The Watchdog Post

UNO Vice Chancellor says great budget challenges yet to come

2010-01-31T16:50:00.000-08:00

The University of Nebraska at Omaha's Jan. 28 budget forum at the Milo Bail Student Center Ballroom again shed little light on the current financial shortfall, but did foreshadow what could be an even greater challenge in the future.
Citing a quote from State Sen. Mike Flood at the Jan. 22 Board of Regents meeting, Vice Chancellor Bill Conley said the shortfall for the next biennium—2011-2013—could be high as $1 billion.

To compare, the shortfall addressed at the last special legislative session was $334 million, with $8.8 million university-wide in the current year and $15.3 in the next year.

This figure-more than triple the previous shortfall-depends on such variables as state tax receipts, student enrollment, tuition increases or any future stimulus funding.

Despite an even greater fiscal storm looming on the horizon, Chancellor John Christensen, who led the forum, said any actions to balance the $4.3 million 2010-2011 shortfall are still uncertain. However, Christensen did express interest in a potential tuition increase.

"If the state continues to decrease support, there is no way, even with our commitment to access, that we are going to be able to maintain a 4 percent tuition level," Christensen said.

The Board of Regents will reach a decision on tuition in June 2010.

With the decrease in state funding, Conley said the tuition increase is still not enough to offset the recently approved 5.84 percent salary increase for all UNO faculty who belong to American Association of University Professors (AAUP) and the pending 1.5 percent increase for all non-faculty.

Of the 5.84 percent, 4.5 percent was effective retroactive to July 1, 2009 and the remaining 1.34 percent increase will take effect on July 1, 2010.

He said for every 1 percent increase in tuition, UNO brings in $333, 000, but if the 1.5 percent non-faculty salary increase is authorized, UNO will spend an additional $450,000 for every 1 percent increase, a difference of $117,000.

The 1.5 percent non-faculty salary raise for next year is another unknown is the pending, which awaits authorization from the Board of Regents, and is something neither Christensen nor his colleagues could offer any opinion.

Another unknown is the pending 1.5 percent non-faculty salary raise for next year, which awaits authorization from the Board of Regents. Neither Christensen nor his colleagues could offer any opinion.

"We simply don't know the answer to that question at this point in time," Christensen said.

He did reference Governor Dave Heineman's statement that said certain groups of state employees will not see raises and that state agencies are encouraged to look into the issue, but said there has not been a mandate to do so.

Despite the gloomy picture painted throughout the majority of the forum, there was one bright spot. Both Christensen and Conley said enrollment for the fall was higher than targeted, and enrollment for the spring has also remained strong.

Christensen also said he and others had contacted UNO alumni located in other states in an effort to organize increased recruitment of out-of-state students.

He said that in California, which is already the sixth largest representative of out-of-state-students, there are thousands of students who have been blocked out of in-state enrollment because of their own state's devastating financial crisis.
"But we don't have a lot of money to throw at out-of-state recruitment," Christensen said.

Christensen and Conley, joined by Senior Vice Chancellor Terry Hynes, asked the approximately 125 students, staff and members of faculty and the community who attended the forum to "be patient," and said they were open to all ideas and suggestions, emphasizing the desire to keep the decision-making process as decentralized as possible.

None of the speakers at the forum offered any blueprint, but Hynes said there would be "expectations" with the decentralizing of the process.

When asked to elaborate, Hynes said she would ask deans to take a "hard look at faculty- work load" or cutting under-enrolled classes, but made it a point to stress the

decentralization of the process.
Christensen said he is open to any suggestions made to the Board of Regents.

He said there have already been some who propose health coverage-furlough tradeoff.

An example of this would be an employee retaining full health coverage but volunteering to work at a rate 20 percent less than the current salary. However, any AAUP faculty cannot do this independently, as the AAUP as a whole makes any decisions on furloughs.

Echoing the lack of a coherent strategy, Christensen said the process would stay decentralized "as long as it made sense."
"We will continue to throw things at the wall and see what sticks," he said.

