Budget Impacts: What we Know and Do Not Know

Federal – Currently no COVID-related cuts:

  • As Congress begins to consider the next COVID-19 supplemental appropriations package, APLU and several national associations are working to include $380 million support for agriculture research and Extension. This hasn’t made huge headway yet but is being advocated. 
  • The $3 Trillion Heroes Act passed in the House, but remains up for debate in the Senate. 

State Funding:

  • COVID-related cuts for FY20 (20% total—spread across the year at 5% per quarter) rather than a 20% cut to the current quarter. 
  • Approximate cost to Extension is $1.2 million for current fiscal year FY20. This is Extension (Smith-Lever) broadly, not just the Extension unit (includes departments and other partnerships). 
  • Every unit in every college is being asked to look at the 5%, 10%, 15%, 20% budget reductions in case they are needed. 
  • Awaiting implications for FY21. 
  • States are advocating for federal relief for flexible-use dollars to assist with loss in revenue. Most federal dollars are currently tied to specific COVID-related expenditures. 

County Funding:

Getting feedback from some counties (approximately 20 so far) about planning for reducing/revising their Extension budgets for FY20 (ranging from 5%-25%).  

  • Local reviews of budgets, including county reserves, are occurring; and the rest of the counties will be asked to plan for potential similar asks from commissioners. 
  • FY21 may involve similar reductions—we simply won’t know until county commissioners have a better feel for their next quarter income.