CWU president facing 'trial under fire'

ELLENSBURG, Wash. -- When given the choice between laying off people or asking them to give back to the school, Central Washington University President James Gaudino picks the latter.

"It's trial under fire," said Gaudino about his first seven months on the job. "You don't have a choice. You just do it. You rely on the very able staff to guide you."

Due to financial hardships -- created in large part by an $18 million loss in state funding -- CWU has had to undergo a series of innovative measures to balance its budget this academic year. Everything from payroll deductions to expanding online and distance education classes is being explored.

Gaudino requested voluntary payroll reductions from staff in June. Of the 1,500 who receive a paycheck, the university has approved 78 people's requests to take more than 6,800 hours in unpaid leave. This saves the university $174,300.

Jen Gray, assistant vice president for development, agreed to take one week off without pay. She approves of the program because it's voluntary, taking the burden off staff who can't afford to contribute.

"My main reason for doing this was to help continue programs and jobs," she said. "We made it through this fiscal year without people losing their jobs. Next year may be more difficult because we'll lose some stimulus funding."

Gaudino joined the effort by donating two weeks' worth of his base salary of $290,000, or $11,150. Funds from the unpaid leaves will go into the university's general fund and will be accepted through June of next year.

Gaudino has also asked faculty members to contribute directly to the university's foundation, which supports everything from scholarships and athletics to the library and civic engagements. Since making his plea, an additional 16 people have contributed more than $26,400.

Besides these two measures, Gaudino has frozen open positions and has required departments to cut back on travel and training expenses. Central employs 230 exempt and 674 classified employees. This is similar to last fall, when Central employed 234 exempt and 675 classified employees.

Once he knows fall enrollment numbers, retirement requests and the state's supplemental budget, Gaudino said he'll have a better grip on the financial picture.

"There are a lot of unknowns," he said. "I think we have this year managed with the cuts we've made. The worry I have is next year."

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Gaudino, who is married with two grown sons, took over as the 14th president of the institution in January. He left behind his position as dean of the School of Communication and Information at Kent State University in Ohio and replaced Jerilyn McIntyre, who spent eight years in the position.

Since he came on board, Gaudino has blazed a trail by learning about the university, chatting with townspeople and greeting faculty, students and staff.

To make up for the loss in state funding, he also took part in some difficult decisions. One of the biggest of these has been implementing a 14 percent tuition hike for the 2009-2010 year.

With the increase, the average full-time, in-state student will pay about $5,481 this academic year for tuition, verses $4,842 last year. The general operating budget, meanwhile, has decreased from $95.2 million last year to $90.2 million this year. Classes begin Sept. 23.

This is the first time in the university's 128-year history that the state's support to the general fund is less than student tuition, said Bill Vertrees, vice president for business and financial affairs.

The increase will make up $6 million, while federal stimulus dollars account for another $6.9 million. The remainder of the losses will be primarily covered by releasing $5 million from reserves. This leaves $7 million remaining in unrestricted funds.

Bob Hickey, a geography professor and president of CWU's faculty union, said timing for Gaudino's hire couldn't have been worse. But the president's approach to the budget crisis is being well received.

"The president is trying to be creative to save jobs," he said. "He came into a situation where the university had done little or no planning in the middle of a legislative session where they gutted a budget. ... He spent three months in Olympia trying to convince the Legislature not to make us bleed too much."

As far as morale, Hickey said people are holding their breaths waiting to see what will happen next.

"A lot of people are afraid of losing their jobs. Half of the faculty have no job protection whatsoever," he said. "Amongst the faculty, that group is very nervous."

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Gaudino knows the university can't depend on any additional stimulus money for the 2010-2011 year. But despite the bleak economic outlook, he wants to grow enrollment from 9,100 full-time students to 9,200 this fall.

Based on registrations and reservations at residence halls, Gaudino expects a record number of freshmen at Central this year -- which to him is a good sign.

"This could be the largest freshman class we've ever had," he said. "If there are no jobs, people go to school. When the economy is bad, enrollment at universities go up."

The rising tuition is not a deterrent for most students, especially since many of them qualify for federal aid, Gaudino said. But at the same time, cuts shouldn't be so severe as to affect the quality of education provided.

Keith James, president of the CWU's student government, said the tuition hike is outrageous. But at the same time, he said Gaudino and the board of trustees had little choice because of the lack of state funding.

That's why he wants students to band together and make their voices known in Olympia, where funding decisions are made.

"Tuition has always increased, but never been this much," he said. "Our focus can't be on griping that these cuts are coming. We need to find the source of the problem and lobby against it."

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Wayne Quirk, senior vice president of academic affairs, said programs will be cut and reduced. But he won't know which ones until taking a comprehensive look on the demand for various courses. A committee has been formed to begin the campuswide conversation, he said.

"Programs will be affected. It's a certainty," he said.

Quirk said the university's budget crisis will be solved, but it will require some hard decisions. A lot depends on how soon the economy recovers, as well as staff's own creativity and willingness to think outside the box.

Central's grants and research office brings in $10 million a year from external, federal funds. The office will now focus more heavily on finding revenue sources, Quirk said.

Gaudino is also hoping to create revenue by enhancing distance-learning and online programs.

Now that Washington State University's distance- learning center at Yakima Valley Community College has closed, Gaudino wants CWU to offer more face-to-face courses in Yakima as opposed to video courses once offered by WSU.

He also hopes the university will partner with Pacific Northwest University of Health Sciences to offer a master's degree program in biomedicine. Other possible courses at YVCC include early childhood education, business, law and justice and psychology.

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Tuition rates are expected to increase again for the 2010-2011 school year, but the question is, how much? Officials say another 14 percent hike is possible, but they're doing everything in their power to prevent that.

Central will have to wait out the slump in the economy like everyone else, Vertrees said. All the university can do now is hope for the best and prepare for the worst.

"How deep is the recession and how long will it last? Those are the two questions to ask," he said. "We're so based on sales tax. When people start to spend, that creates money for the state and that creates money for us."

April is the "triple witching hour," Vertrees said. That's when the fall and winter quarters will be completed and staff can better gauge how expenses and enrollment are holding. That's also when the Legislature will have its supplemental budget session.

Both he and Quirk know staff members are worried about the economic climate and whether their jobs are safe. They're being asked to do more with less, and no one knows for certainty what the future holds.

"We can't do as much travel, we can't buy as many business services. We have to be very frugal," Vertrees said. "The only way to make us all sleep better at night is to be more frugal until April. ... By becoming more efficient, we hope to grow our way out of it. We're living with that philosophy."

* Erin Snelgrove can be reached at 509-577-7684 or esnelgrove@yakimaherald.com.

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