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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

July 23, 2009

Budget Update #19 

SDSU’s budget for 2009/10 has been recommended by the President’s Budget Advisory Committee and approved by President Weber. The budget reduction is $35,026,164 and covers the loss of funds from the state of California, revenue adjustments from tuition and fee increases, and SDSU specific adjustments based on prior commitments and estimated revenue collections.

On July 21, the CSU Board of Trustees approved a $672 increase in State University Fee and a $33 per unit increase in non-resident tuition. Revenue from these fee increases is included in the budget approved by President Weber. Further, the Board approved employee furloughs for all executives, managers and confidential employees; for all employees in bargaining units represented by the California State University Employees Union (CSUEU); and for all employees in the United Physicians and Dentists union (UPD). Several other employee groups, including the California Faculty Association (CFA) are still in discussion with the CSU about accepting furloughs. The State Employees Trades Council has rejected the CSU’s offer to consider furloughs.

Based on budget reduction plans submitted by the provost and division vice presidents and subsequently approved by the President, here is how SDSU will make its required permanent budget reduction:

  • $ 9.3 million in vacant positions that will not be filled
  • $ 2.1 million in funding source changes (e.g. research related positions funded by reimbursement from SDSU Research Foundation)
  • $17.1 million in non-renewal of temporary employees including lecturers
  • $ 6.5 million reduction in travel, supplies and services budgets

As part of the $35 million budget reduction, SDSU has not renewed the employment of over 700 temporary employees; all such non-renewals are complete. Some temporary employees remain with the university with a 90-day appointment period. Some, but not all, temporary employees may receive another 90-day appointment extension, as determined by each vice president for his or her respective division. While we have made no decision about layoffs to date, it is possible that a very small number of layoffs may be necessary in order to meet our permanent budget reduction requirement. SDSU will follow all applicable policies and provisions regarding layoff if that should become necessary. Such decisions will be made within a short period of time.

SDSU is required to finalize a furlough calendar by July 24. The calendar will be finalized and additional information will be available soon.

Some significant unknowns remain. Although the state of California leadership reportedly has finalized a budget for 09/10, that budget contains more than $500 million in temporary funding for the CSU that may become an additional permanent budget reduction to the CSU in 2010/11. For that reason, SDSU will continue to reduce enrollment as required by the Chancellor’s Office and will meet its 09/10 permanent reduction of $35 million in the current year in order to be as prepared as possible for the future. PBAC will meet again in the fall after our actual enrollment, and therefore actual revenue for fall, is known. PBAC will make a recommendation to the President about any revenue adjustments that may be necessary at that time.

The information and numbers above cannot effectively communicate the gravity of the situation faced by our university. We are fortunate that we have remained vigilant and have consequently been managing our resources since late 2007 for the possibility of budget reductions. But I think it is fair to say that none of us could have anticipated the magnitude of the state’s financial crisis and its consequences for SDSU. I appreciate the good efforts of each member of our university community as we deal with this extremely difficult situation.

We will keep you updated as additional information becomes available.