Update from the President
A Letter to the UT Community
The University of Texas at Austin
February 9, 2001
Dear Colleagues:
About 11 months have passed since I announced the administrative reorganization of The University. It's time for an update. At the same time, I want to take the opportunity to report other news. With the exception of one major development, most of this information is encouraging.
On January 1 of this year, Dan Updegrove joined us as Vice President for Information Technology. With his arrival, we have created for the first time a comprehensive organization to address the wonderful opportunities opened by the revolution in information technology and telecommunications. Dan has ambitious plans and the experience to make something of them. Last May, Pat Clubb was named Vice President for Employee & Campus Services, and she and her team have done an outstanding job of building a strong service-oriented organization. The arrival of Kyle Cavanaugh as Director of Human Resource Services was an important step forward in a critical area of campus operations. At present, we are in the final stages of the search for the Vice President for Public Affairs, and I hope we will be in a position to make an announcement in the next few weeks.
Our reorganization has dealt not only with administrative structure, but also with restructuring our decision-making councils and with the improvement of processes for handling the business of the University. This is work that will continue for some time yet. I have been consistently impressed with the excellent spirit with which all of the vice presidents and many others across the University have approached these changes. I am deeply grateful to all of you who have helped with the transition. We are indeed building a structure and adopting habits that can address the complexities of the research university of the 21st century.
In addition, there is much good news about the achievements of your University. While I do not have the space to be comprehensive, here are a few highlights, organized along the lines of the six strategic themes that I have consistently emphasized since my first State of the University Address in 1998:
Last November, we announced the creation of the Harrington Fellows program, which will fund teaching and research fellowships for leading graduate students and faculty. This world-class program, consistent with our quality improvement theme, will greatly strengthen UT in areas where we have been at a competitive disadvantage. Another important development that I should cite under the theme of improved quality is the advent of UT Direct, a web portal that allows students, applicants, faculty, and staff to manage many aspects of their business with the University in a personalized way--and without standing in lines. This advance, made under the leadership of our information technology professionals and with collaboration from many units across the University, puts UT in the vanguard of using information technology to provide better service to all our constituents.
Through efforts such as the Longhorn Opportunity Scholarships and the UT Ex-Students' Association's Texas Leader Scholarships, we are attracting more outstanding minority students to our campus. In the freshman class, we have made gains in Hispanic and African-American participation large enough to have erased the losses caused by the Hopwood decision. The number of African American students in this year's freshman class at the School of Law is almost twice that of 1999-2000 and Hispanics increased 21 percent. The most effective way to achieve a broadened sense of ownership is to serve a student body that is more representative of the population of Texas.
We have begun the first stage of expanding the faculty in order to enrich the learning experience and decrease the student-faculty ratio. Our goal is to add 300 new faculty positions within 10 years or less, which will also address our theme of enhancing the undergraduate experience. The great success of the Freshman Interest Group program, now quadrupled in size from its start in 1998, is another notable achievement. We can all take pride in the fact that this year, for the first time in our history, our freshman retention rate reached a figure above 90%.
Last October we dedicated the Advanced Applied Computational Engineering and Sciences Building, designed to foster creativity at the leading edge of engineering, computer science, and mathematics. Three hundred graduate students, more than 70 faculty members, and 40 visitors from industry and academic institutions will work in this extraordinary facility, advancing our support for the new Texas economy. Other important developments include the advent of the Evening MBA Program and imaginative new offerings by distance learning for working professionals in engineering and other fields.
Our expanded UTeach program has been very successful in recruiting outstanding students for careers as K-12 teachers of science, math, and the liberal arts. Our contribution to improved public education effort also includes a new Teacher As Scholars enrichment program being offered through the UT Humanities Institute. The program will bring public school teachers to our campus for three-day seminars taught by our best faculty in a wide range of disciplines to foster intellectual growth and stimulation.
The University is extending its leadership in Latin American programs by means of a $10 million gift from Joe and Teresa Long to fund travel scholarships, graduate fellowships, teaching fellowships, endowed professorships, and undergraduate scholarships at the renamed Teresa Lozano Long Institute of Latin American Studies. In addition, we recently entered into an agreement with the Brazilian Ministry of Education to establish undergraduate, graduate, and faculty exchange programs with select universities there. UT will gain a chair in Brazilian studies and form research teams with Brazilian institutions in earth science, technology, social sciences, and environmental science.
Amid all this progress, UT is facing a significant obstacle in the form of soaring energy costs. On the main campus, we generate our own electricity and steam with a power plant fueled by natural gas. Even with the big rise in gas prices, we can still do this at a significant cost saving. Unfortunately, extreme vacillations in natural gas prices have played havoc with our budget and our ability to predict future energy costs. Based on our best estimate, utility expenses for the campus will exceed budgeted amounts by a total of $30-40 million for the next two fiscal years. To put that total in perspective, let me just say that it is comparable to the total increase in funding for the whole University in a typical year. There is no way for us to absorb a cost of this magnitude without having to sacrifice significantly.
What can be done? To begin, we have already committed reserves dedicated to the management of utilities costs, and we have drawn down other reserves. Second, we are raising funds internally by recovering salaries from unfilled positions for the remainder of this fiscal year (extending through August 31). These funds are normally used by unit leaders to defray some annual operating costs and to modernize operations. That flexibility will be lost for this year. Unfortunately, there really is no alternative for us but to take this step. As the picture becomes clearer, other budgetary stringencies may have to be applied. I am paying the closest attention to the situation and am doing my best to see that we make timely, prudent decisions to manage our problems in this area.
Inevitably, some will look to our successful Capital Campaign and question a budgetary shortfall. However, very few gifts are unrestricted--most reflect the donor's vision for excellence in a specified program or discipline. And I have never met a donor who wanted his gift to be used to pay the electric bill. I am afraid that this is a problem that we need to handle on our own.
From past experience, we know that tremendous savings are available through energy conservation measures, and we are mounting a renewed conservation effort. At my request, Vice President Clubb has convened a special task force on conservation, consisting of faculty, staff, and students, to examine and to review measures that can be most effective. Significant steps have already been identified. You will very soon be receiving specific information from Vice President Clubb about these steps and about what you, personally, can do to help. We need to act quickly in order to prepare for the summer season, which is our time of maximum energy use.
To remind everyone of the need to participate in energy-saving efforts, I am ordering that the Tower be left dark on Monday nights from February 12 through May 7. I have considered darkening the Tower altogether; however lighting the Tower costs less than $5 per hour, so there are no great cost savings in taking that step. The lighted Tower is a great symbol of our University, and it has exceptional power for communication with our entire community, so I do not think it wise to extinguish it, but I do think there is value in using it as a repeated reminder. We will return to normal lighting as the campus proceeds into Finals Week.
We are not alone in meeting this challenge; almost all of the nation's institutions of higher education and government agencies are affected. Many of us experienced similar problems during the energy crisis of the 1970s. I expect that we will return to a stable natural gas market within a year or two. In the meantime, we will respond to the situation and, undoubtedly, learn from the experience.
Please know also that I remain committed to improving faculty and staff compensation. I will do everything possible to address these needs effectively in the next fiscal year.
I assure you that the deans, the executive officers, and I are working to protect the best interests of the people of The University of Texas at Austin. We will continue to keep you informed of new developments and progress on these issues.
Sincerely,
Larry R. Faulkner
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