State lawmakers could ask U administrators to cut the school’s budget by up to $8 million in an attempt to plug the state’s $350 million budget deficit.
Gov. Jon Huntsman Jr. called the Utah State Legislature to a special session this week to revamp the state’s $5 billion budget after rising gas prices, a slowed housing market and the collapse of several of the country’s top financial institutions resulted in a sputtering state economy.
Members of a higher education committee suggested Thursday that the state cut $25 million in ongoing funds from budgets for Utah’s colleges and universities, and that an additional $25 million in one-time funds also be cut from the state’s $1.2 billion higher education budget.
The cuts would affect nine of Utah’s public colleges and universities, the Utah State Board of Regents and dozens of higher education programs. Legislative leaders said Thursday they plan to prohibit state universities and colleges from raising tuition to solve their budget problems.
William Sederburg, commissioner of the Utah System of Higher Education, an organization impacted by the budget cuts, said that less funding will likely result in layoffs at several of the state’s universities, and asked legislators to grant university presidents the flexibility to determine where cuts should be made.
“The economy of the future depends on higher education,” Sederburg said. “We’re cutting the goose that lays the golden egg. It’s not good government and we don’t think it’s fair.”
Historically, college enrollment has increased during times of economic strife because there are fewer high-paying jobs in the labor sector. Sederburg said enrollment in Utah’s colleges is up 5 percent in 2008, which he predicted would cost taxpayers an additional $30 million.
During the 2009 fiscal year, which began in late July, the U is slated to receive $397 million in state funds8212;nearly one-third of the $1.2 billion higher education’s budget.
Lawmakers drafted the budget during the spring legislative session, but since then, the national economic crisis has resulted in close to a $350 million decrease in state revenue.
Legislators will come together today to finalize the budget cut recommendations, which will then be sent to Huntsman for approval.