Restructuring Delta State for Fiscal Sustainability
May 13, 2024
May 13, 2024
Dear Colleagues,
As I reach the end of my first year as your president, I am expected to submit the first budget of my administration. The restructured budget plan I am sharing with you is the culmination of nearly a year of discussion, analysis, and deliberation. If we consider the pattern of budgeting at Delta State University in the last few years, we see an institution struggling to operate under tight fiscal constraints. As revenues shrank due to decreasing enrollments, university officials drew on cash reserves until the point was reached where there was no capacity for anything beyond hand to-mouth survival.
Deferring our fiscal reckoning is not in the best interest of the future of Delta State University. In the FY23 budget, Delta State University spent more than $50 million. The University brought in only $47 million in revenues (tuition, fees, and state funds). Three million dollars had to be found to balance the budget; however, those dollars were drawn from one-time funds that have now been expended and are no longer available for use. Going forward, we will only spend what we take in.
You will note that I describe this FY25 budget plan as “restructuring.” I do not choose that word to avoid the truth — budget cuts are necessary. But, I have worked with a range of stakeholders — from the Ad Hoc Committee on Budget Sustainability, to the Academic Program Review Measures Task Force, to the Cabinet, to the staff at the Institutions of Higher Learning — not only to save money, but to redirect funding into initiatives that I believe will make Delta State University more durable and effective. We begin by “balancing the books,” but we must do more than that; we should secure resources necessary for Delta State University to thrive.
I want us to be prepared for the unprecedented challenges facing higher education in the coming years. We will modernize our recruitment operations so we can mitigate the effects of a national decline in enrollment. We will revise our academic offerings so we can welcome a wider range of students and provide them with learning opportunities in forms and schedules that fit their lives. We will reconsider how we have been delivering student services so that the Delta State experience can last a lifetime. We will resist tuition increases so that our most economically vulnerable students can continue to have access to the opportunities that a college degree can provide. We will move beyond basic survival and into a place where we have the capacity to take better advantage of our undeniable strengths.
Saving money takes a great deal of time and energy. I pledge to spend just as much time and energy adding to revenues by all the methods at hand: enrollment recovery, enhanced state support, increased philanthropy, and an expanded capacity for grant writing.
While eliminating programs, services, and positions is never easy, it is necessary if we are to provide resources to those programs and services that have the capacity to help this university grow and thrive. That is why you will see new degree programs proposed below, and that is why there are new positions funded, even as some current positions are being discontinued. This university cannot continue to try and be “all things to all people.” This line of thinking has caused us to accept a level of lowered expectations and impoverishment inconsistent with the traditions of Delta State University. None of us want that, and our students expect and deserve better.
This plan will help us make significant progress toward a sustainable budget, which:
Before I move into the plan’s details, I want to offer my sincere thanks to the Ad Hoc Committee on Budget Sustainability and the Program Measures Review Task Force for their dedication to this important process. These two groups devoted untold hours researching the information relevant to their respective charges. The best way I can honor their work is to take their reports seriously, and I assure you their work has informed my decisions regarding the next budget. Having said that, please know that the responsibility for these decisions is mine.
I want to make it clear that everything that is included in this restructuring of the university budget will be accomplished in compliance with the policies of the Mississippi Institutions of Higher Learning (IHL) and the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). In the case of program closures, final approval lies with the IHL, and SACSCOC requires us to follow certain procedures in order to protect the integrity of the student experience. These proposed changes will be communicated to those bodies as appropriate, and results will be communicated to the campus community.
I realize that major organizational changes cause anxiety and uncertainty. Leadership has worked hard to notify the affected colleagues as quickly as possible to give them notice of the changes. Staff changes have been communicated through the appropriate Vice President. Faculty reductions will be determined by the Interim Provost, as chief academic officer, in consultation with me, the deans, and disciplinary experts identified through the IHL, SACSCOC, and professional bodies.
