BANGOR, Maine (AP) – University of Maine System Chancellor Richard Pattenaude says a plan submitted to trustees will resolve budget problems expected to create a $42.8 million annual shortfall within three years.

The draft report submitted Monday says the seven-campus system can’t simply “cut its way to long-term success.” Instead, it calls for strategic use of tuition and fees and financial aid to reverse an enrollment decline, as well as new programs, opportunities and research to boost the state’s economy.

Pattenaude says that if all of the changes are enacted, the budget shortfall anticipated in fiscal year 2013 will be erased.

The multi-year plan is contained in a report titled, “Adding Value Through Educational Opportunity and Economic Development.”