I am providing an update to our current budget situation to staff and stakeholders, although very little has changed substantively and there are still many unknown factors that will affect our future fiscal situation.

UNH President Mark Huddleston outlined the University’s FY 2010 budget request in his letter to staff (June 3, 2009), indicating a reduction in expenses of $8.3 million. At this time, UNH Cooperative Extension is still predicting a $1.3 million shortfall in FY 2010 as well.

UNH and UNHCE have already put some measures into place to address these budget shortfalls. There are no increases for all non-AAUP faculty and staff with an annualized salary of more than $40,000 this year.

All out-of-state travel, paid for with state or federally-appropriated (non-grant) funds, not only require program leader or supervisor approval, but only those who present at a conference or hold a leadership role of some type will be granted approval. The use of grant funds or Principal Investigator accounts to fund out-of-state travel is strongly encouraged when possible.

In addition, staff were asked to reduce their travel and supply budgets by at least 10 percent. UNH Cooperative Extension ended the 2009 fiscal year almost 36 percent lower than compared to the same time period one year ago with state or federally-appropriated funded travel and supply expenditures.

UNHCE’s hiring freeze remains in effect, and only grant-funded positions (those that are mandatory as part of a grant or contract) will be filled. An internal search or appointment to fill these positions is preferred.

I applaud staff for efforts made to lower our costs and encourage all of you to continue your diligence in this matter. There are many avenues for decreasing our expenses and increasing our revenue, and your creativity is greatly appreciated.

Another important aspect of maintaining a healthy revenue portfolio is through grants, gifts and contracts. Externally funded grants and contracts continue to be strongly encouraged and supported. The current UNH Cooperative Extension Strategic Plan calls for a continued diversification of our portfolio of funding sources, from public funding, grants, contracts and other new sources of funding that support our mission.

While this recommendation is generally understood by staff, there still exists some confusion regarding the specifics and how each of us will be personally impacted by these expectations. The Extension Leadership Team met this month to discuss constraints in generating revenue, staff workloads and the need to cultivate a positive and entrepreneurial spirit among staff.

Again, thank you for your efforts. I will keep you well informed as I learn any new information from the university’s central administration regarding the budget. I’ve attached an updated version of our staff revenue generation expectations for all of you to review.