Legislative Session Ends

The Iowa Legislature ended its session with approximately $29 million allocated to the Regent universities. The Regents original request was for $40 million for the Transformation Plan. However, $9 million of the Regents funding is one-time money to support the Transformation Plan and $5 million to support economic development initiatives.  Of all the monies appropriated to the Transformation Plan (both on-going and one-time), approximately 18 percent will be allocated to UNI.  Below is a summary of the allocations for the Regent universities.

$14,969,288 in Education Appropriations--money to support the Regent Transformation Plan.

$2,800,000 in the Supplemental Appropriations Bill--one-time money transferred from the state's ending balance to be used for the Regents Transformation Plan.

$6,250,000 in the Infrastructure Appropriations Bill.  This is infrastructure money (one-time money) that is designated for deferred maintenance.  This money replaces the money that the universities currently have in their budgets for building repairs.  The universities are expected to shift some funds from their building repair budgets to support the Transformation Plan.

$5,000,000 in the Iowa Values Fund.  This money is appropriated to the Department of Economic Development for the Regents.  This money is to be used for current economic development initiatives.

UNI also received $500,000 to support the Safe Surfacing Initiative for UNI's National Program for Playground Safety.

UNI administration will be determining details of the university budgets in the coming weeks.

Statement by Michael G. Gartner, President, Board of Regents, State of Iowa,
Robert N. Downer, President Pro Tempore, and the Presidents of Iowa's Regent Universities

The Board of Regents and the presidents of the three Regent universities remain committed to making the universities leaders in education, partners in economic development and innovators in scientific research that benefits Iowa and the world.

We are grateful to the legislators for providing $22 million toward the $80 million needed for the first year of this transformation. Iowa's students have provided $20 million through the tuition increase already enacted for this fall. We renew our own commitment to provide $20 million through internal efficiencies and reallocations, even though our own commitment was made on the expectation the Iowa Legislature would provide $40 million.

That leaves a gap of $18 million.

Now that gap must be filled. We will dig into our own resources, but we also now are forced to turn to Iowa's parents and students for further help. Unless additional help comes from the Legislature, we will be forced to consider an added tuition rise of 3% for the second semester of the coming academic year. And even that will fill only a part of the gap.

We regret that this must be done, but providing quality education, spurring economic growth, and conducting important research cannot be delayed.

We appeal to the Legislature, on behalf of the institutions and Iowa's students and their parents, to reconsider this appropriation. We point out that the problem could be solved-without a tuition increase-if the Legislature would add 10 cents to the proposed increase in the Iowa cigarette tax and commit that revenue to the universities. That would come close to funding the future, would eliminate the need for an additional tuition increase, and would ensure we prepare our students so they can compete in a changing world while we also participate as full partners in the economic development of this state.?

Action Moves to the Senate--More Contacts Needed!

Legislative action on funding for the Regents institutions has now shifted to the Senate. Senate leaders this week will be engaged in intense negotiations on all the major budget bills, including the education appropriations bill (HF 816) which contains most of the annual state funding for the Regents institutions. It's important that Senate leaders hear from many alumni, students, parents and other friends in support of fully funding the $40 million Regents Partnership for Transformation and Excellence request. These contacts should be made immediately, ideally within the next 24 hours.

The message from supporters should continue to be very straightforward:

"I'm very concerned about the ability of the Board of Regents and the University of Northern Iowa to maintain the quality of the University and to keep tuition moderate and predictable unless the Legislature fully funds the Regents' $40 million request for the Partnership for Transformation and Excellence. Our universities are vital to our state's goals in education, health, and economic development. I strongly support the Regents' request for $40 million. I urge you to support this critically important request."

Emails and phone calls should be sent to the following Senators:

Senator Mike Gronstal (D-Council Bluffs, Senate District 50)
Michael.gronstal@legis.state.ia.us
515/281-3371

Senator Stewart Iverson (R-Dows, Senate District 5)
Stewart.iverson@legis.state.ia.us
515/281-3371

Senator Jack Kibbie (D-Emmetsburg, Senate District 4)
John.kibbie@legis.state.ia.us
515/281-3371

Senator Bob Dvorsky (D-Coralville, Senate District 15)
Robert.dvorsky@legis.state.ia.us
515/281-3371

Senator Wally Horn (D-Cedar Rapids, Senate District 17)
Wally.horn@legis.state.ia.us
515/281-3371

Although we did not have the success that we wanted in the House, it's critical that we have as many contacts going into the Senate leadership as possible. It is widely expected that the Senate, which is evenly divided between Democrats and Republicans, will add additional resources to the state budget. We need to do everything we can to ensure that in the final negotiations, the Regent request of $40 million remains a priority.

