On June 20, the Board of Regents will vote on a $100 per semester surcharge for students effective with the fall 2006 semester. The money generated by the surcharge will help fund mandatory cost increases for which the legislature did not appropriate the necessary funds.

 

UNI will use the funds generated to support rising energy costs, salaries negotiated by the state in collective bargaining agreements, and operating expenses for the recently renovated East Gym, which is now the Innovative Teaching and Technology Center.

 

If approved, the surcharge will generate $1.9 million at UNI. This will still leave UNI $2.3 million short of funding for the mandatory cost increases noted above. Internal budget cuts and adjustments will be necessary to make up the shortfall. It is regretful this additional burden must fall on students and their families, but the consequences to the quality of the learning environment would be extremely severe without it.

 

The surcharge is only a partial and temporary fix to the budget problem to get UNI through the coming academic year. Increased funding from the legislature next year will be imperative to prevent even more burden transferred to students and their families to address the severe budget problems at UNI and the other Regent universities.
 
The editorials below from the Des Moines Register and President Koob state the issues well. All Iowans during the upcoming election process need to convey this message to our elected leaders.

 

To begin that process, please take a few moments to add your comments to the Des Moines Register's online discussion regarding the proposed surcharge. The comment page can be found by following this link:

Des Moines Register Surcharge Comment Page

Des Moines Register Editorial (May 20, 2006):

Student Fee Necessary, but a Short-Term Fix: Legislature Must Fund Universities Adequately

Don't blame the state universities for wanting a $100-per-student, per-semester surcharge for the 2006-07 school year.

Don't blame the Iowa Board of Regents, either, if it approves the temporary fee when it meets in June.

The 2006 Legislature left little choice because it once again underfunded the institutions.

But above all, don't let legislators get away with telling you they didn't "raise taxes."

By giving the University of Iowa, Iowa State University and the University of Northern Iowa too little money to operate, they forced the need for this "energy/environment" surcharge, which will amount to a tax increase for thousands of Iowa families.

While state support as a share of the universities' total operating revenue has steadily declined - from about 77 percent in 1980 to around 50 percent today - tuition has climbed.

And while tuition is low compared to that charged by other state universities, many young Iowans graduate with crushing debt.

Iowa should increase support for the universities so Iowans can again take pride in their high-quality, affordable universities.

The universities had asked the 2006 Legislature for an additional $40 million for their operating budgets for next year in exchange for internal reallocation and holding tuition increases to manageable levels.

So what did legislators do?

They provided $40 million, but earmarked only $11 million for increased operating expenses, while designating $29 million for economic-development and capital projects.

The universities plan to use the surcharge to help pay for basics, such as higher energy costs and faculty salaries. It will raise about $10.9 million, so still will fall short of meeting what university leaders say they need.

The regents also will consider a three-year moratorium on capital requests for new buildings, with exceptions.

They do not seem to know what else to do to persuade the Legislature to adequately fund their operating budgets.

"Where the hurt is most painful is we have lost competitiveness for really good faculty," said ISU President Gregory Geoffroy.

House Speaker Christopher Rants, R-Sioux City, defended the appropriation.

"I think the regents had a very good year," he said. This year the Legislature put more emphasis on K-12 education, such as raising teacher salaries, than the regents' universities, he explained.

Which is the problem.

If Iowa is to prosper, it must boast world-class public schools and first-rate universities.

Both have a lot of catching up to do because of tight budgets in recent years,

Iowans should elect a 2007 Legislature that understands that.

Des Moines Register guest opinion by Robert Koob

Do Iowans not want better-educated citizens?

May 29, 2006

The University of Northern Iowa works continuously to enhance student learning and to encourage its employees to work collaboratively and constructively to provide the most effective and productive environment in support of that learning.

Through its many graduates and direct services to citizens, the university improves the lives of all Iowans, particularly by contributing to the economic success of the state.

UNI has seen this effort rewarded by being recognized as one of America's most productive public comprehensive universities.

Happily, UNI's commitment seems completely congruous with the understanding that more people need more education today than ever before. A well-educated person has a better chance of living a successful life both economically and socially. A well-educated and well-trained workforce is required for Iowa and the nation to compete in an increasingly competitive global economy.

Most organizations that recognized the confluence of a great and increasing marketplace need, coupled with a highly productive means of responding to that need, would increase their investment to ensure even greater success. Exactly the opposite is happening here in Iowa.

Counting the upcoming fiscal year, UNI has now seen six years of insufficient general-fund appropriations to meet salaries negotiated by the state. That's right: State government negotiates the wages to be paid to its represented employees, then refuses to appropriate the funds necessary to cover those wages. As a result, the university is left to find other sources to pay the bill created by the state's negotiation.

