May 8, 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:

The Legislative Session has ended. The budget must now go before the Governor for signature. Nothing will be final until the Governor signs (or vetoes) the budget. Having said that, I will describe our situation in general terms:

FIU has sustained a general revenue cut (E&G funds) of $12 million, some of which may be offset with non-recurring lottery funds. This is in addition to the $10.4 million the university lost in FY 2007-08. Indications are that tuition will increase 6 percent, but 30 percent of that will be set aside for need-based financial aid. Our budget will be negatively impacted by other measures such as new limits to on-line learning fees. We estimate this new measure will reduce our revenues by $4 million.

The Legislature passed a bill that would potentially allow both UCF and FIU to begin to charge differential tuition. We are hopeful that it will not be vetoed since it will provide significant new revenue in the coming years. Differential tuition only applies to new students, so its impact will be minimal in the near term.

Our budget reduction plan

Given all these variables, the consistently poor economic forecasts, and the fact that FIU will receive no incremental dollars to cover the increased cost of doing business, we must stay the course with respect to our budget-reduction plan. As you may recall, our plan contemplates two scenarios that assume state cuts between 4 and 7 percent. Unfortunately, it looks as if we will be making decisions based upon the latter scenario. If you would like to review the budget reduction plan, the full presentation from our last Town Hall meeting can be found at http://president.fiu.edu/budget_pdf.html

As I have mentioned before, FIU is not alone in its plight; all state universities and other agencies are feeling the effects of the current downward economic turn. One of the oldest, richest and most influential institutions in our state, the University of Florida, this week announced cuts as severe as those we are contemplating.

I know there is understandable anxiety within our community with regards to layoffs. Many of you have asked about the time frame for layoffs. At this point it is difficult to answer that question because no decisions have been made regarding which programs and departments will be affected. (Recommendations from deans and vice presidents are due next week.) Further, our plan will be phased-in over three years. In the academic areas, layoffs will follow a longer timetable because we continue to be sensitive to our students’ needs, and all students already in the pipeline will have an opportunity to complete their degrees. While clearly unavoidable at this point, we will make sure that all layoffs are carried out according to a clearly communicated procedure.

In these tough times, the challenge is to survive this crisis without inflicting permanent damage on the institution. I appreciate your commitment to the institution so many of us have worked so hard for so many years to build into what it is today. A number of your cost-cutting ideas, such as the four-day work week, are already being implemented. Additionally, a new policy on cell phone/blackberry use is being rolled out. Please continue to communicate with me by sending your emails to presmail@fiu.edu.

Please mark your calendar for our next Town Hall meeting, scheduled for 3 p.m. on June 17 in the University Park Graham Center Ballrooms. As was the case with previous Town Hall meetings, this one will be simulcast to Biscayne Bay Campus and the Pines Center.

Timeline

Links of interest

Miami Herald article: UF cuts 400 jobs, undergrad enrollment.
http://www.miamiherald.com/news/florida/story/522429.html

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

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