Nebraska Watchdog investigation unveils numerous tax funded "perks" at OPPD

2009-12-18T11:48:00.000-08:00

This comes from Joe Jordan, of Nebraska Watchdog:

"According to records obtained by Nebraska Watchdog, OPPD with its 2,400 employees is spending at least $960,000 on items that include $10,819 for basketball, bowling, and golf leagues, $37,956 for an employee picnic, $120,000 for “vendor and beverage services”, and $101,182 for service awards."

Lee Terry's "Local Community Radio Act H.R. 1147

2009-12-18T11:43:00.000-08:00

UNO budget forum sheds little light on cuts

2009-11-29T22:58:00.000-08:00

University of Nebraska at Omaha Chancellor Jon Christensen provided little detail, but said the current budget crisis is “unprecedented,” at the UNO budget-cutting forum on Nov. 19, 2009.

“We are in a new territory as a campus, in terms of the magnitude of the challenge,” Christensen said. “I would not be truthful if I said this is like what we would have to deal with in the past, because its not.”

Christensen said he did not have any specifics from central administration or the Board of Regents and would not receive any “system-arching orders” until January but still wanted to hold the forum to keep the process as transparent as possible.

“The forum had been planned with the assumption the Legislature special session would be over, but that’s not the case,” Christensen said. “But we will share the information as we promised all along, for you to know what we know.”

Christensen, accompanied by Terry Hynes, senior vice chancellor of academic and student affairs and Bill Conley, vice chancellor for business and finance, said they had few specifics about the cuts, but provided several scenarios and options in dealing with the cuts, as well as the reasons behind the shortfall.

Cause of Budget Cuts

September 2009 net tax receipts were $40 million, or 11.2 percent below the Nebraska Economic Forecasting Advisory Board’s April 2009 forecast. For the first three months of the current fiscal year, net tax receipts were down $57 million, or 6.5 percent from the forecast and down $68 million, or 7.6 percent from the 2008 actual, according to the UNO Budget Advisory Task Force Web site.

In addition to the $2.2 million shortfall in 2010 and $2.7 million shortfall in 2010, UNO faces an additional $3.8 million in cuts over the biennium—two-year-fiscal period—per the recommendations made Gov. Dave Heineman. Heineman recommended $1.4 to be cut in 2010 and $2.7 to be cut in 2011.

The Appropriations Committee, however, recommended a slightly lower number for UNO cuts, suggesting $1.4 million in 2010 and $2.4 million in 2011, a slightly lower total the Heineman recommendations.

A significant portion of the shortfall comes from the pending increases in salaries. UNO is looking at funding a 1.5 percent pay raise for all faculty, with a 3.8 percent pay raise for all AAUP (American Association of University Professors) faculty, something Christensen said could greatly affect the process.

“It (the salary increase) could be maintained, reduced or all-together eliminated, and I don’t know whether or not this will happen,” Christensen said. “But that would have huge impact as we move forward.”

Everything is on the Table

Christensen presented a list of possible strategies to resolve the budget issue:

• Early retirement agreements

• Maximizing workload productivity

• Furloughs

• Continued restraint in hiring

• Shifting from full time to part time staffing where feasible

• Reducing part‐time and/or temporary positions

• Voluntary reduction in hours worked

• Operating budget savings, such as travel

After presenting the strategies, he emphasized the uncertainty with these strategies.

“There is nothing written in stone, but at this point in time, everything is on the table,” Christensen said. “Whether they are realistic or possible, until we determine that it is unrealistic or impossible, everything needs to be considered; there is no agenda, there is no priority.”

Christensen said although he cared about access and the financial load students carry, it was his “personal hope” the Board of Regents would consider a tuition increase and suggested the recent 4 percent hike was not high enough.

He said instead of 4 percent, if the regents raised tuition to 6 percent it would be an additional $4 million off of the entire NU system shortfall, and if it went to 8 percent, it would reduce the deficit by $8 million.

