Dr. Yates Addresses Budget Concerns
In November, 2002, Dr. Yates sent a letter to the University community
on budget concerns. What follows are highlights from that letter to help
faculty, staff, and students better understand the current budget situation,
what precipitated the problem, and where solutions may lie.
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In June, 2002, Governor Bill Owens cut state appropriations by $220
million to address a shortfall in state revenues caused by the declining
economy. For Colorado State, this meant a 4.31 percent reduction for
the current fiscal year. Colorado State responded by reducing the
FY03 base budget plans by $5.6 million. Of this, $1.9 million came
from a University-wide base reduction of 1 percent of the E&G
budget while the remaining $3.7 million came from original FY03 budget
plans.
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In November, 2002, as state revenues continued a downward spiral,
the Governor cut an additional $330 million from the budget. This
resulted in another reduction of 6.5 percent, or $8.4 million, for
Colorado State.
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To meet this additional cut, the University will use $2.4 million
of permanent base reserves to help offset losses; hiring and spending
restrictions should yield another $2.5 million in savings; and the
remaining $3.5 million will be taken from central reserves and current-year
revenue over budget.
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The greater challenge will be to make permanent base reductions of
at least $8.4 million for FY04. Again, the University will use $2.4
million in permanent base reserves toward the cutback and, again,
employ about $3.3 million from current-year revenue over budget. To
come up with the remaining $2.7 million, the vice presidents developed
budget reduction plans at the 4-6 percent levels. This may include
eliminating positions, rolling back purchases, limiting or even eliminating
salary increases, and staff layoffs. It is important to note that
the reductions were allocated equally to each vice presidential area,
but the vice presidents will not allocate reductions across the board
for programs under their responsibility.
- Because the economic climate remains uncertain, the University must
look to enhancing revenues. Increases in tuition are likely, and may
even include mid-year tuition increases. Serious attention must also
be focused on issues of full- and part-time faculty, class sizes, and
more, as a way to address ongoing budget concerns. The University community
must also have frank discussions about which programs and activities
the University can no longer afford.
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