Inside Iowa State: Iowa State University

INSIDE IOWA STATE
October 26, 2001

Planning begins for FY03 cuts

by Diana Pounds

Employee furloughs are no longer being considered for FY02.
President Gregory Geoffroy has identified funds that will be used to cover mid-year cuts (FY02) in ISU's state appropriation.
Officials are shifting attention to FY03, which promises to be another challenging budget year.

It's a busy time for budget planners on campus. Here's a recap of budget activities over the past few weeks.

Mid-year de-appropriation now at $11.4 million; furloughs dropped
Iowa State now faces an $11.4 million mid-year de-appropriation in state funds for the current fiscal year (FY02) rather than the $18.6 million cut that was proposed earlier by Gov. Tom Vilsack. Because of the smaller reduction, officials have dropped a proposal to save funds by furloughing university employees this fiscal year. President Gregory Geoffroy has determined the de-appropriation will be absorbed through delays in building construction and repairs, use of part of this year's tuition increase and lower-than-expected employee health care costs.

Geoffroy: Selective cuts, re-investments in FY03
University officials anticipate that Iowa State's FY03 state appropriation will be $27 million to $32 million less than it was at the beginning of FY02. Those numbers include the 4.3 percent de-appropriation for the current fiscal year and an anticipated further reduction in state funding for FY03. New tuition revenue will offset part of the loss in state funds. But, even with tuition revenue, ISU budget planners anticipate the FY03 budget will be smaller than the budget at the beginning of FY02.

"Ongoing reductions in state funding require that we set a long-term course for making permanent changes to the university," Geoffroy said. "Across-the-board cuts to units will not strengthen Iowa State. To make progress on the strategic plan and build excellence in academic programs, we must be selective, both in making budget reductions and reinvesting."

Task force recommends 4 percent cuts in FY03 plans
Geoffroy is counting on a task force that he appointed in August The Task Force on Strategic Effectiveness and Budget Priorities to assist him in meeting the budget challenges and ensuring that priorities are in line with the university's goals and strategic plan. The task force is led by Provost Rollin Richmond.

Geoffroy has accepted a task force recommendation calling for the provost and vice presidents to prepare plans to reduce the FY03 budgets of their units by 4 percent, or a total of $18.7 million for the entire university. That's slightly more than the 2 to 3 percent in budget reductions that ISU officials anticipate will be needed next fiscal year, Richmond said. It should provide a cushion in case the budget situation worsens and also provide an opportunity for differential budget changes among units. The task force will review the reduction plans and make its recommendations to the president by March 1, 2002.

Geoffroy also has requested that the provost and vice presidents prepare plans to enhance the excellence of programs. Enhancements would be funded by any revenues that become available as a result of budget changes. The task force will review these plans, making recommendations to the president by April 1.

The task force also is seeking ideas from the university community on ways to reduce university expenses or increase effectiveness. Comments can be sent to: task-force@iastate.edu.