2004 Legislative Wrap-Up

The 2004 Iowa legislative session ended with a status quo budget for UNI. In January, the Board of Regents, State of Iowa, made full funding of state negotiated salaries its top priority. UNI?s portion of the projected salary increases for fiscal year 2005 was $4.6 million. UNI?s second priority request was funding for 24 additional tenure-track faculty. The third request was a capital request to renovate the physics building and a portion of the original McCollum Science Hall and Russell Hall. UNI also submitted special-purpose appropriations to support several community and educational services.

In May, Governor Vilsack signed the Omnibus bill approving $592.1 million for education and economic development appropriations. The Omnibus bill contained level funding for the Regent universities (the same funding as FY04 after the 2.5% across the board cut in October). This means there was no funding for state negotiated salary increases or funding for additional tenure-track faculty positions. UNI is obligated to pay the state negotiated salary increases and will do so by reallocating existing funds into salary lines.

The bill also included provisions that would allow the Board of Regents to bond for $120 million to renovate existing buildings. UNI?s share of the bonding provisions includes $22 million in funds to renovate the Physics Building, a portion of McCollum Science Hall and Russell Hall.

The Omnibus bill also eliminated the state?s work-study program. This program has not been funded by the state for the past four years, however, federal funds still exist for the work-study program.

House Passes Omnibus Appropriations Bill

After nearly eleven hours of debate, the House on Monday night passed the Omnibus Appropriations Bill. Over seventy amendments were offered and in the final version of the bill, portions of the bill dealing with the Regent institutions remained relatively the same. Appropriations are sill level as compared to FY 04 after the 2.5% across the board budget cut and the Regent bonding package that includes funding for the Physics Building, Russell Music Hall and a portion of McCollum Science Hall, remains intact.

The Omnibus bill now goes back to the Senate for their consideration of the House changes.

It is expected that the legislature will adjourn for the year towards the end of this week or early next week at the latest.

Statement Released from Board of Regents President Owen Newlin

HIGH-QUALITY EDUCATION TIED TO BOARD OF REGENTS? TOP STATE FUNDING PRIORITY ? FACULTY AND STAFF

In the people-intensive worlds of education, public service, research, and scholarly activity, faculty and staff are critical to the quality and the benefits provided to Iowans by the state?s five Regent institutions ? the three state universities and two special K-12 schools for vision- and hearing-impaired children. That?s why full funding of incremental salaries by state appropriations is the top state appropriations priority of the Board of Regents, State of Iowa.

In a communiqu? sent to state elected officials this week, Owen Newlin, Board president, reaffirmed the Regents? request for funding support for top-quality faculty and staff who are critical to providing high-quality education, research, and service to Iowans. The Regents have asked elected officials to provide $30 million additional dollars for this purpose.

If increased state revenues are needed to fund salaries, the Board of Regents also would support efforts to obtain these resources.

?The Regent universities compete nationally for outstanding faculty and staff. Adequate funding for salaries will help the universities continue to attract and retain these individuals who come to Iowa primarily because of the state universities,? Newlin said. ?Our faculty and staff make a real difference in Iowans? lives.?

For example, Lawrence Hunsicker, professor of internal medicine at the University of Iowa, has been a leader in the development of organ transplantation throughout the state of Iowa and the nation. Patrick Schnable, professor in the departments of agronomy and genetics, development and cell biology at Iowa State University, involves both undergraduate and graduate students in research to enhance corn and other crops. Rebecca Burkhardt, professor of music at the University of Northern Iowa, is an outstanding mentor, scholar and composer who has built the UNI Orchestra into one of the Midwest's best collegiate ensembles.

?These individuals are among our many faculty and staff who are preparing students for successful futures, producing knowledge that enhances economic growth and our quality of life, and otherwise supporting Iowa's vitality and status as the nation's education leader,? Newlin stated. ?Keeping them in the state is critical to our institutions and to Iowans statewide.?

Other state appropriations priorities for fiscal year 2005 of the Board of Regents are:
? Base and incremental strategic reinvestment in state operating appropriations
? Capital and debt service needs from state appropriations
? Continuing state support to provide high-quality care to Iowans through the Indigent Patient Care Program

These priorities, articulated first last fall by the Board, are especially critical due to the cumulative impact of recent state appropriations reductions. Most Iowans know that many state budget cuts were enacted due to state revenue declines over the past few years. However, many do not know that the total amount of state support for Iowa?s three state universities today is $100 million per year below the levels of three years ago.

