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To the University of Hawai‘i ‘Ohana

June 2, 2009

I know you all have questions growing out of Governor Lingle’s address on Monday, June 1, particularly how it will affect you individually as well how it will influence the university’s ability to accomplish our mission.

Noting that the law doesn’t permit her to order furloughs for the Hawai‘i Department of Education, the University of Hawai‘i and the Hawai‘i Health Systems Corporation, the governor has restricted our general funds expenditures in an amount equivalent to the three-day-per-month furlough she announced for other state employees.

While we have not received official notification, we estimate this restriction to be more than $50 million per year in fiscal year 2010 and fiscal year 2011.

There are various scenarios and several uncertainties as to how this situation may play out at the state level. As we monitor ongoing developments, my leadership team and I are working to craft an appropriate response for the university, identifying the relevant questions, finding answers and working toward specific solutions.

In this process we will be in discussion with our Board of Regents, campus chancellors and other constituencies within and external to the university, including, of course, the unions that represent our employees.

There is no doubt that the State of Hawai‘i is in a difficult fiscal situation. Right now my highest priority is to find the best path forward that will minimize the impact on each of you while limiting the negative consequences on the students and communities we serve, who are relying on us more than ever to continue to educate and innovate.

I’ll be in touch again in the days to come. Mahalo nui loa for all that you do for UH, and for the state of Hawai‘i.

With best wishes and aloha,
David McClain