Published Thursday, June 18, 2009 6:05 AM
A&M aims to cut costs
By VIMAL PATEL
vimal.patel@theeagle.com
From the president's office Wednesday morning, Texas A&M Interim President R. Bowen Loftin discusses the objectives the Board of Regents have given him.
His bosses made the goal clear: Save money.
In his first media interview since beginning work as Texas A&M University's interim president, R. Bowen Loftin said Wednesday that his first order of business would be to assess the university's finances.
"The objective I've been given is, we need to be cost-effective," said Loftin, sporting one of his trademark bow ties, a maroon one. "We need to anticipate that the economic situation we're in now will not improve that quickly. So it makes sense for us to very quickly examine our own costs and our structures to make sure we do things as efficiently as possible."
Loftin confirmed the resignation of outgoing President Elsa Murano's chief of staff, H. Russell Cross. The food safety expert, who also held the title of executive vice president for operations, was the No. 2 administrator at the university, a ranking he shared with the provost. He will return to the university as a faculty member, officials said.
Loftin, the former head of Texas A&M University's branch campus in Galveston, noted that he'd been on the job only two days, and that details of his cost-saving strategy were yet to come.
"I'm looking at how we're doing things, in this office in particular, because I can't ask others to do what I won't do here," he said. "If we do any major cost-cutting, it will start here, and we'll go from here. That's all I can tell you right now. It's just a bit too soon to tell."
The Texas A&M University System Board of Regents approved Loftin's selection during a special board meeting Monday. Regents also heard a presentation about the increasing costs of education, and they approved a broad but yet unclear plan to merge certain services now handled separately by Texas A&M University and the 11-university system that governs it, in an effort to cut costs.
Murano announced her resignation Sunday, following the public release of her job performance review by Texas A&M University System Chancellor Mike McKinney in response to an open-records request by The Eagle. McKinney gave her a low rating for honesty and integrity and being a team player, an evaluation that Murano rejected in a 10-page document sent to McKinney and the regents.
Loftin declined to speak about his thoughts on Murano's departure: "I wasn't a part of the process. I really can't say much more than that."
The 59-year-old, however, praised her in two areas in which the pair worked together over the past year.
In July, she helped deal with the aftermath of the sinking of the Cynthia Woods sailboat, which killed a safety officer. The ship belonged to Texas A&M at Galveston. And Murano provided support during the massive effort to relocate 1,700 Sea Aggies from the Galveston campus to College Station in September in the wake of Hurricane Ike.
"Dr. Murano was extraordinarily supportive to Galveston," Loftin said. "So those are two pictures of Elsa that I have. She basically was there when I needed her in these two very difficult times. ... That's really what I can say about her administration. That's what I saw."
In Murano's otherwise harsh review by McKinney, the chancellor praised her in those two areas as well, writing "boat incident handled well" and noting that Murano was "very good" during Hurricane Ike.
Cross -- who was appointed to his role as executive vice president for operations by Murano in January 2008, the same month she became president -- managed operations for her office. He worked as an associate dean under Murano while she was dean of the College of Agriculture and Life Sciences. Murano brought others into her administration whom she knew closely.
"It's important for any new administrator to have the right people in the right jobs and have people who can get their jobs done," Murano said after a regents meeting in January 2008. "I know these people real well, so I know they are going to be a tremendous team."
Cross' resignation letter had already been drafted Sunday, the day Murano announced her resignation, according to an administration official who saw a copy. Murano, the official said, had been in negotiations with system officials since the middle of last week.
Murano will return from a paid yearlong leave to join the faculty next June. Over the next year, she will receive at least $720,000 -- $295,000 of that in exchange for agreeing not to sue the A&M System or its officers.
It was unclear whether Cross received any severance. Loftin said he had not seen the resignation letter. He said plans for an interim to fill Cross' role were "being talked through right now."
"Russ has been a great friend, a great person to work with the last year or so," Loftin said. "I saw him briefly Saturday evening. And he was talking in fairly joyous terms about returning to teaching. ... He was really in a happy, relaxed mode on Saturday evening."
Cross did not respond to a message seeking comment.
