Moving forward in fiscal 2012

Wednesday, July 6, 2011

The Iowa General Assembly has approved the fiscal 2012 state appropriations. Pending Governor Branstad's approval, the university can finalize its fiscal 2012 budget. Your patience during this unusually long budget process is appreciated.

This spring, our budget planning for fiscal 2012 was created around a projected 4 percent total reduction in state appropriations that included the loss of one-time funds. We now know that state appropriations for the general education fund will be reduced by 3.63 percent and the one-time funds of $1.46 million will not be restored. This culminates in a total state appropriation reduction of 5.4 percent or $4.3 million. The specifics of UNI-related budget appropriations and allocations are listed below.

The impact of a reduction in state appropriations is more severe at UNI because we are more dependent upon state funds than the University of Iowa (SUI) and Iowa State University (ISU). Approximately 50 percent of our general fund budget comes from state appropriations while this percentage is roughly 38 percent at SUI and ISU. In addition, approximately 93 percent of UNI's students are from Iowa and only about 14 percent of our tuition revenue is from out-of-state students. This greatly limits our options to increase revenue streams to replace state funds.

Since 2000, UNI's state appropriation has been cut seven times and is now below 1996-97 funding levels. State funding has decreased a total of $23.6 million, or 24 percent, in the last four years alone.  Despite this, we need to continue our commitment to provide an affordable high-quality educational experience for our students.

I look forward to the start of a new academic year and thank you for your hard work during these challenging times.

Results of Legislative Action:

  • UNI General Fund: Appropriation reduction of 3.63 percent (-$2.8 million), in addition to loss of one-time funds of $1.46 million. This equals a total UNI loss of $4.3 million or 5.4 percent.
  • The new fiscal 2012 state appropriation base is $74,734,586.
  • No funds were appropriated to meet the negotiated salary increases.
  • Other line-item appropriations were reduced 3.63 percent: Recycling, Reuse and Technology Transfer Center; Math and Science Collaborative; Real Estate Program Project.
  • Economic development appropriation (IDM, MyEntre.Net, Metal Casting): 6 percent cut, or $574,716.
  • $21 million over the next four years was approved from the Rebuild Iowa Infrastructure Fund to remodel Bartlett Hall and demolish Baker Hall.
  • $2 million to be shared among the Regents Universities for fire safety and deferred maintenance.
  • UNI's share of the Grow Iowa Values Fund, which supports technology transfer and job creation, was reduced to $288,000 from $729,000 this past year.