I think the cuts is being applied to the Universities carry forward accounts money that sits in accounts to help with following years.

http://www.myfoxtampabay.com/dpp/news/local/cash-reserves-at-issue-in-budget-hearing-02152012

TALLAHASSEE - The University of South Florida has $100 million in cash reserves, and it's that money that Senator JD Alexander is trying to get back.

He says no university should be sitting on that much money when the state needs to balance the budget.

But USF says they need that money to operate.

"Over the course of a year, money that you don't spend goes into the next year. That doesn't mean it's free. It's committed to something in the next year," explained Michael Hoad, VP of Communications for USF.

If the budget cuts go through, Hoad says not only would it take their reserves, but the university would be in debt.

"We will be wiped out, all of our reserves will be wiped out and we'll still be somewhere between $50 and $75 million in the hole on July 1st," Hoad said.

Owl2Doc said

I guess it's out of the question for everyone to take a cut fairly. I don't see them saying UF and FSU are going to be crying in their beer and closing programs.

Higher education in Florida is so broke, both figuratively and literally. It's ridiculous.

Sometimes it's like Florida can't do anything right. I need to get out of this state.

Haha, thats how I feel sometimes.

REALLY makes these college coaching salaries look rediculous. Not to be mean, but by even our own Coach P., is a football coach worth a half mil a year? Let alone the Urbans making close to 5 MILLION DOLLARS a year (10 TIMES what Coach P. will make here!)!

GeorgiaOwl said

REALLY makes these college coaching slaries look rediculous. Not to be mean, but by even our own Coach P., is a football coach worth a half mil a year? Let alone the Urbans making close to 5 MILLION DOLLARS a year (10 TIMES what Coach P. will make here!)!

I think you would have to understand how much revenue a football program generates…then realize how much money is donated as places like Ohio State based on football performance.  Rich alumni like when thier program wins…

I think a suite for the season at Michigan is $2.4 million a year….you think they are selliing those if the team is 4-8 and the coach sucks?

The coaches get paid that much because they are worth that much.  The University doens't pay them $4 million a year for no reason.

I have several thoughts on this.

I get that the state, and country are in bad financial situations and cuts have to be made, but I do not like how the university cuts are being unfairly handed out.  UF and FSU are taking a much smaller % hit than us, yet it is probably even if not more money than we will be shorted.  Say for example its 5 mil.  That 5 mil will hurt us a lot more than it will hurt them.

Second, USF is getting nailed, and it is all because of politics and personal vendettas.  JD Alexander want to rush the seperation of USF Lakeland to a seperate polytechnic school, and since the state and USF want to transistion slowly he's gutting their budget.  Plus, USF's president fired the head of the Poly board for a lot of shady financial dealings.  He happens to be buddies with Alexander.

Third, if each university has a budget for the year, there really shouldn't be much of a surplus.  I don't agree with the statement from Hoad saying that last year's surplus isn't free money, it's already committed.  It's a surplus, so it is like free money, and it should not automatically be tied up in something.  I have to live within my budget, so should government institutions.

 Third, if each university has a budget for the year, there really shouldn't be much of a surplus.  I don't agree with the statement from Hoad saying that last year's surplus isn't free money, it's already committed.  It's a surplus, so it is like free money, and it should not automatically be tied up in something.  I have to live within my budget, so should government institutions.

Not quite some of these funds were set aside for certain programs they are in accounts that aren't based on yearly funding. At end of the fiscal year (June 30th) they get carried over and they are grouped into a big fund, then it takes a while for those funds to be redistributed back to the departments those funds are suppose to be in, this is handled in house.  The problem with this situation basically at the end of the fiscal year the Legislature will take all of the carry forward funds back. With their announcement you have to figure the University Finance department finding cleaver ways to handle these funds and place them in other areas or Universities will go spend everything and the Legislature's estimates will fall short.


I wonder how much money the university needs on hand to pay out their debts and does some of this money in question get shifted around to help with payment of goods and services. You figure the University purchases X for a federal grant and has to pay the supplier by net 30 then the university has to then bill the Federal Grant which could take longer than net 30 to receive a check for repayment. When the university gets awarded amount from a federal grant does not mean the university gets all that cash at once they have to bill it to the Federal Sponsor. This could lead to a shortfall in Paying off debts.

My question is about athletics. Are the big donors donating to football/basketball or to the university's fund. I know you can specify where you want your money to go but are people only giving to athletics? I know how much money sports brings in, but why? Does that money go back to the institution or to athletics? Why does UF need $90 mil for its football program? Isn't that money that can be used for the university? I still think that athletes (college and pro) get paid WAY too much money but that's another topic…

FAUfasho said

My question is about athletics. Are the big donors donating to football/basketball or to the university's fund. I know you can specify where you want your money to go but are people only giving to athletics? I know how much money sports brings in, but why? Does that money go back to the institution or to athletics? Why does UF need $90 mil for its football program? Isn't that money that can be used for the university? I still think that athletes (college and pro) get paid WAY too much money but that's another topic…

Check out an article from last June on surpluses in college athletics Athletic departments see surge financially in down economy - USATODAY.com

It's a difficult justification for many on athletics - only 22 of the 228 div 1 programs run a surplus.  The rest require funding to exist, potentially detracting from the university's primary goal - academics.  The upside for identity may be enough positive impact to overcome that for many, but cuts like this bring a very unseemly perspective.

For a school like Nebraska, there is huge identity gain with athletics and great residual value.  Worth it? I think so.  But for those schools without a surplus, what's the right price to pay?  That's a hard question to answer. 

Update on the Budget Situation

Our president's response

Commentary: FAU needs public support to avert budget disaster | www.palmbeachpost.com

Not to be inbsensitive, but the delimna is pretty simple: when you get used to handouts, you end up with a poorly run system.

There is no profit accountability, as in the private sector. As a result, your budget is not tied to true demand, but rather social "goodwill" from the hand of the Government.

This is why you do not hear of these types of things in a private University setting.