“That is a slippery slope, because we have been very competitive, we want to provide access, as many of our students are first generation, underrepresented students for whom the fiscal challenges are many and are great, and we don’t want to take anyone out of play,” he said. “At the same time, the state revenue continues to trend down and we have to have to have a sustainable operation, so that’s the end of the day.”

Timeline

The UNO Budget Advisory Task Force will hold a meeting on Dec. 2, which is meant to further explain the situation and to provide any new details or information regarding the budget, specifically regarding the special legislative session that adjourned Nov. 20.

After Jan. 1, efforts to address the fiscal 2011 shortfalls will be made, which Conley said concerns him more than the current situation.

“The challenge for the next biennium looks possibly and likely worse as the federal stimulus dollars come in and are no longer gonna be available and will need to be replaced in some fashion,” he said. “So, what’s more concerning to me, is two years out. “

Christensen, Hynes nor Conley offered any specifics on how these strategies could or would be implemented, but did stress the decentralizing of the decision-making process.

Both Christensen and Hynes said it was important to empower deans and supervisors in particular units to put forward recommendations, rather than “something coming directly from Eppley.”

“We are trying to do our best to keep decision making decentralized where we can do that, so that we’re not making decision at just the Chancellors level or at the VC level.” Hynes said. “We are trying to make sure that the college level retains the ability to be able to make the decisions that are in the best interests of the colleges, of the other units on campus, so we can move forward in the best possible way.

Former US ambassador shares Mideast insight with UNO students

2009-11-29T22:43:00.000-08:00

Martin Indyk gave President Obama an "F" for his efforts to regain momentum in the Arab-Israeli conflict while speaking to a UNO crowd on Nov. 24.

The former U.S. ambassador to Israel gave his analysis of the U.S. effort to bring peace to the Middle East, both past and present, in front of a standing room only audience at Thompson Alumni Center.

Indyk, also vice president and director of the Brookings Institute, said he hoped his failures in brokering a peace arrangement between Israel and Palestine would serve as a “lantern on the stern” for the Obama Administration.

Indyk focused on 5 principle lessons from his book, “Innocent Abroad: An Intimate Account of American Peace Diplomacy,” lessons he said could not only serve as a guide to an American president resurrecting the peace effort, but also could be used to evaluate President Obama’s performance in doing such.

The first lesson: “It is better to try and fail than to not try at all.”

“Its important to try,” Indyk said, “because resolving the Arab Israeli conflict is in the greatest national interest, which is both promoting peace and stability in a region of vital concern to the united states and spread our relationships, friendships and alliances in the region and a ultimately a way of ensuring a free flow of oil. “

The second lesson: “If a president decides he wants to resolve the conflict, he has to shape the strategic context in which the leaders in the region have to make their decisions.”

“Today, shaping the strategic context amounts to the US finding a way to work together with the Arabs and Israelis because they face a common threat—to in effect, roll back Iranian influence, curb its nuclear ambitions and to show that peace making can triumph over violence and terrorism,” Indyk said. “But the U.S. needs to avoid getting sucked into the details, because then we lose the influence of our power.”

The remaining lessons included understanding the 21^st century Middle East environment is vastly different than a decade ago, finding a sense of urgency with Arab leaders and Israeli leaders and being aware of unintended consequences of American action in the Middle East.

Overall, Indyk said Obama has been ambitious in his effort to lead the peace process but has come up short in success.

“After almost 11 months, it is not going very well,” Indyk said. “If you were grading, he would get an E for effort, but an F overall.”

Al Tompkins speaks to UNO journalism students

2009-11-24T20:11:00.000-08:00

Speaking to a group of select University of Nebraska at Omaha journalism students, Al Tompkins shared his insight about the journalism industry of today and tomorrow.

Before starting his PowerPoint presentation, Tompkins discussed what he said is a "bright future" for an industry which many have said is in decline.

Tompkins, Broadcast and Online Group Leader at the Poynter Institute, said technology and expertise will create jobs for journalists.

"If you are smart enough, good enough and persistent, you are gonna find work," he said.

