Friday, January 16, 2015
Be Second Opinion Sure
On Friday, January 9, 2015 the UT-AAUP and the BOT completed three days of mediation. So far we have discussed workload for both units, definite progress since the BOT had previously refused to consider workload at all.
During these meetings, we also listened to a presentation on UT finances given by Mr. Dave Morlock, accompanied by Mr. Tom Biggs. Dr. Rudy Fichtenbaum, President of the AAUP and Dr. Howard Bunsis, Chair of the AAUP-CBC (Collective Bargaining Congress), traveled to UT to listen to the presentation with us; however, the BOT's team refused to allow them to attend the presentation.
Mr. Morlock's presentation consisted of a budget comparison of FY 2011 through FY 2015, along with a five-year projection. We find it odd that past budget projections were presented in mediation talks which will address faculty compensation, while actual audited financials were not referenced.
Budgets are merely plans for the future. Actual financials tell us what occurred with our money and as such are much better indicators of potential trends. It is more important to know what happened to UT's money than to hear about the Administrative's hopes and dreams, or their nightmare scenarios.
Mr. Morlock's five-year budget comparison highlighted a total five-year decline in enrollment of 12%, a 13% decrease in SSI, a 16% decline in Sales and Service Revenue, along with rising healthcare/benefits costs, for a total five-year income reduction of $60 million, accompanied by a $943,000 increase in expenditures.
On the other hand, in their fact-based second opinion evaluating the audited financials of UT, Dr. Fichtenbaum and Dr. Bunsis have given us a very different assessment of the state of UT's financial health:
In 2014, UT produced a bottom line positive cash flow of $30 million.
In 2013, UT produced a bottom line positive cash flow of $50 million.
The audited financials show the following increases in net position for the past five years:
Our Ohio Senate Bill 6 ratios, a rating that evaluates levels of assets, debt, reserves, revenues, and expenses, has climbed to a healthy 3.80, putting us very close to that of Ohio State at 3.90.
UTMC has recently rebranded itself as University Health. Billboards invite potential patients to “be second opinion sure,” which is definitely good advice. We took that advice and received the following diagnosis:UT finances are healthy!