POCATELLO — Idaho State University will implement both mandatory furloughs and layoffs as part of a broader plan addressing an anticipated $16 million budget deficit.

ISU President Kevin Satterlee announced the grim details to university workers and students in a recent YouTube video, https://youtu.be/sBQRJ4phGjw. Satterlee attributed the budget deficit to a combination of state budget cuts, losses due to the COVID-19 crisis and a decline in student enrollment.

{p class=”p1”}”I understand this information is heavy and there’s no way around that, and I’m sorry we find ourselves in this situation,” Satterlee said.

Each college and division drafted proposals to make budget cuts of 4%, 5% and 6%. Members of a council of academic and administrative leaders met with representatives from the Faculty Senate, Staff Council and Associated Students of ISU from April 21-23 to consider the proposals.

“The leadership council reviewed each budget proposal and made recommendations as to what level to reduce the budgets, and in some cases asking for alternative proposals,” Satterlee said.

In addition to saving $2.2 million by cutting certain filled positions, Satterlee said ISU plans to save another $4.5 million by eliminating many vacant positions.

“Employees impacted by next year’s budget reductions are contacted by supervisors and Human Resources,” Satterlee said. “Some of those notifications have occurred and some are still pending.”

Mandatory furloughs during the next fiscal year should save an additional $2 million, and the university also plans to start a voluntary furlough program.

By category, the budget for classified staff will be cut by 3.8%, saving $1.1 million; non-classified staff will sustain a 6.7% cut, saving $3.3 million; and faculty will take a 3.3% reduction, saving $2.3 million.

The temporary and irregular salary pool, which includes adjunct salaries, will also be reduced by $900,000.

ISU anticipates saving an additional $2.75 million by pooling any salary savings compared with the amount each department and division budgeted into a single account.

Because the university sought to prioritize making reductions that would pose the least significant impact to students, cuts were not equal among colleges and divisions, Satterlee explained.

Under Academic Affairs, cuts were 5.2% to the College of Arts and Letters, 4.3 percent to the College of Business, 5.1% to the College of Education, 4.8% to the College of Science and Engineering, 5.1% to the College of Technology, 5% to graduate schools, 5% to university libraries and 4% to Academic Affairs.

Health program cuts were 2.5% to the Kasiska Division of Health Sciences, 5.2% to the College of Nursing, 4% to the College of Pharmacy, 5% to the College of Rehabilitation and Communication, 5% to the Meridian campus and 6% to Health Sciences.

In other areas, cuts were 6% to the Idaho Museum of Natural History, 4.6% to athletics, 4.1% to Student Affairs, 4% to Enrollment Management, 6% to University Advancement, 13.4% to the Office of the President and 6.6% to Finance and Business Affairs.

ISU will cut $3.6 million from its ongoing operating expenditures, and Satterlee said ISU anticipates generating $500,000 in new revenue from some growing, high-demand programs.

Satterlee said federal CARES Act funding and university reserves should also help ISU balance its budget by June 30, 2022.

Satterlee explained the school year started with a $6 million deficit, and Gov. Brad Little announced a 1% holdback at mid-year that equated to a $1 million cut. Enrollment declines last fall and this spring added another $3 million to the deficit. To help the state mitigate for COVID-19, the governor asked for another 1% holdback, and the state has announced plans for an additional 5% holdback next fiscal year. Furthermore, one-time expenses related to COVID-19 have cost the university another $3 million.

Believing institutions can’t “cut their way to prosperity,” Satterlee said the leadership council also reallocated $1.14 million toward a host of strategic investments, which will also be built into future budgets, to bolster student recruitment and retention and address pressing workforce needs. Satterlee said the expected annual return on those investments in $1.2 million.

Satterlee said ISU has retained one-time expenses for the next year of $650,000 on a statewide marketing campaign and $69,500 on setting up a student communications system, both of which should help with recruitment and retention.

“Before the pandemic hit, our efforts were working: Our statewide brand image campaign, our increased student recruitment efforts and our other efforts were seeing results,” Satterlee said.

In early March, new student applications were up 15% and housing deposits were up 14%, he said.

“We all know things have changed and we are in a fluid situation with college enrollment, but we must continue our efforts in this regard as investments in our future,” Satterlee said.

Heading forward, Satterlee said the university will move toward a budget model with more mutual accountability, meaning divisions will have more ownership over budgetary savings and greater responsibility for fiscal stewardship.

He said ISU must also be prepared with contingency plans for future operational and financial challenges.

“We hope to be fully operational in the fall, but based on public health guidelines we will also be preparing for the continuation of social distancing,” Satterlee said.

He said additional safety protocols may be necessary, such as changes in classroom scheduling and enrollment caps.