UCF has been dealing with state-mandated budget reductions for quite some time. Unfortunately, it appears that we may see more cuts to our state budget in the 2010-11 fiscal year.
In anticipation of these potential cuts, 2010-11 E&G budgets will be reduced by three percent, effective immediately. This action permits departments to make the necessary budget adjustments now, rather than in mid-year when cuts would be more difficult to manage.
The holdback represents about $7 million and will be applied equally to all academic and administrative departments. A decision on whether UCF will use one-time reserves to help offset the holdback will depend on 2009-10 fiscal year information that is not yet available. The decision will be shared once the information is reviewed.
Projected revenue increases from higher tuition and enrollment growth will help offset the holdback. This will allow UCF to maintain its commitment to hire more tenured and tenure-track faculty members.
It is also possible that state agencies will face future budget reductions because of less state tourism revenue due to the BP Gulf oil spill and federal stimulus funds’ ending before the 2011-12 fiscal year.
The three percent holdback continues the conservative and proactive budget strategy that has helped UCF manage cuts the past three years.
Provost Tony Waldrop arrives July 30 and will communicate regularly about the budget and other important issues. On his behalf, thank you for your continued dedication to our students and university.