NAU President John Haeger has instituted a set of budget reduction guiding principles for university vice presidents to use when they look at their current FY08 budgets.

“The current unfavorable economic environment is likely to persist beyond the FY09 fiscal year,” Haeger said. “Strategies to respond to the situation will continually be assessed to sustain the university progress to achieving its strategic plan goals and priorities.”

  • All vice presidential areas are requested to hold back .5 percent or equivalent of their state budgets, beyond the normal .5 percentage of their salary budget until the budget reduction situation is clarified.
  • Growth in the FYO8 local ending balances will be scrutinized carefully. Units will not be allowed to transfer expenses to the state to build local balances.
  • The university will hire additional faculty and staff to handle the enrollment growth of the last two years and its expected future growth.
  • NAU continues to be committed to improving faculty and staff salaries within available resources.
  • Some new initiatives will continue to be funded, as NAU is committed to moving the institution forward.
  • Postpone or cancel purchases, travel and projects that are not considered to be critical to the university mission.
  • University priorities will take precedence over unit priorities.
  • All funds belong to the university, including all local accounts and balances, as we attempt to balance the budget with expected lower state funding.
  • The university’s budget strategy will ensure near-term decisions complement longer-term planning.