Budget Reductions for Fiscal Year 2004-05
Tuesday, January 25th, 2005To: Faculty and Staff
From: Stephen T. Hulbert, President
Yesterday afternoon, the University received notification from University of Louisiana System President Sally Clausen announcing a budget reduction initiative. Based on a directive from Governor Kathleen Blanco, the U. L. System is effecting a “savings target” to bring the current year budget to the 98.25% level for the year ending on June 30, 2005. The 1.75 percent “savings target” assigned to the U. L. System amounts to a total of $5,033,400 of which $408,500 is the share assigned to Nicholls State University. This budget reduction is not one time in nature but we are being asked by Governor Blanco “to continue these efficiencies through the next fiscal year.”
In accordance with the established reporting deadlines for the Office of Planning and Budget, we have been given our own deadline of noon on Thursday, January 27th, to complete the decision-making process and to submit the necessary reports in which we identify the sources of the program and service cuts.
This budget reduction comes in a fiscal year of enrollment growth, which in itself entails additional institutional and operating costs. When one considers that in bringing up the 2004-05 fiscal year budget, it was necessary to implement an approximate four percent budget reduction within the University that, combined with the 1.75 cut, reflects the evolving burden on the institution, the academic program, and the students both serve.
I sincerely regret the necessity of the action and the expedited decision-making process. Decisions will be made within the central administration over the next 48 hours but with notification to the broad University community for communication purposes. I will also be inviting representatives of the various University constituent groups to briefings in this matter.
I appreciate the continued hard work and support of everyone in the Nicholls family, as we move through what clearly will be another period of challenging financial conditions. Budget planning for the 2005-06 Fiscal Year ahead and considerations regarding tuition and fee revenues will be very much impacted by the budget shortfall facing the State of Louisiana.
Of necessity, Nicholls will have to work carefully over this period, as we complete the transition to admission standards 2005 and prepare for SACS accreditation 2006.
