University of Wisconsin System President Kevin Reilly last week announced various steps the system will take in the coming weeks to accommodate for the state’s projected $5.4 billion budget shortfall.

The plans include restricting out-of-state travel to only essential trips and considering other outlets for academics to meet, such as video conferences. Reilly has also requested campuses look into the possibility of instituting a three-year baccalaureate degree program to lower educational costs for students and the system alike.

Additionally, Reilly has asked campus provosts to explore ways to cut back some academic programs or consolidate those that might be utilizing too many resources.

“We must consider ways that UW System campuses might retool for a changing marketplace,” Reilly said in a statement Wednesday. “Other Wisconsin organizations are being forced to adapt to an evolving global economy. Our university is not immune from that pressure.”

Board of Regents Vice President Chuck Pruitt said he supports Reilly’s actions, adding a proactive state of mind is what the system needs in current economic times.

“Anything we can do to hold down expenses and spending helps not only the university system, but also helps the state,” Pruitt said. “The governor has implemented a whole series of economic moves related to state employees. This is an appropriate response by the university to hold down spending before we get a clearer idea of what the shortfall will be.”

Pruitt added while the regents are committed to making sure campuses do not feel the brunt of the shortfall, campuses will nonetheless feel the impacts of the cutbacks.

“I think at this point everybody is going to sacrifice a little bit,” Pruitt said. “What we are trying to do and what these immediate steps are trying to do is to reduce the severity of decisions that we will have to make down the road.”

While Pruitt said he was not able to comment on whether such policies had been implemented in the past, he did say he believed they would be short-term.

He added that once they obtain a better understanding of where the UW System’s budget shortfall stands overall, it will become clear as to whether the policies will be continued or extended.

Pay plan recommendation

Reilly announced later last week his recommendation for the UW System’s 2009-11 pay plan for its faculty and academic staff, which is about half of what the regents requested for the last pay plan term.

Every two years, Reilly is required to recommend a pay plan. In 2006, Reilly requested a nearly 5 percent annual increase in salaries, but this time around he has scaled back his request to only a 2.5 percent increase, according to Pruitt.

UW System spokesperson David Giroux said if the system were to recommend a higher annual increase, students would be looking at a significant tuition increase.

“If we could, we’d rather just not talk about pay increases now because the climate is such that it’s just really a very difficult conversation to have,” Giroux said. “But we have to do this; we have to make sure that recommendation is one that takes into consideration all the challenges the state and students are facing.”

With the issue of faculty retention discussed at last month’s regents meeting, Giroux said this recommendation is not going to be of much help.

Currently, UW System academic salaries are approximately 10 percent less than the midpoint of all peer institutions and competitors, according to Giroux. But he added it would be very difficult in the current economy to come forward with a pay plan that closes that gap.

“The facts are the facts. Our faculty are getting paid less,” Giroux said. “We know that means that a certain number of them will leave or others looking will not take jobs here. We know that ultimately has an impact on students and the quality of education you receive.”

Reilly said in a statement Friday that he would make a responsible recommendation with the smallest impact on students.

“As the university and the state tighten our belts over the next two years, we know that many students and families will struggle to balance their checkbooks,” Reilly said. “With that in mind, we will recommend a responsible plan — one that would have a minimal impact on tuition.”

According to Giroux, the system will still work to close the salary gaps with peer institutions in the future.

“We will continue to advocate that in the future, but for now we have to be mindful of the incredible economic pressure that is weighing down on our state and our students,” Giroux said.

The regents will be asked to take action and approve or deny Reilly’s recommendation at the December meetings later this week.