?It is critical today that the state reinvest in public higher education to avoid deterioration in the institutions? quality of education and service provided to Iowans, and to reduce the possible need for excessive tuition increases in the future,? Newlin said.

He added that the Regents appreciate the support of state officials in both the executive branch and Iowa Legislature for key requests the Board has made this year, including stable basic operations funding, and support for needed facilities improvements that will enhance instruction particularly in basic and applied sciences areas key to Iowa?s future economic growth. State leaders also appear to support a comparable increase in appropriations to the Iowa School for the Deaf and the Iowa Braille and Sight Saving School as that provided for the K-12 school aid formula, Newlin said.

The Regents continue to work with executive officials and legislators on funding for the long-standing and highly important Indigent Patient Care Program at the University of Iowa Hospitals and Clinics. The state appropriates a fixed amount for the program, which serves patients referred by Iowa counties and state agencies. Patients receive health care, prescription drugs, and transportation to and from their homes, at no cost to the patients or the referring county or agency.

In 2002-03, nearly 4,000 patients received care via the Indigent Patient Care Program at the University of Iowa Hospitals and Clinics. The state provided $28.8 million for the program. The value of physicians? fees and hospital services in the program totaled $91.6 million, resulting in $62.8 million in unreimbursed services.

?Through this important program, Iowa citizens receive literally millions of dollars worth of care each year in excess of the state appropriation,? Newlin said.

The Board of Regents? communiqu? to elected officials also referenced a Board resolution regarding state funding, adopted by the Regents in February:

Whereas, the five institutions governed by the Board of Regents, State of Iowa, benefit Iowans statewide with educational opportunities, research and scholarship, and service in all 99 counties, including activities that strengthen Iowa?s economy; and

Whereas, the positive impact these institutions have on the quality of life in Iowa makes them worthy of public support, the Board of Regents reaffirms its request for adequate state appropriations to ensure educational quality; and

Whereas, critical to that quality is adequate state funding that enables the Regent universities to attract and retain exceptional faculty; and

Whereas, state elected officials are considering proposals to reinvest in education in Iowa, including the Regent institutions;

Therefore, the Board of Regents requests elected officials to reinvest in public higher education by increasing funding to protect Iowa students and their families from the harmful effects of inadequate funding, to avoid further deterioration in the quality of these important institutions, and to benefit all Iowans by supporting the Board?s four priorities: high-quality education, research and scholarship, service and economic growth activities, and public accountability.

?The Board of Regents steadfastly believes that state reinvestment at the Regent institutions remains critical for Iowans today and into the future,? Newlin said.

Omnibus Appropriations Bill Released

Today, Republicans released the Omnibus Appropriations Bill for fiscal year 2005. This bill combines all the traditional budget bills into one bill. It is expected that the bill will be voted out of the Senate Appropriations Committee tomorrow (March 24) and debated on the Senate floor early next week. To deal with the shortfalls in state revenue, Republicans are relying heavily on the state's Economic emergency Fund and Cash Reserve Fund. The Omnibus bill contains level funding for the Regent universities (the same funding as FY04 after the 2.5% across the board cut) and also includes provisions that would allow the Board of Regents to bond for $120 million to renovate existing buildings. UNI's share of the bonding provisions includes $22 million in funds to renovate the Physics Building, a portion of McCollum Science Hall and Russell Hall. The Governor in his budget proposal had allocated $30 million to the Regent universities to help fund salary increases. The Governor financed this and other initiatives through a series of tax increases, such as ending corporate tax loopholes, expanding the state's sales tax to a variety of services and increasing the cigarette tax. The Republican plan does not include the additional funds for the Regent universities and does not include the Governor's proposed tax increases.

A copy of the Omnibus Appropriations Bill (SSB 3169) is available online.

Budget Targets Announced

Today Republican leaders announced their budget targets for fiscal year 2005. The Education Appropriations Target is $8 million above last year's spending level. The $8 million in new spending includes $4 million for the community colleges, $1.9 million for the Iowa Tuition Grant Program and $1.8 million for the National Guard Education Loan Program. Regent universities would be maintained at their current level of funding. Republicans also stated their intent to allow the Board of Regents to bond for $120 million for needed capital projects. For UNI, this would mean that money would become available for the rennovation of the Physics Building, a portion of McCollum Hall and Russell Hall.

