Federal Stimulus Saves About 2,700 Public University Jobs

By Angeline J. Taylor • Democrat Staff Writer • June 19, 2009

ORLANDO – One by one, administrators from the state's public universities shared with the Board of Governors Thursday how the dismal economy has hit their respective institutions.

Jobs have gone unfilled or were eliminated. Academic programs face the chopping block. And enrollment has been capped. But the financial outlook could have been more grim had it not been for $159.3 million in federal stimulus money, officials say.

"With the federal stimulus funds (we) are able to save almost 2,700 positions within the State University System -- that (illustrates) the criticality of those funds to be able to save those jobs," said Tim Jones, chief financial officer with the Board of Governors.

Since 2006, the university system's state dollars have dwindled by nearly $500 million, according to BOG documents.

"Everyone talks about the fact that we were essentially held harmless," said University of Florida President Bernard Machen about state lawmakers' budgeting efforts. "We can only arrive at that conclusion if we count one-time (federal) stimulus money as if it were a replacement for permanent money which is gone."

Machen said as of July 1, his university will have cut about $72 million in recurring general funds. Jobs have gone unfilled and educational programs are cut. Florida State University administrators approved a three-year plan Wednesday where they will be cutting about $56 million.

University of Central Florida's President John Hitt said his university lost about $38.3 million this fiscal year. And his administration has recently determined that the university "can't continue across the board cuts without weakening every program we've got."

Florida AM Provost Cynthia Hughes Harris didn't specify what budget cuts her university would have to institute for the coming school year. However, FAMU administrators face the task of cutting about $16.2 million for the coming school year, she said.

Once stimulus dollars run out after the 2010-2011 school year, extra tuition cost known as the differential tuition will have to be increased to make up for a $12 million gap in funding, Hitt said.

"We have to be planning for what we are going to do when the stimulus money runs out," BOG Chairwoman Sheila McDevitt said.

She added that their efforts would have to be focused on "rebuilding the general revenue base and developing a situation where we will have predictability going forward."

Full story here.