130 jobs to be cut from UT System administration

UT Tower on Aug. 1, 2016 (KXAN Photo)
UT Tower (KXAN Photo)

AUSTIN (KXAN) — The University of Texas Board of Regents approved the $17.9 billion budget for 2017. The system plans to cut 130 jobs from its administration.

The university said Thursday it’s a 5.4 percent increase in its budget over last year.

Chancellor William McRaven says the budget reflects growing enrollment and expanded healthcare services.

“We have looked across the system in every one of our departments to see where it is appropriate to take cuts,” the former four-star admiral said. “We are not taking cuts just to take cuts.”

Amounting to a 10 percent reduction in full-time employees in the system’s administration, more than 80 employees have opted to voluntarily leave through an incentive program. The UT system also started a soft hiring freeze and will explore outsourcing opportunities.

UT says the cuts are needed due to a rising number of employees in the administration over the past few years. The employees initially shifted from academic campuses to the UT System’s payroll to free up revenue for campuses.

“When you look at the $17.9 billion, you look at a dramatic increase in enrollment. So we are providing more access to students across Texas,” McRaven said.

“There is no institution in the state of Texas that comes close to what the University of Texas system provides in terms of students and support to patients,” the chancellor continued. “It is a large budget, but we do a lot of things.”

The UT System spans 14 institutions across Texas with more than 221,000 students. The system has six medical schools, providing healthcare to millions of patients.

The 2017 budget includes an additional $381 million for its hospitals and clinics.

The largest share of the organization’s revenue comes from its medical facilities, representing $7.8 billion or 43 percent of its total funding sources. One of the smallest sources of revenue is tuition, at 9.3 percent.

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