Academic Portfolio

• Do you see any low-hanging fruit or easy fixes?

  Unfortunately, the financial situation in which we find ourselves did not happen overnight. We must focus on long-term, sustainable change. That said, we will move quickly in this process, and there are efficiencies we are identifying immediately. 

• Will programs be eliminated to create room for new academic programs?

  The task force is focusing on new sources of revenue and process improvements. Elimination of programs to save cost is not part of our deliberations. In particular, the evaluation of specific academic programs is outside of the scope of the task force.    

• Why are the Provost/Deans not involved in this Task Force?

  Academic leadership will certainly be involved when the taskforce presents its recommendations. The work of the taskforces and the working groups is a bottom-up approach. We believe it very important for those closest to the work to surface good ideas and opportunities that we can then analyze and consider in more detail and present to university leaders for their consideration in conjunction with university priorities. 

• What opportunities do you see in professional, continuing, and life-long learning non-degree programs?

  There is significant demand for these programs and with it an opportunity for SBU to expand our offerings to better meet the need of our community and larger region. These programs in turn will offer us another flexible revenue source.   

• How does the work of this taskforce relate to the Future of Work initiative?

  We see our work as completely complementary to that initiative. 

• Is the Academic Portfolio taskforce responsible for determining the future of academic programs?

  No; the development of new programs and sunsetting of existing programs is decided by the Office of the Provost and the various Schools and Colleges. 

• Many of these ideas require significant marketing resources. Where are all these marketing resources coming from?

  Marketing support is certainly necessary to support many of these ideas and we, like everyone else, will have to prioritize those areas that suggest the greatest promise. 

• Both interdisciplinary programs and elimination of redundant courses pose issues about the distribution of revenue to the units affected. What are the plans for addressing these issues?

  As we move through the process, we will ensure revenue streams for units are appropriate. But we must move away from unit-level thinking and embrace the one-campus concept. 

• Can you elaborate on how interdisciplinary programs could enhance revenue? How do we describe "new disciplinary" programs in ways that appeal to students?

  Today’s work force is only becoming more integrated in regard to skills and disciplines. Whether it is the combination of medicine and engineering or digital learning and education, our programs need to reflect this, and we believe that approach will appeal to students as they consider their life after college. 

• Approval from SUNY frequently appears to slow down the approval of new programs. Is SUNY on board with streamlining this process?

  The process has been complicated, but SUNY is on board with making it more streamlined. In fact, the Chancellor proposed that the State Department of Education have a much-reduced role in program approval, and Governor Cuomo incorporated that request in his recent budget proposal. Additionally, academic leadership has been working with SUNY to ensure that the SBU/SUNY process is streamlined. The initial feedback is very encouraging. 

• Can you tell us more about how tuition sharing incentive program will work?

  SBU is currently using an outdated tuition sharing model from 2008/09 that lacks transparency and is poorly understood across campus. Under this model, many programs have been disincentivized by deficits due to declines or changes in student mix. While the specifics of the new model are still being determined, it will be simple, predictable, and transparent. 

Operations Alignment

• What contracts will be reviewed for cost savings?

  To improve efficiency and overall operation of services across campus, it is prudent to review all vendor contracts. That doesn’t mean they won’t be renewed, but we must review everything. 

• When reviewing $100M in spend across both East/West campus, how will the spend be broken out to identify where the savings exists?

  While we do not have a set target, we need to find as many efficiencies as possible across all areas of campus to reduce spending. We are estimating that this process may save up to $5 million in the FY21/22 budget. 

• In which areas do you hope to save money? What are some of the potential cost savings opportunities between East/West Campus?

  Thanks to the hard work of our Cost Containment Working Group, we have already identified millions of dollars in potential savings throughout the institution. Potential savings have been identified on both the East & West Campus that would result from contract renegotiation/consolidation, group purchasing and tier adjustments, utilization savings, and the implementation of product changes where appropriate. Not all of these savings can be immediately realized but will potentially save millions of dollars over the next few years. 

• Will there be a substantial number of positions eliminated as a result of the anticipated changes?

  The goal of the Operations Alignment Task Force is to identify ways to operate and provide seamless support as one campus – by eliminating unnecessary duplication of services and expenses as well as creating opportunities for better alignment and best-in-class support. The elimination of positions is not part of the Task Force’s charge. 

• Have you reached out to the leaders of other campus systems with medical centers to find out what works in terms of operational alignment?

  Yes, the recent review by the Academic Advisory Council of AMN Healthcare included perspectives of seasoned and experienced leaders at other respected academic medical centers.

• Do you plan on taking my cell phone away?

