May 1, 2008

In our efforts to communicate the latest budget developments here and in Tallahassee in a timely manner, the university is disseminating weekly budget updates from President Modesto A. Maidique. These communiques are sent to our students, faculty and staff, alumni, donors, FIU Board of Trustees, Foundation Board of Directors, President's Council, select media, elected officials and other interested parties. We believe that timely information on a topic of such critical importance will benefit the entire university community and help to continue the university's forward momentum.
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In This Issue:

Dear members of the university community:

As you receive this, I’m on my way to China to participate in the commencement exercises of the inaugural class of our Hospitality and Tourism Management program in Tianjin. These 29 students join the 3,800 other new alumni we had the pleasure of awarding degrees to earlier this week.

While commencement season is always a joyous time, we continue to be concerned about the financial outlook for our university and our state.

As expected, this is turning out to be one of the worst budget years in the history of the State of Florida. For us, the Legislature has proposed a general revenue cut of nearly $11 million for 2008-‘09. These cuts are magnified by the fact that they are recurring and follow a significant recurring cut the university had to take last year. In addition, the university requires an additional 4 percent to remain at stead-state financially due to inflationary increases.

It is entirely possible that there could be further cuts in 2008-‘09 if revenue projections continue to fall short. This, of course, makes financial planning difficult and more important. We are not alone in these challenges; it is a scenario being played out across the state and around the country. University of Florida officials announced today, for example, that the university will be taking an overall 6 percent cut to its operating budget.

Our deans and vice presidents are drafting plans that are strategic in nature so that FIU is spared long-term, irreparable damage as a result of this budget situation. As you know, their recommendations, together with the final result of this legislative session, will be presented at a Town Hall meeting scheduled for Tuesday, June 17.

How we ultimately deal with this budget shortfall can be influenced by the ideas and perspectives you bring to the table. Please continue to communicate with your dean or send me your questions and ideas directly to presmail@fiu.edu.

This week in Tallahassee

This is the final week of session and a few of the issues important to us have been concluded. Sometime in the next few weeks the budget will be sent to Governor Charlie Crist. He will have two weeks to review and sign or veto the budget.

Here’s an update on some of the key issues:

Tuition. House and Senate have agreed on 6 percent undergraduate tuition increase. As agreed upon last year, the Board of Governors is likely to set aside 30 percent for need-based financial aid. Also, we are likely to receive authorization to charge differential tuition and increased flexibility to raise graduate tuition.

Online distance learning fee. Online learning has been a growth area over the last few years. New legislation will limit fees to cost-recovery. This will have a significant negative impact on our budget.

Capital Outlay. The budget includes PECO and CITF funding this year, and FIU was one of only three universities to receive Courtelis facilities matches to private contributions.

College of Medicine. We will receive about $3 million less than we requested for our nascent College of Medicine. Our plans will require some adjustment, but we remain strongly committed to admitting our first class in the fall of 2009.

Center of Excellence. The budget awards $10 million for a Center of Excellence for Hurricane Damage Mitigation and Product Development, which was the number-one-ranked proposal in the state based upon external peer review. In a related positive development, FIU will be included in the newly formed Energy Consortium though it is not likely that will translate into additional funding this year.

As I mentioned before, the situation is still fluid. Changes could happen before the legislative session ends, and may continue throughout the year – similar to what happened last year. We must plan accordingly. We continue to work diligently and strategically so that we mitigate any last-minute surprises that might impact our core mission and values.

I want to thank you for your continued commitment to our university and for your cooperation during these trying times.

Timeline

Links of interest

Office of Governmental Relations
http://government.fiu.edu

Special budget crisis website
http://president.fiu.edu/budget1.html