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State budget approves extra funding for SUNY schools, but still too early to tell if boost will help SUNY Potsdam

Posted 4/30/24

POTSDAM — The recently passed state budget contains about $114 million in new operating funding for campuses, but its still too early to tell if the additional funding will help SUNY Potsdam …

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State budget approves extra funding for SUNY schools, but still too early to tell if boost will help SUNY Potsdam

Posted

POTSDAM — The recently passed state budget contains about $114 million in new operating funding for campuses, but its still too early to tell if the additional funding will help SUNY Potsdam sidestep expected cuts or other measures it takes to deal with its $9 million deficit issue.

However, college officials are confident the deficit will be knocked back to a cool $3 million by sometime next year under its fiscal restructuring plan it began implementing last year.

United University Professions, the union which represents SUNY employees and those who work at Potsdam, touted its roll in securing the additional state budget funding in a recent statement.

“From fighting for more than $150 million more in state aid for campuses and expanded Tuition Assistance Program eligibility to effectively killing SUNY’s plan to close Downstate University Hospital, the efforts of UUP—the nation’s largest higher education union—can only be viewed as a success,” the UUP said in an official statement.

“This is a very good budget for SUNY, our students, our patients and for our state,” said UUP President Fred Kowal. “We thank Gov. Kathy Hochul and state legislators for hearing our message and acting on it. Our leaders understand the necessity of supporting a world-class university system that provides an accessible, affordable education to all who seek it.”

The newly enacted state budget adds $114 million for operating funds, $60 million more than proposed by the governor, and another $53 million to hire full-time faculty, the UUP said.

However, whether or not this will equate to retainment of positions destined for cutting at SUNY Potsdam or additional positions is still too early to tell.

"We are pleased that the enacted 2024-25 New York State budget will build on last year's historic investment in public higher education, with an additional increase in general operating aid and support across a range of needs,” SUNY Potsdam President Dr. Suzanne Smith said in an official statement to North Country This Week.

“The budget expands access to the Tuition Assistance Program and doubles the minimum award, making a SUNY education even more affordable for more students and families. It also provides continued support for the Educational Opportunity Program and additional investments for critical maintenance and capital projects,” Smith said.

“While specific details regarding the allocation of such funds are still forthcoming, SUNY Potsdam will advocate vigorously to secure support for our strategic priorities—focusing on initiatives that help to bolster student success, enhance applied learning opportunities, foster community engagement and promote cultural inclusion,” said the president.

There could be some good news on the horizon for the college’s deficit woes.

According to business affairs report from SUNY Potsdam’s chief financial officer Brent Parker at the April 19th college council meeting, the school could see a large reduction of the $9 million deficit over the next year.

“Six months into the Framework for Fiscal Health, we are estimating that by the end of June 2025, as a result of increased support from SUNY and actions taken by President Smith and President’s Council in accordance with the Framework, the College is on track to reduce the $9 million structural deficit to just over $3 million," Parker’s report said.

“These numbers are estimates based on Potsdam’s actions to-date, and actual numbers will vary based on specific dates of planned personnel actions and on unforeseen events and changes that happen. This estimate also has the potential to be impacted either positively or negatively by enrollment next year,” said the report.

“While this represents significant progress against the College’s financial challenges, more work

needs to be done. To that end, the College will continue carefully reviewing and managing

personnel and staffing levels and attempting to identify non-personnel savings,” according to the report delivered at the April 19th college council meeting.

According to the report, the college is engaged in several initiatives to generate revenue for SUNY Potsdam.

Those initiatives include, frequent review of student fees to ensure course costs are covered without using state funds, working with the College Foundation, Research Foundation and PACES to identify revenue opportunities, developing micro-credentials, and exploring increases in third-party rental revenues, Parker’s report said.

"SUNY Potsdam's $9 million structural deficit did not happen overnight, and it won't be solved overnight, but under Dr. Smith's leadership and with the support of SUNY, the university has taken steps which we expect will address nearly $6 million of that structural deficit by June 2025," said Parker in a statement directly to North Country This Week. "I look forward to continuing to work toward a stable operating budget that will allow SUNY Potsdam to continue to be a pillar of the North Country community for the next 200+ years."