  Through our Cost Containment Working Group, we have identified a significant number of "orphaned" devices, largely from previous Stony Brook employees, that have continued incurring costs, despite not being used by Stony Brook. We plan to lower these annual costs by increasing oversight of mobile devices which will include terminating orphaned devices and standardizing policies and contracts. 

• Is the Concur project starting from scratch, and what modules will be implemented to support more efficient travel and expense (T&E) processing?

  We were able to leverage the significant amount of work that had already been done.  As a result, we have already signed the contract and are in the midst of implementation.    

• With the automation of Human Resources functions, will there be less opportunity to interact with human resource professionals?

  We recognize that there are a variety of needs and preferences across the institution when it comes to contacting Human Resources. The HR Streamlining Recruitment & Hiring Working Group is considering a variety of collaborative tools to best suit needs across the institution. Our goal is to lessen the times that you need to interact with HR by ensuring that you have more control over the process. That said, SBU employees will always have access to HR professionals when necessary.  

• As you consider online tools and automated processes, will you recommend enhancements to training? So that they are easier to use?

  Of course. Any new systems we use will be accompanied by training and support. 

• How will streamlining recruitment processes save money? University and hospital processes are very different. How can you ensure that it won't slow the process down?

  By reviewing the entire recruiting and hiring life cycle for administration, faculty, research, clinical and post-docs, we will streamline processes and remove redundancy. This will make the hiring process easier and faster. 

• How will you ensure that diverse candidates aren’t excluded as the hiring and recruiting processes become more focused and streamlined?

  The HR Streamlining Recruitment & Hiring Working Group is collaborating with OEI and Human Resources to develop systems to ensure a diverse pool of candidates as we work to narrow the focus of our hiring and recruiting. 

• I feel like there is a disconnect between the departmental and campus Human Resources that slows the hiring process down. Will SBU centralize all HR functions?

  The HR Streamlining Recruitment & Hiring Working Group has been charged with weighing the pros and cons of various approaches with the goal of eliminating this disconnect.

• Do the Streamlining Hiring & Recruiting Working Group proposals include the hiring and recruiting of temporary employees?

  No, this is outside scope of the Streamlining Hiring & Recruiting Working Group.  

• Are you addressing sustainability consideration in recommendations about operational alignment?

  Our focus on sustainability will inform many of the decisions we make. Many of the recent research innovations at SBU have been centered around sustainability, specifically green energy and artificial intelligence. 

Optimizing Campus Resources

• Can you tell us more about increasing revenue by increasing advertising and sponsorships?

  Compared to our AAU peers, we believe we are missing opportunities to support student success and the academic enterprise. Some examples of physical assets that may be identified for advertising include buildings, buses, kiosks, cultural venues and events, recreation fields and athletics properties. Any approach would include a broad set of guidelines governing use and alignment with SBU values.

• Are there suddenly going to be billboards all over campus just to raise a bit of money?

  At this point we are simply trying to evaluate the financial opportunity. We fully recognize that there are a lot of variables, including many intangibles, that will inform broader considerations about what is appropriate for SBU and what is not. 

• Will potential sponsors be assessed for their practices in terms of alignment with our values including those for Diversity, Inclusion, Equity and Environmental Sustainability?

  Of course; SBU does not seek opportunities that do not align with our values, particularly around diversity, equity and sustainability. 

• Why are athletics being grouped together with the arts?

  Athletics and the Arts both contribute to a diverse and well-rounded educational experience while creating opportunities for us to engage with one another and the broader community. Additionally and importantly, both Athletics and the Arts require significant support and resources particularly with regard to the management of campus assets. 

• Doesn't SBU spend too much on Athletics?

  SBU Athletics provides many tangible and intangible value to the college experience for our students, faculty, staff, alumni and donors, as well as the broader community. While every facet of the university will be reviewed for savings, we are committed to a robust, successful athletics department. What we are trying to understand, however, are the costs and benefits of these programs so they can be managed as efficiently and effectively as possible.

• I have an idea for an event or corporate partnership, what should I do?

  Please submit your questions and ideas to https://www.stonybrook.edu/commcms/financial-sustainability/contact.php.

• What roles does Advancement play, or might they play, in a University approach to corporate sponsorship development?

  Advancement already does and will continue to play an important role in identifying and cultivating the support of appropriate corporate partnerships.  

• What do you mean when you say optimize and scale resources in cultural and athletic programs? Isn't that code for cuts?

  The taskforce is not charged with nor does it have the authority to recommend that programs be discontinued. When we say "optimize and scale" resources, one of the working groups—in a collaborative fashion—is going to develop a methodology to understand the full range of support that various programs receive, as well as the benefit they provide to the campus and broader community. 

• What can we do to help support cultural events on campus?

