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University Update

University Update

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TO: SDSU Faculty and Staff
FROM: Sally Roush, Vice President of Business and Financial Affairs

April 7, 2011

Budget Update #31

Governor Jerry Brown’s plan to have a budget for 2011/12 in place by the middle of March has not materialized. His proposal calls for about $12 billion in spending cuts and about the same amount in revenue that would result from extending temporary taxes.

The Legislature has voted on the budget reduction part of the Governor’s proposal, for reductions totaling nearly $12 billion. But there has been no agreement regarding the revenue solution in the Governor’s proposed budget. It is unclear what alternative budget plan may emerge following the recent failure of bipartisan discussion to try to reach a compromise position that would include a June ballot measure to extend certain taxes set to expire in June.

The consequence for SDSU of the nearly $12 billion in reductions included in the Governor’s proposed 2011/12 budget is that San Diego State University anticipates a reduction in our 2011/12 budget of approximately $30 million, after adjusting for expected increased tuition and fee revenues and allocating centrally held funds. The divisions of the university have been careful and have not yet committed the majority of the additional funds received in the current fiscal year. The result is that meeting the $30 million reduction in 2011/12 will be difficult but not as daunting as it might otherwise be.

However, the failure of the Legislature to reach agreement on the ballot measure for the tax extensions greatly increases the likelihood that SDSU’s budget reduction may be substantially greater than $30 million. Not only is the amount of any further reduction unknown at this time, it is also very unclear when a final budget may be in place.

We can take comfort that SDSU has been prudent in the management of its resources and that we have a reliable process through the President’s Budget Advisory Committee to recommend a viable budget to the President even in the worst circumstances. SDSU has one-time carry forward funds that will buy us time once the budget is passed so we can be thoughtful and careful in developing a recommendation to the President. We anticipate this recommendation being made by mid-June.

As additional information becomes available, we will continue to update you. Thank you for your continuing good efforts during these very challenging times.