Thank you all again for your hard work and keep it up. It truely is making a difference!

Statement by Michael G. Gartner, President, and Robert N. Downer, President Pro Tempore
Board of Regents, State of Iowa

The $14.9 million Regents funding proposal by the House Republican caucus, if enacted, would be devastating for the students of Iowa, for their parents, for the state?s business and industry, and for the state as a whole.

In the past four years, tuition for Iowa students at the Iowa universities has risen 62%. During the same period, annual funding from the state for the Regents institutions has declined by $102 million. Talented faculty have left, and buildings have fallen into disrepair.

This year, supported by Gov. Tom Vilsack, the Regents and the presidents of the universities proposed a plan to transform the schools, redirect money into important science and math areas, work closely with Iowa business and industry to aid economic development, and hold tuition down for Iowa students and their parents.

Under that plan, the Legislature was to provide $40 million in new funds ? less than half the money that has been stripped from the schools in the past four years ? and the universities were to redirect at least $20 million of their existing budgets into new areas that are important to the education of students and the growth of the state. Tuition would be increased no more than the rate of education inflation.

Now, with the Republican caucus recommendation of just $14.9 million for the Regents, none of that could be done. The $14.9 million would not cover even half of the salary requirements of the Regents universities, most of which is mandated and beyond the control of the Regents.

If the funding level remains at $14.9 million, Regents will be forced to consider yet another big increase in tuition for Iowa students and their parents. There will be continued deterioration of campus buildings. The universities will be unable to offer a sufficient number of required course sections, forcing more students into five-year and six-year stays, and the universities? best teachers and researchers will be lured away by well-funded universities in other states.

The House proposal, if enacted, will force the universities down to mediocrity, diminishing educational opportunities, research capabilities, economic development efforts, and public services to Iowans.

Keep up the Pressure! Action Needed Today!

Thank you to all who called and emailed the leadership of the Iowa House yesterday. Combined with the efforts of the alumni, parents and friends of the University of Iowa and Iowa State University, our efforts are having a real effect. More work remains to be done and below are some additional leaders of the Iowa House that need to be contacted TODAY. The House will take up their last appropriation bill of the session today and it is critical that all of you let the House leadership and your local Representatives know that it is imperative to fully fund the Regents' $40 million Partnership for Transformation and Excellence request.

UNI remains concerned that the Iowa House Representatives may end the session without substantially funding the $40 million Partnership for Transformation and Excellence request. We need your help in contacting the Representatives below today. These Representatives' votes will be key in determining the Regents' funding.

The message you can share is as follows:

"I'm very concerned about the $40 million funding request for the Board of Regents. If the Board does not receive full funding, the Board of Regents may be forced to add a supplemental tuition increase for Fall 2005. Tuition has increased more than 60 percent in the last five years. Iowa's universities and students need your support. Please fund the $40 million request for the Partnership for Transformation and Excellence."

The key legislators to contact are:

Representative Libby Jacobs (R-West Des Moines, District 60)
515-281-3221
libby.jacobs@legis.state.ia.us

Representative Carmine Boal (R-Ankeny, District 70)
515-281-3221
carmine.boal@legis.state.ia.us

Representative Cecil Dolecheck (R-Mount Ayr, District 96)
515-281-3221
cecil.dolecheck@legis.state.ia.us

Representative Steve Olson (R- DeWitt, District 83)
515-281-3221
steven.olson@legis.state.ia.us

Representative Rod Roberts (R-Carroll, District 51)
515-281-3221
rod.roberts@legis.state.ia.us

Representative Royd Chambers (R-Sheldon, District 5)
515-281-3221
royd.chambers@legis.state.ia.us

Representative Pat Murphy (D-Dubuque, District 28)
515-281-3221
pat.murphy@legis.state.ia.us

Again, thank you for all of your hard work and please keep up the effort!

