Update Budget Restrictions08-14-09

This afternoon we received a new directive from the Office of State Budget and Management (OSBM) regarding the 2009-10 budget and spending restrictions. Because of continued uncertainty with the economy and the state's current precarious cash position, Governor Perdue and the OSBM are requiring each agency (including Appalachian State University) to reduce its certified budget by 5%. This order is effective September 1, 2009 and will continue until informed otherwise. The 5% reduction will be transferred by October 1, 2009 into an internal reserve account held at OSBM to comply with the mandate.

OSBM will now provide agency and institution managers the flexibility to determine how to manage our budgets. Therefore, OSBM's July 24, 2009 memorandum is rescinded, meaning we are no longer required to submit weekly spending requests. However, we are strongly encouraged to continue the existing spending restrictions. Those restrictions include holding positions vacant where appropriate, limiting the issuance of purchase orders for goods and services, and restricting travel and compensation adjustments to the maximum extent possible. All personnel actions and travel requests must be preapproved by the division head (i.e., Vice Chancellor or Chancellor in the area to which you report). Also, all requests to transfer expenditures from trust funds or other non-state funds to state funds (accounts beginning with a 1) will not be allowed.

Also, while Governor Perdue signed the appropriations (budget) bill on August 7, the certified budget will not be released by OSBM until the end of August and will not be distributed to the Chancellor and Vice Chancellors until September. When budgets are distributed, it will be imperative that each department maintain positive balances in each budget line-item before expending funds.

Please click here for additional information. If you have questions about the budget and spending restrictions, please contact the ASU Budget Office. We continue to thank you for your understanding and for your diligence in managing your budgets during these challenging times.

Sincerely,
Greg Lovins
Interim Vice Chancellor for Business Affairs
Appalachian State University