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University Update

University Update

University Update header

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

Oct. 10 , 2008

Budget Message #9

Given the dramatic happenings in the national and global financial markets along with continuing developments in the State of California, this budget update is intended to give you as much factual information as possible, and to alert you to the possibility of further budget impacts in the current fiscal year as well as fiscal year 2009/10.

First, there have been many questions about the State's ability to "make payroll." While we think it is unlikely the State will fail to make payroll; in any event the CSU and San Diego State University will not be affected should this problem occur. The University has sufficient cash from the collection of tuition and fee revenues to cover our own payroll costs for about three months. We feel it is likely that the State will resolve its cash flow issues within that time frame.

Second, just three and a half months into the current fiscal year, the State of California is already about $1.5 billion short in revenue. It is increasingly likely that the Governor may impose a mid-year reduction. The President's Budget Advisory Committee will meet on October 16 to make a recommendation given the possibility of mid-year budget reductions.

We will keep you informed.