Inside Iowa State
July 7, 2000
Reduced budgets, fewer staff ahead
ISU officials relay to regents plans to cope with $8 million budget shortfall
Iowa State officials present a solemn picture on the impact an $8 million budget shortfall in state appropriations will have on the university this year.
ISU officials laid out their plan for dealing with an $8 million shortfall in state appropriations to the Board of Regents, State of Iowa, at its July 19-20 meeting in Cedar Falls.
ISU officials said they will cover a budget shortfall this year by laying off (in full-time equivalent counts) 12 staff members, eliminating 43 positions that currently are vacant, picking up only a portion of employees' health care cost increases, reducing budgets across the university, and using tuition increases originally intended for other purposes.
Under the plan, tuition hikes that were intended for various academic improvements and other revenues will cover nearly $4 million of the $8 million shortfall.
Staff cutbacks and other reductions in programs and services will account for the remaining $4 million of the shortfall.
While no faculty layoffs are planned, 4 professional and scientific staff and 8 merit staff (in full-time equivalent counts) will be laid off. Of the 43 vacant positions that will be eliminated, 18 are faculty positions, 8 are P&S staff, 8.5 are merit staff and 8.5 are graduate assistants.
Employee health insurance costs are expected to increase by 10 to 20 percent, beginning in January. ISU will pick up only 4 percent of the insurance hike.
ISU officials say the budget tightening will translate into fewer classes and larger class sizes, reductions in programs and services across the university and more difficulty in recruiting and keeping top faculty and staff. And efforts to increase student retention and graduation rates will not proceed as fast as planned.
Officials say the budget shortfall also will result in a reduction in technology transfer efforts to help Iowa businesses and industries, fewer extension education programs and fewer agriculture and nutrition programs designed for the public.
"It's unfortunate that we're forced to lay off employees, eliminate positions, and slow progress at Iowa State," President Martin Jischke said. "We'll do our best to minimize the effects of the shortfall on students, but, unfortunately, these reductions will be felt in the classroom and throughout the university."
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