June 27, 2014
TO: Executive Vice Presidents, Chancellors, Vice Presidents, Vice Chancellors, Vice Provosts, Deans, Directors and Heads of Schools, Divisions, Departments and Offices
FROM: William E. Sullivan, Treasurer and Chief Financial Officer
RE: State Budget Agency Request
Given the continued shortfall in state revenues and the unpredictability of future collections, Indiana Governor Mike Pence has asked the State Budget Agency to make plans to withhold a 2 percent reserve from Indiana’s public universities and a 4.5 percent reserve from state agencies for 2014-15. The 2 percent reserve requirement, when applied to fiscal year 2014-15 operating and line item appropriations, totals $7.2 million for the Purdue system. A return of these dollars to universities is unlikely. However, revenue collections will continue to be monitored and compared to the December 2013 estimates.
President Daniels has asked Purdue’s finance team, in conjunction with the regional campuses, to develop a plan to fund this reserve requirement. The plan will be communicated to the Purdue system in September after finalizing the fiscal year 2013-14 year end. The campus community’s ongoing efforts to identify efficiencies and cost-savings measures will assist in meeting this new budget challenge and supporting Purdue’s student affordability goals.