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December 7, 1995

Tuchi: FY95 result was shortfall of $342,000

Pitt finished the 1994- 95 fiscal year with a $342,000 deficit in its unrestricted education and general (E&G) budget — not a multi-million dollar surplus, as reported in a Nov. 22 University Times story.

The story, "Hiring, spending freezes produce $5.2 million FY 95 budget surplus," was based on information provided to the Times by Ben J. Tuchi, senior vice chancellor for Business and Finance.

However, in a Dec. 1 memorandum to the University Times, Tuchi explained that Pitt's overall $5.2 million surplus last year was made up of unspent restricted funds, not unrestricted E&G monies that could have gone toward faculty and staff salaries.

Tuchi wrote:

"The University recovered almost entirely from its initially estimated $5.7 million deficit as the result of the freezes on hiring and purchasing that Pitt's senior administration imposed in April. However, the recovery resulted in the University unrestricted education and general budget (the component of the overall budget that supports compensation) showing a $342,000 operating loss and not a $5.2 million surplus disclosed in the aforementioned [University Times] article.

"The $5.2 million surplus referred to in the article emanates from unspent restricted funds. Cash gifts specified for department usage, athletic event ticket surcharges, sponsored research and public service receipts in advance of work performed, and unspent endowment earnings restricted to departments made up these restricted funds. The important point is that the $5.2 million cannot be spent on purposes other than those intended by the donors and grantors."

–Bruce Steele

Filed under: Feature,Volume 28 Issue 8

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