Ohio University officials presented plans yesterday for possible cuts to its 2009 and 2010 budgets in case of reduced state funding or effects from the deteriorating economy.
The Budget Planning Council is planning for up to a $12 million shortfall in state funding and investment income.
We are putting together best-case
worst-case and middle-case scenarios said William Decatur, senior vice president for finance and administration of OU. Even the best case doesn't look good so we are accelerating contingency plans so that
if necessary
we can begin implementation even this fiscal year.
The planning council will identify one-time immediate savings possibilities for every college and department.
Additionally, the council will review faculty positions and perhaps offer early retirement buy-outs. A hiring freeze announced Sept. 23 came from the council's first meeting on Sept. 19.
With the possibility of future state budget cuts, OU wanted to slow the rate of spending immediately
said OU President Roderick McDavis. Since 80 to 85 percent of our budget is personnel
we figured that would be the most immediate savings to the university
he said.
With the exception of the freeze, the university will operate as usual and continue to plan for dire times.
Ohio Gov. Ted Strickland announced two budget cuts this year: a $733 million cut in January and a $540 million cut to state agencies in September. While both cuts largely exempted higher education, future budget cuts might not do the same.
We don't have any information that the state is going to cut our funds
Decatur said. We are considering that if the economy continues to deteriorate
then there could be further cuts.