Using technology as his reasoning, Tompkins spent all of three hours giving a presentation of the most significant new journalism technology, something he said is creating a new era of journalism.

"Its gonna get real cool, real soon," he said.

He rattled off a plethora of different software, tools and devices, with some as basic as Twitter and Flip cameras and others reminiscent of James Bond or Mission Impossible gadgets.

One program allows video to be manipulated much like a photo in Photo Shop.

For example, an image could be replaced with another image without even the slightest change in video quality--and this is video, not still photo.

"This type of technology could either be used to do good, or it could be used to be very evil," Tompkins said.

Tompkins said even with technology, it will take something more to be successful in a increasingly competitive and independent industry.

"Its all about the story," he said. "If the story is strong, people will watch, or read."

UNO chancellor to hold budget forum Thurs

2009-11-18T07:47:00.000-08:00

The University of Nebraska at Omaha Chancellor John Christensen will host a campus forum explaining the university budget on Nov. 19 from 10 to 11 a.m.

The forum will focus on any possible changes to the 2009-10 UNO budget coming out of the special session of the Nebraska Legislature.

"We want to share with everyone what we know," Christensen said in a statement. "There will be questions that we won't be able to answer, but beginning this conversation again is extremely important.”

This comes after NU President J.B. Milliken said during testimony at the special session of Nebraska Legislature more than 300 jobs will be cut from the University of Nebraska system.

Milliken said the cuts are the result of the state budget cuts Governor Dave Heineman has proposed.

Under the proposal, the university system would have to cut $9 million in spending and an additional $17 million would be cut from the 2010-11 university budget.

Milliken also said in his testimony the cuts will affect UNO and Kearney campuses the most, as both have higher demands in salary increases over the next two years.

Faculty at UNO is scheduled for a 3.8-percent pay raise in that time., which Milliken said leaves UNO with fewer options in taking budget cuts.

Thursday’s forum will be in the Dodge Rooms on the third floor of the Milo Bail Student Center and early arrival is encouraged, as only 140 seats are available.

UNO faces more job cuts as state to cut funding

2009-11-13T08:51:00.000-08:00

The University of Nebraska system will cut up to 300 jobs, NU President J.B. Milliken said at the special budget cutting session of the Nebraska Legislature.

Milliken said the budget cuts will most impact the University of Nebraska at Omaha and Kearney because those universities have an higher emphasis on faculty salary.

UNO faces a 3.8 percent salary increase over the next two years, per a ruling by the State Commission on Industrial Relations, a ruling that has been appealed.

More to come on this story.

Buffet railroad purchase a bet against dollar, says IMF economist

2009-11-07T06:15:00.000-08:00

Simon Johnson, former chief economist for International Monetary Fund and current Ronald A. Kurtz Professor of Entrepreneurship at the Sloan School of Management at MIT, said Buffet's recent purchase of Burlington North Santa Fe is mostly betting on emerging markets, not the recovery of U.S. markets, as many have suggested.

Thus, as Johnson states, "it is a polite way of betting against the dollar or, even more politely, on an appreciation of the renminbi."

Johnson said:

By betting on commodities, Mr. Buffett is essentially taking an “oligarch-proof” stance. Powerful groups may rise to greater power around the world, fighting for control of raw materials and driving up their prices further. As long as there is growth somewhere in emerging markets, on some basis, Mr. Buffett will do fine.

Read the entire blog posting at Baseline Scenario.

Matt Miller at UNO

2009-11-05T07:19:00.000-08:00

Matt Miller, author of Tyranny of Dead Ideas: Letting Go of the Old Ways of Thinking to Unleash a New Prosperity said the way to challenge the powerful vested interests who prop up dead ideas is to organize and create a movement.

Nebraska Watchdog ask Gov. Heineman about pay cuts

2009-11-05T06:45:00.000-08:00

Federal shield law compromise reached

2009-10-31T22:44:00.001-07:00

The White House and senators reached a compromise on a federal shield law to protect journalists who refuse to reveal their sources, but limited its application to cases involving federal criminal prosecutions and national security.

