Message on FY2007–08 State Budget

June 29, 2007

Members of the Rutgers Community:

I am pleased to report that the fiscal year 2007–08 state budget approved by the New Jersey Legislature and signed by Governor Jon S. Corzine keeps intact the increases initially proposed by the governor for Rutgers and the state's other colleges and universities. The budget takes effect July 1. For Rutgers, important increases are:

      1)  a $12.4 million increase in our base operating appropriation, a change of 4 percent
      2)  partial funding of deferred costs associated with this past year's salary increases

These increased appropriations are critically needed after the deep cuts of the current year, and we welcome them as progress in the right direction. Also welcome, although apart from the state budget process, are the state Economic Development Authority's authorization of $9.2 million in predevelopment funding for the Stem Cell Institute of New Jersey, the New Jersey Commission on Science and Technology's award of $6.4 million in grant funding to Rutgers' stem cell researchers and their collaborators, and the legislature's approval of a $450 million stem cell research bond to be placed on the November ballot.

While the legislature added some small project-specific increases for Rutgers, the budget does not include state support for new contractual salary increases for our employees for FY2007–08. We owe thanks to Assemblymen Joseph Cryan, Patrick Diegnan, and Peter Barnes and Senator Joseph Doria for proposing additional state funding to help meet the costs of union contracts for the coming year. Unfortunately, despite the advocacy efforts of the higher education community, including our employee unions, this funding is not part of the final budget.

Senator Shirley Turner also deserves our thanks for sponsoring a restoration of funding for the Outstanding Scholars Recruitment Program, which has provided scholarships to many of our brightest students over the years. Regrettably, this restoration was also not included in the final budget, and such awards will not be available to incoming freshmen this fall.

I want to thank all those in the Rutgers community who advocated for increased state funding for the coming year. With the additional state support detailed above, we will avoid the steep budget shortfall that made the current year such a challenge. However, given the overall modest increase in state funding, Rutgers still will face difficult budget decisions merely to meet contractual, inflationary, and other mandatory increases in FY2007–08.

Rutgers aspires to do more for its students and for New Jersey. Our state university is dedicated to teaching, scholarship, and preparing young men and women to become productive members of society. Through its research and service, Rutgers is also a leading contributor to the economic vitality of the state and region. We must continue to work together as a community to convince policymakers and the general public that adequate and predictable state funding of higher education is critical to Rutgers' ongoing success in serving the citizens of New Jersey.
 

Richard L. McCormick
President
Rutgers, The State University of New Jersey