ITS Budget Presentation

Monday, December 03, 2001

1.      Everyone around this table has the same speech to make as I have -
“Now is not the time to make cuts in my area.”

Tom Peters Observer! November 26, 2001: “The Internet is here. Tech change continues to accelerate. Dell knows. Oracle knows.  DO YOU?  This is exactly the wrong time to hunker down and cut the IS/IT investment account.

2.      No one is going to volunteer the kind of strategic cuts that need to be made.  That will come in only one of two ways:

a.       Senior administration makes the strategic decision and presents it to the budget administrative group, or

b.      An independent third party analyzes our situation and makes recommendations.

3.      I have achieved an 8% reduction over the current years budget, not including three situations requiring budget increases:

a.       Invoices for software maintenance:                       increase by             $23K

b.      Budget corrections in Telecommunications:           increase by           $114K

c.       Personnel adjustments/reassignments:                   increase by             $40K
                                                                           Total increase:      $176K

4.      There are several approaches that could be taken concerning the $176K:

a.       Grant the request as increase to overhead, that is, take it from savings made elsewhere.

b.      The Telecommunications increase could be covered by a one-time hike in charges for telecom services.  $171K of the budget corrections are for a single account, but savings elsewhere have reduced this to the $114K.

c.       ITS was given $40K this year to cover the creation of the new Banner support position.  Calculations of the net change in personnel costs result in that same amount being needed as a permanent addition to the ITS budget.  The hiring was done only on the basis that the funding shortfall would be made up, and I have multiple assurances that this budget would be covered.

5.      The global issue of billing:

a.       Telecommunications: $11.50 & $15.50 is a long way short of commercial rates for business (mid $30’s for services provided).

b.      PC Support:

                                       i.      $30 per hour is a long way short of the $75 commercial rates.

                                     ii.      The 5 PC Support Technicians bill a little less than half their time, because they also do a lot of generalized work, such as researching software update timing and procedures, campus-wide virus protection issues.  That portion of their time is being socialized with no regard for PC density.  The portion they bill has the effect of causing those with older or more flaky hardware to subsidize the rest of the campus.

                                    iii.      A more equitable procedure would be a set maintenance fee per PC to cover hardware and software purchase and maintenance.