Per university and IHL policy, all tenured and tenure-track faculty will receive a contract for FY25, despite the program changes. In areas where degree programs are being discontinued, the Interim Provost will work with the Deans and Department/Division Chairs, as appropriate, to determine which faculty positions will be needed in future years to support the teach-out plans and programming. These future decisions will be communicated to faculty before July 1, 2024.
The remaining portion of this document includes the details of the restructuring plan, which the Cabinet has approved. This information will also be presented at today’s Town Hall meeting at 2:00 p.m. in the State Room of the H.L. Nowell Union, and attendees may ask questions then. I will continue to be available to you in the coming months to answer additional questions and provide information on the implementation of these changes.
Administrative Changes
The Ad Hoc Committee on Budget Sustainability recommended “reducing $250,000 from Executive, Administrative, and Managerial salaries or Professional Non-Faculty salaries, along with corresponding fringe benefits from the adjusted FY24 budget.
The Committee also recommended “reducing “$500,000 from Executive, Administrative, and Managerial salaries and Professional Non-Faculty salaries each, along with corresponding fringe benefits from the FY25 budget.” The recommendation noted increases in these areas that had occurred since 2019.
My response to those recommendations is embodied in the following administrative cost reductions:
I am charging the Interim Provost to convene a group to recommend the best ways to realign, consolidate, and rename departments and programs among the remaining three colleges, which will result in a reduction of department/division chairs and administrative support staff. Those colleges and departments will be reorganized to reflect a wider range of programs.
Retirement Incentive and Vacant Positions
As related to the opportunity for salary savings via an early retirement incentive or making the decision to discontinue vacant positions, the Ad Hoc Committee on Budget Sustainability made the following three recommendations:
Finance and Administration
The Finance and Administration unit has made several structural changes in the past four months and is continuing to do so.
Delta State University Foundation
In addition to the vice president’s salary change listed above, the Centennial Campaign fundraising goal has been increased from $50 million to $100 million. While increased giving will not offer immediate relief for ongoing costs, gifts will provide: 1) scholarships, which will contribute to our enrollment efforts; 2) programming funds, which will enhance the student experience; and, 3) renovations of our physical spaces, which will make our campus more attractive and efficient.
Student Affairs
The Ad Hoc Committee on Budget Sustainability recommended that “Student Affairs reorganize and/or combine units to reduce staffing by combining redundant functions…” The Vice President for Student Affairs (VPSA) was charged with the reorganization of his division to realize savings while maintaining student services appropriate for the current size of the student body. At the end of FY24, ten (10) positions within Student Affairs will be eliminated and five new positions will be created. Affected personnel have been notified of these changes.
The elimination of these positions within Student Affairs is intended to enhance the student experience by centralizing and streamlining student services.
The Vice President for Student Affairs will also eliminate the following three offices:
In their place, he will establish a single office of “University Services” to include the following new positions:
These five program managers will report directly to the Vice President for Student Affairs. Other services and constructs, such as support for the Student Government Association, will be managed by the VPSA’s Office or within offices established in the division prepared for such oversight.
Regarding the Ad Committee on Budget Sustainability’s three recommendations related to Housing and Residence Life, the Vice President for Student Affairs provided a response to the Committee Chair and to me on January 29, 2024, that included various recommendations to address the items. Also, the Committee recommended that the vice presidents and Cabinet identify possible service overlap and ways to reduce costs by assessing service delivery. These recommendations will continue to be discussed and addressed in the near future.
Athletics
The Ad Hoc Committee on Budget Sustainability recommended “that Athletics adjust their budget by $350,000 either through reducing E&G expenses and/or increasing E&G revenues.” The Athletic Director has made the commitment to increase revenue by approximately $350,000 through increased recruitment efforts and adjustment of roster sizes for several sports.
In addition, the Athletic Director will reduce the Athletics draw on the E&G budget by $200,000, by either reducing expenditures or replacing E&G funding with increased external revenue.
Academic Affairs
The education of our students remains the reason this university exists, and the only adequate rationale for changes in Academic Affairs is that which supports our educational mission. Student enrollment patterns point us to a future that favors flexibility, interdisciplinarity, and career readiness. Our enrollment recovery will be fueled by an emphasis on transfer-friendly policies and programs, our reputation for instructional excellence, and a closer alignment between what we teach and what contemporary students seek to learn and in what modality/format.
