Michigan’s Revenue Estimating Conference held in Lansing last month projected that the 2010-11 budget is looking at a $1.6 billion deficit.
Ferris is already looking at compensating for the 10 percent reduction in state support that lies ahead. The budget shortfall is expected to result in a $1.2 billion reduction in the general fund and more than a $400 million reduction in school aid funds for 2011.
[PullQuote1 quote=”When state support does not increase, we have no other source to cover the increased costs of operating the university each year. ” author=”David Eisler” title=”FSU President”]President David Eisler said the university has already taken a $2.5 million reduction in preparation for next year. The deans, vice presidents, and directors have been asked to prepare for an additional $2.5 million reduction for next year as well.
Strategies to meet this reduction include not filling vacant positions, delaying purchases, reducing costs through efficiencies, and generating additional revenues.
“I believe that it is far better to prepare for reductions in advance,” said Eisler. “It allows us to plan and to systematically address funding shortfalls in ways that do the least damage.”
The big question for students remains, however: how will this affect tuition?
“When state support does not increase, we have no other source to cover the increased costs of operating the university each year,” said Eisler.
These costs include funding for increased faculty and staff compensation and benefits, increase utility costs, unfunded mandates from the federal and state level, and other various incremental expenses.
“Without an increase in state support, we need to raise tuition to cover these expenses,” he added.
President Eisler said he has not raised tuition to cover reductions in the budget and does not intend to do so.
The university has already taken small steps to compensate for the budget reductions and increasing costs. One of which includes an increase in the price of a single room in the residence halls. The price has been raised to $950 a semester, up from a current $900.