University of South Alabama Prepares For Deficit

MOBILE, Ala. (AP) - The University of South Alabama is warily
anticipating a $10 million budget deficit in the new fiscal year
despite a tuition increase and record enrollment.
President Gordon Moulton says the university would dip into its
reserves to cover the shortfall, which is its largest ever.
USA has about $174 million in reserve.
The $677 million budget for 2009-10 reflects a revenue increase
of $9 million in tuition and fees. But there's still a projected
$13.7 million loss - 11.3 percent - in appropriations from the
state. The new fiscal year begins Oct. 1.
A year ago, the school limited overtime, stopped paying for
employee cell phones and instituted a hiring freeze for staff
positions. As a result, 250 positions have remained unfilled.