At the February 2024, Town Hall meeting devoted to academics, I noted that Delta State’s 10:1 student-to-faculty ratio was unsustainable. A review of our peer institutions suggests that a 15:1 ratio is the norm for higher education institutions of our size and profile. A lack of regular and rigorous program review has resulted in too many low-enrolled sections and too few students spread across too many disciplines. Maintaining programs with few students enrolled has led to the bizarre phenomenon of faculty being simultaneously overworked and underemployed. Those who have taught five, six, or even more sections in one semester, but found that the total enrollment of those many sections would not fill a single classroom, know this too well.
New degrees will consolidate our students into fewer programs, thereby increasing degree productivity and streamlining the curriculum. My intention, as we achieve fiscal stability, is to plow additional savings back into the academic enterprise, providing additional (and much needed) resources to the remaining programs in order to bolster their likelihood for being more viable, prosperous, and successful.
New Programs and Positions
I am authorizing four new positions in Academic Affairs, all of which are intended to “pay for themselves” by increasing revenue.
In a related manner, I am authorizing the Interim Provost to pursue adding four new degree programs (pending IHL and SACSCOC approval) and conducting a search for the needed positions listed below.
These anticipated new degrees will ensure that students have opportunities to pursue the liberal arts, whether through the content areas or through educator preparation. Also, these new degrees are intended to preserve a range of disciplines available for student learning, require fewer resources, and be more competitive for transfer students. All four degrees can be modeled on successful similar degrees housed at other public regional universities. I request and encourage faculty to participate in the design of the four new degree programs listed above, which will better position Delta State to recruit students and reduce barriers to graduation.
Deletion of Programs
The Ad Hoc Committee on Budget Sustainability recommended implementing an academic review process using the following metrics to assess degree viability and sustainability:
Using the guidance provided by the Ad Hoc Committee on Budget Sustainability, the Interim Provost assembled the “Program Measures Review Task Force” to develop the criteria and to provide oversight for the compilation of data for each academic program. Faculty were invited to attend informational sessions, which were held to explain the criteria and the related forms that would be used in the review process, and to provide feedback. Both qualitative and quantitative
information was utilized in the process. The results of that review were compiled and made available via the Ad Hoc Committee on Budget Sustainability’s webpage and presented to me for consideration.
I reviewed the information provided, as well as the productivity standards for each public university that are included in IHL Policies 501-505:
Both quantitative and qualitative responses were used to inform my recommendation to IHL about program and unit deletions. Academic changes will be implemented consistent with IHL and SACSCOC guidelines. Deleted programs will be afforded a two-year teach out period, per Delta State’s “Program Closure” policy and “Teach Out” policy, so that most students currently enrolled in those programs can complete their degrees.
Per IHL Policy 403, the termination of service of a tenured/tenure track faculty member is permissible in the event of termination or reduction of programs, academic or administrative units as approved by the Board. As such, IHL Policy also directs that tenured faculty members who are dismissed as a result of termination or reduction of programs “shall remain employed for a minimum of 9‐12 months, consistent with current contract, periods of time, from date of notification.”
Because of the need for teach-out plans and the 9-12 month period afforded tenured/tenure-track faculty upon notification of dismissal, most of the changes detailed below will not result in savings during FY25, but instead will be realized in the FY27 budget cycle.
I have included below the listing of degree programs I have submitted to the IHL for deletion or modification. The number of students enrolled in each program for Fall 2023 is indicated parenthetically. No program proposed for deletion has the notional enrollment (30 for undergraduate, 20 for graduate) necessary to meet IHL productivity standards.
COLLEGE OF ARTS AND SCIENCES
Art Department
In the Department of Art, the following degree programs have been recommended for deletion:
Students seeking a degree centered around the arts will be directed to the anticipated new undergraduate degree in visual and performing arts studies.
A sufficient number of faculty in the visual arts will be retained to support the new degrees proposed above, as well as to perpetuate Delta State’s art outreach programs, including the Wright Center Art Gallery and collaborations with regional visual arts organizations.
