INSIDE IOWA STATE
October 26, 2001
Planning begins for FY03 cuts
by Diana Pounds
It's a busy time for budget planners on campus. Here's a recap of budget
activities over the past few weeks.
- 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.
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
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
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
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: firstname.lastname@example.org.
Ames, Iowa 50011, (515) 294-4111
Published by: University Relations,
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