Facing the music….
As you know, after 101 days, the Governor signed legislation to enact a $27.8 billion state General Fund spending plan for 2009-10. Although there are still details that are being finalized, the general allocations to various agencies have been identified.
So what does this mean for Slippery Rock University and our budget planning process?
SRU is expected to receive $32,644,467 in state appropriation for 2009-10. This compares to $35,672,784 projected. We will also receive an additional $3,125,400 in stimulus money for a total of $35,769,867. While that provides an additional $100,000 compared to our projection, the bad news is that this is one-time money and can only be spent one time.
Looking to 2010-11, the appropriation stays at $35,769,867 with stimulus money as one-time money for one final year. That is close to what we estimated, so the projected budget shortfall of $8.9 million remains on target.
If dealing with that deficit isn’t a difficult enough challenge, the issue of using stimulus money to balance the budget becomes even more serious when it disappears in 2011-12. Based upon this funding scenario, our projected state appropriation for 2011-12 is now $32,644,467 – an additional deficit of about $3 million, for a total projected deficit of $15.5 million. (Remember, this is in addition to the $5 million this year and the $8.9 million next year.)
Performance money received is $4,115,457 compared to the projected amount of $2,778,015. This additional $1.3 million will go first to cover the unaccounted for deficit that we carried forward in fiscal 09/10 ($750,000) and then will be earmarked to cover unrealized savings in budget reductions for fiscal 10/11.
I realized these numbers are moving targets, but given what we know today, this represents the most accurate projection we can give you. Please continue to share your best thinking with us.
So what does this mean for Slippery Rock University and our budget planning process?
SRU is expected to receive $32,644,467 in state appropriation for 2009-10. This compares to $35,672,784 projected. We will also receive an additional $3,125,400 in stimulus money for a total of $35,769,867. While that provides an additional $100,000 compared to our projection, the bad news is that this is one-time money and can only be spent one time.
Looking to 2010-11, the appropriation stays at $35,769,867 with stimulus money as one-time money for one final year. That is close to what we estimated, so the projected budget shortfall of $8.9 million remains on target.
If dealing with that deficit isn’t a difficult enough challenge, the issue of using stimulus money to balance the budget becomes even more serious when it disappears in 2011-12. Based upon this funding scenario, our projected state appropriation for 2011-12 is now $32,644,467 – an additional deficit of about $3 million, for a total projected deficit of $15.5 million. (Remember, this is in addition to the $5 million this year and the $8.9 million next year.)
Performance money received is $4,115,457 compared to the projected amount of $2,778,015. This additional $1.3 million will go first to cover the unaccounted for deficit that we carried forward in fiscal 09/10 ($750,000) and then will be earmarked to cover unrealized savings in budget reductions for fiscal 10/11.
I realized these numbers are moving targets, but given what we know today, this represents the most accurate projection we can give you. Please continue to share your best thinking with us.