Delta Music Institute
In the Delta Music Institute, the Entertainment Industry Studies BS has been retained.
I note that while this plan anticipates no changes in the offerings of the Delta Music Institute, enrollment has declined in that area. While enrollments in DMI are still well above the IHL productivity standard, any declines ought to be addressed, and I believe that students seeking to develop as musicians, but who are not interested in music education, should be advised to explore the anticipated new undergraduate degree in visual and performing arts studies.
Languages and Literature Division
In the Division of Languages and Literature, the following degree programs have been recommended for deletion:
Students seeking an undergraduate degree centered around language, literature, and writing will be directed to the anticipated new undergraduate degree in humanities and social sciences.
Students seeking licensure as teachers of English will be directed to the anticipated new degree in Secondary Education (English track).
Mathematics and Sciences Division
In the Division of Mathematics and Sciences, the following degrees have been recommended for deletion:
Students seeking licensure as math or science teachers will be directed to the proposed undergraduate degree in Secondary Education (math track or science track).
Music Department
In the Department of Music, the following degree programs have been recommended for deletion:
Students seeking a degree centered around music will be directed to the anticipated new undergraduate degree in visual and performing arts studies.
Students seeking licensure as teachers of music will be directed to the anticipated new degree in Secondary Education (music track).
In support of Delta State University’s vocal ensembles, the Office of Student Affairs will assume oversight of student vocal ensembles, effective May 14, 2024. Current levels of scholarship support for vocal ensembles will be maintained, and scholarship offers for FY25 which have already been extended will be honored. These ensembles will be continued and funded under a staff Director of Vocal Ensembles. This full-time, twelve-month position is expected to increase the recruitment in this area, to work closely with the Office of Admissions to attract students, and to work with the Office of Advancement to seek additional scholarships and program sponsorships. The Vice President for Student Affairs is authorized to commence this search immediately.
The oversight for the Marching Band, the Pep Band, and related instrumental ensembles will be moved to the Office of Student Affairs, effective May 14, 2024. Current levels of scholarship support for instrumental ensembles will be maintained, and scholarship offers for FY25 which have already been extended will be honored. With the change, the Director of Bands will become a staff position, elevated to full-time status, report to Student Affairs, and will no longer be organizationally aligned with the Department of Music nor Academic Affairs.
Each Director will be expected not only to devote attention to the recruitment and retention of respective ensemble members, but to build ensembles capable of supporting more Delta State University events. Each Director will be expected to oversee the summer and fall training schedules, providing ensembles for the fall, winter, and spring performance seasons, which can be supported given these new staffing levels and, importantly, student interest. In addition to athletic or University events, each Director will deploy ensembles to support student recruitment activities. The increased expectations for student performance will be matched with increased stipends for the students as determined by budget considerations, a student’s performance in other ensembles, and the recommendations of the respective Director to the Vice President for Student Affairs.
Social Sciences and History Division
In the Division of Social Sciences and History, the following degree programs have been recommended for deletion:
Students seeking an undergraduate degree centered around history will be directed to the anticipated new interdisciplinary undergraduate degree in humanities and social sciences.
Students seeking licensure as social studies teachers of music will be directed to the anticipated new degree in Secondary Education (social studies track).
COLLEGE OF BUSINESS AND AVIATION
In the Division of Accountancy, Computer Information Systems, and Finance, the following degrees have been recommended for deletion:
COLLEGE OF EDUCATION AND HUMAN SCIENCES
Family and Consumer Sciences Division
The Family and Consumer Sciences Division has been moved to the Division of Teacher Education, Leadership, and Research.
Health, Physical Education, and Recreation Division
In the Division of Health, Physical Education, and Recreation, the following degree has been recommended for deletion:
The elimination of the BSEd in Health, Physical Education and Recreation will consolidate enrollment into programs that should meet IHL productivity standards.
Students seeking licensure in physical education will be directed to the proposed new undergraduate degree in Secondary Education (Physical Education K-12 emphasis).
