TO: The University Community
As we re-open the university for the spring semester 2009, the financial challenges that have been facing our nation have taken hold in Louisiana. In turn, the resulting decline in state revenues has brought mid-year budget reductions to most governmental agencies including that of higher education.
In December, members of the university family may have seen initial mid-year budget reduction figures amounting to 2.5 million dollars for Nicholls State University. That figure was subsequently reduced to 1.5 million dollars but the impact is none the less severe and disruptive.
Comments by higher education leadership in Baton Rouge suggest that the cuts to higher education are manageable because the institutions shared a 34.7 million dollar pool of new dollars in 2008-09. Even with the cuts, higher education is seen as still being at the Southern Regional Education Board (SREB) average for funding.
As Nicholls reached the Southern average in 2007-08, the university did not receive new dollars in 2008-09. In fact, the university’s overall budget reflected a reduction in appropriation of approximately $51,000. Even with a tuition increase, the university budget for 2008-09 has been severely challenged. The subsequent impact of hurricane season 2008 and the resulting loss of revenue have only intensified the challenges faced by Nicholls in maintaining a balanced operating condition.
Each of us at Nicholls recognizes the severity of the financial situation nationally and in Louisiana. In turn, we fully accept our responsibility to address the university’s share of higher education’s budget reductions while making every effort to maintain the integrity of the academic program.
This administration has submitted the required Budget Reduction Plan amounting to the full $1,456,276. Expenditures in travel, supplies and capital outlay are included among the most significant reductions. Travel has been reduced by $125,000. Supplies have been reduced by $221,454, including $50,000 for fuel, $99,852 for educational supplies and $71,602 for additional supplies. Capital outlay has been reduced by $175,000 including $110,000 for library and scientific equipment, $50,000 for library reference material and $15,000 for general equipment. In the beginning of next week, departments will receive an email from our university Budget Officer discussing some of the specifics of this budget reduction.
As a result of the budget cuts, students will be affected primarily by decreases in course offerings and increases in class sizes – necessary to compensate for the decrease in adjunct faculty funding and the freezing of full-time faculty and staff positions. Library acquisitions and operating hours, other lab hours, employment opportunities and scholarship offerings will be reduced as well, along with funding for Quality Enhancement Plan initiatives, the Louisiana Center for Women and Government and the Louisiana Center for Dyslexia and Related Learning Disorders. These reductions may subsequently inhibit the university’s ability to meet certain recommendations of accreditation agencies.
Regarding the effect of the proposed cuts on faculty and staff, the Nicholls administration has sought to preserve positions and pay. No personnel reductions are expected at this time, but vacant positions remain frozen – a decision that was made in late 2008, prior to the initiation of the budget cut, to counteract hurricane expenses and the resulting loss of revenue.
The required budget adjustments are being implemented at this time and affect all areas of the university’s operating budget, as well as that of athletics. Because of lost game guarantees and other areas of revenue generation resulting from canceled football competitions as well as increased athletic program costs in general, athletics is under going a budget reduction of $471,195 to ensure a balanced operating condition by the June 30th fiscal year end. This represents a reduction of approximately 8.5 percent of the initial FY 2008-2009 budget for athletics.
The 2008-09 budget situation is still a “work in progress” as there are remaining unknowns. The most significant of which involves the decision of state-level higher education, that each university will absorb a portion of its spring 2009 Go Grants as well as the full cost of its Dual Enrollment program. The Go Grants Program is the need-based scholarship initiative that was implemented by the state in 2007-08.
I remain confident that we can maintain the academic core in support of our students, but I understand full well that there will be an impact on existing services. Every effort will be made to minimize that impact. The patience and support of every member of the university family will be needed to fulfill our shared obligations here.
I will provide the university family with periodic reports regarding the financial challenges that we face together.