U of M to shrink administrative costs by $90 million - Bring Me The News

U of M to shrink administrative costs by $90 million

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After slashing $15 million in administrative costs from this year's budget as suggested by the state legislature, University of Minnesota President Eric Kaler pledged to continue the trend through 2019, cutting a total of $90 million over six years.

Kaler outlined the plan at the board of regents meeting Friday.

"I am absolutely committed to driving excellence in all we do at this great University, while ensuring it remains affordable for qualified students. Saving $90 million over the next five years is a big step towards this goal," Kaler said.

CFO Richard Pfutzenreuter says the university needs to centralize a lot of its services, be shrewder in how it buys supplies and equipment, and cut paperwork through computerization, MPR reports.

Layoffs are not out of the question, but Pfutzenreuter said officials hope to reduce personnel through attrition.

Leaders did not give have specifics on how many and what positions might be cut down the road, the Pioneer Press reported.

It shouldn't be too difficult to find the savings. The university has reduced administrative costs by $32 million a year over the last couple years, MPR said.

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