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Strategic Budget Advisory Committee (SBAC)
Strategic Budget Advisory Committee

State Budget Chop will Reduce ISU's Funding Another $24.5 Million

October 16, 2009

Last week Iowa Gov. Chet Culver announced a 10 percent across-the-board cut to all state budgets that will reduce Iowa State University's share of state funding by an additional $24.5 million this year. The university's total reduction in appropriations is now $62.9 million (22 percent) less than the initial FY09 appropriation. "Our state support now stands below the level it was in FY97, excluding the ARRA federal stimulus funds," ISU president Gregory Geoffroy said in a released statement to the ISU community. "The accumulation of these budget reductions is very severely reducing our ability to serve our students and Iowans at the level they expect and deserve." This week, the Board of Regents, State of Iowa directed the university to hand in a plan for reducing its budget by Oct. 29. "We have a lot of analysis to do," Geoffroy said. The board suggested eight guidelines to be used by the universities in making their reduction plans:

  • Temporary salary reductions
  • Temporary layoffs or furloughs
  • Temporary or permanent benefit revisions
  • A spring 2010 tuition surcharge
  • Postponing non-essential deferred maintenance and repairs
  • Refocusing efforts, including potential program eliminations
  • Permanent layoffs
  • Selling non-essential assets to generate income
Geoffroy said ISU will distribute the $24.5 million reduction across academic colleges and major budget units that are supported by state appropriations, allowing each budget leader to determine how best to accommodate the reduction within his or her unit. Plans, when finalized, will be published online.