The budget situation just got a little easier, but the university is not in the clear just yet.

Recently, Eastern received a major installment on appropriations from the state in the amount of approximately $12 million. that reduces what the state owes the university for fiscal year 2010 to about $600,000, said William Weber, vice president for business affairs.

Prior to this, Eastern received a figure close to $6 million on July 9 from the state, reducing the university’s fiscal year 2010 budget deficit by 12 percent.

Even though the installment is more promising than before, the university is still finalizing numbers for the 2010 fiscal year.

Under legislation passed by the state, the Board of Trustees had previously approved to borrow up to $7 million against the expected appropriations. Because of the installment received by the state, the option of short-term borrowing is no longer being considered.

It is good news for the university to receive these appropriations, though a little later than some would have liked, he said.

For the upcoming 2011 fiscal year, the university expects general revenue funds from the state to be possibly cut by $3.125 million.

“We will probably also be asked to hold back some of our appropriations on reserve, just hold on to it and not spend it just in case the state needs us to send it back,” said Weber.

Another factor that will affect fiscal year 2011 is enrollment. The school is waiting to see how enrollment is shaping up because tuition and enrollment play an ever increasing role in the appropriated budget, said Weber. This number will be determined by the tenth-day count around Labor Day.

During the next several weeks, the school will conduct a thorough top-to-bottom review of all appropriated budgets.

The goals of this review will be to identify $6 million in appropriated budget cuts over the next two years and to address existing structural budget imbalances. Leading this effort will be Michael Maurer, the recently appointed director of planning, budget and institutional research.

The review will start at the presidential and vice-presidential level, then proceed to the dean and director level, and conclude with the department and unit level, Weber said. One key guideline in this review is with regards to cuts of personnel. “We want to have cuts on the personnel side attrition based as much as possible,” said he said.

He said he believes that furloughs and layoffs should be a last resort after other options have been explored, however he expects to have another budget cut in fiscal year 2012.

Throughout this review, the university will continue to have open discussions with the Council of University Planning and Budgeting and other campus governance groups. This review has already started and will continue to take place throughout September.

“We have an amazing task in front of us that will unfold over the next several weeks,” Maurer said.

Shelley Holmgren can be reached at 581-7942 or at

[email protected]