About funding and the Governor’s budget proposal
With all the talk at the State and Local levels about funding and the Governor’s budget proposal for 2009-10, I thought it might be helpful to you if I sent out additional information to clarify a few points in the story that appeared in the Press-Sun newspaper this morning.
I have tried to be consistent in speaking both on-and off-campus about the approach I see us taking for next year with our budget. Generally, we will be using four tools (rather than just a tuition increase) to deal with ‘09-’10 funding:
1. Spending reductions / cuts that may include not filling certain vacancies / eliminating certain positions through attrition / identifying new cost-savings measures, some of which I may describe next Thursday morning / deferring certain equipment purchases / reduction of some services / and other budget cuts we identify. While I would not want to rule out anything that might become necessary in the event of a “worst possible case” revenue situation for next year, I do not anticipate that layoffs would be required.
2. Some use of existing fund balance. The intent is not to drain our fund balance by using it to make up for all revenue losses, but instead to use the fund balance as a part of this “four-part” approach.
3. An increase in tuition, and it will have to be higher than in a normal year, since the New York community colleges not only will most likely have State “base” aid reduced by 10% next year; State “base” aid was held constant for the current budget year. Of 26 community colleges responding last week to a SUNY survey, all 26 are planning tuition increases to commence in Fall, 2009; most, I’m certain, will be higher than in a normal (routine inflationary adjustment) year. Fortunately, BCC is currently at the lower end of the tuition scale for New York community colleges.
4. Increasing enrollment. Historically, during tough economic times, community colleges normally experience higher enrollment. Because our State aid is based on our number of full-time equivalent students (rather than being a flat dollar amount as is the case with State-operated SUNY institutions) an increase in enrollment can benefit the College from a financial standpoint.
Currently our Executive Council (administrators who report to me), along with myself, are working on a more detailed expense-spending plan for next year as we prepare a preliminary budget that eventually will go to Broome County for its consideration. In addition, I plan to hold open forums on campus to given the campus community an opportunity to bring costs-savings ideas to our attention that we may be able to incorporate into next year’s budget.
Again, our entire budget approach for ‘09-’10 will be based on a combination of the four factors mentioned above. I thought it might be helpful to you, since many of you probably have extensive community contacts you speak with about BCC, if I provided this information and “talking points” to you for your understanding.
I hope to provide you with additional details during my opening remarks next Thursday.
Best wishes as we work through these financially difficult times.
