President’s Message — March 27, 2009

Dear members of the university community:

My fellow Florida state university presidents and I have spent the last two days in Tallahassee making the case for universities to be recognized and treated as the economic engines they truly are. We had an opportunity to present before the Board of Governors our recently completed economic impact study on the Academic Health Sciences Center, which was very well received.

Also, during this round of meetings, The Board of Governors approved a revised three-year PECO list, which had to be adjusted to reflect declining revenues. As you know, PECO funds are earmarked exclusively for construction. FIU was poised to receive approximately $81.4 million in PECO funds over the next three years. Under the revised PECO list, we can expect only $43 million. Some of the projects that will have to be deferred include a graduate classroom building and the remodeling of academic space that will result from the moving of some services to the new Student Support Complex.

In Tallahassee

In the Legislature, the first round of budget numbers has come out of the Senate. Our request for College of Medicine funding is included in these initial Senate recommendations. However, the House has not finalized its first budget or developed a consensus on the need for new revenue to close the gap between current revenue shortfalls, expected stimulus funds, and the amount needed to fund education.

We continued to press for the most minimal cut possible for the university and the funding needed to keep our College of Medicine on track.

The Governmental Relations website will continue to post updates on the session and provide the tools for the university community to share their views with our legislators.

Late last week, we were informed by the Governor’s Office of Policy and Budget that they had taken the precautionary action of withholding 15 percent of the fourth quarter release of the 2008-09 general revenue. The Governor’s Office, in consultation with the Florida Legislature, made the decision to hold back these funds in an overabundance of caution given the current economic climate.

With this announcement also came somewhat reassuring news that this decision will be reviewed in May. However, we must ensure that we are exercising additional prudence over the next month and look forward to the Governor releasing the remainder of our funds to finish out the year.

The shortfalls for next year’s budget remain significant. As you know, the state’s recent revenue estimating conference indicated that collections for FY 2009-10 would be lower than expected. The $20.1 billion now projected to come into state coffers next year is the lowest revenue in a decade, representing a $5 billion deficit, or a 25 percent reduction in the state budget.

Town Hall meeting

As you know, the Town Hall meeting originally scheduled for April 17 has been postponed until Monday, May 4, when we hope to be able to discuss with you more fully scenarios regarding next year’s budget.

The May 4^th Town Hall meeting will take place at the usual location, Graham Center Ballrooms, at 10 a.m. The meeting will be telecast to the Wolfe University Center ballrooms at Biscayne Bay Campus.

Dates to remember

I urge you to stay abreast of the evolving budget situation as the Legislative process moves forward. Some key dates to note:

• Reduction plans due from deans to provost: April 10^th
• Program closure documents submitted to provost: April 17^th
• Unit restructuring and program closure documents submitted to Faculty Senate: April 27^th
• Legislative session ends: May 1st
• Town Hall meeting: May 4^th
• FY 2009-10 budget loaded into PeopleSoft: May 8^th
• Special meeting of Faculty Senate: May 26^th
• Recommendations due from Faculty Senate: May 26^th
• Board of Trustees Budget Workshop: June 1^st
• Board of Trustees meeting: June 12^th

I hope to see you at the Town Hall meeting. Your engagement in this process is central to its success. Thank you for your feedback and continued participation.

Modesto A. Maidique

President