Office of the Chancellor > Budget Updates > January 16, 2009

Chancellor's Budget Update for January 16, 2009

Not unexpectedly, Governor Ritter today announced a funding cut of $632 million from the current state budget. Higher education's share of these cuts is targeted at $30 million, and we anticipate the likelihood of additional state funding reductions for the 2009-2010 fiscal year to be announced later this month. The governor has directed the Office of State Planning and Budgeting to protect higher education funding to the extent possible - advocacy that will be of great value to higher education as the legislative session proceeds.

While we do not yet know precisely what CU's share of these cuts will be, in the last round of budget reductions from 2002 to 2005, the University of Colorado was hit with disproportionately high funding cuts from which we have not yet fully recovered. The University's leadership will work with the Joint Budget Committee of the Colorado legislature and the Department of Higher Education to ensure these rounds of funding reductions will be distributed more equitably among the various public higher education systems. And, while we understand the need to assist the state in these difficult economic times, we are also making a strong case that higher education in general, and research universities in particular, are an essential investment to assist Colorado's recovery from the recession given our key role as an economic engine and in developing human capital.

Beginning early in the fall semester the campus began the dialogue about preparing for the possibility of a funding reduction. That dialogue will continue, and now be more focused, as the particulars of the financial impacts to the Boulder campus emerge over the coming weeks. Our immediate priority will be to do all we can to meet the obligations necessary to complete this academic year with the least amount of disruption possible. It is our intention to keep the campus community apprised of our efforts and any related items that may impact the campus, our operations and our employees. We will be sure to involve faculty, staff and student governance groups in the discussion of how these funding reductions will be managed. In the coming days, expect more communications from me regarding specific input opportunities for faculty, staff and students.

I want to assure each of you that I understand what a difficult time this is for the University. We must balance the need to continue serving our role and mission, making progress on our strategic objectives, and assisting the state in dealing with the tax revenue shortfall. However, the size and continuing nature of these funding reductions indicate that difficult funding choices will need to be made this spring that are likely to impact some of our programs, services and operations. Our experience in the previous decade, our long record of success in creating workplace efficiencies, our teamwork ethic and our unity of purpose will guide us through this difficult time. We will do all we can to preserve the high-quality academic experience of our students, the strength of our human resources and capital, our competitive edge in research and our forward-looking strategic goals under Flagship 2030.

Finally, let me thank all of you for your hard work, perseverance, and dedication to the University during this difficult, but not insurmountable, moment in our history. I believe it will be a short moment in our long journey toward the greatest heights of achievement in this century and beyond.

Sincerely,

G.P. "Bud" Peterson, Chancellor
University of Colorado at Boulder