ABOR tells universities to cut salary budgets by May
The Arizona Board of Regents on Friday morning directed university presidents to cut their state-funded salary budgets 2.75 percent by May 29.
The presidents are to provide an implementation plan to regents within 30 days. In addition, the presidents are charged with producing a contingency plan for both revenue enhancement and budget reduction should Proposition 100 (the sales tax referral) fail.
“Today’s directive is a cost-saving measure for the state of Arizona,” said ABOR President Ernest Calderón. “No one is exempt from today’s tough economic times and in a time when most businesses and agencies are tightening their budget belt, the universities must do the same. In addition, planning for the outcome of Proposition 100 will allow the regents and the universities to act quickly and efficiently pending the election results.”
Regent Fred DuVal said the directive is consistent with the Legislature’s mandate to cut the salaries of state workers as one way to address the state’s budget woes.
NAU President John Haeger said the university will work in the coming weeks to clarify the requirements of the ABOR mandate and then communicate those to campus. The president is planning a campuswide forum on April 6 and he plans to be available to visit colleges and other groups on campus.
“The university is operating with a $30 million budget reduction, 200 fewer employees, a universitywide furlough program and 2,000 additional students,” Haeger said. “But today’s budget reality forces us to make very difficult decisions.”
On Thursday, the state Legislature approved a spending plan to close the fiscal year 2010 funding the gap and set the FY11 budget.
The spending plan holds the line on university budgets at the FY06 level and maintains the federal maintenance of effort to be eligible for federal stimulus dollars.
The latest budget was built with the assumption of the passage of the 1-cent sales tax that will be referred to voters for a May 18 election. A conditionally enacted budget, to be put in place if the sales tax fails, would require an additional $107 million cut to the three state universities and more than $400 million to K-12 education. |
