I hope this message finds you well as we wrap up the 3rd week of fall term. I’d like to take this opportunity to provide updates on our financial outlook, budget model, F&A rate, and UBO organization.
We continue to make progress toward a balanced budget and long-term fiscal sustainability. Prior to factoring in federal COVID-relief funding, ISU’s FY2022 appropriated budget reflects an initial deficit of $5.6 million, driven primarily by continued undergraduate enrollment declines, implementation of two year’s changes in employee compensation (CEC), related fringe rate increases, and other inflationary factors. This marks significant improvement over the $11.3 million structural deficit going into FY2021, even in the face of unprecedented challenges posed by the COVID-19 pandemic.
Grant funds will ameliorate the deficit for FY2022 while we continue to work toward long-term balancing and development of a new budget model.