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University Update

University Update

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TO: All Faculty and Staff
 
FROM: Sally Roush

Oct. 31 , 2008

Budget Message #11

As you may have read in communications from President Weber and Chancellor Reed, the state's deteriorating fiscal condition has resulted in a second budget reduction in the current fiscal year. The state has identified $31.3 million in immediate reductions from the California State University. This translates into a $2.46 million second budget reduction at SDSU in FY 08/09.

You may also recall that upon the adoption of a final state budget, the CSU actually had a lower budget reduction than had been anticipated - a $4.43 million initial budget reduction instead of $12.3 million. The President's Budget Advisory Committee recommended, and the President approved, holding the difference of $7.88 million centrally against possible future reductions. We now are faced with just such a scenario in having to return $2.46 million to the state.

On Thursday, the President's Budget Advisory Committee met to develop a recommendation regarding the second budget reduction of $2.46 million. The committee recommended, and the President has approved, taking this $2.46 million from the $7.88 million in funds that are being held centrally.

This means that no operating division or department is required to absorb any portion of this second reduction.

However, as President Weber has cautioned, the state's circumstances appear to be deteriorating quickly and therefore he has advised the Provost and Vice Presidents that with rare exception, if positions must be filled they should be filled temporarily and that no obligations should be made extending beyond June 30.

The Governor has called the Legislature back into session beginning November 5 to engage in further deliberations about the State budget. In anticipation of yet a third budget reduction in 2008/09, each university division has been provided the dollar amount required, for planning purposes, for a possible 3%, 5% or 7% midyear budget reduction.

We will remain watchful as the Legislature and Governor deliberate, and will update you as soon as possible. Meanwhile, I urge you to continue to monitor the actions of the Governor and Legislature.

SDSU has weathered many budget reductions over the past decades. We have been able to sustain the quality of our university throughout them all, and I am confident we can do so again if necessary. We have also been very effective recently in our advocacy efforts to legislators and other state decision makers, and I hope each of you will continue your efforts in that regard.