University unsure how proration will hit

Published 12:00 am Saturday, October 3, 2009

While Troy University’s not sure exactly how big of a toll proration will take on its budget, one thing is for certain — it will take a hit.

Ala. Gov. Bob Riley declared 7.5 percent proration to the state education budget, just before the budget year officially began Thursday.

For the university, that will mean a loss of $3.65 million, said Lobbyist Marcus Paramore.

Sign up for our daily email newsletter

Get the latest news sent to your inbox

Troy University was awarded $48.7 million from the state of Alabama originally, and with the cuts, Paramore said the amount will be knocked down to $45.1 million.

“That’s not factoring in stimulus dollars or anything like that,” Paramore said. “That being said, with a $3.65 million hit, we’ll have to find ways to cut.”

But just what may be cut, Paramore said he isn’t sure.

And, still early on in the year, Senior Vice Chancellor of Financial Affairs Jim Bookout said he’s not sure exactly either.

“Having only recently received the information, we have not determined the full financial impact and have not assessed the areas where reductions would be needed,” Bookout said. “As always, we will continue to ‘feed our strengths and starve our weaknesses’ as we maintain sound fiscal management.”

Paramore said the university does have reserve funds, though he isn’t sure if they will be drawn from to offset proration.

“That doesn’t mean we will automatically pull from those reserves,” Paramore said.

Paramore said even though proration was called early on in the year, it will still be difficult for the university to deal with after already being cut in the last year.

“It’s always difficult to try to pass a budget and then have to experience proration,” Paramore said. “Even though you’re expecting some types of proration, it’s difficult until you know that last amount.”

Paramore said the university anticipated between 6 and 9 percent proration for the year.