Dear Colleagues,

Earlier today, State Budget Director Robert L. Emerson presented the 2010 Executive Budget Recommendations to a joint meeting of the House and Senate Appropriations Committees. The recommendation includes a 3 percent cut in state support for higher education. We will study the budget bill carefully and determine its implications for our upcoming budget.

We are in the early stages of developing the University?s FY 2010 General Fund budget, which the Board of Regents is expected to vote on in June. The General Fund supports our educational and service mission.

We anticipate the next several years will present numerous fiscal challenges, and we may have to delay or rethink some of our programs and projects. In setting budget priorities, protecting the University?s academic mission ? including recruiting and retaining outstanding faculty members ? is at the forefront of our decision-making. Making U-M accessible to students also is one of our top priorities. This is why we have raised money for financial aid and work hard to keep college affordable while maintaining the excellence of our programs.

Controlling our costs is more important than ever. Although we have cut operating expenditures by more than $135 million during the past six years http://www.provost.umich.edu/budgeting/CostContain-2008.pdf (.pdf), we must reduce expenses even more to meet the financial challenges ahead. I have asked a group of faculty, staff and two students to serve as an ad hoc committee to identify cost-cutting opportunities in the University?s academic operations. This group will meet several times in March and April. Faculty, staff and students will be invited to submit suggestions to the panel.

Please be assured that during these difficult times we will continue to focus on our top priorities. We have managed successfully during difficult times over the last several years, and we are confident that we can emerge in the next several years stronger than ever. Thank you for helping us to maintain the excellence of the University. We will keep you informed as developments unfold.

Very truly yours,

Teresa A. Sullivan

Provost and Executive Vice President

for Academic Affairs

University of Michigan statement on state budget