CONTACT: MARK BRAUN
107 Jessup Hall
Iowa City IA 52242
Release: May 18, 2000
UI president gives response to budget limitations
CEDAR FALLS, Iowa -- At the Board of Regents, State of Iowa meeting today
University of Iowa President Mary Sue Coleman discussed progress in developing
the FY2001 budget for the university. "The university has a funding problem
of $10.7 million that it must address in next year's budget," Coleman
told the regents.
Coleman said the funding problem includes a base operating appropriations
reduction, salary underfunding, inflationary cost increases, cost of opening
the new biology building, engineering expansion and the University Services
Building, as well as operating support for the National Advanced Driving Simulator.
Coleman discussed what the university will do to address the budget shortfall.
"This is a year of retrenchment, and all budget decisions will be prudently
made within the context of our strategic plan. I have developed a list of
principles for developing the FY2001 budget." The principles include:
-- The 2000-2005 strategic plan will serve as a guide for all budget reductions
-- Decisions on the best means to manage allocated budget reductions and
salary shortfalls will be made within collegiate and administrative units
to the greatest extent possible.
-- Salary setting will be in accordance with the salary policy, including
meeting the requirements of the collective bargaining agreements and an average
budgeted salary adjustment of four percent for faculty and professional and
-- Every effort will be made in budgeting to sustain the ability of students
to graduate in a timely fashion through access to appropriate courses.
-- Unit heads will be responsible for taking all reasonable steps to avoid
layoffs or furloughs as a result of these budget reductions and will seek
opportunities for using attrition or hiring delays to produce needed savings.
-- Student financial aid will be maintained at 16 percent of anticipated
-- Non-salary price inflation will not be funded -- except for library acquisitions.
Library acquisitions will be funded to the degree feasible, but not at the
level of actual price inflation nor at the funding level provided in recent
-- Commitments to students on the use of tuition derived from the creation
of mandatory student activities and services fees will be met without question.
-- Equipment purchases and capital improvement projects cannot be deferred
indefinitely, and temporary reductions in these budgets made in FY2000 and
FY2001 will need to be restored in FY2002.
-- The strategic planning program review process will be augmented to look
for additional reallocation opportunities for FY2002 and beyond.
A decision that has already been made is to postpone the $750,000 renovation
of Phillips Hall Auditorium, a 300-seat classroom that needs substantial renovation.
The work will be postponed until additional funding becomes available. Other
deferred projects include the replacement of a $332,000 heating, ventilating
and air conditioning system for Gilmore Hall, as well as $300,000 in general
classroom and campus improvements. Likewise, a decision was made to postpone
the replacement of the Recreation Building floor which was to cost approximately
Coleman reiterated her commitment to students regarding use of tuition revenue
generated from the creation of a $76 mandatory student services and activities
fee. These funds were generated to support the library, help with instructional
equipment, support student financial aid and to meet similar students' needs.
In concluding her discussion about the budget, Coleman appealed to everyone
interested in the future of the university to tell their local legislators
to support Iowa's public universities. "I hope this year is a wake-up
call to all Iowans. Our public universities are indeed precious resources.
It is absolutely critical that students, parents, alumni, and friends of the
university add their voices to the discussion over the state's support of
public higher education."
Details of the University of Iowa's budget for FY2001 will be presented
to the Board of Regents, State of Iowa at its June meeting.