February 6, 2003

University of Texas Medical Branch

University of Texas Medical Branch President Dr. John Stobo reported to students, faculty, other employees and the general public about Governor Rick Perry's request for a seven percent cut in expenditure of state funds on UTMB. 

At his regular Town Meeting in Levin Hall, Stobo said Perry's edict requires a reduction in state spending of $15 million, for the remainder of this year.  UTMB and other state agencies must cut 13 percent in the next fiscal year.

Stobo said there will be no across the board reductions in force or salary freezes.  Instead each program will be evaluated as to its effectiveness and cost.

There will be a "flexible hiring freeze" at the discretion of "entity leaders," heads of departments or other high level administrative officials.

Travel restrictions will be imposed on trips that would be financed with state funds.

A review of all capital expenditures will be imposed, postponing or delaying spending of state funds until the expenditures are evaluated as to effectiveness versus cost. 

State funding provides about one-third of the UTMB budget.  Stobo cautioned UTMB employees not to try to fund state programs from other areas.

"That is not appropriate," Stobo insisted.  "It is inappropriate."

Programs that are being evaluated for effectiveness include the hyperbaric medicine program, inpatient rehabilitation services and the heart transplant department.

The employees of the hyperbaric medicine program are currently on paid, administrative leave pending the evaluation. 

Stobo said the study of inpatient rehabilitation is intended to discover and eliminate "redundancies in administration."

He said the heart transplant department is not doing a sufficient number of operations to maintain Medicare certification.  

Stobo said the UTMB community and the public will be kept informed about the cuts as they are made.

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