E-mail Notice
The notice below was originally shared with the university community via e-mail.
October 13, 2006
Budget Update
To: The Campus Community
Dear Colleagues:
As you well know, HSU has been faced with budget deficits for the
last several years, and this year we reduced our budgets by over
$2,000,000. We are meeting these reductions and some increases in
expenditures by using reserve monies and a few other one-time
sources of funds for this year only, but these are not long-term
solutions. We also have assessed reductions to Academic Affairs,
Administrative Affairs, University-wide accounts and the President's
Office. For some of these units this is the fourth time in four
years that their budgets have been reduced. Other units have been
given small increases to pay for our efforts to recruit and retain
students. The pressures on the budget are the result of several
factors: enrollment reductions, a new policy that requires CSU
campuses to refund money when enrollment projections are not met,
cuts in state funding, a change in the CSU system's funding formula,
mandatory increases in salary and benefits, and escalating utility
and insurance costs. These pressures are not likely to diminish.
It is important at this juncture to address the recent budget
reduction measures that are underway. As we bring our budget into
line, layoffs will be necessary. This will not be an easy process,
and the decisions are difficult ones. It is likely that additional
positions will be eliminated.
Spring class sizes have become an issue and it is important that the
facts are known. Last spring, 2 percent of HSU's class sections were
above 70 students. This spring 6 percent will be above 70. The
provost assures me, despite these changes, that HSU should still
have one of the lowest student-faculty ratios in the California
State University system. We have 1600 class sections; only 90 of
those will hold more than 70 students. Put another way, 94 percent
of HSU classes will not be large lectures. In short, Humboldt State
will continue to stand out among its peers for the quality of its
programs and the personal and hands-on nature of the student
learning experience.
We can no longer approach our budget problems in a piecemeal fashion
that assumes reductions will be temporary. Together, we must make
major structural changes in order to achieve fiscal health and
position the university for future prosperity. This conclusion was
affirmed by CSU Long Beach Emeritus President Bob Maxson after his
recent visit and review of our financial situation.
As a result, we must work together over the next few months to plan
for a reduced permanent budget beginning with the 2007/08 academic
year. Accordingly, I have laid out below the following course of action.
First, it is important that we begin the process of budget
evaluation with a shared understanding of why we are in this
situation and what options exist for a solution. I plan to consult
broadly with the campus community, and the vice presidents and I are
planning a campus-wide meeting to be held October 30, 2006, from
4-6 pm at the Van Duzer Theatre.
Second, we will use our technology to provide you with information
via the university budget office website. In addition, I value your
thoughtful suggestions on how the university might save additional
money. I solicit your ideas for increasing our efficiency via a
confidential web tool that can be reached at the following link:
http://www.surveymonkey.com/s.asp?u=943762654687
Third, on the suggestion of Emeritus President Maxson, I will engage
an outside consultant to do a thorough program-by-program analysis
in order to identify areas where our spending is out of line with
comparable CSU campuses. An outside consultant will provide
objective information and fresh insights into our dilemma.
Fourth, the provost and vice presidents will conduct a thorough
review of their respective divisions using similar comparative data
from other CSU campuses to help them identify potential cost savings
and to help them identify areas that should be protected from cuts.
Finally, after reviewing the input from campus constituencies, the
report of the outside consultant, and the recommendations of the
vice presidents, I, the provost, and the vice presidents will make a
presentation of the final decisions on the budget for FY 2007/08 to
the campus community.
We must change how we operate. We have a responsibility to this
fine institution, to our current and future students, to our
supportive alumni and donors, to the tax-payers of the state of
California, and to future generations of Californians to make
difficult decisions now so that HSU continues to be a quality,
affordable and financially stable institution for decades to
come. I am convinced that our work over the next six months will
put Humboldt State into position to become a much stronger
university poised to enter its second century with ambitious and
realizable dreams.
Thank you for your good work in the service of our students and for
your partnership and collegiality as we walk through this process.
Sincerely,
Rollin C. Richmond
President