COLUMBIA UNIVERSITY RECORD January 21, 1994 Vol. 19 No. 14 RUPP SEEKS A SOLID FOUNDATION; ISSUES GUIDE FOR 1994-95 BUDGET President Rupp issued guidelines Jan. 6 for Columbia's next budget year, 1994-95, that will eliminate a remaining shortfall of $12 million, achieve a balanced budget and "establish a solid foundation on which we will then be able to build constructively in future years." In a letter to deans and administrators with budget responsibility, he outlined recommendations made by a task force chaired by David Auston, dean of the School of Engineering and Applied Science. Under the plan recommended by the task force, schools will be asked to prepare budget plans reflecting average budget growth of only about 1.5 percent, based on assumed average income growth of 5 percent. Central administrative units will prepare plans with a 5.25 percent decrease in funding. Rupp said a discretionary fund of $5.5 million will be available to support high priority initiatives and to facilitate long-term cost reduction efforts. Allocations from the fund will be used to amplify priorities determined by each budget administrator, not to restore activities that have already been cut. He said that in March each dean and budget administrator will make a budget presentation to the University Planning and Budgeting Committee. Each administrator will be asked to present a plan for meeting budget guidelines as well as proposals for discretionary funding. Rupp said he will participate in each meeting. In announcing next year's budget strategy, Rupp noted that the current year, 1993-94, is the second in a three-year plan to eliminate what could have been a $87 million shortfall if left unaddressed. The problem has been caused in significant part by rising fringe benefit costs, significant losses of aid from New York State, and a cut in the indirect cost recovery rate. During the last two fiscal years significant steps have been taken to reduce the potential shortfall by requiring schools and administrative departments to set aside additional funds to pay for fringe benefits and by constraining the rate at which operating expenses have grown. A more thoroughly revised budget system, while desirable, will await the appointment of a new chief financial officer, he said. The other members of the budget task force are: Michael Crow, vice provost; Gordon Eaton, director of Lamont-Doherty Earth Observatory; Meyer Feldberg, dean of the Graduate School of Business; Imara Jones, president of the Columbia College Student Council; Eduardo Macagno, associate vice president for arts and sciences and dean of the Graduate School of Arts and Sciences; Christian Meyer, professor of civil engineering and chairman of the Senate Budget Committee; John Morgan, professor of mathematics, and Elaine Sloan, vice president for information services and University librarian. The text of Rupp's letter appears in related article. Next week's "Record" will present an overview of the 1993-94 budget by the University's office of management and budget.