\n
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