Spring Break
CFO: UConn must find other revenue
Kala Kachmar
Issue date: 2/5/09 Section: News
Editor's Note: This is the second in a three-part series examining how state budget cuts are impacting UConn.
Governor Rell's proposed budget cuts will cost the University of Connecticut $58.5 million in rescission and fringe benefit fund cuts over the next two years if approved by the state legislature.
UConn will only receive approximately $235 of the $259 million requested in total for fiscal year 2009-10, which will result in a significant cut to the university's operating budget.
The operating cost paid for by the state in fiscal year 2008-09 is estimated at just over $227 million, which is $5 million more than the 2007-08 fiscal year costs. The cuts, however, would give UConn a little less than $223 million to spend on operating costs in fiscal years 2009-10 and 2010-11, leaving no room in the budget to account for inflation, salary increases or increases in energy costs.
Even though the university only got a $5 million increase for the operating costs from FY08 to FY09, the university requested nearly $20 million more for FY10 and an additional $12 million going forward to FY11.
The university's main sources of revenue are state funding, tuition and auxiliary revenue, which includes income from areas like room and board, dining and research, according to Richard Gray, UConn's chief financial officer.
Gray said the university would have to look to other sources of income, like tuition and fees, to foot the operating cost.
"We'll have to find the money," Gray said.
With these reductions, the challenge will be figuring out how to maintain high quality education and research, Gray said.
"We have to make sure we don't compromise the basic principles we base this university on," he added.
Gray said the university is committed to doing everything it can in the face of the cuts.
The Cost, Operations and Revenue Efficiencies (CORE) task force, put together by UConn President Michael Hogan in November, is currently assessing ways to save the university additional money, according to Gray.
CORE should have the report ready to send to the president within the next few weeks, UConn spokeswoman Karen Grava said last week.
Governor Rell's proposed budget cuts will cost the University of Connecticut $58.5 million in rescission and fringe benefit fund cuts over the next two years if approved by the state legislature.
UConn will only receive approximately $235 of the $259 million requested in total for fiscal year 2009-10, which will result in a significant cut to the university's operating budget.
The operating cost paid for by the state in fiscal year 2008-09 is estimated at just over $227 million, which is $5 million more than the 2007-08 fiscal year costs. The cuts, however, would give UConn a little less than $223 million to spend on operating costs in fiscal years 2009-10 and 2010-11, leaving no room in the budget to account for inflation, salary increases or increases in energy costs.
Even though the university only got a $5 million increase for the operating costs from FY08 to FY09, the university requested nearly $20 million more for FY10 and an additional $12 million going forward to FY11.
The university's main sources of revenue are state funding, tuition and auxiliary revenue, which includes income from areas like room and board, dining and research, according to Richard Gray, UConn's chief financial officer.
Gray said the university would have to look to other sources of income, like tuition and fees, to foot the operating cost.
"We'll have to find the money," Gray said.
With these reductions, the challenge will be figuring out how to maintain high quality education and research, Gray said.
"We have to make sure we don't compromise the basic principles we base this university on," he added.
Gray said the university is committed to doing everything it can in the face of the cuts.
The Cost, Operations and Revenue Efficiencies (CORE) task force, put together by UConn President Michael Hogan in November, is currently assessing ways to save the university additional money, according to Gray.
CORE should have the report ready to send to the president within the next few weeks, UConn spokeswoman Karen Grava said last week.
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