Budget Update May 29, 2009

The following message is forwarded on behalf of Senior Vice President and Provost Jim Bean:

The financial picture for next year is beginning to firm up. The worst case scenarios are not materializing at this point. Rumors about the OUS budget are still in the 15% cut range. This will be difficult, but is survivable given the strong student demand we have seen the past couple of years. Deposits have been predictably soft due to the financial crisis, but having accepted the waiting list of students, deposits are now close to on target for next fall.

We still have some uncertainties to see play out. If new foreclosures and layoffs hit this summer it could cause loss of students, even for those who have deposited and applied for housing. We are tracking that closely. Once the State Board of Higher Education gets its budget, it will be under great pressure to help the regionals survive. This could mean a less than proportional allocation to us. We are making the case to the Board that with this influx of students, further reduction could harm quality.

Newspapers are reporting that our tuition increase for residents will be 7%. Truth is, we cannot know that until we see our budget. It is safe to say that it will be in the range of 7-9.9% for residents, depending on the variables above.

The rollercoaster is slowing for the station. While there are still a few bumps ahead, I would rather be on our track than many others. Thanks for working through all this with us.

Regards, Jim