FY2019 Budget Update

FY2019 Budget Update

May 24, 2018

Dear Colleagues:

As you may be aware, on May 18 the Legislature submitted their budget bill to the Governor for signature.  While the Governor recommended a 7.73% decrease to the core appropriation for higher education (plus an additional 10% cut that could be earned back through performance-based funding), the Legislature’s budget reflects higher education funding that is the same as this year’s appropriation (with no performance-based funding component).

The Legislature’s budget is good news and we are especially appreciative of the support of our local legislators.  However, there are still a number of factors that will ultimately affect our FY 2019 budget.  The FY 2018 budget was developed as a “bridge” to absorb the 9% cut from the FY 2017 budget, with a number of one-time reductions that now need to be restored.  We are also facing uncertainty regarding future state revenues as the Legislature passed bills reducing both personal and corporate income tax rates.  In addition, the Governor has until June 30 to sign the appropriation bill or withhold all or a portion of the funds recommended by the Legislature.

Given the possibility of withholdings, we will recommend to the Board of Governors at its mid-June meeting that the FY 2019 operating budget be based on the Governor’s original funding recommendation and is reflected in the proposals developed by various areas to meet the budget reductions targets.  If all or some of the restored funding becomes available, a special Board meeting may be utilized to revise the budget.

I will provide additional updates as we receive clarity over the next five weeks.

Best regards,