Unable to cut another $3.2 million out of the current year’s budget, U officials announced they would request a loan to cover what the Legislature is asking them to cough up.
U administrators already trimmed $5.4 million from the current year’s budget at the request of Gov. Mike Leavitt. Because of the state’s ever sliding tax revenue shortfall, legislators are asking for more?nearly 2 percent more.
With the fiscal year more than half over, U President Bernie Machen said he can’t cut the budget without cutting class sections in mid-semester or asking for a mid-semester tuition increase.
These options are unfair to students, Machen said, so he’s going to the bank to get a loan.
Leavitt originally asked lawmakers to use millions of dollars from the state’s Rainy Day Fund to avoid another wake of budget cuts, but the Legislature disagreed and asked for additional cuts last month.
The repercussions of this move will eventually trickle down to U students.
In addition to what Machen is calling a “significant” tuition increase next fall, U students’ tuition will raise 1 percent to pay the interests on the loan.
Machen also implemented a campus-wide hiring freeze until July 1, 2002. He hopes the unfilled positions will open up some money for this fiscal year to avoid cuts next year.
When Machen trimmed the U’s budget in May, the cut was spread evenly in each department or office. He accomplished this by leaving faculty and staff positions unfilled, reducing U travel, reducing supplies and cutting employees’ work hours.
Legislators say next year’s budget will look like this one. There will be no additional money.
By taking out a loan, Machen will have until July 2002 to decide where to cut the money next year. He plans to make deeper cuts into non-academic programs, he said.
U faculty and staff have already been informed they will not receive salary increases.
U students have a “big” and “significant” tuition increase facing them in the fall, Machen said.
“I have no choice. The state is offering no additional funding next year,” he said.
Although he would not say how large a “big” increase is, Machen did provide a means of comparison. He said last year’s 6.8 percent tuition jump was a “moderate” increase. That translates into $161 for a student taking 15 hours.
For now, Student Body President Ben Lowe said he will wait to see what happens.
Lawmakers and administrators need to realize students are also suffering from the slow economy, he said. “Many of our students have been laid off,” he said.
Perhaps the U’s largest problem lies in the missing $13 million from state enrollment funding from the past two years, which the state promised for educating new students.
This year, enrollment figures soared. Nearly 1,500 more students took classes Fall Semester than the year before.
“Large enrollment funding like this can’t go unpaid,” Machen said. “If we are not going to be paid, it is dangerous for us to let our enrollment continue to got up.”
Machen suggested capping the number of students admitted to the U to alleviate this problem.
U administrators will meet with the Higher Education Appropriations Committee today through Thursday to discuss how and where to cut the funding.
“I don’t want [the Legislature] to tell me where I have to cut money from. I hope they let me decide where the money will come out of my budget,” Machen said.
Machen said after he knows the amount of state funding the U will receive, he can set tuition. This should be by late January.