President's '09-'10 Budget Message

Today, President Rollin C. Richmond sent the following budget update to the campus community.

Campus Community,

As you know, California is facing an ongoing fiscal crisis. Lawmakers are struggling to deal with an estimated $24.3 billion shortfall, and once unthinkable reductions to state programs are being seriously considered.

The challenge this presents to Humboldt State University is daunting. I have just returned from a meeting at the Chancellor’s Office, and I can tell you that we face extensive budget cuts. This comes even as we are preparing for perhaps our largest freshman class ever. We are facing a fiscal emergency.

At the moment, there is a great deal of uncertainty about the state budget. The most current estimate is that the California State University system could potentially face a $400-700 million budget reduction in the coming year. That estimate from the Chancellor’s Office is based on proposals from the Governor and some of the discussions taking place in Sacramento, and it takes into account the recent increase in student fees. HSU’s portion of the estimated reduction will likely be in the range of $10-15 million.

By way of background, the CSU budget is currently about $2.7 billion from the state’s General Fund and $1.5 billion from student fees. We enroll about 450,000 students.

Our conservative budgeting from last year means that central reserves can be used to cover a small portion of our estimated reduction. One-time funds will also help. But the combination of the two won’t be nearly enough. The Chancellor has asked that we follow two principles in making decisions about budget reductions. He asks that we continue to serve as many students as possible with the highest quality possible, and that we work to preserve jobs on our campuses.

The vice presidents and I have developed a set of principles to guide us as we address these reductions. In short, we will work to make sure that reductions and reallocations are tied to university priorities, we will maintain some reserves, we will make targeted reductions rather than across-the-board reductions, and we will cut a mixture of one-time and base budget funding. The complete principles document is here (pdf).

I will be meeting with the vice presidents throughout the coming weeks. In addition, Provost Snyder and I will meet with various governance groups on campus to solicit their advice and feedback. Near the end of June, I will join the other CSU Presidents and the Chancellor to discuss our plans and additional options as well as to hear any new information.

I know that this is a difficult time for all of us. I have certainly not seen a fiscal crisis of this magnitude during my four-decade career in higher education. I find it both frustrating and disheartening, and I know from many conversations in recent weeks that I’m hardly alone. There is a great deal of worry in our campus community – on both professional and personal levels.

But even as we struggle with the current difficulties, we should also remain proud of our role and our shared commitment to public higher education. We’re all making a difference.

We work in a place that transforms lives. We’re in a position to make things better, and our students are depending on us. In fact, California as a whole is depending on us to play a vital role in its future prosperity. As California works to recover, the campuses of the California State University will be at the forefront.

As always, please feel free to send me your thoughts and suggestions. Also, be assured that we will work to keep you as informed as possible. In addition to occasional messages like this email, we will post background, updates and other information when they are available on the University Budget Office website at www.humboldt.edu/~budget.

Sincerely yours,

Rollin C. Richmond