CONTACT: STEVE PARROTT
101 Jessup Hall
Iowa City IA 52242
(319) 335-0552; fax (319) 335-0558
Release: June 13, 2002
University announces principles for budget reductions in FY03
The University of Iowa today announced the principles for decisions on budget
reductions to be made in for the upcoming 2002-03 fiscal year (FY03). Because
of a reduction in state appropriations, the University will reduce its FY03
general education operating fund by $14.6 million from its FY02 allocation.
University-wide, state appropriations for FY03 will be $18.4 million less
than what they were for FY02.
The University will be receiving an additional $10.1 million from state
appropriations to fund salary increases for general education fund employees.
However, that is about $1.9 million short of what is needed to fund 3 percent
salary increases for those employees.
The principles were developed by President Mary Sue Coleman and University
vice presidents in consultation with collegiate deans and leaders of the faculty,
staff and students. The principles are as follows:
1. The 2000-2005 University of Iowa strategic plan and core values will
provide the framework for developing the university's budget. The focus
should continue to be on preserving excellence and supporting the most vital
missions of the university.
- Core principles that have been used to guide budget adjustments will
continue to be observed where possible. Those principles include maintaining
the quality of central academic research programs, keeping in place the
four-year graduation plan, protecting student financial aid, and protecting
the acquisitions budget for the university library.
2. The president and university administrators will continue seeking input
from faculty, staff and student leaders on budget reductions and allocations
of reductions across units as well as in identifying potential cost savings.
- Communication with internal and external constituencies by the president,
UI administrators and collegiate administrators will be timely and on-going.
3. Budget reduction strategies must protect the university's ability to
recruit and retain a high quality and diverse student body.
- Maintaining the university's reputation for offering a high quality
educational experience will be of paramount importance.
- At a minimum, financial aid will be established at 16 percent of tuition
- The university will protect to the extent possible the ability of students
to graduate in a timely fashion (including the four-year graduation contract).
4. The university will maintain a robust research and scholarly enterprise.
Essential support to funded research programs and research support units
will be maintained at a level that does not unduly jeopardize the continuation
or growth of external funding.
5. Vice presidents, deans and unit directors will be given flexibility
in achieving savings within a framework that includes these principles:
- Budget reductions must achieve net savings to the General Education
- Layoffs/furloughs will be implemented when and to the degree necessary.
All university notice periods related to layoffs/furloughs will be honored.
- Decisions about cost reductions must always consider the impact on revenue
- Budget reductions must produce required savings in FY 2003 and savings
must be recurring.
- Units should review existing programs in light of university, collegiate
and departmental missions and goals, including the university's diversity
goals. Based upon centrality and quality, selected programs should be
subject to increased reductions or elimination using our well-established
- Units should seek out enhanced efficiencies, including consolidation
of programs and services within and across units.
- Units should maximize savings from current and upcoming position vacancies.
6. The university's response to the reductions in state appropriations
will focus on those units and programs supported by state appropriations,
recognizing that there is a high degree of mutual interdependence among
university programs, regardless of the source of funding.
7. The allocation to resource pools such as building repair, equipment,
classroom improvements, and faculty start-up will be scrutinized to determine
where deferrals can occur or where investments must be continued, consistent
with our stewardship responsibilities.