E-mail Notice
The notice below was originally shared with the university community via e-mail.
April 19, 2007
2007-2008 Budget Report
Statement by the President on the Fiscal 2007/2008 Budget
As you may recall from earlier communications regarding the budget, there
are four main causes of the persistent deficits at HSU. First, our campus
provides a unique mix of high-quality and high-cost academic majors, small
class sizes and a high proportion of tenured or tenure-track faculty that
are largely unrivaled in the CSU. The cost of providing these programs in
the manner they are currently structured exceeds the funding provided by the
state and other sources. Second, the rapidly increasing costs of insurance,
utilities, technology, salaries and our extraordinarily good benefits have
outpaced increases in state funding and other revenue sources. Third, the
funding of CSU campuses is now even more closely tied to enrollment. HSU's
enrollment has declined over the last several years, and we have not met
enrollment targets for our campus, further limiting state funding. Fourth,
the Legislature has asked both the University of California and the CSU to
return funds if enrollment targets are not met. Because of these factors,
we have a deficit in our general fund budget prompting a thorough evaluation
of our expenditures and revenue sources, including student fees.
The in-depth budget examination undertaken over the last several months
included numerous steps: the outside survey last December by our former
Provost and former President of Chico State University, Dr. Manuel Esteban;
a review by the President Emeritus of CSU Long Beach, Dr. Robert Maxson;
extensive review and discussion by the University Executive Committee,
Associated Students, Student Fee Advisory Committee, Staff Council, and the
Academic Senate; and lastly, hours of public scrutiny and discussion by the
University Budget Committee (UBC). Together, these activities have provided
an open, inclusive, and exhaustive process to review and inform the
allocation of university resources. Further information regarding the
budget process can be found at the budget information web site at
http://www.humboldt.edu/~budget/Pages/general.htm.
I extend my personal and heartfelt thanks to all who have contributed to
these difficult deliberations. Many have spent long hours and personal time
evaluating the budget, offering suggestions and ideas, supporting the work
of the UBC, preparing and providing information, and much more. I am deeply
grateful for this work and for the care of HSU and its students that has
been demonstrated throughout this process.
The final decisions regarding the 2007-2008 fiscal year budget are as
follows:
The academic affairs division will need to reduce its expenditures by
$1,715,600 in order to cover the over-expenditure of its budget in the
2005-2006 and 2006-2007 fiscal years. (This above-budget expenditure is
sometimes referred to as a structural deficit.) Actual budget reductions to
the academic division will be phased in over the next three years with
$900,800 being reduced for FY 2007-2008, followed by a reduction of $402,400
in 2008-2009, and a reduction of $276,600 in 2009-2010. To the extent
possible, these reductions will not affect student progress toward degrees
or enrollment. They will likely result in an increase in the student to
faculty ratio to approximately 21 which remains below the CSU average. In
addition, there will be cost saving changes in academic administrative
structures.
The division of student affairs will be reduced by $311,000 resulting in the
reduction of some student support services. The division of administrative
affairs will be reduced by $400,000 resulting in decreased capacity to
maintain facilities and grounds. The president's division will be reduced
by $58,000 further limiting the discretionary funds available to assist
campus units.
There will be some areas that will experience fewer reductions to their
budgets than I have mentioned above. These are areas that have either been
significantly reduced in recent years to cover operating deficits, have been
historically under-funded, have potential for increased net revenue, and/or
are particularly essential to the values and goals laid out in the strategic
plan. These areas include police, advancement, and admissions, as well as
many other areas identified by the vice presidents within their own
divisions.
Lastly, starting with the fall 2007 semester, the Instructionally Related
Activities Fee (IRA Fee) will be increased by $202 per semester bringing the
total IRA Fee to $250 per semester. The bulk of this increase will be used
to mitigate additional reductions to the academic units of the university
that would have been necessary without a fee increase and to fund the
Humboldt Energy Independence Fund and the JackPass. Further information
about the fee increase can also be found at the university's budget
information web site.
While all of us would prefer that budget reductions were not necessary, HSU
should be proud of the collective effort we have made to balance the
university's operating budget. These decisions and their implementation are
difficult, but they also address the reality of our fiscal constraints and
position the university for increased financial stability. In order to
continue our efforts to stabilize and improve the university's financial
position, we must also continue to work together to attract new students to
HSU and to retain those who have chosen to attend. We have a wonderful
education to offer students with the promise of a fulfilling and rewarding
life.
Rollin C. Richmond
President