Hello,

I write to inform you about our progress in meeting the short-term budget challenges Ohio University faces during the current fiscal year. As you know, the combination of a recent 2.5 percent reduction in funding from the state and shortfalls in revenue (especially lower-than-expected interest income) has produced the need for us to reduce our expenditures by almost $6 million within the next three months.

As you would expect, we have been studying every imaginable way to manage this situation while protecting academic programs and minimizing the effect on our employees. We began by determining what percentage reduction we would have to implement overall, and how much of the shortfall we could absorb centrally from reserves. After significant study and consultation, I have authorized an across-the-board budget reduction of 3 percent, with 2 percent borne by planning units and the final 1 percent covered from University reserve funds. While this decrease represents a permanent downward adjustment in baseline funding, I recognize that it is important to allow units flexibility in meeting reduction goals. We will therefore allow one-time funds to be used to manage the adjustment for FY 03, but of course each unit must plan to incorporate these reductions into its FY 04 budget plan.

Two other measures will assist in meeting the current challenge. First, carry-forward funds will be guaranteed to units at the rate of 100 percent for this fiscal year and, second, savings from positions that have become vacant under the current hiring freeze (which we expect to continue through FY 04) may also be used between now and the end of FY 2003 to offset reductions. Taken in combination, these funds will play a significant role in allowing units to manage the task of reaching our expenditure reduction goals.

Even as we enact these measures, we are working to address what is truly a multi-year, multi-budget problem, given our expectation that state funding will be meager beyond the current fiscal year. We will be reaching out to the University community for help in developing our strategy, and we will also watch with great interest the unfolding legislative process in Columbus.

Our planning for the next two years will be very much dependent on what happens in the Ohio General Assembly over the next three months. We will continue to work actively to persuade our legislators of the need to preserve funding for higher education in Ohio, and we appreciate your help in that effort. Many of you and many of our alumni already have contacted legislators in support of higher education funding. Within the first week after our appeal for help, 1000+ e-mail messages were sent to Columbus. That effort is really important!

Through all of this we will remain committed to our core mission of academic excellence and to maintaining the unique character of Ohio University.

Thank you for your cooperation and understanding as we work our way through these difficulties.

Robert Glidden
President