A Message from the President
March 24, 2010 - Budget update to faculty and staff
By now most of you are aware of reports that State tax collections for the month of February fell short of projections on which the current State budget is based. As a result, there has been some discussion about possible additional mid-year budget cuts to State agencies, including higher education.
Our most recent information is that the Governor and the Division of Administration want to wait until information is available about tax collections for the month of March. Part of their interest in having another month of data on which to base budget projections and decisions is concern that the February data reflect anomalous information.
Needless to say, additional budget reductions this late in the fiscal year would be very challenging to manage, particularly given the budget reductions colleges and universities have already absorbed. Because most of the funds remaining in our current fiscal year budget are related to personnel costs, there is a strong likelihood that any significant budget reduction would result in additional furlough days for employees between now and June 30.
Out of an abundance of caution I am placing a freeze on spending from operating funds until further notice. Any exceptions will require approval through the appropriate vice president. Spending associated with grant and restricted funds, as well as field travel are not affected. In addition, travel and other expenditures where funds have already been encumbered are not affected.
We will continue to monitor this and other budget issues and will share any new information when it is available.