Budget Update
University begins work to cover state funding shortfall for FY02
Archived article from Mar 1, 2002
Rutgers' budget for the current fiscal year has been reduced by $21.87 million for general university funds and $1.67 million for the New Jersey Agricultural Experiment Station as a result of "the extraordinarily difficult budget situation in New Jersey," according to Nancy Winterbauer, vice president for university budgeting.
The cut has been described by the state as a 5 percent reduction in operating appropriations. However, because fringe benefits are included in the base on which the cut was calculated, the total -- some $23.5 million -- is actually 6.6 percent, Winterbauer noted.
These significant losses in state aid are having an immediate impact on programs and services, Winterbauer stated. "We will reduce spending while protecting the university's core mission, particularly instruction, and recognizing the importance of research, public service, libraries and student services," she said.
Some important projects have since been deferred because of the loss of state funding, she said. These include the delay of capital projects and computer systems development, as well as the scaling back of new academic program initiatives. Also, limited reserve funds have been tapped to help the university manage through the remainder of the fiscal year.
"The balance of the funding shortfall must be covered by reductions to operating budgets," Winterbauer noted. "In general, instruction and other core academic functions have taken the smallest cuts while administrative units have been asked to bear a greater proportion of the budget reductions."
All areas are currently working to meet their budget reduction targets. Some units have already begun to implement their plans, which in some cases include layoffs, but a comprehensive accounting of the cuts that the university is making will not be available until all plans have been submitted and reviewed.
The situation for FY03 will not be known until after March 26, when Gov. James E. McGreevey delivers his budget address to the state legislature.
"We understand that the next fiscal year may be as challenging as the current one," Winterbauer added. "In light of that, we intend to proceed cautiously with our planning so that every effort will be made to preserve the high quality of our university's instructional and research offerings."
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