Last week, I held a webinar for Extension's leadership team (associate deans, program leaders, regional directors) on the budget. This column summarizes that webinar and the budget PowerPoint is available on the Employee website.
Extension's current 2009-10 fiscal year budget is $65M, which is $1.3 M less than last year. Extension's funding comes from federal (16%), state (44%) and county (21%) governments, as well as from program fees, grants and gifts (19%).
This year, as the state faces a nearly $2 billion deficit, the amount of decrease to the University has been limited to $36M by the federal stimulus funds. However, in the coming years, as the deficit is expected to balloon to $5 billion, there is no limit to the amount of budget reductions the University could receive. This year, our county partners made minor reductions, and a few increases, in their 2010 Extension budgets, resulting in a net decrease of 4.55 FTE positions. In the next few years, we expect counties will have even greater budget deficits as the state deals with its deficit. There is some good news for Extension in the federal budget as the formula funds are remaining flat rather than decreasing and the competitive grants that Extension can apply for are expected to increase.
Extension, like all University units, is preparing budgets scenarios for a variety of situations outlined by the University, including a 2.75% decrease to all units, possible salary increases, possible furloughs, cost pool increases and fringe rate increases. There have been a lot of questions regarding the possibility of salary increases and furloughs. I continue to work closely with the deans and University administration as these decisions are being made. Once the decisions are final, I assure you that Extension human resources and others will be prepared to work with all Extension employee groups to implement the decisions and address your questions and concerns.
In the meantime, in Extension we will continue to align our budget with organizational priorities, work together to further define the scope of our work, enhance revenues that are aligned with our core programs and increase cost efficiencies. We also must continue to work to ensure that the stakeholders who fund Extension see Extension as vital and necessary for the future.