Dear CBS faculty and staff,
I know you are concerned about how state budget deficits will affect the University, CBS, your department and you personally in the coming months. To address those concerns as best I can, I will share information with you as I receive it via periodic memos like this one.
As you know, Governor Pawlenty cut the University’s budget for the current fiscal year (FY09) by $20 million to address the state budget shortfall. CBS’ share of that “unallotment” is $550,000, which we have taken from our reserves. This is a one-time cut that will not be carried forward to next year. While we have not distributed this cut to our departments, it will affect our ability to make commitments for matching grants and honor other discretionary requests.
More significantly, Governor Pawlenty has proposed a budget that would reduce the University’s base appropriation from the state by $78 million a year. Based on that, the University has asked each college to develop a plan to reduce its budget by 5 percent and 8 percent. The impact of this larger, recurring FY10 budget cut on CBS is less clear. There are many factors that will affect the amount of money we actually receive on July 1, 2009, when our next fiscal year begins:
All of this makes it difficult to say at this point, or even for the next several weeks, what cuts CBS will be making and whether there will be layoffs. Be assured we will do everything we can to preserve jobs by making cuts in other ways. But also know that economic conditions may make some layoffs inevitable.
The University’s total budget for FY09 is $2.8 billion. Primary revenue sources include the state appropriation ($666.9 million); tuition and fees ($622.8 million); sponsored grants and contracts ($579.5 million); and gifts and endowment earnings ($348.3 million). CBS’ total budget for FY08 was $41,566,567.
I pledge to keep you informed as the budget situation develops. And I ask each of you to make every effort to look for ways to cut expenditures in your job and beyond. Please submit your suggestions via the CBS Budget Idea Generator and visit the site periodically to read ideas your colleagues have proposed. The economic situation concerns all of us. That’s why it’s so important for us to work together to find solutions.
Bob Elde
Dean, College of Biological Sciences
Reality check: The worst of times and the best of times
When I listened to Barack Obama’s inaugural speech earlier this week, I was struck by the encouragement his words offered for the University and the College of Biological Sciences:
“The state of our economy calls for action: bold and swift. And we will act not only to create new jobs but to lay a new foundation for growth. We will restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. And all this we will do.”
There were more encouraging words from Nancy Pelosi, Speaker of the House, on public radio last week. When asked about the priorities in the federal economic stimulus package, Pelosi responded “There are four words—science, science, science and science.”
The new era we are entering is fraught with paradoxes. Our country is in the throes of economic uncertainty and we have remarkable new leadership at the helm. The University is facing serious challenges created by the economic downturn and demand for CBS educational programs is skyrocketing. We are modeling reductions to the CBS budget and the House Ways and Means Committee is considering massive increases to the budgets of NIH, NSF and DOE.
The pessimists among us will see the worst of times and the optimists the best. I urge you to take a reality check and seize opportunities for growth while recognizing opportunities to pull back. By doing so, we can maintain our momentum along the trajectory of excellence we have enjoyed for the past decade and keep our vision within sight.
As reductions and new opportunities become clear in the coming months, we need to advance our individual and collective goals creatively. How can we continue to improve our education and research efforts while responding to the new administration’s challenge to restore this country’s leadership in science, health care and education?
I will share details about CBS reductions as soon as they are available. And I encourage you to contribute your suggestions for CBS cost savings through the CBS Budget Idea Generator. In the meantime, you can find more information about the University’s economic challenges and opportunities at the following Web sites.
I truly welcome your ideas. Together, we can continue to thrive—in good times and in bad.
Bob Elde, Dean
College of Biological Sciences
