Troy University will continue good stewardship practices during time of proration

Posted: Friday, 09 January 2009

TROY—Troy University will reduce spending and continue best practices of good stewardship in response to the 12.5 percent proration of the Education Trust Fund announced in December.

Jim Bookout, Senior Vice Chancellor for Finance and Business Affairs, said the plan will minimize the impact of the cuts on academic quality at TROY. Bookout said the effects of proration, combined with mandated costs and legislative cuts in Troy University’s budget, leave the University under-funded by some $25 million over the next 21 months when compared to fiscal year 2008.

“These actions will be employed to preserve the academic quality of the institution and, as a service to students, maintain tuition rates at an affordable level,” Bookout said.

Bookout added because the State of Alabama funds only 24 percent of the University’s operating budget, Troy University was committed to good stewardship long before the most recent round of proration was ordered.

“We are now realizing the benefits of the unification of Troy University, which officially took place more than three years ago,” Bookout said. “In effect three independently accredited universities within the former Troy State University System—each with a separate administration and curriculum—were unified into one university. This has resulted in significant cost savings for the University and for Alabama taxpayers.”

The plan approved by Troy University includes:

  • Freezing all current vacant positions—both existing and new—until April 1.
  • Immediately reducing the non-salary operating budget by 10 percent.
  • Monitoring the lapsed salary rate achieved through the natural cycle of vacant positions.
  • Closely monitoring actual revenue compared to budgeted revenue projections.