University Responds to Gov. Kaine's Budget Reduction Plan

From: Public Affairs

State general fund support for James Madison University will be reduced by 15 percent or $9.8 million as part of Governor Tim Kaine’s efforts to close a $1.35 billion budget gap for the 2010 fiscal year.

The permanent $9.8 million reduction in annual general fund support from the Commonwealth is mitigated this year by an additional infusion of one-time Revenue Stabilization Funds (federal stimulus money). With this temporary assistance, the net reduction to the university’s general fund support for this fiscal year amounts to an eight percent or approximately $5.27 million reduction.

To realize the $5.27 million required by the general fund reduction, the university will do the following:

  • Commit $1.48 million in budget reserves carried over from the previous fiscal year.
  • Generate $3.29 million resulting from a five percent cut across all divisions of the university. (Division heads will provide guidance on how to administer cuts within each division.)
  • Redirect $500,000 in monies earned from interest yield on tuition.


The budget reserves were a product of anticipating this latest reduction and combined with federal stimulus money, the need for layoffs has been avoided for this fiscal year.

In addition to the cost-saving measures being implemented, the university is putting an immediate hiring freeze into effect on all non-instructional faculty positions. Faculty recruitment may proceed, but all other searches that have not commenced on-campus interviews may neither be recruited nor filled. Positions funded by external grants and auxiliaries are exempt from this freeze.

The Governor’s 2010 Budget Reduction Plan also requires that all state employees take a one-day furlough. Though the furlough will be reflected in each employee’s paycheck, health and other benefits will remain unaffected. The university is currently exploring options for implementation of the furlough day. More information will follow as it is available.

Demonstrating the commitment to the instructional component of the university, the budget cut imposed on the academic division will be proportionally less than other divisions at the university. As always, the university will continue to do everything possible to protect the instructional mission of the institution and the direct services provided to our students.