About 100 Adams State students and staff members gathered on campus today to express outrage toward a recent proposal by the Colorado Joint Budget Committee to cut the state higher education budget by $300 million - about half.

"We need students like you to be in college, and we need it to be affordable," event coordinator Robin Pryor told the crowd. She is vice president for external affairs of the Adams State student government.

"We need to let lawmakers in Denver know that we at ASC are not going to just sit on the sidelines and do nothing. We are upset. They need to know how this affects every one of us." She urged students to contact their state legislators and tell them, "We're not happy."

Adams State President David Svaldi shared the latest news from Denver: that Senate President Peter Groff had directed the group to restore the higher education budget and find other areas to cut.

"We hope the $300 million is going to be restored to higher education." Svaldi said the college has already cut $571,000 from the current fiscal year budget, and had been prepared to cut about $1.5 million from fiscal year 2009-10.

He explained the proposed cut would equate to $8 million for Adams State - over 60 percent of the college's general fund income. State general funding primarily supports academic programs and faculty salaries.

"A lot of students are alarmed," said freshman theatre major Sierra Sterling, from Crestone. "A lot are on financial aid and are first generation students. We know it's really important to graduate college. Having that possibility threatened is scary."

Deidra Pourer, a freshman who lives at home in Alamosa, said she currently pays for college through financial aid and grants. "I don't know if I'd be able to come back next year if these cuts caused a big tuition increase."

Svaldi told the group, "We're going to do our very best to keep the cost of education affordable for you here." He said returning undergraduate Colorado resident students could expect a tuition increase next year between 7 and 9 percent - not in the double digits, as speculated in the press.

"The best way for you to help ensure that this doesn't continue to happen every time there's an economic downturn is to demand that Colorado join the 21st century and have a 21st century plan for education," he said.

Pryor told her fellow students: "This is a very special campus. I'll bet every one of you can walk across campus and meet five friends. There is amazing outreach from our teachers and administrators. They support us every step of the way."

Kaitlyn Perham, a freshman theatre major from Greeley who carried a protest sign at the rally, concurred: "Adams State is amazing. It's one of the best schools ever. Our professors know our names, the classes are small. We would lose a lot of great professors and have large classes if these cuts went through."

You can predict that every time the business cycle takes a downturn, Colorado's colleges and universities will take a hit. This time the proposed cut is huge, with approximately $403 million being chopped from an initial $708 million budget. Adams State College's share of this proposed cut is over $8 million dollars -- somewhat more than an AIG CEO bonus, but a drop in the bucket that used to be Colorado's Higher Education's budget, now three-quarters empty.

I know there is a proposed fix that between some Federal stimulus funds and raiding the PINNACOL reserve may keep us afloat for another year. However, if legislation designed to raid this fund isn't successful, Colorado will not qualify for the stimulus funds, as support for higher education will drop below the legal requirement.

Adams State will be in a hell of a fix. Some will say we can raise our tuition to make up the difference. It's ironic that some of the very folks proposing to foist a huge tuition increase on Colorado college and university students are those who oppose tax increases for any reason.

But our college students will not get an opportunity to vote on these increases and -- whatever happens with the state budget -- many will be faced with double-digit tuition and fee increases. Many students will vote with their feet and find they cannot afford college at exactly the time they need to be preparing to help clean up the mess previous generations have made of the national economy and the nation.

We are seeing the beginning of the end of state-supported higher education in Colorado. The larger institutions with diverse streams of revenue will survive, and in doing so will become an even more expensive proposition for Coloradans. Smaller, rural institutions like Adams State may not make it, and the regions we serve will become even more economically depressed. The results will be loss of population and loss of state tax revenue. Even worse, we will severely limit the opportunity for poor and first-generation college students to earn a college education.

Someone at the capitol needs to stand up and provide long-term thinking and leadership. The one year fix, if successful, will only postpone a substantial funding cut. Who is thinking beyond the next election to safeguard Colorado's future? What happened to the Colorado Promise? It seems hollow at the moment.

The reduction will be achieved through the following:

Academic departments will not be impacted by the freezes on operating budgets or hiring, Svaldi noted. Most of these reductions/shifts will continue into the 2009-10 fiscal year budget, Svaldi said.

Because 84% of Adams State's graduate student enrollment is now delivered through Extended Studies, it is logical for that area to assume the graduate budget, explained Provost Michael Mumper.

"Moving the Graduate School from the General Fund to cash reflects the changing character of our graduate student population. The budget adjustment does not imply any changes in the organization or administration of the Graduate School. We are simply paying for this out of a different budget category that does not rely on state funding," Mumper said.

