University of Southern Maine officials unveiled a list of proposed academic reorganization plans today, part of an effort to deal with a multi-million financial crisis brought on by falling enrollment.

Among the ideas is to restructure the Muskie School of Public Service and to spin off some of the university’s research and public service entities as non-profit organizations.

USM President Joseph Wood shared the proposals with the university community in an e-mail overnight. Wood emphasized that the proposals are just ideas at this stage and are not firm.

“I realize that these ideas will generate some frank and difficult discussions, but it is time for those discussions to begin,” he wrote.

In September, Wood announced that the university has a projected $3.6 million budget deficit for 2007-8, its third year of deficits. The university had a budget deficit of $4.5 million in 2006-7, and $3.1 million in 2005-6.

The Deans Council came up with the five proposals. They suggest either increasing Muskie to include other academic and research entities on campus, or the reverse - eliminating the Muskie School’s administrative structure and redistributing its programs and institutes to other parts of the university.

Also up for discussion is combining the School of Business with the School of Applied Science, Engineering and Technology to create a new college, combining the College of Education and Human Development with the College of Nursing and Health Professions into a new college and combining departments and programs within the College of Arts and Sciences.

Officials say they must cut spending by $5.5 million annually until the budget is back in balance, which is expected to take five to 10 years. Over the summer, the university cut four positions and instituted a three-year hiring freeze.

Wood has blamed the shortfalls to declining enrollment and the loss of tuition and fees. The enrollment drop is due to fewer college-age students in Maine and the growth of the state’s five-year-old community college system.