Inside Iowa State

Jan. 12, 2007

Regents send FY08 request to state

by Anne Krapfl

With the 2007 Iowa Legislature convening this week, the process of developing the university's FY08 operating budget is about to accelerate.

President Gregory Geoffroy said Iowa State has several priorities in the funding request the Board of Regents, State of Iowa, has sent to the state. They are:

• Recurring, permanent funds to replace $8.4 million in one-time funds in the current (FY07) budget that have been used to cover ongoing costs.
• A 5.2 percent inflationary increase in operating budgets. This percentage matches both the tuition increase resident students will pay next year and the median of the projected Higher Education Price Index for 2008. The inflationary increases in appropriations and tuition would provide the resources for increased operating costs for FY08, including faculty and staff compensation increases and other cost increases, such as utilities and opening new buildings.
• An additional $7 million for faculty salary increases to make ISU salaries more competitive among peer universities. Iowa State currently is ranked 11th of the 12 universities, and these funds should move Iowa State to the eighth spot. The board of regents would like to improve Iowa State's position on the peer list by two or three spots each year for three years.

Geoffroy has said publicly many times that the request to make the one-time state funds permanent is especially urgent.

"I am encouraged by the positive reaction received so far to the regents' budget request, although it is very ambitious," he said. "In addition to the funding for inflationary cost increases, it is especially important for us to receive sufficient funding to make the $8.4 million of one-time funds permanent in our budget.

"If those funds are not received, we will have to reduce our budgets elsewhere in order to cover those costs," he added.

Contingency planning

This fall, Geoffroy directed the vice presidents to develop contingency plans for their divisions that would reduce their budgets by up to 2 percent, in case the state funding falls short of the requested amounts. A 2 percent cut generates about $7.5 million. Those plans were due in early January.

"I remain hopeful that we will receive strong support from the state and that these cuts won't be necessary," Geoffroy said.

Chet Culver officially becomes governor on Jan. 12 and must present his FY08 state budget to the Legislature by the end of the month. In the past, the governor's funding recommendation for higher education has provided an early indicator for what the regent universities can expect to receive.

Geoffroy said budget leaders on campus also will continue to refine estimates on cost increases for FY08 as more data becomes available this semester. In addition to salary and benefits increases, some of the larger annual increases include utilities, library materials, central costs for information technology and costs to take care of newly opened buildings (this year, Morrill Hall and Hixson-Lied Student Success Center; next year, the electrical and computer engineering addition and the first phase of the dairy education and research facility).

Other funding requests

Iowa State also is requesting $53.9 million in state support for construction of a new chemistry building. The university received $5 million from the state this year to plan the facility and architects are making progress on that work. About $15 million in private gifts also will support this project.

And Iowa State is asking for $28 million for a new facility that would provide office and lab space for researchers in the biorenewables fields. Geoffroy said this request and plan is independent of pending -- or future -- proposals to major research funders such as BP or the U.S. Department of Energy. Regardless of the outcome of those proposals, the university is committed to being at the forefront of biorenewables research and technology transfer, he said.

Finally, also under the new initiatives umbrella, Iowa State will seek funding for new faculty positions in the area of biorenewables.

President Gregory Geoffroy outlines Iowa State's priorities for the FY08 budget. The Board of Regents, State of Iowa, sent it's funding request to the state this week.

"I am encouraged by the positive reaction received so far to the regents' budget request, although it is very ambitious. In addition to the funding for inflationary cost increases, it is especially important for us to receive sufficient funding to make the $8.4 million of one-time funds permanent in our budget. If those funds are not received, we will have to reduce our budgets elsewhere in order to cover those costs."

- President Gregory Geoffroy