Budget Updates

05/11/09

Colleagues,

I would like to briefly update you on the latest budget information. As a result of reductions in the General Education Fund (GEF) allocated by the Legislature to support the Regent’s institutions, the collegiate units will have their GEF budgets reduced by 7%.   This will be offset IN PART by a one time infusion of American Recovery & Reinvestment Act (ARRA) money (i.e. stimulus money).  The total ARRA funding coming to the University is $34 million.  A portion of the ARRA money will come back to the colleges to be used to avoid temporary reductions in pay and furloughs for the coming fiscal year.  However, there will be no merit-based salary increments for faculty or professional and scientific staff, and merit staff wage adjustments will be based on terms negotiated by the bargaining unit.

The remaining portion of the ARRA money (~ $16 million) will be distributed on a competitive basis to colleges.  Successful applications must promote sustained change while producing revenue enhancements or cost reductions.  These proposals will need to dovetail as much as possible with the university’s identified strategic priorities:  Successful Undergraduate Education; Selective Excellence in Graduate Education; Research and Creative Excellence; Internationalization and Diversity; Outreach and Engagement with Iowa and Academic Budgets and Operations.  Specific requirements and criteria for these proposals will be forthcoming shortly from the Provost’s Office.  The deadline for the first of two rounds of applications is June 5, 2009 with the second round due early Fall, 2009.  All of these competitive ARRA funds must be expended by June 30, 2010. 

It is important to note that the “stimulus money” disappears in FY11.  Consequently, collegiate GEF budgets for FY11 will reflect a permanent budget cut of at least 7% (or potentially higher depending on economic forces).  While the specific impact of these reductions on programs and operations remain to be identified, it is clear that the coming months will be focused on creating a leaner university while investing in strategic areas of excellence.  I look forward to sharing my thoughts, as well as hearing from you, at upcoming faculty and staff meetings how we might reinvent the College of Nursing as a leaner, but stronger institution.

Regards,