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Q&A
Discussion on CUNY's unfunded mandatory cost increases in the state budget
1:19:11
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109 sec
Council Member Eric Dinowitz inquires about the impact of unfunded mandatory cost increases for CUNY in the fiscal 2026 state adopted budget. CFO Sherif Soliman explains the estimated costs and how CUNY plans to manage them.
- CUNY faces up to $25 million in unfunded mandatory costs university-wide
- General operating support appropriations in the state budget help offset some of these costs
- The state covered full bonus and retroactive pay for the PSC contract and FY26 wage increases
- CUNY will manage unfunded costs within the budget but notes that they could become problematic if additional support decreases over time
Eric Dinowitz
1:19:11
Thank you for that clarification.
1:19:13
The the fiscal twenty six state adopted budget does not include funding for mandatory cost increases for annual salary increments, OTPS, inflations, building rentals and energy.
1:19:25
So what is the estimated cost that CUNY will have to bear due to these being unfunded and of course how will that impact student focused programs?
1:19:47
25,000,000?
Sherif Soliman
1:19:36
Sure.
1:19:36
So thank you for the question.
1:19:37
On average, our mandatory needs unfunded cost university wide could be up to $25,000,000.
1:19:48
Could be up to $25,000,000.
1:19:51
That's on average, some years more, some years less.
1:19:54
But there have been general operating support appropriations that have been included in the state budget.
1:20:01
Last year there was $36,000,000 for the senior colleges in general operating support.
1:20:05
That continues this year.
1:20:07
Right?
1:20:07
There's also the year prior was 17,000,000 that's been allocated out to the colleges.
1:20:13
That has also continued.
1:20:14
And then, of course, the state this year covered the full bonus in retro for the PSC contract and the f y twenty six wage increases for the PSC contract.
1:20:25
So we'll manage the senior colleges will manage those unfunded costs within the budget because of those other appropriations.
1:20:33
But clearly, over time, they start to add up.
1:20:38
And so if the additional general operating support dries up from year to year and we just have that baseline of what was offered in the past, then you start to have then you start to have a real problem.
1:20:52
So we always watch it very closely, but we are appreciative to the governor, to the assembly, to the senate for a budget that meets our labor needs.