March 3, 2025

Urgent Fiscal Measures to Address FY2025 Budget Challenges

Dear Gallaudet University and Clerc Center employees: 

As President Cordano explained during the State of the University last week, we are facing a projected $2.2 million operating deficit for FY2025 that requires immediate attention. Additionally, with the uncertainty surrounding federal funding due to the Continuing Resolution (CR) expiring on March 14, 2025, we must take proactive measures to ensure financial stability. Our priority is to preserve payroll and employee benefits while awaiting further funding updates. Therefore, we are implementing temporary spending restrictions, focusing primarily on non-payroll expenditures.

Action items (effective immediately):

1. New Purchase Requisitions
   • No new purchase requisitions will be approved unless deemed one of the following: 
     1. Essential expenses to keep operations running safely (e.g., utilities, cleaning supplies, legally required services), or  
     2. Emergency expenses that are reviewed and approved by me. 
   • Exceptions apply to grant funds and REAL funds.
2. P-Card Usage
   • Limited strictly to essential operational expenses.
3. Travel Restrictions
   • No new travel arrangements unless funded by grant or REAL funds or to support Clerc Center national mandates.
4. Vendor Payments
   • Payments to vendors will be delayed based on fund availability and financial priorities.
5. Compliance and Accountability
   • Any unapproved transactions that do not meet these criteria will be reviewed and reported. Non-compliance may result in corrective actions.

If you have questions, please start by working with your Budget Unit Administrator (BUA). If additional support is needed, you may submit your questions through ServiceNow.

We understand these measures may be challenging, but they are necessary to maintain financial stability. Gallaudet has successfully navigated similar situations before, and with your cooperation, we will do so again. We will continue monitoring developments and provide updates as soon as we receive additional federal funding or by the end of March.

Thank you for your support and commitment during this time. 

Brad Hermes
Chief Financial Officer