Colleagues

I write to provide results from the 08-09 fiscal year; the status of the 09-10 spending reduction plan; and to share recent budget news from Albany.

Fiscal Year 08-09

Last fall we announced the use of campus rainy day funds (reserves) to manage the 08-09 budget cuts while we developed a thoughtful plan to address the cuts to the 08-09 and 09-10 state funding. In order to absorb the 08-09 cuts we planned on using up to $2.8M in reserves to see us through the year. I am pleased to report that, based on our actual expenditures for the year, the actual use of reserves is much less – only $0.9M. This has been achieved by the fiscal restraint that all of us practiced in the spring as we evaluated our spending needs and endured hiring delays. The $1.9M savings was as follows: $1M in utility costs; $0.6M in other than personal service costs and $0.3M in personal service costs.

Fiscal Year 09-10

Each department worked with its respective Dean and Vice President to implement the $6M spending reduction plan. Our efforts produced a total spending plan of $59.1M. The funding available to support this spending plan on July 1, 2009 is $59.7M, leaving the campus with $0.6M that is unallocated and currently available to support future budget cuts.

This $59.1M spending plan realizes $4.6M of the $6M plan. Implementation of the remaining $1.4M reduction will be recognized in one of several ways: throughout the year as vacancies occur (our three-month hiring delay); as we announce and implement our program of voluntary salary reductions; as further attrition occurs in areas where we agreed to consolidate and reorganize; and, finally, when program phase-out is complete, which will require several years.

Data on the 09-10 spending plan and an updated three year summary that compares our state funding to our expenditures/expenditure plans are being posted to my.newpaltz.edu.

Moving Forward – News of Mid-Year Budget Cuts from Albany

The state’s economic picture is stormy. We’ve all read of current year projected deficits in the range of $2.1 to $3B, $5B for fiscal year 10-11 and $13B in 11-12. In response, on October 6, the Governor ordered $500M in current-year spending reductions. On October 15, the Governor announced a two-year $5B Deficit Reduction Plan. This plan includes $500M cuts announced October 6. At present, SUNY’s share of the $500M cut is $90M. With the possible exception of a proposed cut to the Tuition Assistance Program (which will impact students) it appears that the additional $2.5B in cuts will have no direct impact on SUNY.

New Paltz’s share of the $90M cut is unknown; however, you may recall that last year’s cut of $96M translated to a $2.4M cut for New Paltz. Last week Chancellor Zimpher created a working group to provide recommendations for an appropriate methodology to allocate the $90M cut and to provide a budgetary framework as we look to the 10-11 fiscal year. This group will be led by five presidents representing our various campus sectors. The group will also include campus provosts, business officers, research vice presidents and SUNY executive leadership.

As you are aware, the cuts that we made to our spending plans for 09 10 anticipated that further future cuts would be made. That reality is now here and our hard work and hard choices last spring now put us in good stead. Our careful and consultative planning has provided approximately $2.0M to assist us in mitigating the impact of the coming cuts; has protected our reserves balances, although reduced from $5.3M to $4M; and has created an open and consultative process that can be deployed if it becomes necessary. Further we have demonstrated that we can exercise fiscal restraint in our daily decisions regarding critical and necessary expenditures – behaviors that will be absolutely critical in our continuing implementation of our 09-10 plan and as we move forward in these uncertain economic times.

President Poskanzer or I will be certain to share further details as they become available.

Jacqueline S. DiStefano
Vice President for Finance & Administration