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University Update

University Update

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TO: All SDSU Employees
FROM: Sally Roush, Vice President of Business and Financial Affairs

May 15, 2009

Budget Update #16 

Yesterday, Governor Schwarzenegger announced two state budget reduction scenarios for fiscal year 2009/10. The first scenario is based on drastically lower tax collections than were predicted when the Governor and Legislature presented a budget solution in February for both fiscal year 08/09 and 09/10. The second scenario is based on the combined effect of the lower tax collections and the potential failure of the ballot measures going to the voters on May 19. Detailed information on the revenue shortfall and ballot measures is available on the State Department of Finance website. I urge you to read the information.

The California State University has prepared an initial analysis of the two budget reduction scenarios for the university system and has reported that the CSU could face as much as a $410 million problem system wide. For San Diego State, the 09/10 budget reduction will be significant, perhaps as much as $22 million beyond the $12.4 million in cuts we've aleady implemented this fiscal year.

SDSU has been fiscally prudent; we have some reserves in place that can provide a temporary cushion against part of the final budget outcome. The university's department of Budget and Finance is currently analyzing the detailed budget reduction information to calculate a range of potential financial consequences for SDSU under the different scenarios. Department staff is also conducting an updated analysis of available reserves.

The President's Budget Advisory Committee will convene as frequently as necessary to review the data and develop a recommended 09/10 budget to President Weber prior to July 1. The budget committee members are committed to developing a recommendation that takes into consideration the best interests of the university overall, including our faculty and staff, as well as the need to provide an adequate number of course sections for enrolled students.

I will be sending frequent budget updates over the next several days and weeks as the state and system budget information is clarified, and the budget committee develops a recommendation. In the meantime, we encourage you to continue efforts to minimize costs in anticipation of another challenging fiscal year in 2009/10.