One funding source that has been increased is tuition. The problem with increased tuition is that it reduces the availability of educational services to those who need them the most: Iowa's least-affluent citizens.

Another means to "pay the bill" is to reduce the number of employees to whom the salary is owed, directly reducing educational services to those students who are now paying more to receive them.

We have heard the message that asks a reduced number of employees to "do more with less," but frankly, this message rings hollow when your organization is already one of the most productive in the nation.

In the past, fewer dollars flowing to the state's treasury (a political choice, by the way, not the consequence of a failing economy) has been used as an excuse for this underfunding.

This year, however, Iowa saw strong growth in collections, but UNI will receive about half as much new funding to meet state-imposed obligations as it did last year.

Perhaps Iowans do not want more and better-educated citizens. That is the conclusion one would reach based on the actions of their elected representatives.

Certainly, that is their right. In reaching that conclusion, however, Iowans should recognize the consequences. Taking the path followed for the first six years of this new century will assure that Iowa is less competitive in the nation and world economy, and all the talk of economic development will be just that, talk.

Robert Koob led the University of Northern Iowa for 11 years before retiring as president in May.

Final Budget Deal Falls Short on Operating Funds

 

The final budget deal put in place by the Iowa General Assembly falls well short of the $40 million budget request put forward by the Board of Regents. Although there was an increase approved for the Regent universities (the second consecutive year of an increase following five years of budget reductions) the amount approved does not go far enough to even cover mandatory cost increases at UNI and the other Regent universities.
 
For the general operations of the universities, the legislature approved an additional $11 million. UNI's share of this funding is just over $2 million. In addition, the legislature approved $9 in one-time funding for the universities. This $9 million is a continuation of a $9 million one-time appropriation last year. UNI's share of the $9 million is approximately $1.7 million.
 
The approved budget also includes a total of $20 million to the Regents universities to implement initiatives in three key economic development areas: biosciences, advanced manufacturing and information technology. The appropriations language creates a joint Regents-industry entity called the Research and Commercialization Resources Organization to help develop research proposals with high potential for commercial application. The Board of Regents will determine how much of the appropriation will be allocated to projects at each of the three universities.

On the capitals side, in addition to the $2 million previously appropriated for repairs to Gilchrist Hall, the legislature approved $3 million for the first phase of a project upgrade UNI's electrical distribution system.

The legislature also continued a $500,000 appropriation for the Iowa Safe Surfacing Initiative which is being coordinated by UNI's National Program for Playground Safety.

Efforts were also successful in avoiding changes to the funding stream for UNI Real Estate Program. This program receives approximately $120,000 in annual support from the license fees of real estate salespeople and brokers. The defeated legislation would have reallocated this funding to community colleges and other colleges and universities in Iowa.

Although there were no actual cuts made in this budget, it does put UNI and the other Regent universities in a very difficult budget situation for the coming fiscal year. On the new revenue side, UNI's support from the state grew by just over $2 million (UNI's share of the $11 million in new operational support for Regent universities) and last year's tuition increase is projected to bring in $1.2 million. On the expense side increases for salaries, utility costs and costs associated with opening the Innovative Teaching and Technology Center total nearly $7.4 million. That leaves a budget gap of over $4.1 million.

In the coming weeks, UNI administrators and the Board of Regents will be discussing potential strategies to deal with this shortfall.

This was a long and difficult legislative session for all those associated with the Regent universities and it underscores the continued need for us to share with our elected officials not only the needs of UNI, but also the benefits UNI provides to students and the state.

"Close Enough" Doesn't Count in Education Funding

Democrats in the Iowa House had their effort to provide $40 million dollars in additional funding for the Board of Regents universities rejected on a party line vote March 15. The action came during floor debate on House File 2527, the Education Appropriations Bill.

As passed by the House, HF 2527 includes only $6 million in additional funding for the Regents institutions, compared to the $40 million requested by the Regents.

House Education Appropriations Subcommittee Chairman Royd Chambers (R-Sheldon) said during debate on the bill that discussions are ongoing to provide more than $6 million. ?We?re a lot closer to the $40 million than it appears in this bill,? said Chambers. That comment prompted Representative Don Shoultz (D-Waterloo) to remark, ?Close is not good enough. Close only counts in horseshoes and hand grenades. We can do better than this and we should do better than this.?

Shoultz, along with Representative Bob Kressig (D-Cedar Falls), sponsored an amendment, H-8121, that would have increased the appropriation to the Regents universities by $40 million. The amendment lost on a 44 to 46 vote.

