Kaler looks to cut admin. costs by $90 million

However, reports show the University has the “healthy” levels of administrative spending.

Meghan Holden

University of Minnesota President Eric Kaler announced a plan to cut administrative costs by $90 million, despite a review that says the institution’s spending is fine.

According to a report by a University-hired consulting firm, which was reviewed by the Board of Regents Friday, the institution’s administrative costs are within “healthy” levels.

At the same meeting, Kaler proposed a plan to cut $15 million a year in administrative costs. The plan would start this academic year and continue for five more.

“I think it’s time to be more ambitious than we ever have been,” he said to the Regents.

Kaler said the money should be spent on teaching and research instead.

“I am focused on making this an efficient, high-functioning University,” he said.

University Chief Financial Officer Richard Pfutzenreuter said he hopes the spending cuts are a result of not replacing people who retire and not just layoffs.

 “There’s no guarantee at this point,” he said.

However, the review by Sibson Consulting said the University is on track with administration costs.

Huron Consulting Group and Sibson Consulting began analyzing the University’s spending after state legislators requested a report last session following a December Wall Street Journal article that criticized the University for alleged administrative bloat.

The report suggested the University could shrink its managers-to-employees ratio and combine services across multiple departments and colleges to lower costs.

For more on the Kaler’s plan to cut administrative costs, pick up Monday’s Minnesota Daily.