Loftin said he was committed to shared governance, the idea of gathering as much input from as many relevant groups before making a decision. He pointed to his two years as president of the Faculty Senate at the downtown campus of the University of Houston.
He also said that after he arrived in College Station on Monday afternoon, his first step after meeting with McKinney and Board of Regents Chairman Morris Foster was to have dinner with the executive committee of the Faculty Senate. Several faculty members who have been critical of McKinney and the regents have praised Loftin.
He was asked how much autonomy from the chancellor and regents he would have in his role as interim leader.
"A great deal, I think," he said. "At [my] meeting with the chancellor and board chairman, I was given basically a high-level objective [to cut costs]. How I accomplish that is my business. I think we have the freedom to work here at the university towards meeting an objective without anybody else managing the process we use."
Comments
[comment]
16 comment(s) found!
Posted by:
On:
Monday, June 22, 2009 1:58 AM
Comment Title: Cost cutting - easy
It is easy to cut cost in the short term at TAMU. I would recommend that the person who makes any real cut in budgets or programs have a bail out contract. They will not be retained at TAMU very long if they make any real cuts.
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Posted by:
E On:
Friday, June 19, 2009 6:28 AM
Comment Title:
Here, here to dismayed Aggie supporter, and the post: "First article on new President..." To the poster of: "re: G", the real, continuing story is about tuition/fee increases, as well as competent & shared governance, Vision 2020, and the repute and prestige of A&M. A&M is not a corporation. That is not to deny A&M employs aggressive technology transfer and 'research' ventures with the business sector, but I am dubious as to those financial benefits ever making their way back to students, as evidenced by yearly tuition and multiple fee increases. But lest ye forget, the Regents, and the university are again pleading poverty. While they may have good reason to cut costs, the methodology presented in the Regents meeting Mon. sounded like a high school lecture on economies of scale, and eliminating duplication of services. Why weren't these corporate titans employing these very common-sense techniques already? If some large savings are attained, and announced, I'll betcha a steak dinner it won't keep them from raising tuition & fees in 2011 (they have already raised tuition the greater of 4% or $150 this coming fall.) Well, why not look outside on campus. $100M for the MSC, $35M for grad student apts in the university-owned apartments on Univ. Dr. the Vet. Research Bldg addition, and numerous other projects. Some were a long time coming, like the Mitchell bldgs, and were possible through large private donations. But often there are 'matching funds' from the university. That's the point where terms like 'earmarked funds' (not a legislative rider, but a financial contrivance to claim that the money was gotten specifically for that purpose, and cannot be re-purposed to say avoiding a large tuition/fee increase.) If it is so difficult to attain adequate state legislative appropriations, perhaps the Regents should tap A&M's endowment to keep tuition & fees from more than doubling in less than the next 6 or 7 years.
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Posted by:
On:
Thursday, June 18, 2009 10:59 PM
Comment Title: Initially, I'm uncertain..
Dubious about a fellow who wears his initial up front. P. David Romei anyone? And the bowtie?
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Posted by:
Phyll Gramm Economics On:
Thursday, June 18, 2009 9:22 PM
Comment Title:
Very simple..Fire 2/3 of the university employees as two employees usually watch one work..
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Posted by:
On:
Thursday, June 18, 2009 1:35 PM
Comment Title: Chancellor et al
How about if these guys write a new book "The Complete Idiots Guide to Micromanaging a University." Probably wouldn't sell.
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Posted by:
dismayed Aggie supporter On:
Thursday, June 18, 2009 1:29 PM
Comment Title:
The long-term economic benefits of a Texas A&M degree depends not on commercializing research but the reputation of the university, which an outstanding faculty has made eminent and which the chancellor and the regents have recently degraded. Shame on them and their talk about "costs" to detract attention from the "politics" they've been engaged in. If Loftin acts upon the principles he apparently possesses, he'll soon find himself treated as shabbily as Murano.
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Posted by:
On:
Thursday, June 18, 2009 1:21 PM
Comment Title: HOW TO SAVE MONEY FOR DUMMIES
FIRE Mckinney and his board of rejects and you will save billions. CASE CLOSED! NEXT!