Among Cedar Valley legislators, Representatives Bob Kressig (D-Cedar Falls), Don Shoultz (D-Waterloo) and Deb Berry (D-Waterloo) voted in favor of the amendment. Representative Willard Jenkins (R-Waterloo) voted against the amendment.

The Board of Regents has requested an increase of $40 million to help the universities recover from budget cuts of well over $100 million in the past five years. If the request is fully funded, the Regents have committed to limiting tuition increases to approximately 4 percent.

UNI?s share of the $6 million appropriation would be approximately $1.1 million. Salary increases at UNI (most of which are mandated by collective bargaining agreements) are expected to cost nearly $6 million and utility costs for the university are estimated to increase by $650,000. If the House level of funding is not increased substantially, significant reallocations and reductions would be required across campus.

HF 2527 passed the House on a mostly party line vote of 52-44 and now goes to the Senate for consideration by the Appropriations Committee and by the full Senate. The Legislature is scheduled to adjourn April 18.

Gilchrist Hall Update

In a piece of good news, the General Assembly has given its final approval to legislation that contains $2 million for the payment of the insurance deductible on Gilchrist Hall. This legislation is now awaiting the Governor's signature which is expected shortly.

This funding will allow UNI to continue making progress in bringing Gilchrist back online. Total costs for the repairs are expected to exceed $10 million. The university's insurance coverage is expected to pay the balance of repair costs above and beyond the $2 million deductible.

 

Iowa House Set to Debate Appropriations Bill for UNI

Last week the House Appropriations Committee passed out of committee the Education Appropriations Bill. Included in the bill is an additional $6 million in recurring funds for the Regent universities as compared to last year. UNI?s share of the $6 million (according to a formula used by the Board of Regents) is just over $1.1 million.

While an additional $1.1 million sounds like a lot of money, consider the following:

-Salary increases for UNI faculty and staff (many mandated by collective bargaining agreements) require an additional $6 million.

-UNI?s utility costs are estimated to increase nearly $650,000 next year.

-Last year?s 4 percent tuition increase provided an additional $1.7 million in revenues for UNI. That?s $600,000 more than the Iowa House of Representatives is willing to invest in UNI. Students should not have to bear the burden of funding a public university.

As you can see, even with an additional $1.1 million in new state revenues, UNI will still need to reallocate millions of dollars to keep up with normal cost increases.

Please contact your Iowa House Representative immediately and stress the importance of fully funding the Board of Regents? Partnership for Transformation. This plan calls for an additional $40 million per year for four years to be invested in the Regent universities. UNI?s share of that $40 million would be $7.5 million. The Transformation Plan also recommends holding tuition increases to approximately 4 percent.

Keeping our graduates in Iowa is a priority for everyone. Yet the fiscal policies of our elected officials are unnecessarily driving up tuition costs, which are forcing many Iowa students to abandon their dream of a four-year degree or take on significant amounts of student loan debt. While it?s true that the increased earnings over a lifetime will more than make up this debt, it does put pressure on students to chase higher salaries that will allow them to repay their debt. Too often those salaries are found in states other than Iowa.

Help us reverse this trend. Please call or email your Representative today and tell them to fully support the Board of Regents? Partnership for Transformation.

Regents Appropriation "Woefully Short"

Democratic members of the House Appropriations Committee sharply criticized the level of funding provided for the Board of Regents institutions in a bill approved by the Committee February 22. On a 14-10 party line vote, the Appropriations Committee approved House Study Bill 707 which increases state general funding to the entire Regents enterprise by only $6 million.

?This level of funding is woefully inadequate to meet their needs,?said Representative Mary Mascher (D-Iowa City). The $6 million increase compares to the request of $40 million made by the Regents as part of their proposed Partnership for Transformation and Excellence. The Partnership proposal requests a $40 million increase in each of four years to provide the resources needed to keep tuition moderate and rebuild programs damaged by well over $100 million in recent state budget cuts. The Board of Regents has agreed that, if the request is fully funded, tuition increases will be limited to 4% and the universities will be required to internally reallocate $20 million.

?The Regents universities receiving only $6 million does not meet the Transformation plan commitments and will result in higher tuition,? said Appropriations Committee Ranking Member Representative Mark Kuhn (D-Charles City). ?That doesn?t serve education well.?

Republicans leaders on the committee hinted that the numbers in the bill are not final. ?There are ongoing discussions with both parties in both chambers,? said Committee Chairman Scott Raecker (R-Urbandale). ?There will likely be changes in this bill,? Raecker said.