Decisions between forcing testimony and granting shield to journalists receiving subpoenas are treated differently, depending on whether the subpoena is brought in a civil trial or a criminal trial.

In a civil trial, journalists are the most protected--the litigant would be forced to demonstrate why their need for the information would serve a greater public interest than the journalist's need to protect their source or the information they obtained.

In a criminal trial, the journalists would be forced to demonstrate by a higher standard--"clear and convincing" is the language used--that their need to protect confidential sources or information outweighs the public interest to be gained by providing testimony.

Journalists who get subpoenas for information that could prevent a future act of terrorism or other specific harm to national security would get no balancing protection, and would be forced to testify.

The compromise also expands the definition of those covered, eliminating previous language that required those individuals to be employed by or to have a contract with a news organization.

Under the new language, protection would be available to people who have the "primary intent...to disseminate to the public news" from the "inception of the news gathering process."

Consequently, coverage would be available to student journalists, freelance authors, book authors, people who write for local news outlets without pay and potentially, to many bloggers.

Congressman Lee Terry Statement on Simple Universal Healthcare (SUH) Act of 2009

2009-10-30T21:26:00.001-07:00

UNMC chancellor buys Porsche with NU Foundation funds

2009-10-06T14:07:00.000-07:00

Nebraska Watchdog reported the University of Nebraska Medical Center purchased a 2009 Porsche Cayenne with money from the University of Nebraska Foundation.

This comes only months after a University of Nebraska 4 percent tuition increase.

The article, written by Joe Jordan, can be read here.

Former presidential candidate in Omaha Tuesday

2009-09-28T11:18:00.000-07:00

Consumer advocate and past presidential candidate Ralph Nader spoke at the Borders Bookstore on 72nd and Dodge Streets at 7 p.m. on Sept. 29.

He will be signing his new book, "Only the Super-Rich Can Save Us!"

He also spoke at The Natural Kind Cafe on 38th and Harney Streets at 3 p.m.

Pictured above right: Nader speaking at the UNO Scott Conference Center in Fall 2008. Photo by Patrick Favara

Lee Terry statement on health bill

2009-09-24T19:39:00.000-07:00

Representative Lee Terry spoke about H.R. 3200, the health bill, at the Senate Energy and Commerce Committee Health Markup of H.R. 3200.

City Council approves budget

2009-09-15T14:22:00.000-07:00

The Omaha City Council approved today a budget that included a 10 percent property tax increase.

In a 4-2 vote, the approved budget will increase about 4.2 cents more per $100, with council members Pete Festersen and Jean Stothert opposing the increase.

Council member Franklin Thompson, who supported the budget, said he voted for the increase only as a "last option," and reminded the council that the deadline for the budget is Friday, September 18. "We are running out of time here," Thompson said. "We have to drop the ideals and move on."

The council also failed to override two items vetoed by Mayor Jim Suttle. The items in question, a 2 1/2 day voluntary furlough for city employees and a plan to cut 30 police cruisers from the 2010 budget, both failed 3-3. Five votes are needed to override vetoes.

In a rare agreement, the council voted unanimously to kill a 1 percent entertainment tax and satellite dish inspection fee, both of which faced public hearings today.

UPDATE: City Council Journal from September 15, 2009. Click HERE.

Suttle criticizes MECA's operations

2009-09-13T16:20:00.000-07:00

In a letter to the Metropolitan Entertainment and Convention Authority, Mayor Jim Suttle questioned whether MECA is following the Nebraska Open Meetings Law, according to Joe Jordon of NebraskaWatchdog.org.

The law in question states that public business "cannot be operated in secret," which is what Suttle is most concerned. According to Jordan, Suttle became concerned after MECA Chairwoman Gail Werner-Robertson and President/CEO Roger Dixon offered a $5.6 million advance in return for Suttle dropping his proposed entertainment tax.

The article can be read in its entirety here.

OWH School Budget Summary

2009-09-13T10:42:00.001-07:00

Here is the most recent OWH summary for school budgets in Douglas County.