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April 16, 2004No new state funds in early FY05 budgetby Anne KrapflZero new state dollars in FY05, for either operating budgets or salaries, unfortunately doesn't mean there will be no further budget cuts at Iowa State. As proposed in preliminary plans, Iowa State will reduce its FY04 revised operating budget by another 2 percent ($8.4 million) to come up with some of the funds to pay for additional expenses next year (FY05): the employer's share of health care cost increases, salary increases and the usual list of unavoidable cost increases -- things like student financial aid, using new buildings, rising prices for library materials, utility costs and technology infrastructure. University leaders will present a preliminary budget for the fiscal year that begins July 1 to the Board of Regents, State of Iowa, April 21, when the board meets in Vinton. It includes $14.4 million in new expenses. Iowa State's FY05 final budget will be discussed at the board's June meeting. What is unlikely to change between now and June is the Iowa Legislature's decision to maintain, but not increase, funding for the regents schools next year. In spite of that, President Gregory Geoffroy said he is committed to funding salary increases called for in the Merit employee contract and awarding modest faculty and non-Merit staff increases. At this time, it appears the average salary increase for the latter group will be in the range of 1.5 percent to 1.8 percent. Geoffroy will announce a salary increase policy for FY05 later this month. Aside from the internal reallocation, additional revenue next year will come in two ways. Increased tuition and fees will generate an additional estimated $5 million. The increase in tuition revenues is less than in previous years, due both to smaller tuition increases (8.3 percent tuition increase for resident undergraduates next fall) than previous years and a slight decline in enrollment due to a larger-than-usual number of students who graduated last year. Budget planners also anticipate an additional $1 million in indirect cost recovery on research contracts and grants. Any change in funding decisions made by the Legislature before it adjourns later this month would require university leaders to adjust Iowa State's proposed budget for FY05. An early look at the budget: FY05 additional revenues (estimated)
FY05 new expenses (estimated)
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Ames, Iowa 50011, (515) 294-4111 Published by: University Relations, online@iastate.edu Copyright © 1995-2004, Iowa State University. All rights reserved. |