UMass president says millions saved through central office changes, system efficiency measures

MARTIN T. MEEHAN, the president of the University of Massachusetts, announced $200,000 in technology development awards on Thursday . / COURTESY UNIVERSITY OF MASSACHUSETTS
MARTIN T. MEEHAN, the president of the University of Massachusetts, announced $200,000 in technology development awards on Thursday. / COURTESY UNIVERSITY OF MASSACHUSETTS

WORCESTER – The president of the University of Massachusetts said central office spending has been reduced by approximately 4 percent, or $3.1 million, this fiscal year.
Martin T. Meehan, UMass president, detailed the savings in a news release this week, saying personnel actions and adjustments to procurement and travel policies drove savings. In addition, another $239 million was saved through system efficiency measures.
“We believe that there is an obligation to set the tone from the top and to be very clear in our focus on fiscal stewardship and spending every dollar as wisely as possible,” Meehan said in a statement.
“Our commitment to our students, their families and the taxpayers to manage resources carefully is firm and unwavering,” Meehan said.
Meehan outlined the savings measures during a meeting of the UMass Trustees at UMass Medical School.

Components of the $3.1 million in central office savings include:

  • Reducing 14 staffers in the UMass President’s Office/UMass System Office, which serves all five campuses of the UMass system. Staff will go from 262 to 248, saving $1.2 million.
  • Other savings measures included a hiring freeze ($960,000), canceling a scheduled salary increase ($482,000) and curtailing professional travel and participation in professional development programs ($115,000).

    UMass also has saved or will save $293 million as a result of ongoing projects meant to improve the way the university does business, ranging from purchasing energy and office supplies to how and when it borrows money for construction and maintenance projects.

    The $293 million Efficiency & Effectiveness estimate tracks savings dating back to fiscal 2010 and projected out to fiscal 2019, with $154 million of the savings attributable to projects undertaken by the university itself and $139 million relating to UMass Building Authority actions. The Building Authority also was able to refund two series of bonds at lower interest rates and save $25 million in debt service over the next 15 years. The Building Authority will also save up to $13 million through a construction audit program.

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    The UMass Efficiency & Effectiveness Task Force is expanding its work into new areas, launching projects in human resources and in facilities operations. UMass also is unveiling a program that will encourage employees to contribute cost-saving ideas.
    “These are essential steps and we are committed to uncovering additional savings and efficiencies going forward,” Meehan added.

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