Inside Iowa State: Iowa State University

January 30, 2004

Planning begins for FY05 budget

by Diana Pounds
Legislative decisions on state appropriations to the university for FY05 are at least two months away. Although President Gregory Geoffroy remains hopeful that there will be minimal or no additional state cuts to Iowa State in the coming fiscal year, he has asked university officials to develop plans to reduce spending, just in case they're needed.

"Given the state's budget situation and the uncertainty that exists, more cuts in state funding are possible," Geoffroy said. "We must start preparing for that possibility and be ready, if more cuts occur."

Consequently, Geoffroy has asked the provost and vice presidents to develop budget plans that would reduce spending in their units by an additional 2 percent in FY05.

As they plan and make budget decisions for the coming year, university officials will rely on budget principles developed by Geoffroy, with advice from his Advisory Committee on Budget Priorities and Planning. In the budget principles document, Geoffroy asks budget planners to remain true to the university's strategic plan, put the interests of students first by ensuring continued improvement of quality educational programs and avoid across-the-board cuts, which are a "recipe for mediocrity."

Under the current budget climate, Geoffroy wrote, "university administrators, faculty and staff must have the courage to eliminate or consolidate programs, if real savings can materialize, in order to advance the quality of the university." (The budget principles are at http://www.inside.iastate.edu/04/0130/principles.shtml.)

Another element of the FY05 budget will be a slight increase in the administrative fee on external income received by units of the university. The fee, which is assessed on external income not subject to indirect cost recovery, allows the university to recover part of the cost of providing institution-wide support services. The fee was set at 2 percent for the current year and was scheduled to go to 3 percent for FY05 and eventually, 4 percent. However, Geoffroy opted for a more gradual increase and set the FY05 fee at 2.5 percent.