INSIDE IOWA STATE
May 18, 2001
Legislature adjourns; budget questions remain
by Anne Krapfl
Iowa State University's operating budget for the fiscal year that begins
July 1 will be about 6 percent leaner than the current budget. Iowa
legislators approved a state government funding package May 8 that will
result in about a $15.8 million reduction for Iowa State. Gov. Tom Vilsack
has yet to sign the proposed budget.
Interim President Richard Seagrave said he anticipates a total budget
reduction of somewhere between $18 million and $20 million for the new
fiscal year. Under-funded employee health insurance costs that took effect
in February will add approximately $2.5 million to the university's
shortfall for fiscal year 2002.
"This funding shortfall presents a significant challenge to our university
community," Seagrave said. "At the same time, I'm relieved the reduction
isn't as severe as the numbers that were being discussed earlier."
Seagrave said he and other university administrators continue to plan
strategies to address the shortfall. Closing the university for a time over
the winter holidays, as was proposed last month, remains an option. No final
decision has been made on a winter closing. Seagrave emphasized that
employees should be implementing energy conservation methods announced in
In other budget business, lawmakers:
- Approved $10.9 million in state funding for Iowa State's top
capital priority construction of a College of Business building ($4.2
million in FY 2002; the remainder in FY 2003). That funding will be matched
with $13.4 million in private gifts to complete the project. Site
preparation work is scheduled to begin this fall.
- Did not provide increased funding for the Plant Sciences Institute. The
governor's early budget included an increase of $3 million for the
- Approved a salary increase and benefits package (which covers salary
increases for all state employees) of $79 million, short of the $91 million
recommended by the governor. ISU officials haven't learned yet what the
university's piece of that $79 million will be.
- Eliminated the state funds for the student work-study program. The
university still will receive federal work-study funding.
Ames, Iowa 50011, (515) 294-4111
Published by: University Relations,
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