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As you have been reading and hearing, the state of Indiana is not generating sufficient revenue to fully fund the budget it passed last year. As a result, state supported funding for public higher education—including that for Purdue Calumet—has been cut.
Mandatory budget reduction
At the start of the current 2009-10 fiscal year, we experienced a 4.2 percent ($1.2 million) reduction in our [recurring] state support. As state revenues continued to decline, Governor Daniels, late last year, required all state agencies and organizations to reduce their budgets further. For Indiana higher education, the reduction was $150 million, including $45 million from the Purdue University system. Our Purdue Calumet share of that reduction was $3.7 million—$1.7 million this fiscal year and $2 million during the 2010-11 fiscal year.
We at Purdue Calumet, along with our colleagues throughout the Purdue University system understand that the state must live within its means and by law cannot go into deficit. Consequently, Purdue Calumet exercised prudent planning, anticipating the prospect of a current year budget reduction. When our state budget was cut, we responded by using money we placed in reserve to cover the shortfall.
We plan to address our $2 million operating reduction intended during 2010-11 by setting aside a number of projects we previously planned. Since our Repair & Rehabilitation funding also has been eliminated, we will delay and defer various maintenance projects across campus.
By taking a proactive approach to the prospect of further budgetary cuts, we remain able to preserve the core of our educational mission. Doing so enables us to maintain the academic quality of instruction and critical support services, while we remain on track advancing strategic priorities. Thus, we feel good about the prospect of continuing to deliver a quality Purdue education without compromise.