Much discussion is taking place on our campus concerning where the money from our enrollment gains and tuition increase are being designated, potential decisions that may need to be made, and where we currently stand with making those decisions for the next academic year. I want to take a moment to address those questions and concerns.

As it relates to this year, we estimate that we will see a $3.14 million bump in our revenues from the upcoming tuition increase. We expect additional over attainment as a result of our increased enrollment and hope to finalize those figures once data is available concerning our retention from fall to winter quarter. Our actual State Share of Instruction (SSI) is $2.2 million short from initial state projections for this academic year. After making up the $2.2 million shortfall with the additional funds we received from the expected bump, we are left with $940,000 of which $700,000 are designated for the Ohio College Opportunity Grant (OCOG) program and $200,000 are being put toward miscellaneous funding requests. 

Looking to next year, because Ohio is on a biennial budget cycle, we already know that Ohio University’s SSI will be $10 million less in the 2010-11 academic year than this year’s state support. Since we know this ahead of time, our budget process is progressing earlier this year. The University will pursue a strategic budgeting process to effectively address known and potential shortfalls. In the coming weeks, we will determine the range of potential shortfalls for which to plan.

The goals for our strategic budget process are to determine what we stop doing that is not essential to our core academic mission and to sharpen our strategic focus. This process will focus on short- and long-term strategies for a cost savings plan and revenue enhancement, including strategic enrollment growth. We have broken this process into three phases:

PHASE 1 will take place during the remainder of Fall Quarter to the beginning of Winter Quarter. This process will include input from Planning Units, all Senates, and Budget Planning Council. These groups will suggest realignments that would result in cost savings and strengthen quality, productivity, and efficiency. They also will be asked to identify areas for revenue enhancements including identification of joint initiatives and activities that could become self-sustaining and generate new revenue sources for the university.

PHASE 2 will begin mid-Winter Quarter. Along with the groups mentioned above, the Deans and Executive Staff will be asked to review the recommendations for cost savings and revenue enhancements and determine whether those ideas are able to position the university to continue its pursuit of excellence while meeting our budget needs. We want to avoid any cost shifting. I will share a progress report with the Board of Trustees at its January 2010 meeting.

PHASE 3 will begin at the end of Winter Quarter. The Deans, Executive Staff, and Senate leaders will draft a set of recommendations to present to me. After I review the recommendations, I will deliver to the Board of Trustees a final set of recommendations for endorsement at its April 2010 meeting.

By communicating openly about our budget process, my hope is to alleviate some anxiety, begin to move conversations forward about where we should go from here, and encourage faculty, staff, and students to share their ideas on how we can close this gap. I realize this is not an easy process and that it takes a great deal of commitment from our community, but these challenges are a reality of the times in which we live. Facing them together is the best way for us to build our strength for the future. 

In the midst of these challenges, I applaud all you are achieving, including excellence in research, creative activity, and scholarship – accomplishments that are receiving national recognition. This recognition is a direct reflection of your hard work and commitment to excellence! Thank you for all that you do our university community!

Cordially,

Roderick J. McDavis
President