Statement Concerning The University of Texas Medical Branch at Galveston

EL PASO – The Board of Regents of The University of Texas System unanimously approved the following motion today (Nov. 12) concerning The University of Texas Medical Branch at Galveston. The action took place at a scheduled quarterly meeting of the board at The University of Texas at El Paso.

The Board of Regents and the U. T. System are committed to a successful, financially viable and responsible future for UTMB and the advancement of its education, patient care, and research mission;

The U. T. System expresses significant gratitude and appreciation to President David Callender, UTMB leadership, and the UTMB community for their exemplary actions and heroics during and after Hurricane Ike. The U. T. System and UTMB also appreciate the support and assistance provided by other U. T. System institutions, the Baylor College of Medicine, The Texas A&M University System, and many other healthcare organizations;
 
The Board acknowledges that UTMB is diligently and effectively restoring and continuing the significant educational and research programs of the institution in a financially responsible manner;
 
Detailed financial analysis shows that UTMB's current rate of expenditures, including the continuation of wages and benefits for faculty and staff who have not returned to work, exceeds revenues by almost $40 million per month. UTMB will deplete its financial resources and reserves in approximately three months, leaving the institution in the untenable position of having no funds to continue to operate; 
 
The U. T. System does not have resources available to cover the ongoing operating expenses and needs of UTMB; and

The U. T. System Board of Regents cannot use Permanent University Funds, Available University Funds, or monies to be provided by the Federal Emergency Management Agency to fund operating expenses, or the payment of wages and benefits at UTMB.

Therefore, as fiduciaries of UTMB and stewards of its future, with the desire to best ensure its long-term viability for its employees and the community, and in the absence of immediately available operating funds from state and local sources or philanthropy, the Board finds that a financial exigency exists at UTMB and instructs the U. T. System to work with President Callender to implement a reduction in force of approximately 3800 full-time equivalent positions, including personnel actions discussed in Executive Session.
 
The Board further directs that steps be taken to mitigate the impact of the reduction in force on affected faculty and staff, including priority hiring of qualified employees for available positions at other U. T. System institutions, assistance in placement of employees with other healthcare institutions and employers, and exploration of opportunities for retirement incentive packages.

Background Materials