Innovative strategies generate $2 billion in cost reduction for UT System

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The UT System released records Monday indicating that a total of $2 billion has been saved over the past six years through coordinated efforts between the nine UT campuses. 

Due to efficient strategies and newly implemented practices, the UT System has cut costs while at the same time allocating more resources for students.

The $2 billion in savings has a direct effect on UT. According to UT President William Powers Jr., current efforts could produce as much as $490 million over the next ten years. Overall these initiatives will save the System nearly $4 billion by 2016, according to executive vice chancellor for business affairs, Scott Kelley.

In a press release, the System attributed the savings to energy-use reduction and the sharing of resources, journal subscriptions and software between campuses. Costs were also diminished through methods like centralized investments and outsourcing.

System spokeswoman Jenny LaCoste-Caputo said the System is making careful decisions to avoid hurting productivity or students. 

“We want to look for areas where we can cut excess and do the same job or better with less resources and using that [excess] money for investments which will allow for a bigger return for students,” LaCoste-Caputo said.

Kelley will release updates on savings at a Board of Regents meeting Wednesday. According to Kelley, a total of $383 million has been saved in the past year. 

“We’re well positioned because our 15 institutions allow us to come together and look at things collectively and holistically,” Kelley said in the press release.

According to LaCoste-Caputo, institutions have combined to invest in resources to help reduce cost.

“So, for example, we all need notebooks. The idea is let’s purchase them together and get a better deal. That’s a small example but you can save a lot of money that way,” LaCoste-Caputo said.

The UT System is comprised of nine academic universities and six health institutions with more than 87,000 employees.