Approaching the Campus Budget - Part I

Balance of Income and Revenue

If we add up the total revenue and subtract the total expenses in this budget, the balance is negative. That means that we expect to spend more than we earn in this academic year. Those who have followed our budget reduction process will recognize that this is the result of having to bridge many of the costs of closing or reducing program expenses. Bridging funds cover costs for which we have no revenue, and thus must come from prior year savings. We anticipate spending about $8 million in bridging costs this year and a significantly smaller amount next as we work to bring our budget into balance.

This perspective on the UMass Amherst budget offers some opportunities to consider how we can improve our circumstances and earn more income to invest in expanding our institutional operations. We can seek efficiencies on the expense side, although after the sequence of budget reductions this campus has experienced, there are few savings to be had without damage to high quality and high productivity programs.

The most significant opportunities for the campus are in enhancing our ability to earn increased revenue, and this remains the focus of our attention.

John V. Lombardi
Chancellor

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