HAGÅTÑA (The Guam Daily Post) — Lawmakers were once again pressed to increase the local government’s subsidy to the island’s only university, which University of Guam officials have said is necessary to stave off tuition increases for students seeking bachelor’s or master’s degrees.
On Wednesday afternoon, representatives from UOG filled the Guam Congress Building in Hagåtña during the university’s fiscal year 2024 budget hearing, some with signs that read “Fund UOG,” “Fight for 42” and “Support Student Success,” in hope of gaining financial support from senators.
UOG officials stressed that the university is going through a multitude of challenges, including transitions in leadership at both the administrative and faculty levels, budgeting issues and lack of staff, all while preparing for accreditation this spring.
“The university should be driven first and foremost by its education and research mission, but, with this steep decline over the past five years and appropriations, the university has been so hard-pressed against its budgeting, especially now without any safety net of the federal rescue funding which has been relied on,” said Mike Naholowaa, treasurer of the UOG board of regents.
UOG President Thomas Krise addressed lawmakers on the request for $42 million for general operations, $4.5 million for student financial assistance programs, $1.6 million for the university’s capital improvements fund and $1.9 million for continuing special appropriations.
“The last five years have been about survival instead of growth,” said Krise. “While our ability to win federal research grant funds has been excellent, we can’t use these funds for general operations. Funding shortfalls directly affect the levels of service and support we can provide to our students.”
According to Krise, the amount budgeted for UOG has been decreasing significantly over a five-year span. The university received $37 million in fiscal 2018, but by fiscal 2023 it was $23.6 million – the lowest the university has received in 20 years, officials have said.
“This amounts to a 22% decrease in funding between 2018 and 2023. Adjusted for inflation, the decrease is more than 35%,” said Krise. “To cope with this reduced fiscal situation, the university has instituted strict financial controls by drastically limiting spending on contracts and equipment, deferring hiring across all employee types including faculty, deferring maintenance and significantly reducing basic maintenance and upkeep projects across campus.”
Although the university was awarded $29 million in American Rescue Plan funding, Krise noted that $13 million went directly to students to provide necessary and immediate relief.
“The university used the remaining $16.6 million of its institutional funds to support a move to online classes and operations, and that amounted for $6.8 million of that amount during the pandemic,” said Krise. “To cover operational expenses and revenue losses constituted $6.3 million of that figure.”
Krise said the use of institutional funds to provide students additional support was “unusual among universities,” paying out more than $3.5 million in reimbursements for fees, tuition and needs-based support.
Priorities
Numbers aside, Krise said, the university’s priority is its students and community, even in the face of decreases in funding.
“Our $42 million budget request for the general operations, … $2.1 million is to implement the 22% staff salary adjustments proposed by the governor. … UOG is in the process of ensuring all merit bonuses, which comes to $292,200 for 60 employees that were affected, and make sure that the increments are up to date by May 30 of this year,” said Krise.
Pending approval from the board of regents, the 22% General Pay Plan raise will be in effect next month.
“Another piece of the total request is $3.6 million for phase one of an increase to the faculty salary schedule,” said Krise. “UOG needs to address a long-outdated faculty salary scale, which has been further diminished by the recent raise to the Guam Department of Education’s teacher pay plan.”
Also included in the budget request is $3.8 million to hire more employees.
“More than 70 positions remain vacant, stretching even more thin the administration, faculty and staff’s ability to effectively run the various departments of the university,” said board treasurer Naholowaa.
According to Krise, 53 of the positions will be prioritized, including 14 faculty, seven administrators and 32 handling student support, which he said will restore staffing to pre-pandemic numbers.
“One more element of the $42 million request is $1 million for deferred maintenance,” Krise added. “This request also includes $1 million for UOG to begin addressing the nearly $9 million in deferred maintenance projects which have grown over the past five years.”
University of Guam students and faculty attend a budget hearing Wednesday, May 17, 2023, in the Public Hearing Room of the Guam Congress Building in Hagåtña
Thomas Krise, president of the University of Guam, gives testimony Wednesday, May 17, 2023, in the Public Hearing Room of the Guam Congress Building in Hagåtña.
