Message on FY2009 State Budget

June 30, 2008
 

Members of the Rutgers Community:

Governor Jon S. Corzine signed the state budget into law today, approving a spending plan for fiscal year 2009 that, at $32.9 billion, is approximately $600 million lower than the state’s original FY2008 budget.

Key elements of the budget for Rutgers are as follows:

  • Direct state operating aid to Rutgers will be $293 million, a 10.8 percent decrease from the current year. Operating aid for all senior public colleges and universities will decrease by 10.4 percent. The percentage reduction for Rutgers is slightly higher due to the impact of a state budget penalty for enrolling non-New Jersey residents.
     
  • This out-of-state student penalty would have been greater if not for a 50 percent reduction in the assessment for Rutgers and NJIT in the final version of the state budget. For Rutgers, this will mean a restoration of $2.4 million in annual state appropriations that would otherwise be lost.
     
  • The state budget contains partial funding support of $38.5 million for negotiated faculty and staff salary increases at Rutgers and the other senior public colleges and universities. The remainder of these salary costs must be borne by the institutions.
     
  • Rutgers will share in a $20.3 million increase in statewide Tuition Aid Grant funding and $592,000 in Educational Opportunity Fund support.
     
  • State funding for the NJSTARS program will grow by $893,000 in the coming year, while appropriations for the Outstanding Scholars program will continue to be phased out. A proposed income limit on STARS participants has been eliminated; however, a special task force will meet this summer to review this and other options for limiting the growth of the STARS program in the future.

The new budget reflects the impact of the state’s severe fiscal problems and the determination of the governor and legislature to put New Jersey on the road to financial stability. The budget will require significant sacrifice by institutions across the state, including Rutgers and our fellow colleges and universities.

Anticipating the possibility of such an outcome, my administration has been working with deans and directors to prepare for various funding scenarios. This work will help us to develop for Board of Governors’ approval in July a university budget that protects Rutgers’ core missions and limits the added tuition burden on our students as much as possible. In this effort, we will pursue opportunities to streamline operations and reduce costs. Just as important, the university will work hard to develop and tap alternative sources of funding.

Difficult decisions lie ahead, but I have every confidence in the dedication and resolve of our university community to meet the challenges of the coming year and maintain Rutgers’ commitment to excellence in all that we do.

Thanks for all you do for Rutgers.

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