McClain confirms fiscal exigency at UH

University of Hawaiʻi
Carolyn Tanaka, (808) 956-8109
External Affairs & University Relations
Posted: Jul 28, 2009

HONOLULU, Hawaiʻi — University of Hawaiʻi President David McClain confirmed today that a state of fiscal exigency exists at the university.

"For the foreseeable future, there is an imbalance between projected general funds revenues and planned general funds expenditures that cannot be addressed solely by increased efficiencies, or by drawing on the university‘s reserves or alternative revenue flows, such as tuition or research funding," said President McClain. "The September Council of Revenues projections may worsen this imbalance."

"As I have stated in my budget messages to the UH ʻohana, our situation requires a combination of compensation adjustments to be achieved through collective bargaining, increased efficiencies, and programmatic adjustments. Our collective bargaining discussions are ongoing, but have not yet produced the adjustments we believe we need. Under the terms of Article XVI of our collective bargaining agreement with the University of Hawaiʻi Professional Assembly, this declaration is the first step in a process under which our campus chancellors can identify for the Board of Regents areas for programmatic retrenchment that will produce general funds budget savings from that source.

"It‘s important to understand that the larger the compensation adjustments we can achieve through collective bargaining, the smaller the programmatic adjustments that will be required.

"Even as our enrollments are increasing, we need to sharpen our focus, guided by the strategic outcomes approved by our Board of Regents in 2008. These strategic outcomes emphasize producing more graduates to build the educational capital of our State; developing our workforce; diversifying our economy; meeting the needs of underserved regions within the State and underserved groups, particularly Native Hawaiians; and addressing our repair and maintenance backlog," said President McClain.

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