UMDNJ Board of Trustees Approves $1.5 Billion FY 2008 Budget
Provides University Hospital a Break-Even Budget,
Invests Heavily in Compliance
NEWARK — The Board of Trustees of the University of Medicine and Dentistry of New Jersey approved the FY 2008 Budget at today’s regular meeting.
In a unanimous vote, the Board approved a $1.5 billion spending plan that greatly increases University investments in controls and compliance infrastructure, and for the first time in two years, moves University Hospital toward a more sound financial footing by achieving a break-even budget, pending final resolution of the State budget.
The budget document, which does not include layoffs, also provides $3.97 million in additional resources to the University’s Offices of Internal Audit, Legal Management, and Ethics and Compliance, as well as startup costs for the new Contract Management Office. The commitment further advances initiatives instituted this year as the Board of Trustees began implementation of a reform agenda throughout the institution.
“It is clear that we must expend these resources to make up for the chronic under-investment in previous years,” said Board of Trustee Chairman Robert Del Tufo. “These funds will help ensure that the proper checks and balances are in place in the future, as we carry out the real business of UMDNJ-teaching students, healing patients, and making research discoveries.”
In addition, the FY 2008 budget makes a $7.8 million investment to the University’s critical infrastructure. It includes funds to upgrade and stabilize the operating platform for the University’s data center operations; monies will also be spent to upgrade and protect the physical plant infrastructure statewide.
“The FY 2008 budget investments will build upon and strengthen the FY 2007 investments made to the research and technology missions,” said Interim President Dr. Bruce C. Vladeck. “We also anticipate $7.5 million in additional monies that will allow us to begin providing clinical services at our Cancer Center in Newark.”
For the first time in three years, the University has created a Capital Budget of $340 million, which allows for long-overdue investment in patient care equipment and facilities. Included in the budget are monies for creation of the Stem Cell Institute of New Jersey, the Academic Research Facility in Camden, as well as the capital improvements to University Information Systems and Technology.
Last year’s budget required layoffs throughout the University and University Hospital. In FY 2007 University Hospital had an operating deficit of $25 million; in FY 2006 the Hospital’s budget deficit totaled $40 million. The spending plan also limits tuition increases to less than 4 percent, except in a few instances.
UMDNJ is the nation’s largest free-standing public health sciences university with more than 5,700 students attending the state’s three medical schools, its only dental school, a graduate school of biomedical sciences, a school of health related professions, a school of nursing and its only school of public health, on five campuses. Last year, there were more than two million patient visits to UMDNJ facilities and faculty at campuses in Newark, New Brunswick/Piscataway, Scotch Plains, Camden and Stratford. UMDNJ operates University Hospital, a Level I Trauma center in Newark, and University Behavioral HealthCare, a mental health and addiction services network.