Henry A. Mauermeyer
March 29, 2006
FY 2006 and FY 2007 Budget Control Measures
As part of preparations for the appropriation reductions recommended by the Governor, the university is taking measures to develop reserves from this year’s budget in order to be available in FY07 as a resource. The reserves will come from both the university personnel and non-personnel budgets.
Positions that are currently vacant, and become vacant between now and the end of this fiscal year, will remain so, at least until the start of the new fiscal year. Each vice president has been provided an updated vacancy report indicating the positions that are being held. The total amount that can be saved this year as result of these actions is about $2 million. To accommodate only the most pressing strategic priorities of the university, exceptions may be considered by the President’s Senior Staff. Positions that may become vacant as a result of “cause” will generally be permitted to be filled.
The FY07 Vacancy List is also being reviewed and decisions will be made on a position by position basis and with a view to maintain critical priorities. At this time, no offers of hire for FY07 should be made without specific approval from the area vice president.
With respect to university funded non-personnel accounts (excludes externally funded accounts, e.g., NSF sponsored research), reductions in many accounts are being made. Each vice president has already been provided with targets for reductions which they are reviewing. As it will take time to reflect the adjustments in FRS, the Purchasing Department will review requisitions and not convert them to purchase orders without further approval from the area vice president. Departments are reminded not to make commitments for which a fully approved purchase order has not been issued. Within the next 10 days, FRS will be adjusted and the existing purchasing procedures will be in effect.
For purposes of developing next year’s working budget, initial FY07 budgets were entered into FRS. Given the magnitude of the reductions and built in cost increases now being faced, the amounts shown in the FY07 columns should not be expected, nor commitments made in anticipation of those amounts.
I understand this effort will cause a certain amount of disruption and appreciate your efforts to work as smoothly as possible to develop the FY07 budget. NJIT has seen some very difficult budget years in the past and with planning, careful use of resources and active participation of the University Community, we met the challenge to fulfill our mission successfully. Within this context, I fully expect we will be able to do the same for FY07.