Cost-cutting measures could save UT $490 million in 10 years, panel says

[TexasTowelie]

The University of Texas could generate as much as $490 million in the next 10 years by consolidating its purchasing systems, selling excess electrical power, charging students more for room and board, and undertaking other measures that could cut costs or increase revenue.

Those findings and recommendations emerged Tuesday from a report on the university’s administrative operations by a 13-member panel of business leaders.

UT President Bill Powers, who established the panel in April, endorsed the objectives and direction of the report and said university officials would review the specifics and develop an implementation plan.

“Universities are not simply businesses, but in the specific ways that they are like businesses — processing applications, supporting information technology, reimbursing travel, buying outside services, turning lights on and off, printing and mailing and so forth — they ought to be following the best business practices,” Powers said in a statement. “To do otherwise, as the recipient of both tax dollars and tuition dollars, is to betray the public trust.”

More at http://www.statesman.com/news/news/cost-cutting-measures-could-save-ut-490-million-in/nT9F9/ .

[font color=green]Some interesting comments appearing after the article including the athletic programs.[/font]

[dballance]

1. I Would Not be in Favor of Raising Housing and Meal Rates if I were in TX

Many of the people in college are on very limited budgets as I was when I was in school. I lived in the dorms and got meal cards for the cafeteria because I couldn't afford to live in an off-campus apartment. The people in school deserve a break so they can concentrate on their studies. Not on how will they pay for their next meal. Not to mention if you raise rates to market rates at a university in an urban area with restaurants close by campus the university is actually likely to lose revenue because there's no longer an incentive to eat at the cafeteria.

Will scholarship stipends automatically go up in response to increased housing and meal rates? I doubt it.

[TexasTowelie]

2. Another concern is the comment about "buying outside services".

Texas A&M outsourced some of their services last year such as the cafeteria and cleaning staffs. This moves people from jobs with state benefits such as health insurance and a pension to the private market where they will be fortunate to maintain the same level of pay.

[mbperrin]

3. Universities are not businesses at all.

But I could hardly hope that business "leaders" might get that.

[Fresh_Start]

4. they could shut the door and save even more! nt

nt

[Javaman]

5. Oh thank goodness! I'm so glad they raised my taxes to pay for their medical school

because, you know, they couldn't afford it.