NJIT Faculty, Staff and Students
Robert A. Altenkirch
Monday, July 10, 2006
FY07 State Budget Update
Over the weekend, a State budget that includes some restoration of funds to higher education was finalized. The restoration for the twelve senior public colleges and universities includes:
- a $50 million restoration to the $143 million reduction to the FY06 appropriation in the Governor’s proposed FY07 budget, and
- an appropriation of an additional $79 million toward fringe benefits that was not present in the Governor’s proposed FY07 budget.
No funds were appropriated to cover any of the salary program obligations.
For NJIT, the restorations amount to an increase of $1.43 million in direct State appropriation, from $45,752 in the Governor’s proposed budget to $47,182 million, an 8.4% reduction from the FY06 level, and $1.5 million to cover fringe benefit cost increases (see http://www.njit.edu/publicinfo/budget_updates_FY07.php). While this is obviously welcomed news, we should keep in mind that the anticipation of a balanced budget as outlined in my FY07 Budget Update message of June 27, 2006 included approximately $6.2 million of one-time funds as previously detailed, which, at some point, would need to be covered with recurring funds.
Over the next few days, we will be working to finalize a budget proposal for consideration by the Board of Trustees that minimizes the use of one-time funds to balance the recurring budget and at the same time minimizes an increase in tuition and fees insofar as is practical.
We will keep you posted on further developments on the budget and present a finalized budget once the Trustees have taken action.