State cuts budget
Priscilla Ybarra
Issue date: 4/14/08 Section: News
Just when Henderson planners thought they had it all figured out, the state comes in and drops the bomb.
On April 11 Dr. Charles Dunn sent a mass e-mail to faculty and staff, giving them a "heads-up" of the reduction of anticipated revenue universities will receive in 2009. Each year the Arkansas Department of Finance and Administration determines how much each institution will receive based on the growth of state revenues.
This year, however, the state finance department announced that all universities-including Henderson-can expect to receive a lot less than previously promised. This will in turn affect funding to scholarships and tuition and salary increases for faculty and staff in the 2009 school year.
"The reduction in anticipated state revenues complicates an already difficult budget process," Dunn said in his e-mail. "I realize this is not good news. Believe me, I did not want one of my last messages to you as president to include the news that we might not be able to fund general salary increases this year."
Henderson anticipated receiving $21,054,975 in state revenue for the 2009 fiscal year. However, the university was informed it would only be receiving $20,394,363 for the year. The university must now re-budget for $660,612 less than expected.
With the record-breaking 2007 student enrollment in mind, the administration has begun to find large problems in the new budget if the steady student increase takes hold.
"While we are very proud of the record 2007 freshman class, its effect on the 2008 budget was to cause us to exceed our budget in scholarships and adjunct salaries," Dunn said.
Under the assumption that enrollment will increase as much as this past year, the scholarship budget must also increase by $1.4 million, according to administration figures. Also, by state regulation, a 2 percent increase in salary must be implemented into the budget for classified employees, such as secretaries and maintenance workers.
On April 11 Dr. Charles Dunn sent a mass e-mail to faculty and staff, giving them a "heads-up" of the reduction of anticipated revenue universities will receive in 2009. Each year the Arkansas Department of Finance and Administration determines how much each institution will receive based on the growth of state revenues.
This year, however, the state finance department announced that all universities-including Henderson-can expect to receive a lot less than previously promised. This will in turn affect funding to scholarships and tuition and salary increases for faculty and staff in the 2009 school year.
"The reduction in anticipated state revenues complicates an already difficult budget process," Dunn said in his e-mail. "I realize this is not good news. Believe me, I did not want one of my last messages to you as president to include the news that we might not be able to fund general salary increases this year."
Henderson anticipated receiving $21,054,975 in state revenue for the 2009 fiscal year. However, the university was informed it would only be receiving $20,394,363 for the year. The university must now re-budget for $660,612 less than expected.
With the record-breaking 2007 student enrollment in mind, the administration has begun to find large problems in the new budget if the steady student increase takes hold.
"While we are very proud of the record 2007 freshman class, its effect on the 2008 budget was to cause us to exceed our budget in scholarships and adjunct salaries," Dunn said.
Under the assumption that enrollment will increase as much as this past year, the scholarship budget must also increase by $1.4 million, according to administration figures. Also, by state regulation, a 2 percent increase in salary must be implemented into the budget for classified employees, such as secretaries and maintenance workers.
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