Yesterday marked a new fiscal year and I want to bring you up to date on our university budget for FY2012-13. As you know, the University faces yet another year of budget cuts from Tallahassee. We will experience an $11.9M non-recurring cut this year and overall, the University has lost 47% of our state funding since 2007. Despite these many fiscal challenges we are still on course to aggressively move ahead with our new Strategic Plan 2012-17, which was adopted by our Board of Trustees on June 14.

The trustees also adopted our FY12/13 budget during their June meeting. Then, two weeks ago the Florida Board of Governors voted to only accept 14% of the 15% tuition differential we proposed. They did however; adopt our proposal for a $2 increase to our CITF (Capital Improvement Trust Fund). Because the Board of Governors did not fully adopt our proposal we will have to make some adjustments to our investments. However, I want to share with you our planned investments.

2012/13 BUDGET INVESTMENTS

We are making strategic investments that will ensure our future success. These investments are all considered through the lens of our new 2012-2017 strategic plan, and guided by the pilot implementation of our Strategic Planning and Resource Alignment process this year. Careful stewardship of our financial resources, coupled with robust enrollment growth, has allowed us to invest $7.1 million of (recurring and non-recurring) growth funds and reserves to further our goals.

Of course, any university is only as strong as its faculty and staff. With that in mind, I am very pleased to announce that fully 47%, or almost $3.3 million, of our investments this year has gone to faculty and staff raises, addressing compression, the addition of faculty, and promotion and tenure. This is a direct reflection of growing quality academic programs as our student enrollment increases.

Specific highlights of our investments in alignment with our strategic priorities:

--43% or $3,055,691 for distinctive teaching, scholarship, research and professional contributions. This includes $1.74million for new faculty, 2% faculty raises, compression and promotion and tenure; and funding for Marine Services, the Academic Technology Center and the Office of Undergraduate Research.

--33%, or $2,327,081 for enhanced student access, including the addition of a career services technology coordinator, a licensed psychologist, a Gulf Coast 2+2 advisor, enrollment management, equity compliance funding and a student retention program.

--19% or $1,375,535 for sustainable institutional excellence, including a 2% raise for staff, deferred maintenance and safety and environmental training programs, and support for SACS and internal audit.

--5% or $345,673 for valued partnerships, community engagement and service. Included are expenditures for a Carnegie community engagement coordinator, and investment in advancement, communications, marketing and public relations for the university.

Further, 64% of our investment dollars go to Academic Affairs; 8% to Student Affairs; 4% to Administrative Services; 12% to Advancement, 12% for staff increases (distributed to all divisions); and 0% to the President’s Division.

2012/13 BUDGET REDUCTIONS

In addition to investing wisely, we have to make reductions because of the $11.9M cut from the Legislature. As you know, in total, the Legislature cut $300 million from the State University System. This is a one-time, non-recurring cut designed to force universities to spend their reserves and one-time funds. Thus, beginning in March, an interim freeze was placed on the spending of all carry-forward funds.

Once the fiscal year concludes we will be working to make the appropriate calculations to determine the amount of carry forward each unit will need to contribute to make up this reduction. I will begin by putting in $3.5m of central carry forward reserve funds to soften the impacts to the university community. Please understand that everyone will have to contribute to these reductions but I will endeavor to protect our strategic assets as much as possible.

NEW BUDGET MODEL

It is very clear that our money management philosophy has to change. We must spend our funds in the year they are appropriated. The state will not reward universities for savings, efficiencies, or multi-year projects. For that reason I will appoint a Blue Ribbon Task Force, headed by the Interim Provost, to develop a new budget model for next year. This group will recommend a new model for UWF that is transparent and inclusive.

These are tough economic times for Florida’s public universities. I am confident, however, that we can not only successfully meet these challenges, but position our university for even greater success in the future. Because of the hard work and innovation of each of you, there is no doubt that UWF is destined for a bright future. Thank you for all you do to benefit the University and our students.

For more information on the specifics of the 2013 investments, visit http://uwf.edu/president/budget/assessment/documents/Final%20Final%20FY12-13_Approved%20Investments_06.12.2012.pdf.

Best,

Judy Bense

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