Curricular Review Process
I also want to make note of the ongoing curricular review process at the program level within the College of Education and Human Sciences which resulted in the following changes already announced and approved:
Beyond the addition, deletion, and modification of degree programs, there will be other changes within Academic Affairs.
BUDGET SAVINGS
The year-long effort of so many people — the Ad Hoc Committee on Budget Sustainability, the Program Measures Review Task Force, budget managers, and many others — produced more than $5M in cuts/savings, with another $1.5M anticipated by the end of the teach out plan. I applaud everyone’s diligence in putting the university in a place, fiscally, where we can now begin to put Delta State back on the path to success.
I have listed below a summary of the results. Please note that all salary savings are estimates based on the actual salary information, and anticipated savings are presented as good faith projections and expressed as annual savings.
BUDGET SUMMARY
Budget Restructuring Results for FY25: | |
Amount cut as result of Budget Committee recs | $5,310,091 |
Additional amount cut as result of zero-based budgeting | $854,789 |
Required increases/amounts | $(2,712,789) |
New Positions | $(1,215,000) |
TOTAL | $2,237,091 |
Positions eliminated for FY25 Number Amount | Number | Amount |
Vacant positions | 49 | $3,517,652 |
Retirements | 7 | $631,472 |
Filled positions (6 funded by auxiliary) | 17 | $782,269 |
TOTAL | 73 | $4,931,393 |
New positions | 15 | $1,215,000 |
CONCLUSION
It has been an unpleasant, but necessary, part of my duty to study how and why American colleges and universities struggle, and to identify and thus avoid those paths that lead to complete institutional failure. Each university closure offers a lesson, if we are willing to learn. As enrollments decline, support decreases and public confidence in higher education is shaken, and therefore institutional leadership is faced with a narrowing range of options. Universities that wait too long to adjust to changing conditions move from concern to crisis. Universities that respond to fundamental problems with incremental solutions find themselves chasing temporary — and illusory — stability.
American higher education is littered with defunct universities that weren’t able to adjust to changes in student needs and shifts in enrollment patterns. Inside Higher Ed notes that in 2023 alone, 15 nonprofit four-year colleges in the United States shut down. All those colleges had excellent faculty, dedicated staff, and conscientious leaders. Each year, they fought to stay open.
They dipped into reserves until cash-on-hand was exhausted. Too late, some of them scrambled to implement radical solutions, drawing down their endowments and selling off their buildings. Faculty protested. Presidents resigned. Students transferred. Then those colleges ran out of time and good people lost their jobs.
The changes I propose are intended to ensure that Delta State does not share the fate of those universities that have closed in recent years. These changes will be painful for some, but the distress caused by our continued struggles cannot continue. Moving forward, we will be a healthy institution, able to deliver on our mission with the resources we have at hand, and able to plan for a future that includes more than mere survival.
The futures our students envision – the careers to which they aspire and the hopes they have for social, economic, artistic, and personal advancement – are still possible through Delta State University. In consolidating many struggling programs into fewer, better-resourced majors, we will continue to send our students out into the world prepared for the challenges ahead. We have what we need to continue to be an extraordinary place to teach and to learn. We owe it to our
students, our alumni, our community, and ourselves to see this through.
I know that the effect of the solutions I propose will be uneven, and that this restructuring will seriously impact some, but will be scarcely felt by others. No matter your role or your title, we are all obliged to protect the welfare of our students by ensuring the integrity of this institution. We are doing a hard, but necessary thing, and I am committed to taking up this work together. During a recent visit with President Emeritus Kent Wyatt, he shared with me the significant budget cuts he had to make during the early years of his presidency due to a downturn in the economy. During the 1985-86 year, he had to eliminate 53 positions and cut $2.5 million (22%) from the operating budget. Fast forward 5 years, and Delta State experienced record enrollments and was considered the most fiscally sound university.
When our successors pause to celebrate the 200th anniversary of Delta State University, I hope they will mark 2024 as the year our own collective challenges were met, and a stronger university emerged.
Sincerely,
Dan Ennis