Friday, December 05, 2008 12:33 PM
Dear Colleagues:
I write about current economic conditions and the University's fiscal health and well-being. Although these are admittedly very challenging times, I believe that Ohio State is in a strong position.
As I am sure you know, other universities, particularly private ones, are facing severe budget problems. Those institutions that rely heavily on their endowments for operating expenses - some as much as 30-40 percent - are the most negatively impacted. They have been forced to take measures such as freezing hiring and capital projects.
Because our budget is more balanced in its sources, and because we have prudently managed our funds, we anticipate avoiding such drastic moves here. Frankly, planning for budget reductions is a regular part of our management process. During the past year, we have taken several anticipatory steps. We have saved nearly $100 million through efficiencies and cost-avoidances. We have money held in reserve for contingencies. And, as one of the nation's largest direct student-loan lenders, we will continue to help students and their families to finance their education at reasonable costs. Finally, we are moving ahead with planning for the comprehensive campaign that will provide additional sources of revenue for the long-term.
It is important to note that we have been fortunate to have strong support from Governor Strickland and leaders in the General Assembly. They have already made difficult decisions with state agency budgets, and more are certain to come. Working in partnership with them is our mission and our duty, and I am personally committed to redoubling the University's efforts to stimulate Ohio's economy.
Having led universities for nearly 30 years now, I have both the gray hair and the perspective that comes from managing through budget difficulties. From that experience, I believe that although these are challenging days, they also present us with great opportunities - to think differently, to collaborate more fully, to reconfigure ourselves for the long-term benefit of our students and our state. We have now the opportunity and the responsibility to make sophisticated choices about our future, and I look forward to working in partnership with you as we move ahead.
As always, please know of my gratitude for your creativity, hard work, and dedication to this remarkable institution.
Sincerely,
E. Gordon Gee
President
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