September 24, 2009

Dear campus community,

As has become my practice during this time of economic uncertainty, I write with a brief update on the ongoing budget challenge and the implications for Keene State College. Regrettably, at this early stage in the fiscal year and with several key budget indicators outstanding, the information available to share with you is scant and inconclusive. I can, however, provide an overview of the primary factors that will determine our immediate and long-term financial outlook and do so below:

• Enrollment Numbers. Preliminary enrollment numbers are strong with 1,202 first-time students enrolled. Because the college decided to decrease its enrollment from last year, this number falls within our target range for first-year students. Transfer student enrollment exceeds last year’s numbers by 68 and graduate enrollment currently stands at 65, an increase of 9 over last year. Complete enrollment numbers will be available 30 days after registration (R+30) on September 28, and I will post these on our website shortly afterward.
• State Revenue Projections. State revenue over the first two months of the fiscal year was $17.6 million below the revenue plan passed by lawmakers in June and $5.5 million below the previous year’s collections for the same period (State of New Hampshire Monthly Revenue Focus. ) I continue to follow developments on this front.
• Pending Lawsuit. A case before the New Hampshire Supreme Court will decide whether the state can use $110 million from the Joint Underwriting Fund, a medical malpractice fund, to balance the state budget (Keene Sentinel) . On August 12, in its regular e-mail brief, the Business and Industry Association suggested that the legislature might hold a special session on October 28 to determine if and how to replace the $110 million should the state lose its case. The University System of New Hampshire is closely monitoring this case.
• American Recovery and Reinvestment Act (ARRA) Implementation. The federal government requires states receiving stimulus funds through the ARRA maintain current appropriation levels. In recent months, however, the federal government has granted absolution to some states to accept stimulus funds without holding level current appropriations. If the federal government rescinds this requirement, the state of New Hampshire may receive ARRA funds without maintaining appropriations, such as those which support Keene State.
• Board of Trustees Action. The Board of Trustees makes all decisions related to salary and benefits. On September 14, the Board of Trustees Executive Committee agreed to postpone any discussion about salaries until its February 2010 meeting when the information I have outlined above is available.

I am actively monitoring each of the above factors and remain committed to keeping the college community fully informed. I will continue to provide regular updates via email and this webpage and will also convene another campus budget forum as soon as there are substantive developments to share.

Thank you for your patience.

Helen F. Giles-Gee
President