EDITOR’S NOTE — Chancellor Harvey Perlman issued this message about the proposed $4.65 million budget reductions for fiscal year 2014-2015 in a May 6 email to campus. For more information about the budget reductions, go to http://go.unl.edu/bh62.

As you recall we are facing a budget deficit of $4.65 million that has accumulated over the last two years. In March I made recommendations for reductions to account for this deficit.

These were submitted to the Academic Planning Committee, which spent the month of April considering my proposals. Last week the committee sent me its reaction to my proposals. We all recognize that we are looking for the “least bad” alternative in these matters. The work of the APC was very thoughtful and deliberate and I found our interaction constructive.

With the exception of the recommendation related to the handling of the salary pool, the APC accepted all of the proposed reductions without further comment. Accordingly, I am announcing today that these reductions will now go into effect. Implementation of these reductions will begin immediately for fiscal year 2015.

Regarding the salary pool reduction from 3 percent to 2 percent, the APC expressed strong concerns that competitive salaries are essential to the future of the university. In the end, however, they reluctantly agreed that at this point in time the proposal made more sense than programmatic reductions. However they urged me to supplement the salary pool if we experience growth in tuition revenue, including distance education revenue.

Further, the APC advised me that the proposal to withhold 0.75 percent of the already reduced salary pool for equity adjustments would not be well received by the faculty.

I have accepted both of these suggestions.

If we experience growth in tuition revenue, we will have a supplemental salary program later in the fall. I am reluctant to assume growth at this point but prefer to wait to see our actual results. If we do experience growth, these additional funds will be distributed strategically to advance the university. Similarly, the campus will not withhold any portion of the expected 2 percent salary increase, other than the amounts necessary to fund faculty promotions.

Further I have invited individual colleges to see if they could achieve administrative savings that would be returned to the college’s salary pool.

I want to convey my sincere appreciation to the Academic Planning Committee for its thoughtful deliberations throughout the process. I also want to express my appreciation to all of you who have patiently lived through more than one budget reduction and yet have accomplished extraordinary things on behalf of our university.