Inside Iowa State: Iowa State University

INSIDE IOWA STATE
May 24, 2002

ISU officials respond to further state cuts

Iowa State officials May 22 released this statement on the impacts they anticipate as a result of cuts in state appropriations for FY03. The Iowa Legislature will convene a special session May 28. The $15.4 million in cuts the university already is implementing for FY03 represents only a portion of cuts that must be made. The other Board of Regents, State of Iowa, institutions also released statements on impacts of budget cuts.

When the state's new budget year begins July 1, Iowa State University will operate with at least $26.3 million less in state operations support than it did one year ago. This is a difficult budget situation, continuing the stresses the university experienced this year with multiple budget cuts. It is troubling to learn that the situation may actually get worse.

This week, the majority party legislative leadership proposed even deeper cuts, beyond those already signed into law by the governor. They propose to take another $2.35 million in Iowa State operating funds dedicated to economic development, $1 million for sustainable agriculture and $8 million for salary adjustments. These additional cuts, if enacted, would require us to do the following:

Cut salaries by the equivalent of 12 one-half days
Cover the cost of negotiated salary increases by laying off some employees or by reallocating funds
Effectively shut down the Leopold Center for Sustainable Agriculture
Close four research centers in the Institute for Physical Research and Technology (IPRT) and dramatically reduce IPRT's technical assistance to Iowa companies

At a time when the state's economy is struggling, this proposal to reduce support for programs that are dedicated to technology transfer and new products development, business problem-solving and jobs creation is counterproductive. In the past five years, IPRT has carried out more than 800 technical assistance programs for more than 500 Iowa companies.

In looking at the proposed 60 percent cut in funding for IPRT, the inescapable message from the majority party is that we should discontinue Iowa State's economic development programs. This certainly would hurt the citizens of Iowa.

The suggested $1 million cut in funding for the Leopold Center represents an 86 percent reduction, essentially a death knell for this nationally recognized center. Its closing would deny Iowans a valuable source of agricultural and environmental research and education.

Recognizing the state's difficult financial situation, Iowa State has worked hard during the past year to make spending reductions in a responsible manner while continuing to serve a record number of students. We began preparing for expected cuts in the next fiscal year (FY 2003) more than seven months ago when a task force of faculty, staff and students began reviewing suggested budget cuts. Their recommendations, which total $15.4 million, are being carried out. Even these cuts will not completely address the fiscal year 2003 shortfall. Here are some of the very significant cuts:

Eliminating 132 positions
Transferring 73 jobs off state appropriations
Leaving vacant the Office of Vice President for External Affairs
Eliminating several other major administrative positions
Eliminating some courses and merging some academic departments
Further delaying more than $60 million in construction and deferred maintenance projects
Charging fees for many Extension programs
Reducing energy consumption by at least $1.5 million

Based on the level of funding approved by the governor, Iowa State's FY 2003 appropriation would be similar to that of five years ago. But circumstances have changed dramatically during that period of time: we have 2,400 more students and approximately 80 fewer faculty; class sizes are increasing, and the number of course sections is declining.

Higher education is people-intensive. Salaries represent a major portion of our expenses. By not adequately funding salary increases mandated by enacted legislation, the legislature forces Iowa State to make up the difference. Our capacity to do that is severely limited.