September 14, 2010 Budget Update

Update from Les 09-14-10

The Governor's Office announced yesterday the need for across the board cuts to state services, including higher education, to fill a budget gap in the current fiscal year (http://governor.wa.gov/execorders/eo_10-04.pdf).The specific level of cuts is expected to be announced later this week.  The Governor took the action based on shortfalls in state revenue collections and revenue projections for the remainder of the 2009-11 biennium (through June 30, 2011).

Evergreen's Response
I am working with the vice presidents to respond to the Governor's directive by developing a short-term budget plan that is likely to include at least some of the following elements.
a)      Implementing a limited number of cuts that were deferred in the last round of budget reductions.  The specifics have not yet been confirmed. 

b)      Applying some of the additional revenue gained from exceeding last year's enrollment goals or other "one time" savings.

c)      Possibly realizing salary savings through voluntary retirements.
d)      Possibly implementing limited staff furlough days.

Looking Ahead
At the same time, we are preparing for the legislative session that begins in January and will produce a budget for 2011-13.  The Governor has told us to prepare a plan for 10% reduction in state support.  This is the first step in what is likely to be a long and difficult legislative process that won't be completed until next spring.  We will continue to keep you informed as we learn more and as the work progresses.
Les Purce