  First and foremost, we encourage everyone in the SBU community to seek out and attend the vast array of cultural events hosted on campus. The best way to support the arts is to show up. As you attend events that you enjoy, please reach out to the organizing groups and ask what you can to support them. 

• What is the role of faculty in this process?

  All of the taskforces have faculty representation.  However, we encourage everyone to be engaged and involved—please send us your ideas, your voice is important.

• What is the revenue opportunity on strengthening our approach to conferences?

  We don’t have a firm number yet on the potential opportunity here but we believe there are many opportunities for SBU to better utilize our facilities and to partner with the local community and region.

• How will the generated revenues be used to support the academic mission of the University?

  As we do with all revenue, any new funding will be used to support our students, faculty and staff. 

• Are our current facilities currently under-used? How much of an opportunity is there, particularly given how COVID has impacted conferences and events?

  Certainly COVID has impacted our ability to host events/conferences on campus. As we begin our return to normal this fall, we will explore ways to best use our facilities to raise revenue. 

• Why don't we use Southampton Campus for more events?

  There seems to be a lot of opportunity available at our wonderful Southampton Campus and is a particular focus of the taskforce.

• Are we aware of the needs of local or regional organizations that might be of mutual interest such as the utilization of facilities?

  As part of this process, we are working with our community partners and seeking out opportunities for them to use our facilities. 

• What kinds of spaces are included in the space inventory? And will those findings be shared across campus stakeholders?

  Stony Brook has a remarkably wide array of spaces available for use, including auditoriums, common areas of buildings, outside spaces such as parks, fields, athletic venues, and so on. 

• How will the University prioritize the internal versus external opportunities? For example, such as in the conflicting schedules in spaces that are highly sought after.

  While we want to reach out to external partners and host events, we will always be mindful to put the needs of our campus community first. 

• Who is going to pay for the wear and tear on my facility?

  Maintenance and upkeep of all our facilities is part of our annual budget. 

Research & Innovation

• What is the timing and prioritization of initiatives and who will decide this?

  There are opportunities that we have been able to identify, analyze and recommend to leadership for easier and rapid implementation. Other opportunities are more complex and will take time to analyze, validate and implement. These opportunities will be prioritized based on their estimated cost/benefit ratio, practicality of implementation, and impact to the university research mission as a whole. Our goal is to have all initial recommendations and plans identified by the end of April 2021.   

• How can we remain competitive in hiring in our high cost-of-living area? Can we turn a disadvantage (cost of living) to an advantage (nice place to live)?
  This is a concern that affects hiring at all levels and all units on campus. While the high cost of living is something beyond our immediate control, one does get a number of benefits in return.  We believe the SBU community and Long Island region have a lot to offer for potential faculty and staff employees.  Emphasizing these benefits and advantages during the hiring process is important.  
• Why is AAU important to Stony Brook and this activity?
  The AAU is an exclusive listing of the nation’s most accomplished institutions of higher education.  Membership within the AAU brings a variety of benefits, including national recognition, greater visibility in terms of ranking and metrics, access to cross-institutional partnerships, advocacy on key issues important to SBU, and in recruiting faculty and students.  Membership in the AAU has benefits for the entire campus community in this regard. 
• Much of this was already done three years ago with Facilitating Research Success study - What is different now with this effort?
  Our current efforts build upon the Facilitating Research Success (FRS) Study that was conducted in 2017.  The FRS study focused specifically on reducing the administrative burden for researchers as a result of an NSF study that highlighted this issue.  To date, the FRS recommendations have only been partially implemented.  Our current efforts dovetail closely with the FRS in terms of exploring the remaining unfunded recommendations, while also looking at expanding the research enterprise across campus in a much broader context, such as providing additional research support, creating a systematic plan for research-lab renovations across campus and rolling out training/education on technology transfer. 
• Have you looked at other institutions to see how they have addressed these concerns?
  Yes, we have attempted to incorporate prior lessons learned from other institutions in three ways.  First, a significant fraction of the faculty and staff participating in this effort have spent portions of their career at other institutions, and they have provided valuable insights into how similar challenges were addressed at their former institutions.  Second, we have been working with the external consulting company that is engaged as part of this project to offer recommendations, based on their prior history in working with many universities on similar topics.  Finally, we have been exploring the use of data analysis tools that aggregate information for most of the nation’s universities to identify where both our strengths and weaknesses reside relative to our institutional peers, with the intent to then assess how we can build on our strengths and improve areas in which we are behind. 
• There has been an enormous amount of new leadership change in the past six months. What is their commitment to research and strategic growth in our research enterprise?

  We are excited by the opportunities that the new SBU leadership brings to the table.  The fact that this study itself was commissioned right from the start, including our Task Force on research and innovation is testament to leadership’s commitment to the importance of the research enterprise, while growing it strategically and as efficiently as possible. 

