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Budget updates from UNI President Ben Allen are posted as necessary to keep the University of Northern Iowa community informed on the current budget status and proposed budget actions.

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FY2010 Budget Messages

November 13, 2009
Some Progress to Report

I had hoped to have more information to share with you by now. Unfortunately, processes beyond our control are moving slower than expected. However, I do want to keep you informed about changes since my last message.

1. Temporary reduction in TIAA-CREF employer contributions

As approved by the Board of Regents, State of Iowa, on Oct. 29, effective with the Nov. 30 payroll, the university will temporarily reduce its employer retirement contribution to TIAA-CREF. The reduced contribution will remain in effect through the June 30, 2011 payroll and will be adjusted as follows:

  • The university contribution rate of 6 2/3 percent for the first $4,800 of salary for employees with one through five years of service will be reduced to 5 1/3 percent.
  • The university contribution rate of 10 percent for salary above the first $4,800 for employees with one through five years of service will be reduced to 8 percent.
  • The university contribution rate of 10 percent for employees with more than five years of service, early retirement plan participants, and employees on phased retirement, will be reduced to 8 percent.
  • The employee contribution rate will remain the same.

If you have questions about TIAA-CREF, contact Cindy Webb or Bobbi Petersma.

2. Temporary layoffs

Part of UNI's plan to reduce the budget is to conduct temporary layoffs (unpaid leave) among all employee groups in fiscal 2010. This plan will be graduated based on salary. The specifics of temporary layoffs won't be known until discussions have concluded between the state and AFSCME, and between UNI and United Faculty. We are hopeful discussions will be concluded by the end of the month.

Gov. Culver's office and AFSCME have a tentative agreement. The membership will vote on ratification of the agreement on or before Nov. 25. Whatever is decided at the state level will directly impact AFSCME-represented employees at UNI. That decision also will impact the options available to the university.

Since the last Board of Regents meeting, UNI administrators have met with United Faculty leadership to share information and ask questions pertaining to temporary layoff and temporary salary reduction options. The two groups will meet again on Nov. 16. 

 3. Board of Regents

A motion to recommend a $100 spring-semester tuition surcharge was approved by the Board of Regents at its October meeting and will be voted on at its Dec. 10 meeting.

4. Federal stimulus (ARRA) funds

Since July 2008, state appropriations to UNI have been cut by 23 percent, or $23 million. On the positive side, UNI has received $12.4 million in one-time American Recovery and Reinvestment Act (ARRA) funding for fiscal 2010. We have tentatively committed those funds to a series of projects across campus. These allocations won't be final until the overall university budget has been approved. For detailed information about the ARRA funding and how we intend to use it, see http://www.uni.edu/president/sites/default/files/arra.pdf.

UNI's vice presidents have been sharing information with you about how these actions impact your specific areas. We remain committed to treating all employee groups in an equitable manner. There are many details yet to be determined and we will communicate updates on our progress as available. Thank you for your continued patience and dedication to our students and the state of Iowa.

Ben Allen

 

October 29, 2009
The Board of Regents has approved UNI's budget reduction action plan

The conversation at today's Board of Regents, State of Iowa meeting regarding UNI's action plan to address the 10-percent budget reduction has concluded.

The Board of Regents has approved the action plan I outlined in my message earlier today.

A motion to recommend a $100 spring semester surcharge was approved by the Board of Regents and will be voted on at the December board meeting.

Today marks a new reality for UNI. While difficult decisions have been made, our priorities and our purpose cannot and will not change.  In the coming days, UNI's vice presidents will share more information with you on how these actions impact your specific areas. There are many details yet to be determined and we will communicate updates on our progress as available.

Ben Allen

October 29, 2009
Proposal presented to Board of Regents, State of Iowa for 10% budget cuts

Download President Allen's Presentation  (PDF)

At the Board of Regents, State of Iowa meeting today, the state's public universities will present proposals to address an across-the-board 10-percent state appropriated budget cut for fiscal 2010.

This budget reduction has significant implications for our university. A 10-percent state appropriation reduction has a greater impact on UNI than it does to the state's other public universities, as UNI relies more heavily on state funding. To compound the reality of its impact, this cut, coupled with other recent decreases in state appropriations, represents a reduction in state funds for UNI of $23 million, or 23 percent, since July 2008. 

This budget cut required swift decision-making, in large part, because one-third of our fiscal year has already passed. For the last two weeks, UNI's leadership has met with students, faculty and staff to assist in this difficult process.  To guide strategic decision-making, we focused on both the fiscal 2010 10-percent state appropriation reduction while taking into consideration our anticipated fiscal 2011 budget scenario. With stimulus funds unavailable for fiscal 2011 and the economic outlook still challenging, our proposal employed both permanent and temporary strategies to minimize a potential financial "cliff" in the coming fiscal year.