Board of Regents $40 Million Request - Your Voice Is Needed

UNI is concerned that some Iowa House Representatives may end the session without substantially funding the $40 million Partnership for Transformation and Excellence request. We need your help in contacting the five Representatives below. These Representatives' votes will be key in determining the Regents' funding. The message you can share is as follows: "I'm very concerned about the $40 million funding request for the Board of Regents. If the Board does not receive full funding, the Board of Regents may be forced to add a supplemental tuition increase for Fall 2005. Tuition has increased more than 60 percent in the last five years. Iowa's universities and students need your support. Please fund the $40 million request for the Partnership for Transformation and Excellence."

The key legislators to contact are:

Representative Christopher Rants (R-Sioux City, District 54)
515-281-3221
christopher.rants@legis.state.ia.us

Representative Chuck Gipp (R-Decorah, District 16)
515-281-3221
chuck.gipp@legis.state.ia.us

Representative Bill Dix (R-Shell Rock, District 17)
515-281-3221
bill.dix@legis.state.ia.us

Representative Willard Jenkins (R-Cedar Falls, District 20)
515-281-3221
willard.jenkins@legis.state.ia.us

Representative Pat Murphy (D-Dubuque, District 28)
515-281-3221
pat.murphy@legis.state.ia.us

Appropriations Update

The Education Appropriations Bill (HF 816) remains stalled in the Senate with other major appropriation bills. The Senate will not take action on the budget bills until a final decision is made regarding the cigarette tax increase. Senate Republicans announced they would support a cigarette tax increase of thirty-six cents but would devote the revenue from the tax to property tax relief. Senate Democrats remain supportive of the Governor?s proposed eighty-cent cigarette tax increase. House legislative leaders remain skeptical of the need for a cigarette tax increase.

Revenue Estimating Conference Raises Economic Growth Projections

The Revenue Estimating Conference (REC) met on April 8 and increased the Fiscal Year 2005 estimated net General Fund receipts by $79.5 million and increased the Fiscal Year 2006 estimated net General Fund receipts by $85 million. The REC estimate for Fiscal Year 2006 net General Fund receipts is now $4.988 billion, an increase of $162.3 million compared to Fiscal Year 2005.

The Iowa General Assembly is prohibited from spending these new revenues. Iowa law requires the Governor and the General Assembly to use the December estimate of the REC in crafting their budgets. However, if the REC lowers their estimates at the March/April meeting, the revenue figures used by the Governor and General Assembly could change.

Iowa Values Fund

Legislation to recreate the Iowa Values Fund is slowly making its way through the legislative process. The House is expected to debate the policy portion of the bill (HF 850), next week. The appropriations provisions will be added onto the Economic Development Appropriations Bill, currently in the Senate. No agreement has been reached regarding how to fund the Iowa Values Fund.

For the Regent institutions, the Iowa Values legislation contains $5 million in additional funding. This funding is designated for ?capacity building infrastructure? needs on each of the campuses. At UNI, this funding would be used to support programs such as the Institute for Decision Making, Strategic Marketing Services and to support the new Business and Community Services Building.

New Regents Confirmed, New Board President Elected

The Senate has confirmed all of the Governor?s appointments to the Board of Regents. The new Regents include: Michael Gartner of Des Moines; Tom Bedell of Spirit Lake; Teresa Wahlert of Waukee and Ruth Harkin of Cumming. Michael Gartner was elected as President of the Board.

House Passes Education Appropriations Bill

The Board of Regents institutions would receive an increase of $12.5 million in fiscal year 2006 under a bill passed by the House of Representatives March 30. The House passed House File 816 which appropriates funding to the Regents universities, as well as community colleges and K-12 schools. The bill was adopted on a vote of 52-47.

As adopted by the House, HF 816 still falls well short of the $40 million requested by the Board of Regents for the Partnership for Transformation and Excellence. The $12.5 million increase for the Regents universities was the result of an amendment to the bill sponsored by Representatives Willard Jenkins (R-Cedar Falls) and Jim Kurtenbach (R-Nevada). UNI's share of this appropriation is approximately $2.25 million. As passed earlier in the month by the House Appropriations Committee, the original bill included only $6.3 million in additional fiscal year 2006 funding for the universities.

