State budget cuts still a game of wait and see for U of M system
Dayna Landgrebe
Issue date: 2/25/09 Section: News
On Jan. 27, Governor Tim Pawlenty addressed Minnesotans and the growing $4.8 billion state shortfall in his State of the State address.
This budget shortfall, or deficit, has taken place in the 2008-2009 biennium and will carry over to the 2010-2011 fiscal years. Predicted budget forecasts show that this number will most likely be growing, according to University of Minnesota press release from President Robert Bruinick.
State agencies, like the U of M systems, receive funding from the state government. But in these economic hardships, no one can be safe from the effects of severe budget cuts.
So, what does this mean for the U of M systems?
To help address these massive cuts, Pawlenty has issued a $20 million unallotment from the U of M, or a one-time cut that gives that money back to the state.
However, the governor also issued a $75.5 million recurring reduction to the 2010-2011 budget. This is on top of the already passed $2.5 million reduction made in 2008, according to Brunick's press release.
This means that for the next two years, $78 million needs to be cut from the U of M budget each year.
"We've all got to look and see how we can give up money that is really already committed," said Linda Krug, dean of the College of Liberal Arts.
Krug said that unallotments are hard to make, but they're just one time. So when the money is gone, it's gone. But recurring cuts are tougher.
"Think of it as a paycheck. You're used to getting $200 and now you're only getting $150. Now you've got to learn how to live on that $150," Krug said.
The numbers have been passed down to UMD, and administrators are working to make approximately eight percent in cuts, or $815,000, according to Krug.
"It could get better, it could get worse. But right now it's the upper end of what we were hoping we would have to plan for," Krug said.
Making such large cuts to a budget leaves just about everything on the table as a potential cut, according to Randy Hyman, the vice chancellor of Academic Support and Student Life.
This budget shortfall, or deficit, has taken place in the 2008-2009 biennium and will carry over to the 2010-2011 fiscal years. Predicted budget forecasts show that this number will most likely be growing, according to University of Minnesota press release from President Robert Bruinick.
State agencies, like the U of M systems, receive funding from the state government. But in these economic hardships, no one can be safe from the effects of severe budget cuts.
So, what does this mean for the U of M systems?
To help address these massive cuts, Pawlenty has issued a $20 million unallotment from the U of M, or a one-time cut that gives that money back to the state.
However, the governor also issued a $75.5 million recurring reduction to the 2010-2011 budget. This is on top of the already passed $2.5 million reduction made in 2008, according to Brunick's press release.
This means that for the next two years, $78 million needs to be cut from the U of M budget each year.
"We've all got to look and see how we can give up money that is really already committed," said Linda Krug, dean of the College of Liberal Arts.
Krug said that unallotments are hard to make, but they're just one time. So when the money is gone, it's gone. But recurring cuts are tougher.
"Think of it as a paycheck. You're used to getting $200 and now you're only getting $150. Now you've got to learn how to live on that $150," Krug said.
The numbers have been passed down to UMD, and administrators are working to make approximately eight percent in cuts, or $815,000, according to Krug.
"It could get better, it could get worse. But right now it's the upper end of what we were hoping we would have to plan for," Krug said.
Making such large cuts to a budget leaves just about everything on the table as a potential cut, according to Randy Hyman, the vice chancellor of Academic Support and Student Life.
Viewing Comments 1 - 1 of 1
Alex
posted 3/01/09 @ 4:24 AM CST
Seven ways of stealing from budget
2. "Guarantees".
In the state budget of 2007 Uah 4,7 billions expenses had been claimed. Those money had been guaranteed to one large state company that should repair roads. (Continued…)
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