Northeast State Interim President James King announced today that the College is developing a corrective action plan for its 2018 fiscal year budget.
King said an examination of the College’s finances shows revenues have not kept pace with expenses over the past few years, necessitating a budget realignment.
The Tennessee Board of Regents recently approved the College’s fiscal year 2018 budget which includes corrective actions developed jointly with TBR.
The plan calls for roughly $5 million of reductions in the current year’s budget. These include $2.8 million in cuts to the operating, travel and equipment budgets.
As salaries and benefits account for around 75 percent of the College’s total operating budget, it is unavoidable that reductions to personnel must occur. While some of the reductions can occur through natural attrition and leaving positions vacant, additional measures must be taken to reduce personnel costs.
Plans are currently being considered, but nothing is finalized. King said he pledged to keep the campus community apprised as further corrective measures are developed.
King said all budget managers had been requested to re-examine their individual operating/travel/equipment budgets for any possible adjustments to offset reductions in personnel.
For the near term, King said all purchase requisitions would require approval by vice presidents/division heads, the chief financial officer, and the president.
“I know this will cause unease and concern among our employees and in the community, but I want to be transparent about the College’s financial situation and the need to correct it so Northeast State will continue to thrive and serve our students and our region,” King said. “We will remain focused on our mission: educating our students and helping prepare them for the workforce.”