4/20 email
OFFICE OF THE CHANCELLOR
Dear CUNY Presidents and Deans:
I hope this finds you as positive and productive as can be expected given the extraordinary circumstances under which we are now living, working and studying.
As you are aware, the economic downturn brought on by the COVID-19 pandemic is significantly impacting the finances of the state and city, two of the University$B!G(Bs main funding partners, both of whom are projecting large budget deficits. The impact of the economic downturn is expected to continue through FY 2020-21.
Additionally, the downturn could likely negatively impact enrollment revenue, as families struggle with the loss of income stemming from job losses and reduced work hours. Students and their families might also be factoring health safety issues in their Summer. and Fall plans. In a climate of heightened need and fewer resources, our fundraising efforts will likely also be affected. And the upward enrollment trends of past economic downturns are not reliable against the backdrop of a global pandemic.
It is with all of this in mind that I write today to keep you informed of the fluid fiscal considerations that affect our budget, and the potentially difficult decisions that we are going to have to make in the very challenging weeks and months to come.
Fiscal Landscape
The New York State Comptroller estimates that state revenues for FY 2021 will decline by between $4 and $7 billion, or as much as 8 percent below the figure included in the State$B!G(Bs Executive Budget. For the 11 senior colleges, an 8 percent reduction in state funding represents a $110 million impact; for the seven community colleges, it comes to a $20 million loss in support. It is important to keep in mind that the Executive is projecting even higher revenue losses than the Comptroller.
For its part, the City has already notified the University of significant budget reduction targets in both the current and next fiscal year. The City$B!G(Bs Executive Budget released on April 16 proposes an additional $25.6 million reduction target for the University in FY 2021. This is above the initial $6 million efficiency target, bringing the total for the next fiscal year to $31.6 million.
The one sliver of good fiscal news is that the federal Coronavirus Aid, Relief and Economic Security (CARES) Act will allocate to CUNY $236 million, at least half of which we are in the process of distributing directly to students as emergency assistance grants. The remaining amount will go to the colleges for campus operations to address what the Act describes as $B!H(Bcosts associated with significant changes to the delivery of instruction due to the coronavirus,$B!I(B helping to offset, at least to some extent, the significant reductions to college operating budgets stemming from large state and city budget deficits. This relief, while critical, is a one-time influx and not a recurrent funding source. Final guidance from the U.S. Department of Education on how institutions may use these funds is expected in late April.
Fiscal Scenarios Task Force
Given this outlook, I have created a Fiscal Scenarios Task Force to develop potential models and make recommendations for next planning and operational steps. The work of the Task Force is already underway, and initial recommendations are forthcoming this week.
Additionally, several members of my cabinet and I are examining forecasting and planning strategies being employed around the country. Through local, regional and national conversations with leaders across higher education, including the American Council on Education, the American Association of State Colleges and Universities and a host of colleges and universities, my team is assembling a compendium of best practices to address and respond to issues stemming from the coronavirus public health crisis.
We are also reconfiguring the Coronavirus Task Force, which provided valuable service as we began to address the effects of the pandemic in our operations. The new Task Force will begin to prepare us for the operational scenarios that we might face as early as this summer as we attempt to return to $B!H(Bnormality$B!I(B in our campuses or are faced with a new universe of guidelines and protocols – such as practicing physical distancing, for example – which could transform the way we approach our work.
Guiding Values
Our decisions and strategies will be geared to position CUNY to adapt to the $B!H(Bnew normal$B!I(B that will emerge in the coming weeks and months, but they will continue to be informed by the core values that have long made this University, that I have had the honor of leading for nearly a year now, unique:
● Students$B!G(B needs are always our foremost consideration. We will continue to be an engine of upward social mobility, ensuring high academic standards along with equality of access and opportunity and career engagement;
● CUNY has been and will continue to be a thought leader and key partner in the city$B!G(Bs rebuilding efforts. The city$B!G(Bs road to recovery goes through CUNY and we will continue to be one of the anchor institutions that will play a key role in the revitalization of our City.
● In these times of uncertainty and anxiety, we will not compromise the health and safety of our students, staff, faculty, and other key community stakeholders as we continue to advance our work and mission;
● We will be guided by the principles of shared governance and responsibility, which compel us to pursue productive engagement of all key stakeholders in the CUNY community including students, faculty, staff, the communities that we serve and our Board of Trustees;
● We remain strongly committed to meeting the specific needs of our urban constituency, with special attention to ensure that CUNY$B!G(Bs workforce and students continue to reflect the diversity of our City.
Immediate Actions
Effective immediately, the University is implementing a freeze on all personnel actions, including all hires and discretionary salary increases. Some exceptions that will be considered include health and safety positions and faculty searches in which an offer has already been made. Such cases will need to be presented to a Vacancy Review Committee that will be created in the coming days.
Per State and City regulations, the University must pause all active campus construction projects, with the exception of those that are COVID-19 related. At the direction of the Governor, the Empire State Development Corporation has issued updated guidance for construction under the Governor$B!G(Bs New York State on PAUSE executive order. The updated guidance mandates the immediate pause of all construction that is not essential construction, which is defined as:
● Construction necessary to protect health and safety of occupants; and
● Construction that needs to continue until it is safe to shut it down.
For the remainder of the fiscal year, colleges should refrain from any new one-time or recurring expenditures, with the exception of those that are related to COVID-19 or distance learning instruction.
Campuses should not be entering into any new long-term contractual obligations (new or renewals) until further notice and should consult with the Chief Financial Officer$B!G(Bs Office for any exceptional situations.
These are uncertain times, and though it has been said before, it bears repeating: We are all in this together. I know that by working collaboratively, we can – and will – guide our beloved University through these unprecedented challenges. Precisely because of this economic crisis New York City is facing the transformational value of our mission of advancing socioeconomic mobility has never been more vital.
As I have shared with you before, in the midst of this pandemic, I have been inspired by the way the CUNY community has come together to support each other and others in our City. That sense of community will be vital as we continue to navigate the fiscal and social challenges ahead. You have my pledge that I will continue to communicate with you and keep you apprised of all developments. In the meantime, please continue to take good care of yourselves and your loved ones.
Sincerely,
Felo