Ohio stimulus changes would find OU facing 'dire scenarios'

Citing unfavorable news from Washington, Ohio University's chief financial officer told the Faculty Senate last night that Gov. Ted Strickland's proposed budget may be in jeopardy and that the governor could make additional budget cuts this fiscal year.

Hours before Bill Decatur, senior vice president for Finance and Administration, warned of potential funding cuts, the U.S. Senate passed a version of the stimulus bill that left out a substantial portion of state aid that the House approved.

Because one-time stimulus money accounts for 10 percent of Ohio's proposed budget, the senate's current stimulus package would render Strickland's proposal obsolete, Decatur said.

If funding isn't forthcoming from the federal government

then the Ohio House will be starting from scratch he said. (OU) could face a budget shortfall of upwards of $20 million.

Even with the stimulus money, OU could face a budget shortfall of between $13 million and $16 million, he added.

Investment income has disappeared operation costs have increased and we have some under-attainment of revenue this year

Decatur said. You add all of these things up and we've got some budget issues.

Decatur said that, according to the most recent projections, the state lost $25 million in December, and that revenue from sales and income taxes was down nearly $100 million in the month of January.

If things continue to deteriorate in the state and national economy

I think we should expect additional budget cuts

Decatur said.

Strickland has slashed the current budget three times, but has largely avoided cutting higher education funding. His most recent cuts came in December, and totaled over $640 million. Before those reductions, the governor had cut over $1.27 billion from the current budget.

OU will be holding three budget summits next week to address the state and university budget situations. Two of the summits will be held on Feb. 18, at 2 p.m. in Baker 240 and 7 p.m. in Walter 235. The third summit will be held Feb. 19 at 11:30 a.m. in Baker 240.

Decatur will give university budget presentation at the summits, which are open to the public.

If the stimulus funding doesn't come through

we are looking at some of those dire scenarios that we've had everyone working on.