I wanted to share this message, which I sent to our faculty and staff today:
The regular session of the Legislature ended on Monday, and I want to give you an update. In the current budget, which must be completed during the special session, the 2012-2013 budget for UT Austin will be down by 16.5% from the original 2010-2011 budget.
This represents a $92.1 million decrease in funding for the 2012-2013 biennium compared to 2010-2011. The impact of this is complex and could change as a result of action taken in the special session. But if these changes stand, the budget reductions will be close to the cuts that the units were anticipating. Budget reductions of this scale will be painful, but careful planning by the University Budget Council, the deans, department chairs, and vice presidents will make them manageable.
The cost of group insurance may increase, and there may be revisions to annual deductible amounts and copayments. The employer contribution to retirement plans could also be affected.
Finally, there is the question of how this budget will affect salaries for faculty and staff. That decision has yet to be made. The University Budget Council will review the situation and reach a decision by the end of June. And of course, I will keep you informed.
I know there has been a great deal of uncertainty about our budget, and I want you to know that we are doing our best to minimize the negative impact of these cuts on our people and programs.
I appreciate everything you do for UT.