As part of statewide budget rescissions resulting from shortfalls in state revenues, the Department of Higher Education budget was permanently cut by $30 million in the current year. As a result, Adams State must cut 4 percent of this fiscal year's budget. The college's total operating budget is $38 million, with $13 million from state general funds.

The Governor's Budget Office recently announced a budget rescission in response to shortfalls in state revenues. The Department of Higher Education budget was permanently cut by $30 million in the current year. As a result, Adams State must cut $557,000, or 4 percent, from this fiscal year's budget.

"I am relieved to report that it appears Adams State will meet this initial round of reductions. For the time being, current employees are not impacted by this first round of reductions," Svaldi added.

College administration this week identified roughly $557,000 to meet the cut through the following:

Svaldi will formally accept/reject individual recommendations to reach the $557,000 amount later this week.

It is likely that the state will make more cuts to higher education budgets next fiscal year, with Adams State's share estimated to be $800,000, said Bill Mansheim, Adams State vice president for finance and administration. In total, the college's state support will be reduced by an estimated $1.4 million between the current year and next. The college's total operating budget is $38 million, with $13 million from state general funds.

"Our much harder task is making an additional $800,000 in cuts for the next academic and fiscal year, while continuing the first $557,000 in cuts," Svaldi said.

The college's expanded Executive Council will continue to meet to develop recommendations, he added. Administration plans to finalize budget decisions by Jan. 30 for this fiscal year and by Feb. 28 for FY 2009-10.

The council includes Svaldi, Mansheim, Provost Michael Mumper, Associate Provost Frank Novotny, Dean of Students Ken Marquez, Associate Provost Diana Wentzel, and Interim Athletic Director Larry Mortensen.

College employees are being encouraged to submit cost-saving suggestions via a website The site provides updates on the budget process and a forum for suggestions and discussion.

The college held two informational meetings last week for all college employees to explain how Adams State will address cuts in state funding for fiscal years 08-09 and 09-10.

"We're not looking simply to make cuts, but for ideas that will increase enrollment or earn new revenue," Svaldi emphasized. "Personally, I don't favor across-the-board approaches. Any budget reductions must be strategic.

The college must also replace $460,000 of programmatic support from the ASC Foundation, as a result of investment losses. That funding primarily covered incentive scholarships, student work study funding, admissions recruiting travel, and the Summer Bridge program. The college had already adjusted the budget in response to a projected revenue shortfall of $166,000 due to an enrollment decrease in the fall 2008 semester.

"In the past, we relied on the Foundation too heavily, and that needed to be changed," Mansheim said.

ASC Provost, Dr. Michael Mumper, noted several positive trends that will help the college weather these cuts:

He added that additional revenue is expected from a new MBA program, new sports programs, the Counselor Ed program online, and housing initiatives.

"We are looking for additional programs like these," Mumper said. "We've done a lot of good things, but we've got to sustain them."

Two such meetings were held for all college employees to explain how Adams State will address cuts in state funding for fiscal years 08-09 and 09-10.

"We're not looking simply to make cuts, but for ideas that will increase enrollment or earn new revenue," Svaldi emphasized. "Personally, I don't favor across-the-board approaches. Any budget reductions must be strategic.

"There is no secret plan. We absolutely need all of your help and suggestions."

The Governor's Budget Office recently announced a budget rescission in response to shortfalls in state revenues. The Department of Higher Education budget was permanently cut by $30 million in the current year. ASC must cut $557,000, or 4 percent, from this fiscal year's budget. It is likely that the state will make more cuts to higher education budgets next fiscal year, with ASC's share estimated to be $800,000. In total, ASC's state support will be reduced by an estimated $1.4 million between the current year and next. The college's total operating budget is $38 million, with $13 million from state general funds.

Administration is planning to finalize budget decisions by Jan. 30 for this fiscal year and by Feb. 28 for FY 2009-10.

The college must also replace $460,000 of programmatic support from the ASC Foundation, as a result of investment losses. That funding primarily covered incentive scholarships, student work study funding, admissions recruiting travel, and the Summer Bridge program. The college had already adjusted the budget in response to a projected revenue shortfall of $166,000 due to an enrollment decrease in the fall 2008 semester.

"In the past, we relied on the Foundation too heavily, and that needed to be changed," Mansheim said.

ASC Provost, Dr. Michael Mumper, noted several positive trends that will help the college weather these cuts:

He added that additional revenue is expected from a new MBA program, new sports programs, the Counselor Ed program online, and housing initiatives.

"We are looking for additional programs like these," Mumper said. "We've done a lot of good things, but we've got to sustain them."

