To: Campus Community
From: President Wim Wiewel
Date: February 5, 2009
Re: Budget Management and Planning in Current Environment
It is the intention of the University leadership to have a highly communicative, participative and transparent budget planning process for the Portland State University community as we face difficult decisions. This memorandum is intended to bring you up-to-date on Oregon’s current budget condition and its effect on the PSU budget planning process for this and the next biennium.
During the January 20 campus wide budget meeting, we reviewed a schedule of steps and meetings for the next eight months regarding the University's budget. Since that meeting, it has become clear that the state will likely require additional budget reductions in the current year (beyond the l.09 percent already taken) because of this year's larger than anticipated revenue shortfall estimated to be between $600 and $800 million. Additionally, the 2009-11 budget shortfall will likely be over $2 billion. While the Congressional Economic Stimulus bill currently under deliberation and Oregon’s Rainy Day and Educational Stability funds may ultimately affect this picture, no decisions have been made. So for now, as a campus community, we must plan for the immediate situation and a reduced budget in the next biennium.
Since our campus wide meeting, several actions have been taken by the University Budget Team. First, given current state budget revenues and a growing deficit in this budget year, we are reducing current year budgets by 3 percent for teaching units and 5 percent for non-teaching units. In implementing these reductions we are working closely with unit managers and addressing special situations as needed. The University Budget Team expects managers to review their options and to implement and manage this new reduced budget during the final five months of the year. Second, we have issued budget instructions for the 2009-11 biennium to the teaching and non-teaching units so that they may begin budget planning. We have asked those units to plan for an education and general (E & G) fund expenditure reduction of 7.5 percent for teaching units and 12.5 percent for non-teaching units. We are also evaluating revenue sources, including tuition increases, to lessen the impact if such reductions are required next biennium. Budget planning for the 2009-11 biennium is very likely to go well beyond May and possibly into the summer.
I want to assure you that the University will continue to work with all our advocates in the Oregon Legislature and with the Governor to produce the best possible outcome for our faculty, staff and students in this difficult economy. I will continue to communicate with you about the budget process as it unfolds, and the vice presidents will work closely with campus deans and directors to make the best decisions we can in this environment. Thank you for the good work you do for Portland State University.
