Northern Arizona University has about two weeks to begin implementing myriad cost-cutting measures that will plug a $22 million hole in its budget.

Trimming personnel and raising tuition are also possible, if not probable, in the next fiscal year, although immediate plans have not yet been settled.

And proposed cuts already shared in the days leading up to Gov. Jan Brewer's recent signing of legislation that would balance the $1.6 billion state deficit reappeared in a newly released draft budget reduction plan from NAU President John Haeger.

In the plan, released Tuesday afternoon, Haeger said furloughs — mandatory unpaid days off — have not been finalized for fiscal year 2009.

But for FY 2010, they're a given.

"It is important to note that furloughs must be implemented in FY10, and the university also must look at layoffs in FY10 to meet the budgetary challenges ahead," Haeger stated in a letter attached to his plan. "At the same time, we will study potential tuition and fee increases next year."

He paired the release with a sense of urgency.

"Make no mistake: The cut will have a dramatic impact on the university. The university has very little time to come up with the required $22 million. To do so, we will use a number of strategies that will utilize one-time funds and also permanent cuts," Haeger stated. "The bigger problem looms in FY10 when we start the year with $22 million less and face the likelihood of more cuts. We will not have the same one-time funds to draw upon for FY10."

Furloughs are just one aspect of the belt-tightening. To address the looming cuts the university could also stop the development of new health professions programs; divert tuition collections normally used for educational needs, like hiring additional faculty; sweep local balances; and apply monies from debt-service savings that result from final bond payments this year on some buildings.

Haeger said he would continue to gather input on his plan before submitting a final proposal to the Arizona Board of Regents next Monday. The $22 million comes out of the $161.6 million originally allocated to NAU by the state. It represents a 13.6 percent cut to the university's state funding, and a 5.5 percent cut from its overall $401 million budget.

The president's outlook lightened some when looking ahead to FY 2010, which begins on July 1 with an even bigger projected state deficit of $3 billion.

In his draft proposal, Haeger also said the impact on next fiscal year could be lessened through new developments, such as increased Pell Grants, a form of financial aid; Arizona's share of a still- pending $800-$900 billion federal stimulus bill; and the potentially rejuvenating effects of continued SPEED projects, which could bring construction jobs to Flagstaff.

The renovation projects, funded mostly by state lottery revenues, are still being allowed to continue as planned. For NAU, that means upgrades to the Skydome, the Liberal Arts building, the Hotel and Restaurant Management building, the North Union, and north campus infrastructure.

"So we do have some time to plan for FY10," Haeger wrote.

Nonetheless, time is of the essence for FY 2009 reductions. Implementation must begin within two weeks, Haeger said.

"Every day we delay makes these cuts harder to accomplish from a steadily declining budget," he stated.

Hillary Davis can be reached at hdavis@azdailysun.com or 556-2261.

FY 2009

$401M: NAU's original budget

$161.6M: NAU's original allocation from the state

$1.6B: State deficit

$141.5M: Cuts to three state universities

$21-22M: Cuts to NAU

Jan. 31: Gov. Jan Brewer signed legislation balancing budget

Feb. 9: NAU President John Haeger to submit final budget proposal to Arizona Board of Regents

June 30: Last day of FY 2009