Ohio University expects to lose its federal stimulus money next year, a loss that could prompt at least $15 million in cuts from next year's budget.
The university will likely receive no more stimulus dollars following two years of supplemental federal aid. OU acquired about $28.9 million in federal aid last year and about $16.7 million this year, said Michael Angelini, associate vice president for Finance.
In its two meetings this year, OU's Budget Planning Council discussed how the loss in stimulus dollars would affect fiscal planning for the rest of this year and into next year.
OU will likely cut at least $15 million from the 2011-12 budget, Angelini said. It cut about $13.75 million from this year's budget.
Possible cuts for 2011-12 include significant job losses
changes in business operations and changes to some academic programs Angelini said. While planning for this year's budget cuts, OU tried to preserve the services that most affect students, he said, adding it will not be as easy next year.
With each additional year's cuts you're getting closer to cutting the things that you have to have
Angelini said.
The $15 million prediction is a low-end estimate that will become more accurate after the governor releases his budget in January, Angelini said.
We just don't know enough about the state's budget right now to know how bad that's going to be
he said.
This year, the state cut $170 million from its higher education funding, but public colleges and universities still received stimulus funding.
What that funding allowed us to do was to protect higher education funding during a very difficult economic period for the state
said Rob Evans, press secretary to the Ohio Board of Regents.
While other areas of the state budget saw dramatic reductions in funding, higher education funding was able to stay more stable, Evans said.
OU has discussed the possible disappearance of federal stimulus money for about a year and a half.
The Budget Planning Council is now trying to determine what impact that loss has on this year's and next year's finances, Angelini said.
OU cannot yet function the way it did prior to the recession without federal help, he said, adding that the state was hit particularly hard because of its manufacturing base and has not yet recovered.
The idea was that when we came back
when the economy recovered
states would be able to match the level they were at previously
Angelini said. That's not the case.
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