The various budget subcommittees will begin work immediatly on putting their individual budgets together. Details on those budgets will be posted on this site when they are available.

Governor Vilsack on KUNI

On Thursday, March 4, Governor will be the guest on a live call-in show on KUNI. The show is scheduled to begin at 5:30 and will last for an hour. This is an excellent opportunity to speak directly with the Governor regarding your concerns related to funding for UNI and pubic higher education in general. Questions can be emailed ahead of time to kuninews@uni.edu.

Show Legislators Iowans Support Public Higher Education

The state of Iowa has had significant financial difficulties during the last several years. Many state organizations, including the Regent universities have suffered devastating budget reductions. UNI has suffered over $32 million in budget cuts and salary underfundings the last four years.

UNI has made every attempt to deal with these cuts in ways that maintain our commitment to Students First. UNI is committed to quality education for its students. The university has managed enrollment downward and will continue to decrease student enrollment until state funding is stabilized and restored. The Board of Regents has been forced to raise tuition over 50 percent the last four years, which in turn has dramatically increased student loan indebtedness to an average of nearly $20,000.

We ask that you send a message to your legislators to stop budget cuts to UNI and to ensure accessibility to public higher education for Iowa students. We also request you ask legislators to restore funding to UNI and reinvest in Iowa?s future and its young leaders.

Pay Freeze Resolution Advances

On a party-line vote and with very little discussion, the Senate Appropriations Committee passed the "Pay Freeze Resolution" on Wednesday night. The resolution now moves to the Senate floor and it is expected to be debated by the entire Senate next week. The resolution is non-binding on the Governor. Republican leaders have said the resolution is their way to encourage the Governor to re-open the collective bargaining process.

A copy of the resolution can be viewed in the January 30th entry on this site.

State Revenues Continue to Improve

Monthly receipts for January posted a 9.4% increase over the same month last year. Year-to-date revenues are currently running at 1.3% (a $70 million increase) which is slightly ahead of the Revenue Estimating Conference's (REC)estimate of 1.2%. The REC is scheduled to meet again in early March to review its current estimates.

Iowa Supreme Court Issues Ruling Related to Gambling

In a 5-2 decision the Iowa Supreme Court on Tuesday issued a ruling that the two-tiered tax structure which taxed Iowa's racetracks at a higher rate than Iowa's riverboats was unconstitutional based on the Iowa Constitution. This is likely the last legal chapter to what has been over two years of litigation involving the US Supreme Court last year. As a result of this decision the racetracks are owed approximately $112 million in taxes they had previously paid to the state. Legislative leaders have already indicated that they will not divert money from education and other priorities to repay the racetracks. Currently, the first $60 million in tax revenue from Iowa's gaming establishments are deposited in the state's general fund. All revenues in excess of $60 million are deposited in the Rebuild Iowa Infrastructure Account. In years past the Regent institutions received funding for numerous capitol projects from this fund. It is not expected that the Supreme Court's ruling will affect any current capital project currently underway at any of the Regent institutions.

New Senator Elected

Pat Ward (R), a former Senate Republican staffer won a special election held Tuesday, February 3, to replace Senator Mary Kramer who resigned earlier this year. Senator Kramer was appointed by President Bush to be the new US Ambassador to Barbados.

Governor Vilsack on KUNI

On Thursday, February 5, Governor Vilsack will join Jenean Beck of KUNI for a live call-in show starting at 5:30 p.m. This is an excellent opportunity to raise your concerns related to funding for public higher in Iowa and other issues related to state government. The show is scheduled to last for an hour.

House Passes Resolution Urging the Governor to Reopen Collective Bargaining

On a party line vote the Iowa House of Representatives voted in favor of a non-binding resolution (HCR 104) that urges the Governor and each state union to renegotiate current collective bargaining agreements and implement a wage freeze for the upcoming fiscal year. The estimated cost of funding salary increases for union and non-union state employees is nearly $70 million. Prior to the legislative session, the Governor announced that he would not request salary funding from the state's General Fund and instead would require state agencies to cover the cost of salary increases from their existing budgets. UNI's salary need for FY 05 is approximately $4.6 million. The resolution is now in the Senate Appropriations Committee awaiting debate.

A copy of the resolution can be viewed here.