During debate, the House rejected an amendment managed by Representative Beth Wessel-Kroeschell (D-Ames) that would have increased the appropriation to the Regents institutions by $20 million. The amendment was co-sponsored by Representatives Bob Kressig (D-Cedar Falls), Lisa Heddens (D-Ames), Polly Bukta (D-Clinton), Vicki Lensing (D-Iowa City), Mary Gaskill (D-Ottumwa), Cindy Winckler (D-Davenport), Mary Mascher (D-Iowa City), Roger Wendt (D-Sioux City), Jo Oldson (D-West Des Moines), and Ro Foege (D-Mt. Vernon). The amendment was defeated along party lines by a margin of 49-51.

HF 816 now moves to the Senate where it is expected to be referred to the Senate Appropriations Committee for consideration.

Budget Begins to Move in the House--Please Contact Your Legislators

Iowa House Republicans have proposed spending an additional $40 million on education in fiscal year 2006, but have not specified what portion would be for the Board of Regents institutions. A House Republican news release on February 24 indicated the additional $40 million would be allocated among the Regents, community colleges, private colleges, early childhood and teacher instruction programs and National Guard tuition grants.

The chairman of the House Education Appropriations Subcommittee, Representative Royd Chambers (R-Sheldon), indicated that the Subcommittee will receive a bill draft February 28 and hoped to debate and pass the bill out of Subcommittee by the end of that week.

The Republican proposal compares to Governor Vilsack's budget which calls for a $40 million increase for the Regents institutions alone. The Governor's budget matches the Regents' request for an increase of $40 million as part of the Partnership for Transformation and Excellence (see previous articles on this Web site).

As the budget begins to move, it is critically important that your local legislators and legislators on the Education Appropriations Budget Subcommittee hear directly from you. Please take time to communicate to your legislators the critical importance of fully funding the Regents' Partnership for Transformational and Excellence plan.

For UNI specifically, this plan would allow for:

• The establishment of new majors that are tied directly to Iowa's needs in the new bioeconomy;

• Enabling UNI to meet Iowa student demand. UNI is down over 1,200 students from its peak enrollment in the 2002-03 school year; and

• Help moderate tuition by tying future tuition increases to the rate of inflation.

Legislators need to hear from you as soon as possible. The House Education Appropriations Budget Subcommittee is expected to take action on the budget this week.

If you need assistance in identifying your legislators or additional information regarding the Regents' legislative request, please visit the UNITE website.

Harkin and Bedell Appointed to Board of Regents. Vasquez Reappointed to Full Term, Completing Membership of Nine Person Board

Governor Thomas J. Vilsack and Lt. Governor Sally Pederson announced the appointments of Ruth Harkin and Tom Bedell to the Board of Regents, State of Iowa. The appointments are subject to confirmation by the Iowa Senate. Regent Rose Vasquez will be reappointed to another full term on the Board.

These business leaders understand the importance of continuing the transformational work underway at the Board of Regents, Governor Vilsack said in announcing the appointments. These dedicated Iowans will provide steady, thorough and thoughtful leadership.

Ruth R. Harkin, 60, is a graduate of Catholic University Law School and was one of the first women in the United States to be elected as a prosecutor in 1972 when she was elected as Story County Attorney in Iowa. She went on to a successful business career serving as the President and Chief Executive Officer of the Overseas Private Investment Corporation (OPIC), and later as Senior Vice President for United Technologies International. In various business school roles, Harkin has maintained a strong interest in expanding educational opportunities and strengthening Iowa's higher education system. Married to Senator Tom Harkin for 37 years, the couple have two daughters.

Tom Bedell, 55, is the Chairman of Pure Fishing, the world's leading fishing and tackle company. Founded by his father in 1937, Bedell assumed leadership of the company in 1979. Renamed Pure Fishing in 1998, the company has grown tremendously under Bedell's leadership with manufacturing and marketing facilities in 22 countries and more than 1100 employees. A native of Spirit Lake, Iowa, Bedell is a graduate of Stanford University.

Rose Vasquez, 50, is employed at the Principal Financial Group as the company's Diversity Consultant in the Human Resources Department. Vasquez joined the Principal in 2002. She served as the director of the Iowa Department of Human Rights from 1999 to 2002, and as Assistant Attorney General in the Iowa Attorney General's Office from 1985 to 1999. Vasquez is a native of Moline, Illinois and earned her bachelor's degree from the University of Iowa and her law degree from Drake Law School.