The funding level in the House bill is extremely disappointing. The proposed increase of $6 million for UNI, the University of Iowa, and Iowa State University is less than a 1 percent budget increase and falls seriously short of even a maintenance funding level.

UNI's $1.1 million share (18.75 percent) of that amount does not even come close to fully funding state negotiated collective bargaining agreements and if enacted, would force additional reallocations at UNI and may force the Board of Regents to increase tuition significantly to make up the loss of state support.

House Study Bill 707 will now be assigned a House File number and must be voted on by the full House of Representatives before going to the Senate for consideration. Floor action in the House could take place as early as the week of February 27.

UNI Budget Update from President Koob

Fiscal year 2007 is the second year of the Board of Regents, State of Iowa, Transformation Plan. As part of that plan, the BOR's budget request to the governor and the Iowa General Assembly was for an increase of $40 million. UNI's share of that $40-million would be $7.5 million (18.75 percent). The transformation plan also recommends holding tuition increases to approximately 4 percent ($1.5 million).

However, the governor has recommended a $20-million increase for the regents, which translates to a state-appropriation increase of only $3.75 million for UNI. This will not cover our obligations, including increased utilities and salary increases mandated by collective-bargaining agreements.

If the governor's budget is approved, UNI will need to internally reduce/reallocate $3 million -- just to meet mandatory cost increases. This means making tough decisions regarding significant changes in programs and services at UNI.

If the legislature approves less than the governor recommended, the internal reductions will be even greater. For every $1 million less than the governor recommended, UNI will have to reallocate $187,500.

UNI intends to adhere to our basic values and principles of maintaining a quality learning environment for students with respect to class size, student-to-faculty ratios, and availability of classes.

UNI won't be able to finalize our budget plans until the legislature completes its work. Unfortunately, this doesn't look like a short-term problem. Decisions made this year will have an impact over the next three to four years.

UNI Football Team, Coaches to be Honored by Iowa Legislature

The Iowa Legislature will recognize the University of Northern Iowa football team and coaches with a state resolution honoring their accomplishments at 1 p.m. on Monday, Feb. 6. The resolution will be read and approved by the Iowa House of Representatives followed by the Iowa Senate. Head football coach Mark Farley, Athletic Director Rick Hartzell and team representatives will be at the Capitol for the presentations.

The UNI football team played in its first-ever NCAA Division I-AA national championship game this fall, compiling an overall record of 11 wins and four losses and a long list of team and individual accomplishments during the season.

Governor Vilsack Announces his FY07 Budget Recommendations

Governor Vilsack, in his budget submission to the General Assembly, again strongly endorsed the Regents? Partnership for Transformation and other priorities of the Board and UNI. Specifically, the Governor has recommended an additional $30 million in support of the Regent Transformation Plan. For UNI, this would mean an increase in funding of approximately, $5.5 million.

The Governor also recommend the State invest an additional $50 million in Regent economic development efforts over a three year period. In the first year of that program, $20 million would be invested in Regent economic development programs.

The universities? capital needs were also addressed in the Governor?s budget. The Governor recommended an additional $10 million be spent on deferred maintenance and fire safety needs at three universities. The Governor also recommended $2 million for repair work on Gilchrist Hall which was heavily damaged by a fire on Homecoming Weekend.

The Governor's budget recommendation forms the starting point for the Legislature's budget process. We will be working closely with legislators as the session progresses to ensure the Governor's recommendations are enacted and if possible enhanced.

Now would be a great time to communicate your support of UNI to your local legislators and encourage them to support the Governor's recommendations related to UNI and the Board of Regents.

We will continue to keep you updated as we make progress this session.

Board of Regents Legislative Priorities - Partnership Plan for Transformation and Excellence, $40 million

The Board of Regents, State of Iowa, has requested an additional $40 million for the universities as part of its Partnership Plan for Transformation and Excellence, a four-year strategic effort to ensure moderate, predictable tuition for students and enhanced outreach services for Iowans.

The plan includes a matching funds program for state dollars, redirecting $1 of internal resources for every additional $2 received in state appropriations.

UNI's share of the $40 million is $7.5 million. This money would allow UNI to cover mandatory cost increases, expand enrollment and support new academic programs designed to enhance and support economic development efforts in Iowa.

This marks the second year of the Board of Regents Partnership Plan for Transformation and Excellence. The plan calls for an additional $40 million investment in the Regent universities. In last year?s legislative session, the Board received an additional $15 million in recurring funding and an additional $9 million from one-time funding sources.

On behalf of UNI, the Board is also requesting a special appropriation of $2 million to partially fund the restoration of Gilchrist Hall. A fire during Homecoming weekend caused substantial damage to Gilchrist Hall.