As part of our ongoing efforts to keep the McMaster community informed about the financial situation of the University I wanted to let you know about a new advisory committee to address the impact of the current economic condition on McMaster. It is being created to help us deal as effectively as possible in these uncertain financial times.

The President's Advisory Committee which will be chaired by Board member David Lazzarato and will include representatives from groups across campus as well as from outside of the University.
Consultation will be an important part of its work and we will count on the Committee to make recommendations and to provide good advice and counsel to the various governance bodies of the University including the Finance Committee of the Board of Governors.

The volatility of the financial markets, the mounting concerns in the auto and manufacturing sectors and the global nature of the downturn have combined to leave all organizations in both the public and private sectors with a great deal of uncertainty about what the future will hold.

At McMaster, as at other universities, our endowment and pension funds have seen significant decreases in value. While we know that this will impact our operating budget the extent of that impact cannot yet be determined. The economic swings have also made it difficult for governments to make firm commitments on funding levels.

The President's Advisory Committee will play a key role in helping to determine our path forward as we work to reduce the deficit in this year's operating budget and to look towards next year's budget. While we know difficult decisions will have to be made, I firmly believe that by bringing a wide range of interests and expertise together McMaster will be in the strongest possible position to meet the fiscal challenges we face. The Committee will also help us to find opportunities to create new ways of working together so that McMaster can not only maintain but also build on its reputation in both teaching and research.

As we head into the early part of 2009 we will be focused on developing financial plans based on a variety of possible economic scenarios. These plans along with the committee membership and the work of the advisory committee itself will be shared with the McMaster community through the monthly McMaster Update report, the Daily News, and through other ongoing communications.

Developing and implementing a strong financial plan will involve everyone on campus and I thank you in advance for your ongoing commitment to McMaster.

Yours sincerely,

Peter George