A Budget Update from Executive Leadership
Tuesday July 19, 2011
The 82nd Legislature’s Special Session has concluded and we are now working to formulate our fiscal year 2012 budgets, accommodating changes in the level of our state appropriations. UTMB, like many other state agencies, has been asked to absorb significant reductions in state funding over the next biennium. In total, a $114 million reduction will be shared across the academic, health system and institutional support enterprises.
Leaders throughout the organization are working now to finalize their individual budget and staffing plans. Our FY 2012 budgets and associated targets are based on our overall plans for increasing revenue from clinical and philanthropic sources, improving efficiency, and reducing costs without major programmatic reductions. The budget process will take several more weeks, with a goal of finalizing UTMB’s overall operating budget for FY 2012 by mid-August.
As noted in the June 27 Town Hall meeting, the reduction in state funding will cost us approximately 120 full-time-equivalent positions in the academic, health system and institutional support areas, with unfilled vacant positions counting toward that number. A reduction in force and reorganization within our Correctional Managed Care program also will occur. This week, we gave approximately 130 valued CMC employees 60 days’ notice that their positions will be eliminated or that they will be reassigned effective Sept. 16, 2011. (For more information, refer to the related FAQs.) Please note that the restructuring of the Correctional Managed Care program and the related reduction in force are also the result of a significant decrease in state funding, and in no way reflect on staff performance. On the contrary, we deeply appreciate the extraordinary job our CMC employees have done to ensure the best health care outcomes for their patients.
We realize that reductions in force, regardless of size, are troubling, particularly when people have been working so hard. We pledge to do all that we can to help all employees involved in the reductions make a smooth transition to a new role within UTMB or with another employer.
We know that everyone is anxious to hear the outcomes of the budget process. We appreciate your support and patience, and we ask that you keep sight of the fact that we have a strong record of success in overcoming financial challenges. We have been planning for reductions in the level of state support for some time and are confident we can manage this reduction without major programmatic cuts. Our plans for the future are sound, and we have talented and dedicated people working to achieve worthy goals that will allow us to further expand UTMB’s successes. More than ever, we have the invaluable support of people in Galveston, Houston, Austin, San Antonio, Dallas, Fort Worth and all throughout Texas, extending out around the nation and the world.
We will provide additional updates about the budget process in the coming weeks. In the meantime, please don’t hesitate to direct questions or concerns to any or all of us.
David L. Callender, MD, MBA, FACS
Garland D. Anderson, MD
Executive Vice President and Provost
Dean, School of Medicine
Donna K. Sollenberger, MA
Executive Vice President,
Chief Executive Officer
UTMB Health System
William R. Elger, CPA
Executive Vice President,
Chief Business and Finance Officer