I hope this message finds you well as we head into the last couple of weeks of fall term. I would like to take this opportunity to provide updates on our FY2021 budget outlook, our budget model charter, and the FY2022 budget development process.
FY2021 Budget Outlook
Due to the collaborative, concerted efforts of our faculty, staff, departments, colleges, and governance councils, the FY2021-2022 budget plan eliminates our pre-COVID structural deficit. We are still experiencing and working through the financial impacts of COVID –– including student enrollment, state economic conditions, lost revenue, and offsetting grant relief.
Our FY2021 budget plan included use of $2.79 million in reserves as some of our structural balancing measures will not come into effect until FY2022. We are currently estimating an additional deficit of $2.9 million this fiscal year due to undergraduate enrollment declines and lost auxiliary revenue. There are several variables that will impact how we end the fiscal year to include spring term enrollment, athletics and other auxiliary activities in spring, and possible additional COVID-relief funds.
Our Budget Model Advisory Group continues its work in developing a comprehensive budget model for the university. This is a complex, multi-year endeavor. The group has proposed several incremental recommendations for FY2022 implementation, with the goal of having the model completed in time for FY2023 implementation. The charter, draft recommendations, and other information are available on the budget website.
FY2022 Budget Development
The FY2022 budget development process will commence in January. We will meet with all units to kick off the process, and have scheduled several budget forums and drop-in/Q&A sessions throughout spring term.
Glen R. Nelson, Ph.D.
Vice President for Finance and Business Affairs