During the last two weeks I have been meeting with members of the dean's leadership team to review FY 2011 budget requests. In preparation for these meetings, I asked each of them to identify savings from the current fiscal year and to prepare a request for next fiscal year that is a 3% reduction from this year's budget. Thanks to your fiscally responsible spending, we will be able to retain savings from the current fiscal year to cover the extra organization-wide expense of the 27th pay period in FY11. In addition, thanks to the work of each of the centers and administrative units, the FY11 budget has been reduced by 3%.
In the coming year, I expect that all of us will feel some pinch from the 3% budget reduction as we continue to hold on filling many open positions and look for ways to reduce spending. I also expect that the pain of reductions is going to get worse in the coming years before it gets better. While I cannot predict what will happen in FY 2012, I do know that we must prepare for significant reductions from our main funding sources. We know that the state will begin next year's legislative session with at least a $2 billion deficit that will impact the University and Extension. This will require us to be even more strategic in deciding what programs are core to the mission of Extension and the University so we can continue to support that work during challenging financial times.
In the coming year, I will be working closely with the dean's leadership team to review our current programs and better define core Extension programming. In addition, we must continue to look for alternative sources of funding.
The coming years will not be easy, but I am confident that we can weather this storm if we are willing to stay focused on delivering programs with significant impacts, seek new funding, and make strategic decisions about core Extension programs.