October 24, 2003
University needs to cut $8.3 million from FY04 budget
by John McCarroll
Work continues on Iowa State's plan to comply with Gov. Tom Vilsack's 2.5
percent budget reduction order for this fiscal year (FY04). President
Gregory Geoffroy said he hopes to finalize $8.3 million in budget reductions
by the end of next week.
"Initially, I had hoped to advise faculty, staff and students on the budget
plan this week, but it's a complex process and we're carefully and
thoroughly looking at all functions within the university. It's taking a
little longer than I had planned," Geoffroy said.
On Oct. 10, Gov. Vilsack ordered a 2.5 percent across-the-board reduction in
state spending. This will mean the loss of $5.8 million from Iowa State's
base budget. In addition, Geoffroy said the university has a $1.5 million
shortfall in tuition revenue and a $1 million shortfall in income from
indirect cost recovery.
Geoffroy is consulting with the Advisory Committee on Budget Priorities and
Planning, deans and members of his Cabinet to develop the plan to reduce
spending. Three components of the university's general fund budget are
excluded from the cuts: student financial aid, Office of Enrollment Services
and the budget for fuel and utilities.
"We're going to keep our commitment to students to help them finance their
education and maintain the resources we have committed toward enrolling more
students in fall 2004," Geoffroy said. "As we deal with this additional cut
in state support, tuition income becomes even more important."
Reductions in state appropriations totaling $58 million over the last four
years have severely limited any flexibility to absorb this latest cutback,
Geoffroy said. The loss of $5.8 million reduces Iowa State's appropriation
this year to $227 million, slightly less than the appropriation seven years
ago for FY97 -- without adjustment for inflation.
Iowa State's enrollment is up more than 2,400 students this year, compared
with seven years ago.
Ames, Iowa 50011, (515) 294-4111
Published by: University Relations,
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