Student Leaders at the Capitol on Monday

On Monday, February 2, the student body presidents of the University of Iowa, Iowa State University and UNI will be meeting with legislative leadership and the Governor to make their case for stable funding for Iowa's Regent universities. The students leaders have meetings scheduled with Senate President Jeff Lamberti, Senate Majority Leader Stu Iverson, Senate Appropriations Chair Jeff Angelo, Senate Education Appropriations Chair Doug Shull, Senate Minority Leader Mike Gronstal, Speaker of the House Christopher Rants, House Majority Leader Chuck Gipp, House Minority Leader Pat Murphy and Governor Vilsack. Representing UNI will be Emiliano Lerda, President of NISG.

UNI's College of Education Presenting at the Capitol

Also on Monday, February 2, UNI's College of Education will be making a presentation to a joint committee meeting with the House and Senate Education Committees. The UNI delegation will be highlighting the success of the INTIME (Integrating New Technologies into the Methods of Education) Project and UNI's adoption of a "work-sample" methodology in evaluating students.

Governor Vilsack Announces His Fiscal Year 2005 Budget

Governor Vilsack and Lt. Governor Sally Pederson publicly announced their fiscal year 2005 budget proposal Friday, Jan. 16. Two of their top priorities include 50,000 more skilled workers with college experience and 50,000 new high-paid, high-skill jobs that require two years post-secondary education within four years. The second priority includes 90 percent of children having a quality preschool experience and 90 percent of students having at least two years of higher education.

Due to decreased state revenues, the governor has proposed restructuring Iowa's sales tax to more accurately reflect Iowa's new economy where services represent the fastest growing segment. He proposed an increase in cigarette taxes and ending a number of corporate tax loopholes. His tax increase proposals are estimated to generate more than $300 million in new revenue.

Operations:
The governor has proposed $30 million in new funding to the regent universities for general fund operating budgets. Of the $30 million, UNI would receive approximately $5 million, increasing UNI's fiscal year 2005 operating budget to $82,632,493. The governor proposed a status-quo appropriation, $361,291, for UNI's Institute for Decision Making.

In the upcoming fiscal year, UNI will be obligated to pay nearly $4.6 million in state negotiated salary increases. If UNI does not receive the $5 million proposed by the governor, UNI will be forced to pay these salary increases from its operating budget. During the last four years the regent universities have suffered more than $150 million in base budget cuts and salary underfundings. UNI's share of those cuts totals more than $32 million.

Capital Funds:
The governor has authorized $300 million in capital bonds, earmarking $15.4 million for the regent universities. No specific use of these funds was identified in the governor?s budget. UNI's priority requests for capital funds include renovation of the Physics Building, a portion of the original McCollum Science Hall and Russell Hall renovations. These projects total $18.9 million.

Please remember these are the governor?s recommendations. Now legislators will begin work in committees to further determine the outcome of the state budget proposal. To view the entire budget proposal, visit the Department of Management's Web site and click on state budgets.

2004 Iowa Legislative Session
The 2004 Iowa legislative session will convene Monday, Jan. 12. The Board of Regents has submitted its fiscal year 2005 requests and the top priority will be full funding of state negotiated salaries. UNI's portion of the projected salary increases is $4.6 million for fiscal year 2005.

If the state legislature does not fund this $4.6 million request, the university will need to reallocate nearly 5 percent from its operating budget to cover these mandatory costs. What does this mean for UNI? This could mean a loss of 30 faculty positions and 25 staff positions. A loss of 30 faculty positions would force UNI to further decrease enrollment to approximately 12,200 Iowa students.

UNI's second priority request is funding for 24 additional tenure-track faculty. The third priority request is a capital request to renovate the physics building, a portion of the original McCollum Science Hall and Russell Hall.

UNI also has submitted special-purpose appropriations to support several community and educational services. If you would like more information or would like to help UNI by voicing your support for our priorities, contact Keith Saunders or Stacey Christensen in the Office of Governmental Relations, 3-6144.

State Budget Update: Regent Universities Cut
On Friday, Oct. 10, Gov. Vilsack announced an $82.7 million mid-year budget cut for the current fiscal year. That translates to an approximate $2 million cut in state appropriations for UNI's operating budget. This cut is the result of updated projections from the state Revenue Estimating Conference. Up to this point, we were assured there was no reason to expect a mid-year budget recision. It's too early to make any decisions about how we will be able to respond.