As one career headed toward its finish last week, a major new initiative between the University of Missouri system and its Columbia campus was just getting under way.

In a ceremonial news conference Thursday morning, University of Missouri-Columbia Chancellor Richard Wallace said he would retire in August 2004. A few minutes later, MU President Elson Floyd said that rather than seeking a replacement for Wallace, MU and its Columbia campus would pursue an administrative consolidation that could potentially combine a number of offices, including that of MU president and the Columbia chancellor.

“I think we’ve got some real opportunities, and I want to say at the outset, I’m excited about that,” Wallace said.

Wallace became chancellor in 1996 on an interim basis after the firing of Charles Keisler and was given the job outright a year later. Now 67, Wallace said it was simply time for him to step down.

Wallace said he’d spend much of next year focusing on the campus’s development campaign, which seeks to solicit financial contributions from private donors for specific academic programs, facilities and student and faculty support. The campaign runs through 2005, but but no specific financial goal has been announced.

Eliminating overlap

The coming 13 months also will serve what Floyd and MU Board of Curators President Connie Silverstein dubbed “the year of transition.” During that time, Floyd said, he’ll explore the possibilities for consolidating the administrations of the MU system and the Columbia campus.

The MU system is the administrative entity that provides support and oversight to the campuses in Columbia, Kansas City, Rolla and St. Louis. The Columbia campus is the flagship, with more students and an operating budget larger than the other three campuses combined. Both the system and campus have offices that handle issues such as budgeting and finances, academics, government relations and lobbying.

The system offices are also located in Columbia, and some legislators and university personnel have long complained that having two separate administrations in the same city was wasteful.

“Hopefully, it will be perceived that we’re responding to the governor and the legislature about concerns for the university structure,” Silverstein said.

Asked whether consolidation between the system and the Columbia campus would lead to layoffs, Floyd said, “We would have to see how we would make those transitions.”

Funding cuts

Thursday morning, Floyd said a structure like the one currently employed by MU was “ideal” for a university system with multiple campuses. But Floyd said MU finances were now in a new era that was forcing change. The state has eliminated $126 million in funding from MU the past two years.

“I have very few options” for cost savings “except to look at the overhead we have,” Floyd said.

The first consolidation Floyd said he’d examine was that of the MU president and the Columbia chancellor. Floyd said he would begin exploring ways to add his chief executive duties at the system with those at the Columbia campus.

Any savings generated can be put back into the teaching, research and service missions of all four MU campuses, Floyd said. Floyd said he didn’t yet know how much money might be saved from any consolidation. Wallace, however, said he believed millions of dollars could potentially be saved.

Wallace is paid $212,920 a year plus a $25,000 housing allowance. Floyd makes $350,000 a year, plus $50,000 annually in deferred compensation to be paid if he successfully completes five years as president.

Exploring change

Floyd said he would visit MU’s other three campuses this week to discuss the potential consolidation. Wednesday, Floyd met with Gov. Bob Holden, and he has also discussed his plans with budget leaders in the state’s legislature.

Silverstein said the first time consolidations were mentioned to the board was a few weeks ago as they learned Wallace was pondering stepping down.

Silverstein, however, said no consolidation was assured yet. The curators must see tangible benefits before approving any consolidations.

“I’m curious to see what the model is going to be,” she said, “and the best part about this is going to be the 13 months to explore this and see how it will work.”