Regents Praise Governor's Budget, Push Partnership for Transformation

Governor Thomas Vilsack's recommendation to provide $40 million in additional funding for Iowa's three state universities in fiscal year 2006 is a critical first step forward for Iowa students and their families, said the leader of the Board of Regents, State of Iowa, today.

The Board had requested the additional funding as part of its Partnership Plan for Transformation and Excellence, a four-year strategic effort to ensure moderate, predictable tuition for Iowa students at the three universities. If the plan is funded as requested, the Regents will hold tuition increases for Iowa undergraduates to the rate of inflation determined by the Higher Education Price Index.

The Regents' plan also will require the three universities to reallocate at least $20 million in internal resources to the top priorities of high-quality education programs, research, and public service for Iowans.

"We appreciate Governor Vilsack's support for the Partnership for Transformation," said Robert N. Downer, Board president pro tem and an Iowa City attorney. "His recommendation supports providing affordable, high-quality educational opportunities for Iowa students, and it will continue efforts, already under way, to improve efficiencies at the Regent universities."

The citizen members of the Board of Regents developed and unanimously supported the Partnership for Transformation to begin restoring significant cuts in state funding in recent years for the Regent universities. State appropriations to the universities this fiscal year, $592.4 million, are $102.3 million less than in fiscal year 2001.

"The Governor's recommendations are a good start. We look forward to working with him and members of the Iowa Legislature on these and other important issues," Downer said. "We're optimistic that continued hard work in the weeks ahead, explaining the benefits of our plans by the Regents, by members of the university communities, by our alumni and friends, and by our students and their families will result in good outcomes for all Iowans."

Governor Vilsack's budget recommendations also include:

• $60 million over five years for university research and development, part of an $800 million financing package for economic development efforts.
  

• An appropriations increase of $528,431 for the two Regent special K-12 schools, the Iowa School for the Deaf and the Iowa Braille and Sight Saving School which is equal to the 4 percent allowable growth increase for other K-12 schools.

• Fully funded requested tuition replacement appropriations, which represent the state's ongoing commitment to meet the debt service cost of academic building revenue bonds at the Regent institutions.

"If the Iowa Legislature agrees with the Governor's funding recommendations for the Regent system, Iowans will directly benefit in several ways," Downer said. "They will have access to affordable, high-quality education opportunities. Areas vital to advancing Iowa's economy will be strengthened. More highly educated and talented graduates will be produced in areas important to Iowa's workforce needs."

"Overall, Iowa's attractiveness as a place to live and work will be enhanced," Downer added.

Information about the Governor's fiscal year 2006 budget recommendations is available on his web site, http://www.governor.state.ia.us/. Information about the Board of Regents' Partnership for Transformation and fiscal year 2006 state funding requests to the Iowa General Assembly is available on the Board's web site under Frequently Asked Questions, www2.state.ia.us/regents/FAQ/faqlegislative2005.htm.

Governor's FY06 Budget Proposal Released

Governor Vilsack submitted a $4.9 billion budget to the Legislature for FY 2006. The Governor said that he is laying out a bold and aggressive agenda to transform Iowa by upholding our responsibility to provide Iowa's children a world-class education, create more high wage-high skill job opportunities, and guarantee health care security for vulnerable Iowans. Vilsack said that the state must improve student achievement to ensure that every child reaches their full potential, transform the economy by making the Iowa Values Fund permanent, create greater health care security by improving access and affordability, improve the safety of Iowa communities and improve the quality of Iowa?s natural resources.

The Governor's budget calls for several revenue enhancements including higher taxes on tobacco ($123 million), combined corporate reporting and increased revenues from traffic tickets ($1.7 million).

Some of the Governor's priorities in education include:

Spend an additional $39.1 million in early childhood healthcare and education programs, in order to establish a quality rating system for childcare facilities, expand access to quality preschool, and enhance professional development and training.

Spend an additional $93.9 million in Allowable Growth for K-12 schools, $47 million for existing teacher quality programs and $6.1 million got incentive grants for schools who share resources (whole-grade sharing, sharing high schools and sharing administrators).