• Why the focus on targeting large grants and training grants?
  To clarify, our focus is not exclusively focused on large grants and training grants. However, such awards provide a number of tangible (research expenditures, new faculty hires, expanded graduate student enrollment, publications) and intangible (visibility, parity with larger, more prestigious institutions, influence on rankings) benefits.  Such grants also often provide the means to acquire unique resources that would be difficult to obtain through other means, such as advanced test equipment, dedicated facilities, the establishment of Centers and Institutes, and the ability to “stand up” demonstrated expertise in new areas.  All of these benefits, in turn, provide the foundation to generate further research funding. 
• How do we further enhance grant writing and proposal preparation, especially for large center grants or training grants?

  This is an important and straightforward question, the answer to which involves a lot of moving pieces.  In many respects the majority of our efforts on the Research and Innovation task force have centered on this singular issue.   Some of the ideas put forth include expanding administrative support for proposals, recognizing faculty participation in large-grant proposal efforts, even if not funded, providing teaching relief for heavy grant activity, fostering a greater sense of inclusivity among different units on campus, and generally changing the culture to both retain and grow grantsmanship as a centerpiece of our university.  

• How do you incentivize faculty to want to make them do more research?
  There are a number of challenges that faculty face in terms of increasing their research footprint.  Examples include heavy teaching or administrative loads, re-entering research after a hiatus, moving into a new field, challenges in obtaining funding, access to adequate resources, etc. Fundamentally, we believe faculty conducting research inherently want to pursue their research goals.  The question really is how do we ensure we are removing barriers and identifying ways to incentivize collaboration. 
• Are efforts being made to integrate research with other campus missions, e.g., education, and departments with others (to break down silos)?
  Yes, definitely! Our Operations Alignment Task Force, for example, is identifying ways to operate and provide seamless support as one campus, as well as creating opportunities for better alignment and best-in-class support.  We also recognize the value of — and importance in — engaging different departments across campus.  While easier said than done, the benefits for such cross-fertilization are enormous.  This will require a culture change, and we are hopeful that our activities will serve as the first step.  
• With regard to transparency, will faculty voices be included in the decisions of priority and capital investments? How do the faculty help to participate, define and implement these changes, given some concerns that faculty voices have not been heard in the past?
  All of the task forces are comprised of distinguished members of our own faculty and staff.  Beyond being part of a task force or specific working group, staff and faculty will have opportunities to engage through a series of listening sessions, discussions, surveys and other means.  The specifics of each of these will be determined together with the Financial Sustainability Steering Committee and the individual task forces. We are committed to seeking input and ideas from a range of stakeholders through a variety of channels and groups. 
• How do we simplify the institutional regulatory hurdles, e.g., IRB, to enhance research productivity?
  Many of these hurdles have been identified in our Task Force.  They will be prioritized in terms of importance to the community and ease of implementation. We will identify these hurdles and seek out ways to offer a more streamlined process or increase training so these hurdles can be more easily overcome. 
• How do you define research productivity? (Research dollars? Products? Publications?)
  The answer to this question varies substantially between departments and schools, depending on the traditional metrics of research success for a given field. We encourage a holistic approach to measuring research productivity. But most importantly, we need to see faculty growth and ensure we have the incentives in place to accomplish that. 
• Why are only federal research expenditures in your analysis? What about incorporating non-federal funding, industry?
  Actually we are making recommendations to enhance non-federal funding, such as from industrial or state sources, in addition to federal funding.  With that said, like most research universities in the country, the overwhelming majority of our research expenditures is derived from federal sources.  
• Will there be new resources invested, especially at this time, to address these issues?

  Yes, as we identify research areas where SBU can grow in the most strategic, efficient way, we will commit resources to ensure success. 

Stony Brook Medicine

• What was the role of the Academic Advisory Council?

  The Academic Advisory Council is composed of three former medical school deans (Arthur Rubenstein, former Dean and EVP at U Pennsylvania, Tom Lawley, former Dean at Emory, and Phil Pizzo, former Dean at Stanford). They formed the AAC in 2014 to help universities, academic medical centers and health systems address, review and formulate issues and challenges in organization and governance, strategic planning, mission specific initiatives (in education, research and patient care), financial management, leadership management, government relations, development and related issues. 

• Which of the consulting groups recommendation do you think are achievable?

  The review commissioned by the president was designed to be an input for both the leadership team and the SBM task force. Specifically, this task force will review and incorporate as appropriate the AAC’s suggestions as it formulates recommendations and overall approach. Fortunately, many of their observations align with initiatives independently identified by the AAC.

• Are SBM operations/departments being examined to identify possible cost/business loss reduction opportunities? What happens if a department/service line is not financially sustainable?

