Inside Iowa State

June 17, 2004

Regents approve FY05 budgets

by Anne Krapfl

Iowa State will start the new fiscal year on July 1 with a general operating budget of $422,510,553; about $3.8 million leaner than it was on July 1, 2003. The Board of Regents, State of Iowa, approved FY05 budgets for the regents schools during its meeting June 16 at Lakeside Laboratory in Okoboji.

Additions to the revenue side of Iowa State's budget include $1.9 million in additional tuition revenue, an anticipated $2.25 million increase in indirect cost recovery revenue, and $8.5 million reallocated from existing budgets.

Additions to the cost side of the budget include $9.5 million in compensation increases and $3.9 million in planned cost increases, for priorities such as student financial aid, fuel and utilities, library materials and the additional utility, custodial and maintenance costs associated with new facilities, including the Gerdin building, Hoover Hall and the biosecurity unit on the Vet Med campus. (see http://www.iastate.edu/~nscentral/releases/2004/jun/budget.shtml for budget details).

Athletics budgets

The regents also reviewed athletic department budgets. The Cyclone FY05 athletics budget of $27.0 million is $1 million smaller than the current year's budget. Decreases on the revenue side are associated with one less home football game this fall, a decline in conference income and post-season pool income and less endowment income. Decreases on the cost side include the absence this year of the one-time salary buyout in men's basketball, reduced expenditures for the football program and reduced budgets in all non-sport aspects of the department, such as administration, ticket operations, training and marketing.

Demolition of dairy farm buildings

In other action, the regents approved the proposed demolition of 15 buildings at the former Mortensen Road dairy farm, including sheds, silos and some small barns. Buildings with potential historical significance will remain, including the original north dairy barn built in 1907, a barn and milking parlor built in 1917 (with additions dating to the 1930s) and a teaching pavilion built in 1921. The demolition budget is almost $486,000, which will be covered by the future sale of the Ankeny dairy research farm.

Presidents' salaries

The regents approved 2 percent salary increases for the top executives at each of the five regent institutions and in the board office. President Gregory Geoffroy's salary moves to $293,250 on July 1.

Discontinued programs

The board approved the discontinuation of several academic offerings, due to small enrollments, declining faculty expertise or (in the case of zoology and botany degrees) expanded programs that students can tailor to their interests. The discontinuations include:

• M.S. degree in industrial relations
• M.S. and Ph.D. programs in biomedical engineering
• Undergraduate majors in botany, zoology, and plant health and protection

All students enrolled in these programs will be allowed to complete their degrees.

Department merger

The regents also approved Iowa State's proposal to merge two departments: industrial education and technology (College of Education) and agricultural and biosystems engineering (College of Agriculture), effective July 1. There is some overlap between the industrial technology and ag systems technology undergraduate programs. The change will integrate the faculty, staff, facilities, resources and, eventually, degree programs of the former into the latter. Planning for curriculum changes resulting from the merger will begin this fall.

Good leadership in tough times

Board members commended university leaders for "leading the way" in identifying ways to be more efficient at a time of declining state funding for higher education.

Renovated vet teaching hospital to be named

The board approved Iowa State's proposal to name the renovated veterinary teaching hospital for Dr. Eugene and Linda Lloyd, Ft. Myers, Fla., who last month gave a $3.5 million gift to the College of Veterinary Medicine. The $47.3 million construction project includes a private fund-raising component of $7 million. Work is scheduled to begin early in 2005.

FY05 capital projects

Lastly, the board approved a list of anticipated new capital projects at Iowa State that could come forward in FY05. New construction projects include a student-athlete academic services facility (projected cost: $6 million, to be covered by private gifts), an alumni center ($9 million, private gifts), and a west campus parking ramp ($6 million, parking division revenues). Ongoing projects this year include $1 million in fire and safety improvements, phase 1 of an addition and remodeling at Coover Hall ($16 million, academic building bonds and private gifts), teaching hospital and diagnostic lab at the Vet Med campus ($47.3 million, academic building bonds and $7 million in private gifts) and phase 1 of a new dairy/animal science education facility to replace university farms in Ames and Ankeny($15.3 million, proceeds from future sale of Ankeny farm).

Next meeting

The regents' next meeting will be Aug. 3-4 in Sioux City.