ESU Backup Insider

I wanted to update you on the budget developments that have taken place since the end of the academic year to keep you involved with the process surrounding the reduction in revenues. On June 29th the Pennsylvania State System of Higher Education’s Board of Governors set tuition and fees for the current fiscal year. They approved a 7.5% increase. This, coupled with the 18% decrease in appropriated funds for the System, translates into a $4.9 million deficit for the University for 2011-12, or $802 less per student.

Although this is a daunting reduction in resources available to the University for the current year, our budget process has placed us in a position to address the deficit. Our budget solution will involve some difficult reductions and some efficiencies that will improve revenue, all resulting from the work of the entire University community and discussed in our budget hearings that were conducted in June.

In addition to the requirement that we address the budget deficit, it is equally important that we invest in important University priorities as identified in our Strategic Plan. We need to prepare ourselves for a future that could very well include additional reductions in Commonwealth support for public higher education. You may recall that the Governor’s initial budget called for a 50% reduction in support for the State System. We must be prepared for a continuation of that kind of pressure on our funding.

Fortunately, we have positioned ourselves well in that our careful monitoring of position vacancies and travel will create an ability for us to contribute to reserves at year end. While it is important not to tie up funds that are needed for our operation, it is critical that we maintain reasonable reserves to assist us should our state support continue to falter.

We are nearing completion of a resource plan that 1.) Addresses the state-imposed budget reductions; 2.) Allows for investment in key strategic initiatives; and, 3.) Maintains a responsible level of reserves.

The work of the University community in developing our resource plan is greatly appreciated. It is fortunate that we have been able to accomplish this while supporting our full time faculty and staff with no reductions. We need and appreciate your continued input and support for our students and the mission of this great institution.