Gibson on budget cuts: “Not all questions can be answered”

The town hall meetings held by the Northern Iowa Student Government Monday night aimed to explain the budget cuts and their impact on the University of Northern Iowa community.

Provost Gloria Gibson and Vice President for Student Affairs Terrence Hogan spoke about a range of topics, including past influences, current situations and future solutions to the growing budget crunch.

The budget problem UNI is facing has come from a handful of factors. First, in fiscal year 2009, UNI received a $15 million budget cut. In the midst of this current year, the state of Iowa laid down a 10-percent reduction in state funds at the cost of $8.4 million.

UNI’s operating costs are also expected to increase in the upcoming fiscal year and it’s quite possible more budget cuts will be handed down to Iowa’s public universities.

“I think the important thing is, not all questions can be answered at this time,” said Gibson. “It’s an evolving process. There are still some issues that have not been worked through.”

One of these issues involves UNI’s faculty union. Prior to Gibson’s arrival at UNI, the faculty was contracted to receive a three-percent increase in salaries for fiscal year 2011, which would equate to about $3.6 million, money that the university simply doesn’t have. Negotiations are underway to prevent the salary raises.

If an agreement cannot be made, Gibson suggested actions would have to be taken, like another reduction in the faculty retirement fund by as much as four percent.

Reductions in state funding to UNI aren’t a new problem.

Hogan described a growing trend in state budget allocations. State money comprised 71.29 percent of UNI’s budget in the 1996-1997 fiscal year. In contrast, now, 50.27 percent of the university’s funds are coming from the state of Iowa. A steady reduction has occurred, cutting more than 20 percent, with no end in sight.

This hits UNI especially hard, according to Hogan, because 93 percent of its students live in-state. Other schools, like the University of Iowa, have much larger out-of-state enrollment, with U of I’s being about 50 percent. Since in-state tuition is significantly lower than out-of-state, it directly relates to the amount of money that the university can work with.

“What’s disturbing to me is the fact education is so important,” Gibson said. “It’s so vital. It does transform you as students. It transformed me. I came from a poverty-ridden area in Illinois. I know that if I hadn’t gotten an education, that’s where I’d be.

“I have no doubt in my mind. It’s an investment, an investment in all of you,” Gibson continued. “It defies logic that the investment of the state (in education), not just in this state, but many other states, is dwindling.”

Iowa is not alone in this problem. Some schools, such as the University of Virginia and the Virginia Polytechnic Institute and State University, have even held public forums to discuss the possibility of turning their schools private.

While in most likelihood that won’t happen, in Gibson’s opinion, it just goes to show the strains facing the United States’ college education system.

To combat the most recent budget cuts, a multifaceted plan of action has been laid out to spread the cuts across the campus.

According to Hogan, $2.7 million in unbudgeted tuition revenue will be focused toward making up the tuition shortfall. Permanent budget reductions across the university should generate $1 million, along with potential layoffs. A redirection of American Recovery and Reinvestment Act money, which was supposed to go to university improvement and environmental sustainability, provides for another $1 million to alleviate the situation.

Temporary layoffs across all employee groups and a temporary reduction in UNI’s retirement contribution saves another $2.8 million. Finally, a one-time $100 tuition surcharge for the spring semester will save the final $1 million needed.

Gibson and Hogan made it clear that permanent solutions are needed to keep the university alive, since some means, like the tuition surcharges, are only temporary.

Specific actions have already been taken by different areas. For example, UNI’s North American Review, the oldest college literary review in the U.S., has reduced its publication from six issues a year to four.

Additionally, instead of simply eliminating majors and minors, consolidation has occurred. For example, an under-enrolled Asian studies program is being combined with other lacking majors and minors to create a “Global Studies” major, with the option to emphasize on a specific world region.

A new push to gain grant money by various UNI departments may alleviate some of the budget crisis. In the past few years, there have been considerable jumps in the amount of external money that has found its way onto the UNI campus.

“Every dollar the university is able to get through a grant is a dollar that doesn’t have to come out of our pockets,” said Hogan.

Hogan stated that since 18 percent of student tuition automatically goes to financial aid, money is guaranteed to be available for students. Merit-based scholarships will remain steady and the university has plans to increase need-based aid, in light of such trying times.

Gibson would like students to have some faith and remain positive, despite such adversity.

“The one thing you can rest assured is that (UNI) President (Benjamin) Allen is on top of this issue,” said Gibson. “He plans and he plans and he plans and he plans some more. I have just been so impressed from his leadership. I think everyone on the president’s cabinet is competent.

“We are working very hard to minimize the pain that would be felt across campus and to students.”