CONTACT: STEVE PARROTT
5 Old Capitol
Iowa City IA 52242
(319) 335-0552; fax (319) 335-0558
Release: May 10, 2001
UI announces outline of plan to deal with state funding reduction
IOWA CITY, Iowa -- The Iowa Legislature, in its annual session just adjourned
on Tuesday, reduced the University of Iowas state appropriation for
FY 2001-02 by about $19 million, the largest single reduction ever.
Under the funding plans approved by the Legislature and sent to Gov. Tom
Vilsack, the universitys general education fund, which supports the
basic educational mission, will be reduced by $14.7 million from the current
fiscal year. To partially offset that reduction, university officials announced
today that they will use $3.6 million in new tuition revenue that otherwise
would have been used for initiatives aimed at improving education, such as
continuing revitalization efforts at UI Libraries and updating instructional
equipment in classrooms.
With the conclusion of the Legislative session, UI President Mary Sue Coleman
and other administrators, including collegiate deans and department heads,
will make final determinations of how to deal with the budget reductions.
Coleman has articulated a set of principles that calls for following the universitys
strategic plan and core values in making budget cuts. Among other things,
those principles call for:
- Protecting the universitys ability to recruit and retain students
by maintaining the quality of education, keeping financial aid at 16 percent
of tuition revenue, and protecting, as much as possible, the ability of
students to graduate in a timely fashion.
- Maintaining a robust research and scholarly enterprise.
- Deferring some building repairs and equipment and classroom improvements.
- Leaving unfilled positions vacant and implementing layoffs only as a
UI officials also announced that student financial aid and the library acquisition
funds would be shielded from budget cuts, and that university administrative
and support units would be assigned larger budget cuts than the UIs
Although the Iowa Legislature has appropriated $79.3 million for salary
increases for state employees, there is still uncertainty as to how the Iowa
Department of Management will allocate those funds among state agencies, including
the Regent universities.
Those are among the highlights of a general outline of the budget situation
that UI officials will present next week when the Board of Regents, State
of Iowa, holds its monthly meeting in Council Bluffs. More detailed budget
information will not be available at least until the June meeting of the Board