TO: Campus Community
FROM: Dennis L. Hefner, President

SUBJECT: Final 2008-09 Budget

Chancellor Clark has just notified SUNY campuses that a three-way budget agreement has been reached with the Division of Budget and the Governor’s Office. The overall agreement is complex, but the key outcomes involve Fredonia incurring further state cuts of $150,000 in our operating budget, but having full discretion to use tuition and fees without interference from the state. Now that the 2008-09 budget is complete, I wanted to provide a complete summary of the final 2008-09 budget outcomes.

On the positive side, the capital construction items, which are funded from state bonding and not from the General Fund, were very good for SUNY Fredonia. We received $38 million to complete the $60 million Science/Technology Building, $40 million to design and construct a Classroom Addition for the Rockefeller Arts Center, and $13.9 million annually over the next five years (nearly $70 million total) to support critical maintenance projects.

However, on the operating side, which is funded exclusively by the General Fund and tuition, we experienced significant reductions that are expected to worsen over the next 12 months. From the Executive Budget, our overall operating budget was initially cut by 2.5% (nearly $450,000), an additional $461,500 was permanently removed from the utility budget, the requested enrollment growth funds to cover our $500,000 of additional obligations were not provided, and the tuition adjustment requested by the SUNY Board of Trustees was rejected. Prior to final passage of the budget by the legislature, Governor Paterson raised the 2.5% cut to 5.85%. The legislature eventually restored most of these dollars, and the proposed 5.85% cut was reduced to 2.9%, resulting in nearly $100,000 in additional cuts for Fredonia. Now, on top of these reductions, the Governor made even further cuts, resulting in an additional $150,000 reduction.

As a result, after adjusting for some inflationary funding included in the 2008-2009 budget we will enter the 2008-2009 fiscal year with a nearly $1.3 million shortfall. To address this deficit, we will set aside $75,000 of next year’s Institutional Equipment budget and take the actions listed below. These known cuts will be difficult enough to manage, but reliable Albany sources also are predicting a mid-year rescission and even deeper cuts next year. In other words, we need to make changes now to prepare for next year’s operating budget.

Our top two priorities continue to be avoiding layoffs and ensuring students have access to classes. I want to assure everyone that these two priorities will be met. Additionally, non-personnel accounts will not be reduced further, as they have borne the brunt of previous budget reductions.

As a result, the President’s Cabinet has identified seven steps that will be taken immediately to reduce payroll costs, which along with utilities, represent 89.7% of our budget. I realize these actions will disproportionately impact some programs more than others, but the Vice Presidents have committed to do their best to assist programs that face serious difficulties because of these actions:

Delay All Staff Searches. All new staff vacancies must generate 90 days of accumulated dollar savings prior to being eligible for advertising. Searches already advertised off-campus may now be completed.

Delay Tenure-Track Faculty Searches. Replacement tenure-track faculty searches scheduled to begin in fall 2008 will be delayed until fall 2009.

Avoid New Full-time Adjunct Appointments. Except where mandated by the contract or already completed, all adjunct appointments will be limited to part-time appointments.

Seek Campus Volunteers to Teach Scheduled Sections. Vice President Horvath will be issuing a call for all qualified staff and administrators to volunteer to teach a section without pay for next year.

Eliminate/Reduce Number of Sections. Wherever possible, small sections of the same class will be combined, and excessively small classes will be canceled.

Reduce Overtime. Departments with large amounts of overtime will prepare and implement a plan to reduce overtime for the coming year.

Reduce Extra Service Payments. All divisions will review their anticipated 2008-09 extra service commitments and continue only the most crucial extra service payments for next year.

The delays and disruptions caused by these adjustments will be painful, but will help us to better weather the current and future budget difficulties. Any exemption to these actions will require approval of the President’s Cabinet, and will be granted only for health or safety reasons, or if the impact to a program will be catastrophic. Any requests for an exemption will begin at the department level, and require support of Chair/Director, Dean/Associate Vice President, and the appropriate Vice President prior to Cabinet consideration.

We have been through difficult budgets before, and together, we will get through the upcoming year. Thank you in advance for your patience and understanding during these difficult times.