Budget Update

2009/04/07

University Announces Proposed Budget Reduction Areas

Today, the University announced its first set of proposed preemptive steps to address an anticipated budget shortfall for fiscal years 2010 and 2011 now expected to total approximately $2 million. The announcement comes as part of the University's ongoing discussions with the campus community regarding its budget for the next two years.

Specific details on Bemidji State's plans to address the projected shortfall are limited due to a number of factors that remain unknown, including the amount of federal stimulus money the University will receive and next year's tuition level. However, the preemptive measures announced today are being implemented based on four key assumptions:

• the Governor's budget will reduce the state of Minnesota's appropriation to Bemidji State University by 10 percent.
• the Minnesota State Colleges and Universities system will keep tuition increases in line with the rate of inflation, or approximately four percent.
• salary freezes will be in place for a significant majority of University employees.
• federal stimulus money will be available to fund one-time, short-term expenditures.

Based on those four assumptions, University officials announced a proposed plan to identify $1.25 million in permanent budget reductions for fiscal year 2010 and an additional $750,000 in fiscal year 2011, for a total of $2 million.

By area of responsibility, the reduction would come from the following:

• $50,000 from the Office of the President
• $1 million from academic affairs
• $150,000 from student development and enrollment
• $400,000 from finance and administration
• $400,000 from University-wide and/or fixed costs

"Even though key variables have yet to be finalized, the University is moving forward in identifying its areas of reduction," said Bill Maki, vice president for finance and administration. "We are at the point where we need to begin moving forward with plans for next academic year and ensure that our budget is balanced."

Further details on the University's budget plan will be unveiled in a future open forum as unknown factors become clarified.

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