Iowa State University


Inside Iowa State
January 21, 2000

$1.3 million to be cut from FY2000 budget

by Diana Pounds
Iowa State officials are implementing a mid-year budget cut of approximately $1.3 million. That's the university's share of an estimated $30 million in state budget cuts that state officials say are needed to reduce state spending.

Legislation enacting the budget cuts has been approved by the Iowa Legislature and was awaiting Gov. Tom Vilsack's signature at press time.

Forewarned by the governor of likely budget cuts, ISU officials have been preparing for the reductions for about a month. President Martin Jischke said he consulted with the provost, vice presidents and their administrative staffs to develop guidelines for the cuts, which amount to about one- half of a percent of ISU's state appropriations this year.

Jischke said that much of the reduction will come from salary and benefit savings on vacant positions and deferral of some equipment purchases -- "those purchases that can be sensibly deferred without affecting the offering of classes or ongoing research programs."

Jischke exempted a few budget areas from any reductions, including library acquisitions, student scholarships and student recruitment and retention programs.

"We must protect the library budget in view of rapidly rising costs of library materials," he said. We must sustain momentum in enrollment growth and progress in student retention, each of which has a major impact on tuition revenue. And we must ensure that we continue our commitment to loans, scholarships and other kinds of financial aid for students."

Iowa State's original state appropriation this year was $263 million. When the exempted areas, which total $26 million, are excluded, the $1.3 million budget reduction will be spread across approximately $237 million. Major administrative units will implement reductions, based on priorities, impact and funds still available during the second half of the fiscal year, Jischke said.

"We understand the state's circumstances and we will adapt," Jischke said. "My real hope is that this is a one-time event to bring the state budget into balance and that we will get back to a more stable financial environment.

"It is very difficult to build excellence, when one's finances are fluctuating. Stable financial support is absolutely crucial to our work."

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