Office of the President

MEMORANDUM

To: NJIT Faculty, Staff and Students

From: Robert A. Altenkirch

Date: Monday, June 22, 2009

Subject: FY10 Budget Update

Following Governor Corzine’s FY2010 Budget Address in March there has been ongoing discussion with the Governor’s Office and the Legislature concerning funding for higher education for FY10. The proposed budget included a 6.7% reduction in the base appropriation for NJIT, no funding for salary increases, language proposing that personnel cost reductions being implemented at the State level would also apply to colleges and universities, and Federal Stimulus funds allocated to State student financial aid. Federal Stimulus funding has been added for public higher education, although there are stipulations attached as outlined below, while the proposed State student financial aid has been maintained in the Appropriation bill now before the Legislature.

Details for in the FY10 Appropriation bill being considered in the Legislature include:

  • The 6.7% reduction in base appropriation proposed for NJIT, from $45.1 million in FY09 to $42.1 million;
  • No salary increase funding;
  • A one-time appropriation of $3 million of Federal Stimulus funds, provided tuition and fee increases for in-state undergraduate students are limited to 3%;
  • A withholding of 5.25% of the appropriation until we certify to the State that we have “achieved or will achieve personnel related cost savings through wage freezes, furloughs, or other actions that provide savings equivalent to Fiscal Year 2010 savings that the negotiated self-directed furlough program for civilian State employees will achieve.”

Although the details of the self-directed furlough program for civilian State employees are not completely settled, it would appear that it is proposed to comprise between 8 to 10 furlough days (the equivalent of 3.1 to 3.8% of personnel costs), a deferral of the July 1, 2009 across-the-board salary increase for State employees to January 2011 with any July 1, 2010 raise due paid on time, a Paid Leave Bank of 7 days, and an agreement of no layoffs. It would appear that our obligation with respect to the furlough program according to the Appropriation bill is to reduce personnel costs from 3.1 to 3.8%, or forfeit 5.25% of the base appropriation.

We will be working this week to set up the FY10 budget to incorporate the elements of the Appropriation bill outlined above. We will have discussions with various campus units as to how these elements are best implemented and how individual employees might be affected.

Thanks,

Bob