Final Budget Numbers Close to Being Released

With the completion of the 2003 general session of the Utah Legislature, final budget numbers are close to being released. On March 11, the Utah State University Executive Committee and deans met again in a special session to review preliminary budget numbers for the next fiscal year, beginning July 1.

A White Paper detailing budget cuts that was planned for release for the second week in March has been postponed until more definitive numbers from the legislature are in and a recommendation from the university's investment advisory committee has been made. The investment advisory committee meets March 17 to recommend the allocation of funds tied to the university's compact planning initiatives.

By July 1, the university's budget will have been reduced by 11.7 percent, totaling $14.3 million. Public release of where cuts for the next year will be taken is expected by April.

Because the state and national economy continues to stall, economic uncertainty remains.

"We are far from out of the woods," said President Kermit L. Hall. "The woods are getting deeper as we move along."

Despite the clouds that remain on the horizon, however, Hall said Utah State did exceptionally well with this year's legislative session. Significant funding that came the university's way includes the following:

• New library ($42 million)
• Passage of House Bill 75 to help soften the blow of the previous year’s HB 331 ($6 million over five years)
• Engineering initiative (around $250,000)
• Veterinary Diagnostic Laboratory ($160,000)
• Climate Center ($120,000 one-time funding)
• Building Operation and Maintenance ($500,000)
• Health/dental/retirement ($970,000)

Hall said the university will need to remain prudent, which means the hiring freeze must continue. He said cuts will not be administered on a proportional basis. When making cuts, deans and vice presidents were advised to take into account several factors –– most prominently the preservation of the university's academic integrity.

Care must be taken not to damage Utah State's ability to keep and recruit faculty, according to University administrators. Therefore, instruction will continue to be held harmless. Hall said administrators need to make sure that key personnel and structure changes do not damage the institution in the long run.

The president said there are three areas off limits to cuts. These are operations, instruction and any revenue-enhancing opportunities. The university will continue to provide funding for promotion and tenure and for key compact planning initiatives. Funds have also been identified to help in retaining key faculty. This approach will place the university ahead when the economy does turn around and state revenues improve.