Sent via e-mail by President Roderick J. McDavis Feb. 2, 2009

Dear Faculty, Staff, and Students:

This morning Director of the Office of Budget and Management Pari Sabety shared Governor Ted Strickland's proposed state budget for fiscal years 2010 and 2011. It is the first step of a lengthy process that includes discussion and debate in the Ohio General Assembly. The Governor's proposed budget bolsters spending for education, including a commitment to increase the State Share of Instruction for higher education to allow for a continued tuition freeze for fiscal year 2010. However, to achieve this, the overall budget for the Board of Regents is slightly decreased.

In light of the historic economic challenges our state is facing, we understand this increased funding comes at a great price to other agencies in our state. It also means that some units in our university may not receive the same funding levels as in the past. The Governor's support calls for more demonstrated accountability from higher education with the implementation of a new funding formula linked to outcomes. We also understand that this investment is being made in higher education because we are viewed as a significant part of the solution to Ohio's economic challenges.

We already have begun work to identify efficiencies and improve our financial strength so that we can better support the priorities of Vision OHIO, which focus on our core academic mission of undergraduate education, select graduate programs, and distinctive areas of research. We also are determining how to respond in careful, thoughtful ways to the dramatic losses of our investment income that have impacted our institution and others across the nation resulting from the recent economic downturn.

The Governor's strategic investment in education makes it all the more important that we become more efficient and effective. Indeed, the Governor's proposal requires us to achieve new efficiencies equaling three percent of our budget in both fiscal years. Additionally, the economic forecast in the near term remains daunting.

We thank Governor Strickland for his investment in higher education as a top priority and are committed to working with the members of the Ohio General Assembly as the proposed budget goes through the legislative process. We understand that the state budget is not final and our university still has important work to do. In the coming months, we must continue our thoughtful planning and implementation work so a quality education is accessible and affordable to all during these difficult times and in the future.

I will continue to share updates with you as the budget process moves forward.

Cordially,

Roderick J. McDavis
President

• Ohio University Budget Update Web site