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Posted by:
Ed Dannhaus On:
Thursday, June 18, 2009 12:24 PM
Comment Title: President Texas A & M
I volunteer to be President for free for one year if the board fires Mckinney. We save two salries in this case.
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Posted by:
G On:
Thursday, June 18, 2009 11:22 AM
Comment Title: Cost cutting
Both objectives can be achieved. I fully understand about the research dollars and the revenue stream it creates. I also understand about the academic side. Each can be successful but leadership is the key all levels of the University. I was there as a student, a researcher, and employee several years ago. I also served on several committees over the years with much chagrin. I have since been in the real business world and competed for many transactions as well as implemented the contract requirements. I can say this with personal knowledge the academic community across the nation has it easy. I am not just picking on TAMU for it is my alma mater. All of the major and smaller colleges are the same. Some just get money because who they are like Harvard, MIT, UCLA, etc. One thing I am proud of is when one of my professors who graduated from a northeast school and taught engineering at Michigan prior to coming to TAMU told our class that TAMU does not take a back seat to anyone.
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Posted by:
On:
Thursday, June 18, 2009 9:43 AM
Comment Title: re: G
G, it is all about the money and you don't get where the money is made at a university--it is not in the classroom. It is in commercializing research discoveries and setting up private businesses using university research. Believe me, there is absolutely no intention by the chancellor, the System VP for Research, or the regents of telling academics whose research can be turned into a business opportunities like pharmaceuticals to get back in the classroom and teach more students. If you want the details, check the threads on McKinney and Guy Dietrich, whose entire office is set up to negotiate such deals, although notably failed businesses so far. It's not 'best business practice' to have money makers like those involved with students! This "cost cutting" is not about improving the quality of education or building a real, comprehensive university, it is about maximizing research indirect cost returns ($$$$) and that's why the System wants to control research administration, that's why the specific comments about Murano not being a "team player" when it came to the VPR office and the Research Foundation were made. As people have said, follow the money in this story and it will NOT lead to you a concern about tuition, but commercial opportunities and grant funding
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Posted by:
G On:
Thursday, June 18, 2009 8:52 AM
Comment Title: New president
Some of the persons commenting still do not get it about cost cutting. The academic world is notorious for being inefficient with cost and time. The number one place to look is the work load of the professors and whereby their teaching load is very low. Very inefficient in terms of available man hours. I also would look at a the facilities use in the summer months. Perhaps schedule design should be reexamined.
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Posted by:
BTHO... On:
Thursday, June 18, 2009 8:46 AM
Comment Title: Gee ain't it swell.
Hey look, A&M has an old white guy for President again. He even wears a bow tie. You can't get any more "Blue Bell" than that! Do ya reckon he'll take the all the boys to the ol' swimmin hole after the first big football game if they win? Heck why not take em' to La Grange! Then in November he can bring back Bonfire. Its gonna be like old Army again! Whoop!
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Posted by:
On:
Thursday, June 18, 2009 8:46 AM
Comment Title: Loftin is a great leader
As a former student of Texas A&M at Galveston I can tell you Loftin is the perfect person for the job. He is very supportive of student groups, he even showed up to a celebration when the offshore sail team was successful at the Harvest Moon Regatta. A&M Galveston is a very well run institution. Everything is very consistent no matter what the economic situation is. If there is a way to increase the finances of A&M he will find it and execute it.
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Posted by:
On:
Thursday, June 18, 2009 8:26 AM
Comment Title:
Remember, he said earlier they asked for him to fax his resume over late Saturday night, but Murano had been negotiating her resignation package as early as Thursday. Doesn't sound like they really that familiar with him, or prepared to do the due diligence necessary to find an appropriate interim. And cost-cutting? What does that package to Murano cost A&M? Who caused that unnecessary expense? McKinney and his sloppy "business" style of leadership. What hubris.
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Posted by:
On:
Thursday, June 18, 2009 8:18 AM
Comment Title: First article on new President...
...and not one mention of academics. Instead, the first priority is money. I'm confused; is A&M a corporation or an institute of higher learning?
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Posted by:
On:
Thursday, June 18, 2009 7:26 AM
Comment Title:
I guess when you make your living on other people's taxes,the economy doesn't mean a thing....
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