OBSERVER Photo by Jimmy McCarthy Virginia Horvath, SUNY Fredonia president, discusses plans to reduce an operating deficit within the 2018-19 budget during a recent College Council meeting at the University Townhouses.

A new budget cycle begins July 1 for the State University of New York at Fredonia, which shows a $12-million difference between expenses and revenues for the 2018-19 operating year.

Projected expenses for the 2018-19 fiscal year are at $58.6 million while state support and tuition, the two main sources of revenue, are projected to be around $46.1 million.

President Virginia Horvath and her cabinet are working to minimize the deficit within the budget through $3.6 million in cuts to various divisions at the university. Since 2007, the college has possessed a gap between revenues and expenses within its operating budget.

During the 2007-08 year, the deficit increased by $400,000. Despite efforts to control increased costs, the deficit jumped by $6.4 million in 2010-11 and the years following.

During her presentation last month, Horvath said the projection for the 2018-19 year shows a $12 million deficit, not because it has doubled from past years. More, it’s being shown without the offsets that are used to make deficit more manageable.

For more than 10 years, the institution covered the deficit through more than $50 million in one-time funds. Despite salary savings of $9 million over the past six years, the college had to dive into its reserves to makeup the difference within the 2017-18 budget. Horvath says they’ll use reserves again this year to balance the budget. Along with cuts, $1.2 million in dormitory income will be utilized. “We’ve had a gap that’s existed for years, and we really need to cut our expenses so that those things are in line,” Horvath told College Council members during a recent gathering. “It’s a challenge obviously because we’re not an operation that has a lot of ‘fat,’ so there’s already lean operations in many areas and it presents challenges.”

Late last month, Horvath presented the budget inside King Concert Hall. Dispelling rumors, Horvath stated that they’re not out of cash and not on the brink of bankruptcy. She also noted that there wouldn’t be any layoffs of current, continuing full-time employees. She went on to explain that expenses need to be reduced in order to avoid any kind of borrowing next year.

As for the proposed reductions, Horvath and the administration are looking to make $1.2 million in cuts to the academic affairs division. Horvath noted in her speech that Dr. Terry Brown, provost and vice president of academic affairs, has been working with faculty and staff to identify cuts across units within academic affairs. Brown met with deans and directors to discuss potential cuts and gain input. A forum was held earlier last week to further discuss the matter. A final decision will be made by July 1.

Cuts are also being proposed within advancement, engagement and economic development $400,000; enrollment and student services, $250,000; finance and administration, $600,000; president and reports, $250,000; and utilities and institutional, $900,000.

With the state budget passing in March, Michael Metzger, vice president for finance and administration, told College Council that state funding for the university remains at $13 million.

“The good news is we’re still getting the same assessment as last year. Bad news is there’s no increase,” he said.

As for tuition, Metzger said the university was approved to increase it by $200 for next year.

Horvath has moved forward with structural changes by eliminating the college’s vice president position. Also, Kevin Kearns will take a new title as vice president of advancement, engagement and economic development effective July 1. Betty Gossett has been appointed executive director of the Fredonia College Foundation.

While it was a difficult year budgetwise, Frank Pagano, College Council president, credited the work by Horvath and the administrative team. Pagano went on to ask Connor Aitcheson, Student Association president, how students feel about the school. Aitcheson said most students he’s interacted with will say they enjoy the school.

“When it comes to the financial situation, there were a lot of misconceptions, but I think Horvath’s presentation did dispel a lot of that,” he said. “A lot of students accepted happily the diligent work that the university is putting into addressing the structural deficit.”

Horvath noted in her address last month that the process is engaging in is a bold investment in Fredonia’s students. Horvath acknowledged that a quality education, student success and support services are among the areas that’ll be at the forefront.