Office of the President

MEMORANDUM

To: NJIT Faculty, Staff and Students

From: Robert A. Altenkirch

Date: Thursday, March 18, 2010

Subject: FY2011 Budget Update

As all members of the university community undoubtedly know, Governor Christie on Tuesday delivered his FY2011 Budget Address and announced his plan to close an unprecedented $10.1 billion gap in the State’s budget for FY2011, which begins July 1, 2010.   The FY2011 Budget In Brief document outlining the Governor’s proposed budget can be found at http://nj.gov/governor/home/budget.shtml.

In summary, State revenues for FY2011 are projected to be $28.3 billion.  Absent expenditure reductions, State spending obligations for FY2011 would have been $38.4 billion, leaving a $10.1 billion deficit. The Governor’s Proposed Budget addressed this deficit through a variety of expenditure reductions, including significant cuts to homeowner rebates, school and municipal aid, and support for health services and social programs.

Proposed reductions in higher education appropriations total $173.1 million, or 7.7% of the FY2010 appropriation of $2.24 billion.  Reductions include a 3.6% cut in Tuition Aid Grants and an 8.7% reduction in Education Opportunity Fund Grants and Scholarships. Direct aid reductions to the Senior Public Institutions are generally 15% of the FY2010 appropriation. Further, the Governor recommended the merger of Thomas Edison State College with Rutgers.

The proposed reduction to our base appropriation is 16.4%, or $7.4 million. The additional 1.4% reduction reflects the final year of an out-of-state-tuition rate penalty imposed by the Office of Management and Budget.  As a result, our FY2011 Governor-proposed appropriation is $37.7 million compared to $45.1 million in FY2010. With our unrestricted FY2010 budget, less State supported fringe benefits, of approximately $190 million, our proposed FY2011 State appropriation represents about 20% of our unrestricted expenditures, i.e., education and general expenditures.

As we look to the year ahead, I want you to know that we will be working vigorously to maintain NJIT’s mission as New Jersey’s preeminent university of science and technology while at the same time having to adjust our costs to address the deep cuts in State support. This will require our best efforts to ensure that the Governor and State legislators remain fully aware of the critical role that NJIT plays in preparing students for the workforce as well as serving as an indispensible catalyst for enhancing innovation, growth, and competitiveness for New Jersey businesses and industries. Members of the university community will need to come together in a spirit of cooperation and resolve as we address the challenges that lie ahead, and I am confident that together we will meet that test. I will keep the members of the NJIT family fully informed as we address these issues and maintain the excellence of this institution.

Thanks,

Bob