President’s Budget Message – Monday May 18, 2009

Dear Members of the university community:

This is an important week in our budget process. We are kicking off the week with our second Town Hall meeting of the year, which typically generates quite a bit of discussion. Please plan to join me Monday at 10 a.m. the Graham Center Ballrooms at University Park. The Town Hall meeting will be telecast live to the Wolfe University Center at Biscayne Bay Campus. Materials presented at the meeting will be made available later on News@FIU

We are moving forward in our budget planning process under the assumption that Gov. Charlie Crist will sign the budget sent to him by the Florida Legislature — at least the portion of it that concerns us. While this budget contains a cut that represents approximately a 15 percent reduction for us, it is important that we approach our budget planning with the understanding that our cumulative recurring cut since the recession began is significantly greater. The current funding gap is being filled, temporarily and only in part, with Federal stimulus money, which will disappear in two years, and new tuition revenues. Therefore, it is imperative that we proceed with discipline and in a way that does not simply postpone the inevitable, but rather positions us strategically.

At the Town Hall meeting we will share with the entire university community reduction plans that deans and vice presidents have been struggling with for weeks. Making cuts in a complex institution like ours is not an easy task, but unfortunately we must do so for the second consecutive year. These plans have been shared with the Faculty Senate and the Budget Stabilization Taskforce. I look forward to your feedback and insight today, prior to presenting to our Board of Trustees during a budget workshop in June.

Our goal this year, as in the past, is to put in place a budget that causes the least damage possible to the core of the institution and allows it to emerge from this budget crisis a strong, vibrant university prepared to resume its successful trajectory.

While we are planning for a reduction in revenues – 15 percent General Revenue and Lottery cut after several years of declining state funding – we know the cut could have been even more severe, given the overall condition of the economy and diminishing state revenues. Relatively speaking we were very successful in making our case in Tallahassee this year. It is clear that the State University System and FIU in particular has grown in stature and influence to the point where our alumni and friends are well positioned to assist us. I am proud of the effort we put forth in presenting the university and our new College of Medicine as economic development engines of critical importance to our students and our community. I want to thank everyone who helped: students, faculty, staff, alumni, donors, friends, members of our boards and advisory groups and, of course, our Governmental Relations team, which led the effort.

A special thank you goes to the Miami-Dade delegation, the friends of higher education in the Legislature who supported us and Governor Crist, all of whom made tough decisions in support of Florida’s universities.

Staff changes

Last week we announced that our former Senior Vice President and CFO Vivian Sanchez has stepped down. For the next year she will be assisting us through this difficult budget year in her new capacity as consultant and advisor to our interim CFO John Miller and the able team he now leads. As I have said before, Ms. Sanchez was one of the architects of our multy-year budget stabilization strategy. Given her key role, I am pleased that she has decided to transition in a way that allows us continued access to her knowledge and experience as we move forward. A search for a permanent CFO will begin in a few weeks.

Also important to note: I have restructured and reassigned some administrative areas. Vice President and Chief Information Officer, Min Yao now reports to Interim Executive Vice President and Provost Douglas Wartzok and Vice President for Human Resources Jaffus Hardrick now reports directly to me.

As in the past, I would like to thank everyone throughout the university who has participated in the budget process, and those of you who have offered your thoughtful input. Your continued participation is what makes this process fruitful. Please continue to share your thoughts by sending me an email message at presmail@fiu.edu

Modesto A. Maidique
President