Make a 4 % allowable growth commitment for the community colleges ($5.2 million).

Increase the Iowa Tuition grants to $4,000 ($1.7 million).

Give the Regents $40 million for the state universities through a $20 million appropriation and $20 million in the salary bill and expect the universities to achieve greater efficiency with $20 million of reallocation savings.


Contacting Your Local Legislators
Now is a critical time to contact your local legislators and urge them to support the Governor's recommendation for the Regent universities. This funding will enable to Board of Regents to limit tuition increases to no more than the inflation rate, allow UNI to expand access and will enable UNI to offer new high demand majors.

Please visit the UNITE website (http://www.uni.edu/govrel/unite/canyoudo.html) for links to your local legislators as well as some talking points to include in your communication with your legislators.

Vilsack, Pederson announce appointment to the Board of Regents

Governor Vilsack and Lt. Governor Pederson have selected Teresa Wahlert of Waukee to serve on the Iowa Board of Regents. The State Board of Regents serves to govern and coordinate the functions and activities of the University of Iowa, Iowa State University, the University of Northern Iowa, the Iowa School for the Deaf, and the Iowa Braille and Sightsaving School.

"I am confident that Teresa will continue the strong momentum of change the Regents are currently engaged in," said Governor Vilsack. "She is a leader and respected businesswoman who has the type of real-world experience we need to keep our Regents schools strong."

"Teresa Wahlert understands how important our Regents schools are to the overall well-being of our state," said Lt. Governor Pederson. "Her knowledge and expertise will be an asset to the Board in expanding educational opportunities for all Iowans. We are happy she has chosen to serve the people of Iowa in this important capacity."

Wahlert currently serves as President and COO of the Mid-America Group, a privately held company engaged in the development, construction and management of office complexes, business parks, telecommunications services and various other investments. Prior to her employment with the Mid-America Group, she served as President and CEO of the Greater Des Moines Partnership, and as Regional Vice President for QWEST.

A native of Dubuque, Wahlert earned her bachelor's degree from St. Mary's College at Notre Dame. She has also earned a Masters of Business Administration from Creighton and a Master of Science degree from the Massachusetts Institute of Technology. She is a 2004 inductee into the Iowa Business Hall of Fame and a 2004 Business Record Woman of Influence.

Wahlert is replacing John Forsyth, who resigned from the Board earlier this week. Members of the Board of Regents serve six-year terms and are confirmed by the Senate.

STATEMENT OF THE BOARD OF REGENTS, STATE OF IOWA
January 24, 2005

On behalf of the Board of Regents, Regent Robert N. Downer, President Pro Tem of the Board, issued the following statement today:

The Board of Regents remains firmly committed to our mission, vision, and priorities of ensuring Iowans have access to high-quality educational opportunities. This is the foundation of our proposed Partnership Plan for Transformation and Excellence. Our commitment, and the Board's focus on serving our 70,000 students and Iowans statewide, have not changed with the resignations of John Forsyth and David Neil from the Board. All of the Regents have worked very hard to develop the Partnership Plan and promote its importance to our state, and that work will continue on behalf of our students and citizens.

The Board is deeply grateful to John Forsyth and David Neil for their invaluable service to Iowans. In his service on the Board since 1999, David Neil has been a tireless advocate for students and employees on a number of key issues. John Forsyth, appointed to the Board in 2003, has been a dynamic Board member who, as Board president, led efforts to implement best practices, increase administrative efficiencies, and develop the Partnership Plan.

We thank both men for their great contributions to our institutions and our state, and we respect their decisions to leave the Board. Serving on the Board of Regents is a demanding time commitment for the nine citizens who give their time, uncompensated, to fulfill their responsibilities as Board members. The decision to join or to leave the Board is often a difficult one in light of other personal and professional commitments an individual may have.

While their departures will create inevitable transitions for the Board, we are fully prepared to work through those transitions, welcome the new Regents appointed by the Governor, and, most important, to continue the long-term, overall mission of the Board to serve the best interests of our students, our state, and our economic future.

Governor Vilsack Delivers His Annual Condition of the State Address

Yesterday, Governor Vilsack said in his Condition of the State address that the Legislature needs to act on a number of key initiatives on education, economic development and health care in order to make the state a better place to live, work and raise a family. He said that Republicans and Democrats have a ?shared mission to grow Iowa? and by working together can ?realize our shared vision of Iowa as the best place to live, work and raise a family.?

