University of Montana (UM) is planning to reduce its expenditure and lay off certain personnel to overcome a budget shortfall of $16 million for the next academic year.
"We're projecting about a $16 million increase in costs next year over this year," said Michael Reid, vice president for administration and finance. "We're not going to have less money next year than this year. It's based on increased operating costs."
The university has pinned its hopes on this year's fall enrolments because out-of-state undergraduate and graduate students enrolling at UM pay higher tuition than local students.
Last year fall, the university saw a shortfall of nearly 700 in enrolments due to poor publicity surrounding scandals and fewer high school graduates.
The officials are also planning to generate new or additional revenue through cuts ranging from 2 percent to 8 percent, reduced operations, retirements within departments and cutting personnel in low-demand areas.
However, tenure-track faculty members are protected from any layoffs.
Earlier, the university generated enough revenue through high enrolment rates and adequate funding from the University System.
The university added positions and programs to meet the rising demand. But, now, it is facing a reduction in programs, facilities and personnel.
UM President Royce Engstrom said that the university is thinking of improving its student recruitment programs, increasing interactions with prospective students and offering heftier financial aid packages.