  We need to review all of our clinical programs to assess appropriate metrics and ensure they have the tools and structure to ensure success. 

• What is CPMP? How does it relate to SOM - especially for budget and governance issues?

  Stony Brook Medicine’s Clinical Practice Management Plan (CPMP) is the physician-led management services organization that serves 1,059 physicians and associated healthcare providers for Stony Brook Medicine. For a variety of accounting and legal reasons, the $529 million in our operating budget that supports our Clinical Practice is not included in SBU's financial statements. 

• Will there continue to be an SVP for the Health Sciences? Or will there be a CEO for the health systems?

  Yes, there will continue to be an SVP. 

• Many of these recommendations - governance changes, increase clinical activity, expand research - have been made before? What will be different this time?

  Upon her arrival, President McInnis solicited a third-party review to gain the perspectives of seasoned and experienced leaders at other respected academic medical centers, in order to help understand and identify the opportunities closer collaboration and alignment could create between the academic and the healthcare sides of Stony Brook. While it is not appropriate to comment on why past recommendations were not made, we can assure you that this time decisions will be made based on best practices and input from our community. 

• Are there ways to create more interactions between faculty (e.g., faculty club) to promote cross-campus collaborations?

  Yes, we are identifying area where collaborations make sense and encouraging our faculty to embrace cross-discipline research. 

Not finding the answer you need?  Submit a question here.

General

• How much money has COVID cost Stony Brook?

  COVID had a significant financial impact in FY20 across the institution. On the Academic and Research side, COVID costs were $77.5 million through June 30, 2020, including:

  • $34 million paid in refunds for various fees (such as housing and dining), 
  • $14.3 million in lost revenue (such as athletics, cultural programs and facilities rentals); and
  • $10.2 million in additional direct costs, including cleaning, quarantine costs, etc.  
  • $19 million of reduced state support

  The University has received $13.4 million to defray some of these costs due to CARES Act Funding as well as support through the Paycheck Protection Program (PPP) for our auxiliary services corporation: the Faculty Student Association (FSA). We have saved $1 million through operational savings and, due to refinancing our residence hall debt, we are able to offset another $18.7 million. Even with these savings, there is a deficit in FY20 of $44.4 million. 

  Hospital and clinical practice COVID impacts total $220.7 million and include:

  • $51.0 million in additional direct costs,
  • $40 million revenue loss in clinical practice revenue,
  • $129.7 million revenue loss in SBU Hospital revenue.

  Fortunately, stimulus funding, a PPP loan and a prepayment from Medicare offset all but $71.1 million of these costs, including $120.2 million to the Hospital, and $10.5 million to the clinical practices. The final federal disposition of the PPP and Medicare loans will have a significant impact on the hospital finances in FY21.

   

• Are COVID-related expenses considered in SBU’s current budget plan for FY21?

  There are a lot of unknowns in FY21, but to the best we are able, we have made some projections about the potential impact COVID will have on this financial year. The Hospital and clinical practices are projecting a budget deficit of $95.8 million. For 2020/21, COVID impacts total $133.2 million and include:

  • $31 million decline in revenue related to the lost opportunity on new beds,
  • A $35.2 million revenue loss in outpatient and ambulatory surgery,
  • A $10.6 million revenue loss at Long Island State Veterans’ Hospital; and
  • A $55.2 million in direct and anticipated COVID financial impacts—predicated on us being able to return to campus as anticipated in our “Coming Back Safe and Strong” plan

  We plan to offset this through $2.4 million of Clinic PPP and $35 million of Hospital CARES Act funding. 

  Academic and Research divisions are projecting a budget deficit of $51.5 million. For 2020/21, COVID impacts total $138.9 million and include:

  • $16.2 million decline in net tuition revenue related to the shift in mix from out of state and international to NY State resident students,
  • A $25.2 million decline in state tax support from $147 million to $122 million
  • A $12 million reduction as a result of the defunding of the retroactive salary increase payment,
  • A $58.9 revenue loss due to a decline from our planned capacity of resident students
  • A $1.7 million due to an Athletic Fee reduction; and
  • $10.9 million in direct and anticipated COVID financial impacts—predicated on us being able to return to campus as anticipated in our “Coming Back Safe and Strong” plan

  We plan to offset this through $56.3 million of VP Area savings and $31.1 million from refinancing our dormitory proceeds. 

  This $51.5 million budget deficit reflects our current situation: our campus has remained open, students returned at near normal levels to the residence halls and dining program, and classes were taught in a variety of modes, depending on the class and the college.

• Are SBU’s financial challenges primarily about COVID costs?