Vilsack said that while the state still faces budget challenges, state revenues are growing after several years of declines and that the state has also seen positive job growth. Vilsack said that spending on education by the state has reduced class sizes and has resulted in improved test scores. He went on to add that the state has increased its commitment to health care in the past several years by expanding the HAWK-I program (health insurance for needy children), creating the Senior Living Trust fund, expanding benefits to veterans, and giving senior citizens more opportunity to stay in their own homes.

The Governor made some specific proposals for the next session, including:

• Education Spending--Vilsack said that the state needs to fully-fund allowable growth and double the commitment to the teacher quality program.

• Expanding Access to Preschool--Vilsack said that the state needs to greatly improve the opportunity for young children to attend quality pre-schools. He proposed spending an additional $39.1 million on pre-school education, as recommended by the Iowa Learns Council. Vilsack said that spending on early childhood programs, immunization programs, nutritional programs and pre-school programs offer the state far greater returns than the expense, and will help improve the educational performance of children in later years.

• High Schools--Vilsack said that the state needs to establish a tougher graduation standards and help the smaller districts, which may have the most difficulty in hiring additional math and science teachers, improve schools through sharing administrators, sharing whole grades, and school consolidation.

• Economic Development--Vilsack said that the legislature needs to increase the investment in the Iowa Values Fund and Vision Iowa in order to continue job growth in the bio-sciences, in financial and insurance businesses, and in advanced manufacturing. He said that an $800 million investment over the next five years would lead to 50,000 new jobs. Vilsack said that the measures that the state has taken has reduced the tax burden and made it easier for businesses to get assistance from the state.

• Improving Government Performance--Vilsack said that state agencies, such as the IFA, the DED and the DCA are working together to package grants for Iowa communities that want to make community improvements. He said that reconfiguring Iowa governments can save on property taxes: ?fewer units with more autonomy dedicated to better service at less cost.?

• Improving Health Care and Public Safety--Vilsack said that the Legislature needs to act to improve access to coverage for health care for mental illnesses and substance abuse problems. He also said that he will support restrictions on access to the precursors for making meth to improve public safety.

• Make Taxes more Competitive--Vilsack said that the state needs to make the income tax more competitive and improve on the property tax by ?adjusting the rollback and limiting property tax increases in a fair and workable manner.? Vilsack said that the current property tax system is unfair to businesses. He also said that the state needs to raise the tax on cigarettes and use the money to pay for health care costs.

It is expected that the Governor will release the details of his Fiscal Year 2006 budget recommendation sometime towards the end of the month.

The full text and video of the Governor's Condition of the State address can be found at the following link (look in the red box on the right side of the page):

http://www.governor.state.ia.us/

State Election Results and UNI Legislative Priorities

The state elections leave the Iowa Senate with a 25-25 split between Democrats and Republicans. The Senate Republicans lost four seats in the election; losing two open seats, three incumbents and gaining one open seat from Democrats. This is the first time in history that power in the Iowa Senate has been evenly split. All committees will have co-chairs from the respective parties. The positions of Senate President and President Pro Tempore will rotate so that in one year the Senate President will be a Democrat and the President Pro Tempore will be a Republican. In the next year, those positions will switch between the parties.

In the House, three Republican incumbents and one Democratic incumbent lost the election. Overall the Democrats gained three additional seats leaving the House with a 51-49 Republican advantage.

The 2005 session of the 81st Iowa General Assembly will convene Monday, January 10, 2005 and is scheduled for 110 days.

The Board of Regents, State of Iowa top priority this session is $40 million to replace some of the funding that has been cut in recent years. The Board has also committed to reallocate $20 million in existing university resources to the highest priorities of education programs, research and public service. If the Governor and legislature fund this request, the Board of Regents will not alter tuition rates beyond the four percent inflationary increase that was proposed earlier this month. If the Governor and legislature fail to fund the request, the Board of Regents may pass a supplementary increase after the legislative session to make up the difference. The Board?s other priority this session is $15 million in capital funding for deferred maintenance and fire safety at the three universities.

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 communique 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' communique 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.