The Daily Bulletin

Last week, Vice President for Finance and Management Laura Barnum provided a comprehensive overview of Buffalo State College’s financial picture during the College Senate’s final meeting of the 2020–2021 academic year. Admittedly, the condition of Buffalo State’s budget has improved over the past year thanks to short-term relief from a temporary infusion of federal funds—although our much-discussed long-term structural concerns remain. The need to stabilize our enrollment issues and continue to develop innovative approaches to operations, including new programs, is paramount.

In my budget update in December 2020, we projected a full depletion of our central reserves and a deficit of nearly $15 million for the 2020–2021 academic year. That projection was based on anticipated reductions to our state budget allocations for 2020–2021, along with our long-standing structural deficit from enrollment declines and unfunded salary increases. Since that time, welcome federal stimulus packages in December 2020 and March 2021 greatly improved the New York State budget landscape, directing critical—albeit temporary—funds to our campus.

As late as March 29, 2021, we were expecting reductions to our state budget of up to $5 million this fiscal year, as well as reductions of nearly $3 million to university-wide programs, such as EOP. Fortunately we had to absorb only a $1 million (5 percent) reduction to our state budget this year. Additionally, thanks to $15.7 million in temporary institutional grants from the first two phases of the federal Higher Education Emergency Relief Fund (HEERF), we are projecting a $9.4 million surplus for the 2020–2021 fiscal year. And an additional $15.1 million (one-time funding) for 2021–2022 from the third phase of HEERF will give us a projected surplus of $4.1 million next year. These funds will allow us to replenish our reserves at a level that will help us manage any unexpected costs as well as allow us to provide funding for necessary investments to improve our long-term financial sustainability.

While our short-term financial picture is a welcome improvement from what we had been bracing for, we still have significant challenges ahead. Tuition increases are paused for the foreseeable future; there is no new funding for negotiated salary increases; and enrollment challenges continue because of regional demographic changes and decreased student retention rates. We continue to project a long-term structural deficit of $11 million–$12 million (and growing) annually.

A gradual closing of the “TAP gap”—the difference between state Tuition Assistance Program funding for students and actual tuition costs—which was initiated in April’s New York State budget agreement, may eventually bring $3 million to $4 million annually in additional funds to Buffalo State by 2023–2024. But while those funds will eventually be a welcome addition, our collective work internally to align our revenue and expenditures remains critical. Spending constraints will remain in place in 2021–2022, as will our efforts to identify new efficiencies and develop new revenue streams through innovation and philanthropy. My aim is to meet our budgetary shortfall by using all the innovation we can muster while minimizing the stress on campus operations, processes, students, and employees. Change is hard, but our future success requires collaboration and a clear focus on what is needed for long-term stability.

Vice President Barnum will provide an overview of the 2021–2022 Strategic Resource Planning Process at the virtual Bengal Business Forum on Wednesday, May 24. She will share an overview of the investment proposal outcomes and an update on our campus innovation and optimization efforts. I encourage you to attend the virtual meeting.

Over the last year, campus units have continued to adapt to better serve our campus community, meet our campuswide strategic priorities, and align our work with existing and anticipated financial resources. This has included reorganization and consolidation within divisions. The restructuring within Academic Affairs to develop the new School of Arts and Sciences, for example, will provide interdisciplinary and collaborative opportunities for our students, faculty, and programs. The division of Student Affairs has realigned staff to better address programming focused on diversity, equity, and inclusion while streamlining costs. And operations within Finance and Management have been reorganized and consolidated to optimize services while generating cost savings. These are examples of significant divisional changes that better serve our campus.

We continue to leverage technology in ways that meet our needs while creating cost savings. Changes in technology have affected every portion of our campus—every department and all divisions. We have invested in open educational resources to help reduce the cost of education, and we continue to develop technological tools to get needed classroom resources into the hands of our students at the lowest possible costs. Campuswide, we have digitized or are digitizing many operational procedures, including e-procurement, e-signature, electronic travel systems, elements of Banner, and communication with prospective students. Streamlining our work in cost-effective ways is a significant priority across campus. So, too, is engaging in serious collaboration across divisions to best meet campus goals. Our ability to secure and maintain financial security for our campus depends on everyone in all divisions and units doing their part.

As we close out this unprecedented academic year, I want to thank you for your incredible dedication to your work, our institution, and our students. Your selflessness and perseverance continue to help Buffalo State and our students soar. I wish you and your families a restful summer.