Budget cuts and sustainability of Variety Testing Programs

1. Budget cuts and sustainability of Variety Testing Programs How to survive the recession. Bill Bruening University of Kentucky

2. As we begin the Spring 2010 semester, our University and our state continue to face substantial budget challenges. Even as the national economy shows some signs of recovery, we face the very real prospect of at least two more years of very tight finances. And this comes in the wake of the last two years of declines in appropriations from the state. In December 2007, the University's annual operating appropriation from the state was $335 million. Following a series of reductions since then, it is now $310 million. This 7.5 percent reduction has been very difficult to manage. But we are sobered by the fact that it could have been much worse. $21 million of our current $310 million in appropriations from the state are temporary federal stimulus funds. In the current fiscal year, state government will take in $108 million less than it budgeted. (expect more deep cuts) But then the federal stimulus funds run out. So 2011-12 holds the prospect of being an extremely difficult year for all of us. From recent email from UK president, Lee Todd

3. So, what do we do when your department starts discussing cutting positions/programs? Staff & non-tenured variety testing research specialists & their programs = easy pickins’.

4. What to do when you are told the department can no longer support your salary/program? Need to cut costs and increase revenue. Can your program be self-sustainable?

5. Some cost cutting measures… Reduce travel (meetings, note taking) Reduce # of test locations Incorporate tests into growers fields(tramlines) Other ideas?

6. Increase Revenue Solicit more entries Market grain from variety tests Sell unused equipment/ extra vehicles Contract testing with seed companies Apply for external funding grants State Commodity Groups USDA / NIFA grants 6. Other ways?

7. $$$ Commodity Group Funding - Survey Response $$$ 50% Variety Test Programs get moderate to substantial support. 50% get minimal to no support – Why? Do not apply Applied research not priority - only for basic or end uses. Solution 1: Apply for variety tests research funding. Easy to justify funding request: Primary objective of commodity groups is to increase crop production profitability. Simple application/reporting process compared w/ other grants.

8. Easy case to make

10. 8 bu/acre@ $4/buextra $32/a400 acre field=$12,800KY 400,000 a=$12.8million

11. $$$ Commodity Group Funding - Survey Response $$$ 50% get minimal to no support – Why? 2. Applied research not priority - only for basic or end uses. Solution 2: Change the way the commodity board thinks / acts / funds Amount$ and area (more applied). Other ideas, thoughts on commodity group funding?

12. University / Seed Company Contracting Survey Results Most companies / universities open to this. Pros: Universities – important source of revenue & may be relatively easy to implement with other tests. Companies – cost effective way to collect quality data or conduct research over broad/diverse areas /environments. Cons: Conflict of interest; endorsement issue; make sure all expenses covered – no state subsidizing; misuse of data. Comments on contracting?