MEMORANDUM

To: NJIT Faculty and Staff

From: Robert A. Altenkirch, President

Date: Friday, May 14, 2004

Subject: Budget Update

I wanted to update you on the status of the development of the NJIT budget for fiscal year 2005. As you may know, the Governor's budget proposal for the state colleges and universities was for flat operational funding from FY04 to FY05 and approximately half of the salary program funding. While this is relatively good news compared to the FY04 budget, we need to remember that flat funding for FY05 implies that the reductions imposed for FY03 and FY04 have not been restored and so are reflected in the FY05 budget. We continue to work with the Legislature to secure the additional 50% of the salary program funding, but we will not know the outcome of those efforts until later in the legislative session.

We have developed a preliminary budget scenario (pdf, 58KB).

The format of the presentation is similar to last year's presentation. Changes in projected revenues and expenditures are summed and added to the FY04 starting point, which is the revised FY04 budget as of February 28, 2004. There are four spread sheets to the presentation followed by summary information. The spread sheets, in order of their presentation, show:

   1. Mid-year budget adjustments of the FY04 July 1, 2003 budget to bring us to the starting point of February 28, 2004 for development of the FY05 budget.

      

   2. Adjustments to the FY04 budget that would appear to be necessary, and so have been entered into the FRS system. Increased tuition revenues in these adjustments are due to imposing the 03-04 academic year tuition on summer 2004 classes. TEC refers to the Mt. Laurel program.

      

   3. Adjustments to the FY04 budget that are preliminary, i.e., adjustments that have been proposed but have not been adopted yet, and so they are not incorporated into FRS as of yet.

      

   4. A summary of one-time funds projected to be available, from FY04 funds carried forward or projections of reduced expenditures in FY05 over the FY04 budget, e.g., from bond refinancing, and projected one-time expenditures.

As you can see, we currently project a shortfall in the recurring budget (the third spread sheet), but much of that is off-set by one-time funds available at this point in the budget process. We have not yet projected any increase in revenue from tuition and fees. A tuition and fee level will be proposed when we get closer to the end of the legislative session and have confidence in what the final state allocation will be.

Thanks, and we will keep you posted as the budget development process proceeds.

Bob