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Tough Economy Hits Colleges

Two High-Profile Institutions Feel Impact

POSTED: 6:29 pm EST December 3, 2008
UPDATED: 9:37 am EST December 4, 2008

The Douglas administration advised the University of Vermont Tuesday night it plans to cut taxpayer funding for UVM by 9 percent this year, part of an emergency package of spending cuts under review in Montpelier given the growing economic recession.

Tough Economy Hits Colleges

The letter to UVM proposed an immediate $3 million reduction in previously approved funding, on top of a $1 million cut this fall. Sources said the state colleges received a similar notice.

The news worsens what was already an "unprecedented" budget crisis for UVM President Dan Fogel, who had just announced plans to freeze salaries for 500 of UVM's highest paid staff, while eliminating roughly 100 positions from the school's 3,700 person payroll next year.

"We can't make our budget targets without having fewer people (working) at the University," said Richard Cate, UVM vice-president of finance and administration. Cate said "one way or another, we'll probably need 100, somewhere in that range," referring to job cuts across campus. He emphasized some reductions may be possible through attrition or leaving faculty positions vacant.

Cate and Fogel plan to review the fiscal outlook with UVM Trustees this weekend.

Features include: a pay freeze for all university employees earning more than $75,000 annually who are not otherwise covered by union contracts; and postponing capital construction projects not already underway.

Some students said they were not surprised to learn of the school's budget crisis. "I love my school to death. but certain things are just not right," said Chandler Godette, a UVM junior from Bronx, NY. Godette pointed to lavish spending on campus construction since his arrival in Burlington.

Kaitlyn Keenan, from East Longmeadow, MA agreed. And of the president's salary freeze, "I'm not really sympathetic," she said, "they make enough money in my opinion."

Cate said the outlook for 2009 student enrollment and financial aid "looks very strong." UVM is expected to expand its student population to bolster the bottom line.

Across Chittenden County, Champlain College and St. Michael's College presidents have each issued reassuring statements to their campus communities in recent days. Neither have imposed hiring or pay freezes.

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