September 27, 2013

PSU to utilize reserves in 2014-15

PLATTSBURGH — SUNY Plattsburgh officials anticipate having to allocate $1.3 million in reserve funds to balance the college’s spending plan for next school year.

“Financially (for 2014-15), we’re OK,” Vice President for Administration John Homburger told the Press-Republican. 

“The problem is ... that we still will continue to have to use our savings account.”

The money, which would come from a reserve fund estimated to comprise $5.7 million at the close of June 2014, would help cover about $1.8 million in contractual salary increases for SUNY Plattsburgh employees, which, he noted, the college recently learned it will likely be responsible for next school year.

At times, the state, which negotiates such increases, has funded them.

“They negotiate it, and then (sometimes) they make us pay for it, and I’m OK with that as long as it’s recognized that there’s got to be some kind of resource there to help us with it other than making us take action to react to it,” Homburger said.


SUNY schools are in year three of a five-year tuition increase granted by the SUNY 2020 Act, which also promises that the state will maintain its current level of financial support to the schools.

“But it doesn’t mean that if there’s a contractual increase that they will give us the support for that,” college Budget Officer Clark Foster said.

“They’ve done what our biggest fear was,” added Homburger. “We’ve been enjoying a $300 increase in tuition for the last three years ... but now they’re starting to take things that we have no control over and tell us (to) use that money for that.”


College officials are also cognizant of the possibility SUNY Plattsburgh may be held responsible for two other large expenses, which would result in the need to use additional reserve funds.

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