June 19, 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:

A week ago, our Board of Trustees approved the deepest budget cuts in FIU’s history. As you know, we presented to the Board a comprehensive three-year plan to reduce our budget in response to a severe budget shortfall at the state level. The Board agreed that the only way to bridge the $32 million budget gap this year is to cut programs, close academic centers and administrative programs.

Just as our board was wrapping up its meeting, we received word from the Governor’s office that universities will actually receive 96 percent of the budget allocation signed by Governor Charlie Crist. This means that we have lost yet another four percent of our budget even before the fiscal year starts.

Because we were conservative in our planning and foresaw the possibility of further cuts, we made some room in our projections to absorb further reductions. However, this reduction is significant and came earlier than we anticipated. At this point we are analyzing our situation in light of other variables including:

• Undergraduate tuition increase of 6 percent
• Graduate tuition increase of 10 percent
• Law tuition increase of 15 percent
• Authority to charge a tuition differential of up to 9 percent (requires BOT approval)
• Additional funds coming from lottery money (pending)
• Increased cost of electricity (possible 18 percent increase or $1.8 million)

As you know, Governor Crist already signed a bill that raises undergraduate tuition by 6 percent and graduate tuition by as much as 10 percent. Earlier this week, the Governor signed another bill that gives us the authority to charge a tuition differential based on criteria related to our research intensity.

The only universities that may charge a tuition differential are UF, FSU, USF, UCF and FIU. We will take the matter before our Board of Trustees, for they must approve any increase. If proposed and approved, the tuition differential of 9 percent would apply only to certain categories of new students, including those who enroll after July 1 2007 and would generate approximately $1 million in the first year. Tuition differential does not affect most of our current students or future students who have prepaid contracts in effect prior to July 1, 2007.

It is important to note that the funds realized through this differential tuition must be utilized only to enhance quality of direct undergraduate instruction and support services. To us this represents an opportunity to add badly needed advisors and faculty members. Down the line, we are confident differential tuition will result in improved graduation rates and enhanced undergraduate experience.

Moving forward with budget reductions

Now that our budget reduction plan has been approved by our Board, we have entered the implementation stage. Because this is a three-year plan and because we are assuring our current students the opportunity to complete their studies in degrees that are being phased out, staff reduction plan will take place in stages over a period of months, and in some cases, years.

As we announced at the Town Hall meetings, an Outplacement Resource Center has been created and is available to all employees who are notified that their employment is coming to an end. Sadly for all of us, we will be giving notice to capable, committed employees, many of whom have worked at FIU for many years. It is difficult to let go of people who are doing a good job; this is by no means a reflection on their performance.

We want to do everything possible to help each of those members of our community to prepare for the job market so that new employment opportunities – within and outside of FIU – will materialize as soon as possible.

The Outplacement Center will announce a series of workshops shortly. Human resources experts stand ready to offer one-on-one consultations on topics such as benefits and retirement, resume writing, interviewing and networking skills. The center provides access to computers, printers and other office equipment. To make an appointment for the outplacement center on either campus, please call 305-348-3206.

I would like to thank each of the individuals who will not be continued for sharing their talents and hard work with us at FIU. Each of these professors, administrators and staff members has made important contributions to building the university.

I ask that everyone be very supportive of them through this transition. Please share with us ideas as to how FIU can be of further help to our colleagues who must depart.

As always, please send me your thoughts at presmail@fiu.edu