SUNY Works to Protect Frozen Funds
By Michael Kelly The SUNY senior system administration is working on a deal with the state government that will ensure money generated from special revenue funds – which will be frozen under a recent state-mandated expenditure cap – will not be tapped by the state at the end of 2008-09 fiscal year, a Stony Brook University official said today. “I am told that part of what SUNY is pushing for, in any agreement, would be that the agreement is accompanied by a statement that says the money would be safe,” said Dan Melucci, associate vice president for strategy, planning and analysis. University officials expressed concern in a May 8 town hall meeting that the state could attempt to seize the capped money from the special revenue funds, which include things like income from the hospital and dormitory fees, and could amount to $15 million, according to administrators. University officials said at the time that there was no benefit for the state to merely freeze the spending of the special revenue funds, unless they planned to take the money. “Not spending special revenue funds doesn’t give the state extra tax dollars, unless they come and rip off the cash balances,” from the surplus created by the expenditure cap on the special revenue funds, Melucci said. “So, we’re very concerned about that.” Without a promise from the state that they would not tap into the special revenue funds at the end of the 2008-09 year, the university would have to proceed cautiously with their budget plans, Melucci said. If the university were to know the funds would become available to them at the end of the 08-09 fiscal year, they could try to rollover some spending from the 08-09 academic year to 09-10. But, without an agreement from the state that the money will be there for Stony Brook to take back, this can not be planned for. “Then that really becomes a hard budget cut,” Melucci said, of the expenditures cap. “You really would have to jam on the breaks” [on spending]. Melucci added that part of the problem with determining the budget is that the university remains unsure what the final budget cut will amount to. He said the situation is “very complex and difficult,” due to the uncertain nature of the special revenue funds. “It would be easier if they just gave us a cut, and we could deal with it,” he said. “We would just have to try to manage our way through it.” If no agreement is reached, Melucci said the effects on the university are not yet calculable. He warned, however, that the Stony Brook budget situation could further deteriorate if state economic conditions do not improve for the 2009-10 fiscal year. If spending caps were to continue with no promise of being able to recoup the special revenue fund money, and with more possible budget cuts looming, the university could face a prolonged budget problem. “We’re in a world of hurt,” Melucci said. |