  COVID is absolutely exacerbating our financial challenges and we are working to mitigate the impact of these short-term issues in a manner that limits the impact on our academic excellence and student success. But it is also revealing fundamental long-term challenges that have not been addressed in a sustainable way. The long-term problem is that while costs continue to rise, there has been no reciprocal increase in either state support or tuition rate. This model is unsustainable and needs to be addressed in a thoughtful, strategic and collaborative way.

• What is SBU doing to cut costs?

  Every year in recent memory, our academic and administrative departments have had to come up with stop-gap measures to close our budget deficit while maintaining and enhancing academic excellence and student success. In FY20 in response to the COVID pandemic and its associated costs, we instituted a hiring and purchasing freeze. That helped bridge some of the gap but not all.  The Dormitory Authority of the State of New York (DASNY) is helping support campuses and has refinanced the residence hall debt service payments. That helps cover lost residence hall revenue from spring of 2020 and lower occupancy for the 2021 academic year, but it is not sufficient to cover the losses. For FY21, unfortunately, the stop gap has included continuing the hiring freeze for the academic year. This is the least impactful way to reduce costs in the short term, but continuing on this path is not a viable long-term solution.

   

  Additionally, SBU has begun the work of the Strategic Budget Initiative with the goal of improving the Financial Sustainability of the institution as a whole. Each Task Force—and subsequent Working Group—is guided by the Financial Sustainability Steering Committee, ensuring overall strategic alignment in the pursuit of cutting costs and maximizing revenue across SBU.

• How much funding does SBU get from the State?

  State tax support for the academic enterprise has been a flat $147 million over the last 10 years and is has declined by $25 million to $122 million in FY21. The State also directly pays so-called “fringe benefits” (retirement contribution, healthcare, etc.) on behalf of all state funded faculty and staff, which accounts for a further $205 million in state support. Fringe benefits are negotiated by the Governor’s Office of Employee Relations with the state unions and changes would have to be negotiated at the State level.

• How much do student fees contribute to the operating budget?

  Students pay a variety of fees that support parking and transportation, technology (IT), recreation, student health and counseling services, career and alumni services and athletics. Fees generated $57.8 million in revenue in 2019/20.

Phase 2: Partnering with Purpose

• Are these budget issues real?

  Yes. U.S. higher education is experiencing a period of disruptive change, challenging SBU and other universities to think more strategically than ever before about finances. At Stony Brook, we have faced unsustainable long-term trends as well. These include declining per-student state support, unfunded contractual salary increases and mandates to cover unfunded gaps in state financial assistance programs. At SBU our immediate focus needs to be on reducing expenses while simultaneously finding new ways to increase revenue and making strategic data-driven investments in areas of excellence that will set us on a path toward a sounder financial footing and sustained growth.

• What is Phase 2 of the Strategic Budget Initiative?

  While Phase 1 was focused on sharing a large amount of information and data to help our community understand the current climate and historical trends that have and will continue to influence our financial position, Phase 2 will be focused on identifying short and strategic, longer-term opportunities that will improve our financial position and enhance academic and research excellence.

• Why are we doing this work now?

  While we have taken a number of difficult but necessary stop-gap measures to address budget challenges, they have come nowhere near closing our shortfalls, and the state budget situation remains fluid. More importantly, we can’t rely on short-term stopgap measures to solve what are fundamentally long-term challenges.  We have an opportunity to be strategic, collaborative, open, and future-focused and it is important that we started this process in a collaborative way as soon as we were able to do so.

• How will academic programs be affected?

  We must evaluate the way we have operated in the past and build on areas of excellence that enable cutting-edge breakthroughs in research and medicine, support the accomplishments of our world-class faculty and create an environment that fosters student success and achievement. It is certainly possible that some units will look and operate much differently in the future than they do today. Our new Provost will have the benefit of the recommendations of the Academic Portfolio Task Force as he works in partnership with academic leadership across the campus to determine next steps related to our academic programs.

• How were the members of the Task Forces selected?

  The co-chairs of the task forces along with campus leadership worked together to select members of their task forces and working groups.

• How does the Technical Support Group fit into this process?

  The Technical Support Group (TSG) is available to provide resources, advice and expertise to the task forces, working groups and leadership as subject matter experts in the areas of finance, budget, IT, and data.

• How do the recommendations from the working groups get approved and implemented?

  Working groups will submit their final plans and supporting analysis by mid-March for review by the relevant task force. The Financial Sustainability Steering Committee will prioritize these opportunities where they will be sent to the Executive Committee — which includes University, Medicine and Senate leadership — for review and approval by the end of April for implementation in FY21/22.

Possible Approaches

• Why can’t we just raise tuition to increase revenue?

