Mid-Year Budget Cut
TO: Faculty and Staff
Yesterday morning, Nicholls State University celebrated its 83rd Commencement Exercise with great enthusiasm. However, by early afternoon, this university president had learned of a mid-year budget cut that was being imposed on higher education across Louisiana in excess of 109 million dollars or 7.82 percent of the total state appropriation for all of its colleges and universities.
The University of Louisiana System’s share of that budget cut amounts to $33,508,607, with Nicholls being assigned a reduction of $2,476,457. The budget cuts are to be put into affect between now and the close of the current fiscal year on June 30, 2009.
All of us have come to recognize that the national economy is being severely challenged. Obviously, from the manner in which this budget reduction is being imposed on higher education by the Jindal administration, the situation is equally difficult in Louisiana. We will learn more about the situation tomorrow when the most current revenue estimates are released from Baton Rouge.
As many members of the university community already know, Nicholls did not receive new operating dollars in 2008-09. Additionally, with unanticipated operating commitments including that of the new Banner Software System, and the loss of revenue resulting from Hurricanes Gustav and Ike, the university has faced significant financial challenges in maintaining a balanced budget.
The severity of this mid-year budget reduction and the warning that an additional reduction may be introduced for the 2009-10 fiscal year ahead, guarantees that every area of the university, operating side and auxiliaries side, will be impacted. For that reason, effective immediately, all vacant positions are frozen and all discretionary spending is being curtailed wherever possible.
I regret that I cannot provide greater specificity at this time, but wanted to ensure that community members heard this message directly from me rather than as a result of media coverage. The university is expected to submit its plan to affect the budget cuts during the week of December 15th. Clearly, the severity of that cut along with the very fragile financial situation already facing the university means that major program, service, and personnel changes may have to be implemented in the months ahead.
I sincerely regret the timing of this action and will do all I can to ensure open communication of the steps being taken to balance the budget while also seeking to protect the integrity of the academic programs.