In a letter to the University of Massachusetts community late Thursday night, Chancellor Robert C. Holub addressed the issue of university budget for the next fiscal year.

In the campus address, Holub discussed budget cuts from the state, cuts by the University in funding for campus projects, and possible fee increases for students.

Holub began the letter by addressing the reduction of funds allocated to the University by the Governor’s office in Boston. According to the Chancellor, UMass will receive $196 million in the Governor’s budget, which was announced on Wednesday, January 26, $18.8 million less than the University received last year.

Due to the end of federal stimulus money and a $9 million in salary increases for university employees; there will be a $28 million gap between the 2011 fiscal year budget and 2012.

To close the gap between allocated funding and the university’s expenses, Holub said, “I have asked the Budget Planning Task Force to consider carefully what kind of a fee increase we need to request in order to preserve our educational quality and our revenue-generating operations if we are faced with a budget resembling the governor’s budget.”

“If we are going to reach our goal of ascending into the ranks of the foremost research institutions in the nation, we must have appropriate funding,” said Holub, defending the proposed fee increases.

The Chancellor ended the letter on a somber note, with the final sentence reading, “In sum, the campus community should recognize that we are still facing serious financial challenges in the coming fiscal year.”

Michelle Williams can be reached at [email protected].