  The maximum SUNY tuition increase is set by the Legislature and the actual tuition charged up to this maximum is set by the SUNY Board of Trustees annually. With state funding declining, we need to have more flexibility to set tuition in a way that better supports our goals while protecting our Pell and TAP eligible students. The reality is our current tuition structure is one of the lowest of all AAU schools and of all public research universities in the entire northeast region.

• Why can’t we raise fees to increase revenue?

  Broad based fess for FY20/21 were submitted and approved in FY19/20 with modest and carefully considered increases, in line with costs and SUNY Policy #7804 on Fees, Rentals, and Other Charges. All fee increases need to follow SUNY-level Administration Office of Finance and Business procedures.

• SBU is a prestigious research institution. Why can’t we simply admit more students able to pay the full tuition rate?

  SBU receives approximately 10 times as many applicants as students we can support.  Many of these are international or out-of-state domestic students who pay a higher tuition rate than NY students. We have been steadily growing our overall and out-of-state student population, but we must also meet our mission to serve New York residents by providing an affordable, quality education.

   

  COVID has also impacted this mix of students. For example, we believe that international enrollment will remain sluggish for the next few years. This will impact our finances and be detrimental to the kind of diverse and rigorous intellectual environment we want here. 

• Why can’t we use the endowment to bridge this budget gap?

  The Stony Brook Foundation, through distribution from the endowment and restricted and non-restricted gifts was expected to provide $43 million in support in FY18/19 to the school’s operations, which is a tremendous resource. That said, there is a common misconception that the endowment is a savings account into which universities can dip as needed. In fact, all but 2.5% of the endowment is restricted meaning the financial gifts have been designated by the donor for a specific purpose, whether a scholarship, a building, an academic program or some other priority. 

   

  Additionally, endowments are designed to keep the principal amount intact while using the investment income for charitable efforts. There are significant policies and statutes governing 501 (c)(3) foundations that restrict both amount and usage of foundation holdings. We are grateful to donors for their generosity and are bound to honor the donor’s wishes and our agreements.  

• Why can’t we use the university’s reserves to pay for other things that are now being cut, such as hiring much needed faculty and staff?

  We have to maintain a certain cash balance in our reserve fund to ensure that we have sufficient cash to fund operations. Despite funding relief provided by the federal government and state, we still had to tap into our reserve fund in order to continue funding all of SBU’s operations. In doing so, we reduced our central reserves to a projected balance of $46 million, the lowest it has been in five years and far less than the minimum recommended level set by SUNY.

  Tapping the reserve fund as a stop gap measure is justified at this time, but it is not sustainable. Additionally, Stony Brook, like every other school in the SUNY system and every NY state agency, is under strict hiring and spending restrictions which limits our ability to hire.

Understanding the Numbers

• What is the difference between gross tuition and net tuition?

  Gross tuition refers to the full tuition rate applied to all students. Tuition and fees net of financial aid is a measure often used to compare institutions and the cost of the university for students. Net tuition is a financial definition of tuition charged, net of accounts receivables, interest earned and other accounting adjustments.

• What does Vacancy Savings mean and how is it different from Attrition Savings?

  Vacancy savings is the projected savings that occurs if we do not fill any currently open positions.  Attrition savings come from staff or faculty who are currently in their roles but who leave during the year.  Attrition is normal at every institution due to retirement or moving jobs.

• What does FTE mean?

  FTE is short for “Full Time Equivalent.” For example, in staffing, two staff members who work part time for 20 hours a week would count as one FTE; or one student who studies for three months and another for nine months would be counted as one FTE student. We have also developed a Glossary where other terms you may not be familiar with are defined and described.

• What does cumulative staffing reductions mean?

  Every year, we have had to make hard decisions to balance our budget. Unfortunately, this has meant that we have had to eliminate or leave unfilled a variety of positions. The cumulative staffing reduction is a measure of such reductions over a specific time period. The cumulative salary savings represent the equivalent savings.

• What does self-sustaining operations mean?

  Self-sustaining operations refers to operations like student housing, dining, or transportation, as well as certain tuition-related activities like summer term and winter term tuition. Essentially they are areas of university operations that are funded by the fees assessed by those who use them to support their operations.

• Why does the "Understanding Funding" section not include fringe benefits, which are paid for with $205 million in state support?

  Fringe benefits are a significant component of New York State’s support for higher education.  However, since SBU does not receive the funds or control their use, they are not counted as part of our operating budget, although they are counted in our financial reports. 

• Why are there differences in tuition numbers for FY20?

  The tuition for FY20 is shown as both $297 million and $292 million representing gross and net (gross minus minus various deductions, such as bad debt).  Small differences in the gross tuition number between two charts can be attributed to when and how the data was accessed to produce the charts.  

