July 6, 2009

Dear KU Campus Community,

I want to continue to keep you abreast of our budget situation, now that more information has become available.

Governor Rendell released his latest revised 2009-2010 commonwealth budget recommendation on June 26.   His new proposal includes a 10.4 percent decrease in state funding for PASSHE.   The Governor has informed us that federal funding coming from the stimulus package will keep our funding at the same level as the 2008-2009 fiscal year.  However, it is important to note we are uncertain if this federal funding will remain for more than one year.

I am continuing to work with cabinet to prepare for this potential budget reduction.  The most recent step we have taken is to thoroughly review all staff and non-instructional faculty vacancies.  Any hiring at this point will need approval from cabinet.  Pre-approved instructional faculty vacancies can be filled.
Please be assured that any reduction strategies we implement will be carefully considered.  As always, we will work hard to minimize the impact of the budget on our academic core.

I have heard some concerns about the continuation of paychecks for PASSHE employees, since the budget for the new fiscal year has not been approved yet.  We have received notification from the Chancellor’s office that PASSHE employees will continue to be paid on their regular schedule unless otherwise notified.
As soon as the Governor’s budget is approved and we get some clarity on our financial future, I will study our options with the Budget Review Subcommittee that reports to the Strategic Planning and Resources Committee, to get their feedback and recommendations.

I will be in touch as new developments arise.  In the meantime, have a safe and enjoyable summer.

Sincerely,
F. Javier Cevallos
President