Following this year’s state-mandated $15.6 million budget cut, this university is aiming to help balance its funds by distributing one-time cuts across all departments — including $150,000 from DOTS.
The Department of Transportation Services will pay for the cut with potential extra funds from the budget for charter buses, which it estimates could be about $30,000, and salaries from already existing vacant positions, which it counts under its operational budget, said Darryl Johnson, DOTS finance and administration associate director.
The department would also decrease its contribution to the plant fund that contributes to construction and renovation projects if it cannot cover the entire cut, he said.
The cut makes up about 0.6 percent of the $24.1 million total operating budget for DOTS, Johnson said.
DOTS Director David Allen said the department should try to avoid using reserve funds to pay the $150,000 because it uses that money when garages or roads need unforeseen repairs.
“The purpose of the reserve is for a rainy day, and if that rainy day comes, we will need the funds,” Allen said. “It’s not just extra money; we need it in case something happens.”
The cut forced DOTS to delay the implementation of an Uber-like app for NITE Ride that would let users request a shuttle to take them to their desired destination for free. The app, which would cost between $25,000 and $30,000, will be deployed sometime after the new fiscal year starts on July 1, Allen said.
“It was really more of a precautionary, conservative-type decision,” Allen said.
Besides the app, Allen said, the aim is to not have to cut any other budget items, including worker salaries, shuttle routes and the upkeep of garages and roads.
“Most people won’t even feel this,” he said.
All university divisions must make cuts proportionally based on the size of their budget and the amount of their reserves by mid-June; the cuts are expected to total $14 million, said Paul Dworkis, the university’s chief financial officer and associate vice president for finance.
“That’s the shared sacrifice in that it’s not just that department,“ university President Wallace Loh said. “It’s every single department at this university.”
Much of that money will go toward the deficit caused by the reduction in state budget funding, Dworkis said, and the rest will stay with the central university to help fund issues that were under-budgeted this year, such as health care for university employees.
“We have done this before; it just depends on the magnitude of the cuts,” he said. “We’ve handled many budget cuts centrally, and it’s been fine that way, but I think it’s important that everybody helps participate.”
The Division of Student Affairs, which oversees DOTS, learned of possible cuts last fall, but wasn’t informed of the exact amount — $2.4 million — until March, said Warren Kelley, the assistant vice president for student affairs.
“The Division of Student Affairs is trying to make sure this doesn’t affect us, but of course a cut will affect the division,” he said. “We are trying not to affect our services as much as we can.”
Student Government Association President Patrick Ronk said the cuts might be upsetting for individual departments, but the university can’t handle every cut centrally.
“It’s an unfortunate reality we are in right now,” Ronk said. “Moving forward, hopefully the state doesn’t put us in this position where cuts like this are necessary.”