Mansheim also emphasized the importance of increasing enrollment and retention.

Mumper said the campus will be updated on the budget weekly, and more campus-wide informational meetings will be scheduled.

Faculty and staff may also check for updates and make suggestions via the website: Comments and suggestions will remain anonymous.

By now many of you are aware that Colorado state budgets are facing cuts both for the remaining months of this fiscal year and next year's base budgets. While specifics are not yet available, it appears that ASC faces a minimum of a 10% (approximately 1.4 million dollars) base budget cut over this fiscal year and next.

Given the magnitude of the cuts, there is no way to move forward without affecting every area on campus. Operating budgets, as well as staffing across campus, will be affected. We need to work together, making strategic cuts to achieve the required savings while investing in the long term growth and success of the institution. I will not ask you to make any sacrifices that I am not willing to make myself. I want to emphasize that the entire campus will have to do more with less for a time.

We have already taken some steps and eliminated some administrative positions. The Cabinet group will look at ongoing operational expenses for efficiencies and reductions. Dr. Mumper and I have asked Dr. Novotny to join the Executive Council and assist in its role in this process. We would appreciate any suggestions you might have. We will create a virtual suggestion box to collect your input in the near future.

I know these are frightening times, but there were frightening times in 2002 also and this time around ASC is in much better financial condition than in 2002. We will get through this downturn and there is every reason to believe, to have an "Audacity of Hope," that we will come out a stronger, more vibrant, institution. Right now, we need to pull together and retain our optimism for our students and our families. The one thing that can make the most significant impact is an enrollment increase in the fall. For every 5% increase in enrollment, ASC generates about $700,000 of revenue, a 10% increase would offset the cut.

My best regards to all of you,
President Svaldi

Before many of you depart for a well deserved break, I need to update all of you on pending issues, both at the State level as well as issues with our own Foundation which will affect ASC's financial resources this year and next. Reading about events in the newspaper or on-line should not be the first time you hear of these issues. Obviously the state of our national economy is now impacting all of us and especially state revenues and the earnings of private foundations.

We are hearing from dependable sources that a rescission order is probable for this fiscal ear. This means a certain percentage of new funds we were initially awarded for this fiscal year will be "called back". As of this writing we do not have a percentage that we can translate into a number. For us, any decrease will be painful. We will need your help and advice as we make determinations in how we cope with a mid-year decrease in funds. As of this writing, I am suspending all new searches and new spending until we can prioritize positions which we fill and those which we hold open. Searches for faculty positions already advertised may continue but a final determination on which positions are filled and which may be held vacant still needs to be made. I will say that the classroom is the last place where we want to cut positions and we will look at gaining efficiencies in administrative and support positions before we make any decisions on classroom positions. One idea being discussed which would achieve immediate salary savings is a mandatory unpaid furlough for administrators making more than $50,000. Initial calculations project that for each day of furlough, would generate about $10,000/month of salary savings. I am sure some of you can think of other advantages to having administrators on furlough..... The rescission will not only impact us this year but the cut will most likely carry into the next fiscal year. The outlook for new funds for the next fiscal year is thus bleak as are the possibilities for raises for all exempt staff and faculty. Constitutionally, we will be required to award classified staff market salary increases which are based upon the Colorado Department of Personnel and Administration salary survey, but we do not anticipate the funding of Achievement pay.

Second, we are in the midst of restructuring the ASC Foundation Office. With volatility in the stock market, there have been literally no earnings on much of the corpus held by the Foundation. This means little interest has been earned which can be used to pay staff. This has impacted their staffing and 2 of their positions have been cut with those employees transferred to vacant positions elsewhere on campus. However, scholarships will still be awarded but the number of such scholarships may be decreased as the interest from endowments has decreased. Moreover, over the last few years, the Foundation has funded a number of program costs primarily in Enrollment Management and Admissions. Because of the decrease in interest earnings, ASC institutional funds will need to be used to fund the high priority program costs both this year and next. This is an added burden to our General Fund Budget. Fortunately, our Extended Studies Division has continued to earn record profits and some of those funds may be used to offset some of these unanticipated costs.

After break, we will seek help and advice from Faculty Senate, Classified Employees Council, Academic Council, Cabinet and all of you. While I want to stress that NO decisions will be made prior to thorough consultation and communication, our time line is short and decisions must be made before the end of January.

I wish I had better news to share during this usually merry time of year. I would say that the above issues are largely beyond our control. Few economic experts saw this recession coming and literally no one knows how deep or how long it will last. Nothing quite like it has happened before. We will work very hard with you to meet the challenges. Thank you for your work and your dedication to our students.

President Svaldi