• What is the Faculty Student Association?
  The Faculty Student Association at Stony Brook University is a not-for-profit 501(c)3 auxiliary services corporation, licensed by the State University of New York. FSA provides more than 25 services that contribute to the quality of campus life in a flexible, efficient and responsive manner to support the mission of the Stony Brook campus. FSA holds the contracts for our food service, bookstore, campus vending machines and laundry services, etc., and other key support services.
• According to the $3.5B Total Operating Budget by Expense, we spend $415.1 million and on the Academic & Research Budget, $85.6 on “contractual services”. What does that include?

  On the Academic and Research side, this includes contracted custodial service, grounds maintenance and maintenance of essential infrastructure like the high temperature hot water distribution system. Also included here are contacts with the FSA for catering and research funded subcontracts.

  On the Hospital & Clinic side, this category includes many of the above as well as medical services, laundry & linen, collections, etc.  Another large category on the health side is “Supplies/Other” which includes medical supplies such as prosthesis, surgical supplies, anesthetic materials, and oxygen as well as non-medical supplies such as cleaning supplies, instruments, and employee wearing apparel.

• Why are there two different pie charts that explain where SBU spends its resources?

  One breaks down costs by the type of spending – how much does SBU spend on salaries, equipment, utilities, student aid and so on.  The second pie chart shows how costs are broken down by division – how much does the Provost’s office spend versus IT for example. As you will see from some of the breakout charts, a lot of the overhead for the university as a whole, e.g. utilities, is captured under the budget for Administration

Employee Concerns

• Is SBU planning layoffs, either at the university or the medical center?

  There currently are no discussions regarding layoffs. However, the current hiring freeze will continue.

• Are there plans for SBU to provide an early retirement incentive?

   Not at this time. Programs such as this require upfront funding and substantial diligence in not backfilling vacated positions. In any case, early retirement incentives, like all compensation programs, must be approved by SUNY. 

• As a tenured professor, need I have any concern that my employment is not secure?

  There are absolutely no plans to do away with tenure. SBU’s goal is not to take the route that so many other campuses are taking right now, which unfortunately is leading to some schools shutting down academic programs, announcing significant layoffs, furloughs or spending cuts. 

• Are faculty and staff lines not being replaced, leading departments to offer fewer sections?

  No. Although SBU’s hiring freeze has allowed us to garner savings both last year and this year, we do have an exception process for approving new hires. SBU still has about the same number of tenured and tenure-track faculty this fall compared to last fall, and we are actually teaching a greater number of sections this year than last year.

State/Federal Support

• What is being done to influence leaders with the state system and lawmakers in Albany to get Stony Brook the help and support we need?

  The university’s leadership team is doing everything it can to make sure all key decision makers understand what SBU needs. To that end, President McInnis has met with the chancellor and legislative leaders regularly to discuss SBU’s challenges; the support of SUNY, the governor and the legislature is a top priority for us.

• What are the hopes and expectations of potential state and federal support?

  We are working to increase research funding at the federal level, which would cover COVID costs, and to secure increased state support to cover the TAP gap, contractual salary increases, and other necessary annual increases. This will allow us to continue on our trajectory as one of America’s leading research universities and to support academic and research excellence for our students, faculty and New York State.

Campus Climate

• Change is often hard to embrace, especially in a time of such uncertainty with the pandemic. How is SBU going to help faculty and staff embrace change and help our university move forward?

  Change often is hard, but innovation must be at the heart of any great university – particularly at a research institution. We need to emphasize collaborative research efforts, increasing interdisciplinary opportunities, and incentivize successes that will enhance our AAU standing and help increase federal, industry and other grant funding. Innovation and change will make this institution stronger.

• How is SBU responding to the rise in mental health issues that students are expressing?

  Even before the pandemic, the increase in anxiety, depression, and suicide among all age groups across our nation (but especially among young people) was alarming. The pandemic has only exacerbated these challenges. We need to take a public health approach to this crisis by focusing on prevention, detection, and treatment. For more information on mental health resources available to our students, please visit the Center for Prevention and Outreach website. Additionally, the incoming President’s Council of Student Advisors will use their time next academic year researching and making recommendations for ways to enhance our health and wellness support for our students.

Looking Ahead

• How will the university learn from the pandemic to create an even more inclusive educational experience for our students in a post-COVID environment?

  We know that COVID has placed a higher burden on traditionally underrepresented communities, both from a health and financial perspective. As a leading higher education institution, we can play an important role by:

  • First, conducting the research needed to help everyone understand societal inequities.

  • Second, sustaining our track record for providing equitable access and ensuring success for our students from low-income and first-generation backgrounds. 

  • Third, analyzing how COVID has exacerbated inequities and ensure that we are closing those gaps. For example, keeping our residence halls open provided important safe housing, food security, Wi-Fi access, and a place to focus and study for our most financially challenged students.

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