Iowa State faces budget cut of $3 million
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Iowa State may suffer a budget cut of approximately $3 million.
Board of Regents President David Miles said in a press release Thursday the Regents will comply with Gov. Chet Culver’s request that the Board of Regents cut approximately $7.5 million as part of a statewide budget cut of up to $40 million.
The potential cut to the Regent institutions is nearly 19 percent of Gov. Culver’s requested $40 million decrease in spending. Higher education makes up roughly 15 percent of the state’s budget.
Although $3 million may seem a somewhat staggering figure, it is only a small portion of Iowa State’s annual budget.
“[$3 million] is approximately 1 percent of our state appropriations, and about .5 percent of our general university operating budget,” President Gregory Geoffroy wrote in an e-mail.
However, Geoffroy wrote that, at the moment, the numbers are purely speculative, although, he continued, the university does have some idea of what to expect.
“It is important to note that we have received no official communications from the Governor’s office or from the Regents about budget cuts,” he wrote.
Geoffroy also noted that if the cut is, in fact, $3 million, he wrote that he doesn’t anticipate changes in tuition and will try to handle the cuts through the central administration.
“We will try to handle that reduction centrally, rather than passing it on to our colleges, if that is indeed the amount,” Geoffroy wrote.
However, officials are aware of the consequences that could come with the cut.
“This will greatly reduce our ability to fund other university needs as they arise throughout the rest of the year,” he wrote.
John McCarroll, executive director of university relations, said the cuts would likely affect repair work, maintenance, and start-up packages for teachers hired in the middle of the year.
“We’ll simply have to not carry through on some projects we intended to fund this year,” McCarroll said.
McCarroll also said that these budget cuts are coming at a time of economic uncertainty.
“We have expected that we’d need to make some changes due to the current economic situation,” McCarroll said.
However, the projected cuts are coming at a more manageable time of the year, he said.
“Certainly, we don’t like to have any kind of budget cut,” McCarroll said. “However, it’s better to deal with this earlier in the fiscal year than later.”
McCarroll said we need to know exactly what the university is facing before it can move forward with cuts.
“It’s a little premature to speculate on the specifics of how we’ll deal with this … it’s important for us to get a final firm number on cutbacks before we can make any detailed plans,” McCarroll said.
Geoffroy explained the university needs to be careful when it comes to money.
“We do need to be cautious with our expenditures until we have a better understanding of what lies ahead,” Geoffroy wrote. “Contingency plans are being developed for several possible budget scenarios.”
Board of Regents President David Miles said in a press release Thursday the Regents will comply with Gov. Chet Culver’s request that the Board of Regents cut approximately $7.5 million as part of a statewide budget cut of up to $40 million.
The potential cut to the Regent institutions is nearly 19 percent of Gov. Culver’s requested $40 million decrease in spending. Higher education makes up roughly 15 percent of the state’s budget.
Although $3 million may seem a somewhat staggering figure, it is only a small portion of Iowa State’s annual budget.
“[$3 million] is approximately 1 percent of our state appropriations, and about .5 percent of our general university operating budget,” President Gregory Geoffroy wrote in an e-mail.
However, Geoffroy wrote that, at the moment, the numbers are purely speculative, although, he continued, the university does have some idea of what to expect.
“It is important to note that we have received no official communications from the Governor’s office or from the Regents about budget cuts,” he wrote.
Geoffroy also noted that if the cut is, in fact, $3 million, he wrote that he doesn’t anticipate changes in tuition and will try to handle the cuts through the central administration.
“We will try to handle that reduction centrally, rather than passing it on to our colleges, if that is indeed the amount,” Geoffroy wrote.
However, officials are aware of the consequences that could come with the cut.
“This will greatly reduce our ability to fund other university needs as they arise throughout the rest of the year,” he wrote.
John McCarroll, executive director of university relations, said the cuts would likely affect repair work, maintenance, and start-up packages for teachers hired in the middle of the year.
“We’ll simply have to not carry through on some projects we intended to fund this year,” McCarroll said.
McCarroll also said that these budget cuts are coming at a time of economic uncertainty.
“We have expected that we’d need to make some changes due to the current economic situation,” McCarroll said.
However, the projected cuts are coming at a more manageable time of the year, he said.
“Certainly, we don’t like to have any kind of budget cut,” McCarroll said. “However, it’s better to deal with this earlier in the fiscal year than later.”
McCarroll said we need to know exactly what the university is facing before it can move forward with cuts.
“It’s a little premature to speculate on the specifics of how we’ll deal with this … it’s important for us to get a final firm number on cutbacks before we can make any detailed plans,” McCarroll said.
Geoffroy explained the university needs to be careful when it comes to money.
“We do need to be cautious with our expenditures until we have a better understanding of what lies ahead,” Geoffroy wrote. “Contingency plans are being developed for several possible budget scenarios.”
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