Office of the President

MEMORANDUM

To: NJIT Faculty, Staff and Students

From: Robert A. Altenkirch

Date: Wednesday, May 16, 2007

Subject: FY 2008 Budget update

As you know from meetings on campus, and updates posted on the NJIT Newsroom web site, the process of developing the State budget for FY 2008 is under way.  The Governor’s proposed budget can be found on the State web site at http://www.state.nj.us (click on Budget in Brief). The Governor recommended a funding increase for higher education for both operating support and certain financial aid accounts including the Tuition Aid Grant Program (TAG). Unfortunately, there was no funding recommended for major maintenance or capital projects.

For NJIT, the Governor recommended a $1.3 million increase in the appropriation, which would bring the FY 2008 State direct operating support to $48.5 million. We also expect to receive some of the funding needed for the mid-year FY 2007 salary increases carried forward into FY 2008.

Although the recommended State support, relative to last year’s reduction, is good news, there are several major items that will impact the budget. First, the FY 2007 budget, as a result of the severity of the recurring appropriation reduction, included $3.1 million of “one-time” money, and no funding was recommended for the anticipated increases to the FY 2008 salary budget resulting from collective bargaining now underway. Additionally, there is $2.4 million of critically needed maintenance and capital projects either recently or soon to be started that will impact the FY 2008 budget. Clearly, the new State funds will not in and of themselves balance the budget.

As you know, this year’s budget received very careful, detailed scrutiny. Difficult decisions were made during FY 2006 in anticipation of the reduced State funding, and the resulting budget reductions were maintained in the FY 2007 budget. The careful spending during FY 2006 permitted us to carry forward those one-time funds mentioned above, which mitigated somewhat the FY 2007 reductions. As we close out the current fiscal year, we need to continue to manage FY 2007 funds conservatively as well so that we maximize the carry forward into FY 2008.

While the budget process is underway inside NJIT, we continue to work with the Legislature to seek additional funding. While it is too early to know details, we have gotten positive response from a number of Legislators. 

I will keep you apprised of significant developments as they occur, most likely not before mid-June.

Thanks,

Bob