After a lengthy process over the Fall that involved the participation and input of the Academic Planning & Budget Committee, deans and division heads were given their final FY23 budget allocations last week. Schools, colleges, and divisions that receive state funding and undergraduate tuition revenues were allocated an average reduction rate of 1.5%, with a range from 0% to 1.75% to account for differences in unit needs and opportunities. Schools and colleges and some administrative units also have other direct revenue streams, such as graduate tuition, gift/grant funding, and auxiliary funding. These separate revenue streams will experience growth or decline independent of our institutional budget allocations. The 1.5% average budget reduction being allocated through the budget process is much less than the 3.5% decline units were earlier asked to anticipate for FY 2023.

Compensation Plan

We appreciate the Legislature’s recent approval of a pay plan that provides most employees a 2% increase on Jan. 1, 2022, and another 2% increase on Jan. 1, 2023. But we realize that the pay plan does not address the effects of inflation employees are facing this year. We will continue to strongly advocate that employee pay be further addressed by the state. We are also evaluating whether UWM alone may be able to address this extraordinary inflation in some fashion and will provide more information when we have it.

UWM funds a significant portion of any pay plan through either tuition increases, which have not occurred in the last 9 years, or reallocation from other operating funding. In the past, the state has funded about 65% of the pay plan costs and UWM funded the remaining 35%. Unfortunately, we recently learned that institutions would shoulder more of the expenses than usual, resulting in additional base costs for UWM over FY 2022 and FY 2023. The unanticipated increase in costs will be covered by central campus balances through FY 2023, but then will need to be built into units’ base budgets. This makes future years’ enrollments even more important as a primary revenue source.

Investment of Carryforward Funds

As a result of our reduced spending over the pandemic, the receipt of federal funds to cover pandemic-related losses, and the reversal of the planned state budget lapse in FY 2021, UWM’s balances grew rather unexpectedly. During this fiscal year, UWM has made decisions to invest one-time funds in several strategic initiatives designed to better position UWM for the future. These investments included:

• Decreasing the size of the FY 2023 budget reductions for both academic and administrative units so that all can focus on re-stabilizing enrollment.
• Paying off student debt generated during the pandemic, both for recent graduates and to help ongoing students continue their studies at UWM.
• Providing students additional retention grants and yield scholarships.
• Increasing available seed funding for Discovery and Innovation Grants for research or creative projects.
• Supporting needed student success initiatives such as classroom technology, dual enrollment and bridge expansion.
• Developing a new online growth initiative for professional master’s programs; and
• Creating a DEI strategic faculty hiring fund over the next five years.

A process is currently underway to review an additional, modest group of potential student success and technology infrastructure investments for implementation next year. We’ll continue to monitor our overall budget outlook and balances and take opportunities to strategically invest one-time funds.

Spring 2022 Voluntary Separation Incentive Program (VSIP)

While we are in the unusual position of having one-time balances to invest in UWM’s future, some schools, colleges and divisions continue to experience challenges bringing expenses in alignment with enrollment and budgets. To assist those units, UWM is launching a Spring 2022 Voluntary Separation Incentive Program (VSIP), which is one tool to help manage unit budgets. Through this program, some units will offer a one-time, lump-sum payment to eligible individuals who elect to retire within the period set by the program. Not every school, college or division will participate, as the VSIP establishes certain criteria for participation. Participation will be voluntary for individuals.

There are many details involved in this program, available on the Human Resources website, here. Individuals who are eligible will receive a direct communication about the program, with additional opportunities to learn more before deciding whether to accept.

What Each of Us Can Do

Efforts to stabilize and grow UWM’s enrollment in the fall of 2022 and beyond are critical to achieving a positive financial future. Everyone can help positively influence UWM’s enrollment, which includes recruiting new students and supporting and retaining current students. We know students highly value individualized connections and activities that help to build a sense of belonging. Here are some actions that each of us can take:

• Participate in upcoming Admitted Student Days, as guided by the Office of Undergraduate Admissions.
• Volunteer to call students, as guided by Enrollment Management or your school/college.
• Show interest in students by attending events that they organize.
• Provide students with answers to their questions and connect them to resources.
• Stop and ask a student how their day or week is going.
• Take time to speak with students and parents who are visiting campus; and
• Share UWM’s strengths with your contacts, neighbors, family, and friends.

I am grateful for all that you do to make UWM the special and valuable university it is, and I look forward to our continued work together to advance UWM.

Best regards,

Mark A. Mone, PhD
Chancellor