March 13, 2009FY10 budget planning
Target for cuts rises to 11 percent
by Anne Krapfl
The latest reduction target in budget planning for FY10 is $30.6 million --- an 11 percent cut in state funding. This includes making permanent the $7.2 million in one-time reductions to the current budget. Associate vice president for budget and planning Ellen Rasmussen talked about the evolving budget for the next fiscal year during a campus forum in the Memorial Union March 5.
Rasmussen noted that nothing is final until the 2009 Legislature approves the FY10 state budget and adjourns by May 1, but the new reduction target is based on information from that body's education appropriations subcommittee. All budget subcommittees have been asked to cut at least one point beyond the previous target of 9 percent.
One key variable in the FY10 budget development will be the state revenue update that comes out of the quarterly Revenue Estimating Conference on March 20. A second potential variable --- federal stimulus funds destined for Iowa --- has been removed from the equation. Rasmussen said Gov. Chet Culver decided that planning for the budget year that begins July 1 won't be altered by possible stimulus dollars.
Rasmussen said FY10 reductions will not be across-the-board, but differential and reflective of strategic priorities. The goal is to forward reduction targets to units by April 1. Iowa State has to provide a preliminary FY10 budget to the state Board of Regents at its April 29 meeting, and a final budget at the June 10 meeting.
In response to specific questions, Rasmussen offered this insight into the budget development process:
FY10 budget reductions will not be across-the-board, but differential and reflective of strategic priorities.