Delivered September 17, 2013

Harvey Perlman, Chancellor

Budget

This year the university, the governor and the legislature agreed to a compact on tuition and state support that allowed the university to avoid any increase in tuition to resident students. This has reinvigorated the partnership between the state and the university to achieve a quality university and to keep the university accessible to those of modest means. Nonetheless, the system-wide budget requires some budget reallocations. We have three additional campus-specific issues: the $2 million deficit we imposed temporarily last year, approximately $570,000 in increased operating costs for new buildings, and some as yet undetermined increased support required for information technology. I am working with the vice chancellors to identify permanent reductions as far from the academic enterprise as possible that will allow us to eliminate some of this structural deficit.

On the positive side, we were able to provide a full 3 percent salary increase pool for faculty and staff and the Board of Regents has authorized funds for programs of excellence that permit continuing investment in high priority programs. Most importantly, our enrollment increase this year should provide us with some budgetary relief. It is too early to say whether or how much additional reallocation will be necessary. If further reductions are required I am hopeful they will be modest enough that we will not need to experience the disruption that an elaborate budget exercise produces.

Before I conclude, let me make brief comments on three subjects:

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