UNI's proposed action plan to the Board of Regents will address the $8.8 million reduction by initiating the following strategies:

Reallocate unplanned tuition revenue as a result of higher-than-forecasted 2009-2010 enrollment ($2.7 million)

Make permanent budget reductions across the university through divisional cuts, which could include permanent layoffs ($1 million)

Conduct temporary layoffs (unpaid leave) among all employee groups in fiscal 2010 with a graduated plan based on salary ($1.8 million)

Redirect a portion of the ARRA (stimulus) funds ($1 million)

Temporarily reduce TIAA-CREF employer contributions from 10 percent to 8 percent of salary for the remainder of fiscal 2010 and fiscal 2011 ($1 million in savings in fiscal 2010)

Apply a tuition surcharge of $100 per fulltime student for spring 2010 semester with revenue going directly to instruction, financial aid and student-service support ($1 million)

Initiate an across-the-board 10-percent cut to special line-item units at UNI ($400,000)

This action plan is contingent on the Board of Regents approval. 

Thank you for your continued patience and dedication to our students and the state of Iowa.

Ben Allen

 

October 15, 2009
Budget update after special Board of Regents meeting

Yesterday, the Board of Regents, State of Iowa held a special telephonic meeting to discuss how the state's public institutions and special schools will address the recent announcement of a 10 percent across-the-board cut.

During the meeting, the Board of Regents approved the temporary hiring freeze on general fund positions announced last week by President Miles. The hiring freeze is in place until the board approves the university's action plan for the budget reduction on October 29. The moratorium on new building construction announced last week was lifted, allowing UNI to continue with in-progress construction projects.

The Board of Regents also asked the state's public institutions and special schools to consider a number of strategies in developing an action plan to be presented at the October 29 Board of Regents meeting, to be held on our campus. As directed by the Board of Regents yesterday, UNI's proposed action plan to address the $8.8 million reduction should consider the following:

1. Temporary salary reductions

2. Temporary layoffs/furloughs

3. Benefit revisions of a temporary or permanent nature

4. A tuition surcharge for the spring semester of 2010

5. Postponing non-essential deferred maintenance and repairs

6. Refocusing efforts, including potential program eliminations

7. Permanent layoffs

8. Selling non-essential assets to generate one-time funds

Between now and October 29, much collaboration and communication will be necessary. The vice presidents and I will meet with as many on-campus groups and constituents as possible to assist in this difficult decision-making process.

Our primary principles of doing everything we can to maintain academic quality, progress to graduation, student financial aid, and campus safety and security will continue to guide our decision making.

I will share more information with the campus community as it becomes available.

Ben Allen

Download Board of Regents President David Miles remarks from the October 14 special Board of Regents meeting

October 9, 2009
New Budget Reductions Coming

On October 7, the state Revenue Estimating Conference lowered its fiscal 2010 revenue projection from nearly $5.8 billion last March to $5.4 billion. This new projection resulted in Gov. Culver's announcement of a 10-percent across-the-board cut to the state's fiscal 2010 budget. Board of Regents President David Miles also announced an immediate hiring freeze for all general fund supported positions and a moratorium on all new building construction projects. These issues will be discussed and presented for ratification at a special telephonic meeting of the Board of Regents, State of Iowa scheduled for October 14.
 
This new budget reduction equates to an approximately $8.8 million cut for the University of Northern Iowa and now reduces the university's state appropriations by $23.8 million (23.1 percent) since the start of fiscal 2009.
 
With this news, we continue to face great financial challenges. Difficult decisions were made last year as a result of fiscal 2009 budget reversions and fiscal 2010 state appropriation decreases. I am very aware of the burden these cuts placed on the university.
 
This will require substantial, structural changes to the university and sizeable cuts to programs and initiatives. Everything is on the table for review.
 
Yet, our guiding principles must remain intact for this round of budget reductions. We will do everything we can to maintain academic quality, progress to graduation, student financial aid, and campus safety and security. The vice presidents and I will make these reductions as strategically as possible.
 
As noted during convocation in September, we have to make substantive changes for our university. I encourage each and every university community member to accept these circumstances and take responsibility for the future success of the university. With the limited resources we have, we will need to become much more efficient and effective, innovative and entrepreneurial.
 
We will get through this challenge, but we must work hard, work smart and work together. Thank you for your continued focus on the work at hand.
 
Ben Allen
 
Download Board of Regents President David Miles statement from October 8