U of M officials consider cutting jobs ahead of expected budget shortfallby Tim Post, Minnesota Public Radio
St. Paul, Minn. — University of Minnesota officials are considering permanent job cuts and temporary lay-offs to fix an expected budget shortfall next fiscal year.
Richard Pfutzenreuter, the University's CFO, told the school's board of regents yesterday that he expects a $30 million dollar cut in funding as lawmakers wrestle with the state's budget deficit.
Combine that with the cost of a planned 2 percent raise for employees, and other operational expenses, and Pfutzenreuter said the U of M faces a nine-figure budget problem in the fiscal year that starts this summer.
"About $132 million dollars for the university, including an assumption of another pretty significant cut from the state, and we're starting to plan for that," Pfutzenreuter said.
Pfutzenreuter said the U of M has already cut 518 positions over the last year to deal with budget problems.
A tuition increase of 7.5 percent is also planned to raise revenue. Federal stimulus dollars will be used to hold the increase to 4.5 percent for in-state undergraduate students.