President Allen began by giving a historical perspective regarding state funding to UNI. In November 2008, state funding was $98 million but is now $75 million.
UNI's action plan addressed the $8.8 million reduction by initiating strategies listed below, however UNI currently remains $730,000 short of its targeted savings. To address this, UNI plans to use a portion of ARRA funds and limited one-time funds.
The fiscal 2010 budget reduction breakdown is as follows:
The following initiative has exceeded targeted savings:
Temporarily reduce TIAA-CREF employer contributions from 10 percent to 8 percent of salary for the remainder of fiscal 2010 and 2011 for an estimated $1 million in savings in fiscal 2010. This temporary reduction has resulted in savings of approximately $1.05 million.
The following initiatives have achieved targeted savings:
1. Make permanent budget reductions across the university through divisional cuts. Budget impact: $1 million.
2. Apply a tuition surcharge of $100 per fulltime student for spring 2010 semester. Budget impact: $1 million.
3. Initiate an across-the-board 10-percent cut to special line-item units. Budget impact: $400,000.
4. Redirect a portion of the ARRA (federal stimulus) funds. Budget impact: $1 million.
The following initiatives have experienced significant cost savings to-date but have yet to achieve estimated targeted savings:
1. Reallocate unplanned tuition revenue as a result of higher-than-forecasted 2009-2010 enrollment. The estimated cost savings was $2.7 million; however, as of mid-January, the actual amount saved was $2.45 million. Because the final January enrollment numbers are not yet finalized, a more accurate total will be soon be available.
2. Conduct temporary layoffs among all employee groups in fiscal 2010 for an estimated cost savings of $1.8 million. The current cost savings as of mid-January is approximately $1.26 million. We have not reached the target due to two factors: 1) the savings of $260,000 from AFSCME employees conducting temporary layoffs has been directed to the state instead of to the university; and 2) the savings of faculty conducting temporary layoffs is $590,000 --$205,000 less than the original target of $795,000. Instead of temporary layoffs, faculty voted and approved temporary salary reductions. P&S and S&C employees have begun conducting their temporary layoffs and cost savings are estimated to be on target.
The Governor’s proposed budget for fiscal 2011 includes recommendations for restoring $31 million to Regents institutions which would equal approximately $5.2 million returned to UNI. Should this be restored, the Board voted to rescind the $100 surcharge to students applied in the spring 2010 semester. This temporary surcharge was implemented to generate $5.9 million of the $60 million lost to Iowa’s public universities with the 10-percent across-the-board reduction in October 2009. It was noted that tuition monies can be carried over into next fiscal year, however state funds cannot.
The Board of Regents, State of Iowa voted to increase 2011-2012 tuition at the three state universities by 6 percent. Even with this increase, UNI still faces a challenging budget situation for fiscal 2011. The realities of the FY2011 budget will become clearer as the Iowa General Assembly takes action on the state’s budget.
Meanwhile, conversations continue on making UNI more efficient. Reducing support for Auxiliaries, cutting academic programs with few students, and sharing services with other regents institutions are but a few of the many ideas currently being considered. If there were to be additional Early Retirement Incentive Packages, they would be different than what was previously offered and would be closely scrutinized by the Board of Regents.