FY10 Budget News

As FY09 is drawing to a close, the University is finalizing its budget for FY10 which begins on July 1st. What we know at this point:

We have received a 2% reduction to recurring funds ~ $400,000

• Reduction in materials budget ~ $200,000
• Loss of 4 positions (2 in University Libraries, 1 in Law, 1 in MCL)
• We have received $1 million in new recurring funds for the materials budget

The expenditure rate on the Young Endowment was reduced by the Young Endowment Committee from 3.5% to 3.0% effective July 1, 2009

• That reduction means there will be ~ $310,000 less available to spend in those accounts next year
• The impact of the stock market losses will be fairly minimal next year but will result in a major reduction in income in FY11 and FY12
  

Student budget allocations

• Each division’s funds were generally reduced by 5%
• Each associate dean has the authority to allocate their budget among their units as they see fit
• The increased minimum wage will have to be absorbed within existing allocations
• Student salaries were not increased beyond the minimum wage increases

Our conservative budgeting of the past year will leave us with a healthy fund balance which will be transferred to the new year to offset the expected deficit in our operating budget.

Mary Beth, Stephen and their staffs are busily closing this year’s fiscal activity. The materials budget allocations for next year will be available as soon as they can be prepared and reviewed.