DAN ORZECHOWSKI
News Editor
Since the early 2000s, Fredonia has been in a financial deficit. Throughout the years, this hasn’t been a huge problem, but now that reserve funds are dwindling, the issue is more of a concern.
The future of the budget was discussed for much of a University Senate session held Monday afternoon.
In the Fall, Fredonia saw a boost in enrollment and welcomed the second-largest freshmen class in the university’s history.
Vice President for Finance and Administration Mike Metzger (who assumed his duties this past summer) told the Senate that increased enrollment is “not going to be enough.”
President Virginia Horvath has been working closely with Metzger to develop a plan for the next academic year.
“I’ll be the first to admit,” said Metzger, “when I started [as vice president] in July, I did not anticipate this process to take as long as it did.”
Although no specific figures were mentioned, Metzger said that the budget increased only slightly in certain areas.
“The only increase that is in the current budget numbers for next year is an increase in negotiating salaries . . . and where we’ve moved money [over to the state],” said Metzger. “We were paying a state expenditure out of [the income] from the residence halls, which is incorrect.”
When asked if the state knows that Fredonia doesn’t have spare cash, Horvath answered: “The [state] does not provide what we call a maintenance of effort. Do they not know, or do they not care? I cannot begin to guess.”
Horvath said she had explained the situation to a state senator prior to other budget discussions.
“He said to me, ‘well, do your best,’” Horvath said.
“You would not run a business like this,” continued the president. “You would not have an institution not able to set its prices, and not be able to control its costs — two things that are determined outside of us.”
Fredonia has two types of reserve funds: restricted and unrestricted. Restricted funds, usually set aside for buildings, can not be touched. As for the unrestricted funds, they’ll be used up by the next fiscal year, according to Metzger.
Horvath said the situation is “not the end of the Earth.” She encouraged the Senate to keep the same positive attitude from a year ago.
“The state budget was approved, but there were no surprises in there. There’s no increase [of financial aid], even though I really appreciate the effort from our unions to lobby for increased aid,” said Horvath.
The president told listeners that Fredonia “isn’t going to be rescued by the state,” and that the school will have to handle the issue independently. To do so, Horvath said the university will have to work on maintaining increased enrollment, cut costs and explore new revenues.
Fredonia’s budget will not be finalized this month, but there will be a public budget presentation held on April 30 in Rosch Recital Hall at 11 a.m..
Horvath said Fredonia “is not the first domino,” meaning other universities in New York are in similar financial situations. Specific schools were not mentioned.
In an email sent last week to the campus community, Horvath said “very difficult choices” will have to be made, and that cuts are inevitable. Those cuts will be based on Fredonia’s “mission, commitments and focus on student learning.”