Operating budget approved

The UW System Board of Regents adopted the 2002-03 operating budget at its June 6-7 meeting but chose not to set tuition for the coming academic year.

Because the conference committee is still working to balance the state’s $1.1 billion budget deficit, the 2002-03 budget is based on assumptions that the university will have to cut $10 million from its current budget and $30 million from the budget for the fiscal year that begins July 1.

UW–Madison’s share of those cuts will be $3.9 million in the current year and $11.5 million in 2002-03. About $4.7 million of the 2002-03 cuts are expected to come from funds intended for the salaries of new faculty hires. Another $1.08 million will likely come out of student financial assistance, but will likely be replaced by gift money. About $3.8 million would come from money set aside for supplies and expenses.

“The ultimate impact of these reductions on our enrollments and services cannot be known until we know what tuition increase will be included in the final bill – whether tuition will be capped at the governor’s proposed 10 percent, or 8 percent, or somewhere in between,” UW System President Katharine Lyall says.

With the 2002-03 fiscal year, state funding as a percentage of the university budget will fall to its lowest level ever, Lyall notes. State money will make up 31.3 percent of the UW budget in 2002-03. At merger, the state provided 50 percent of university funding.

The budget also includes a 9.8 percent increase in segregated fees on the UW–Madison campus, due mainly to an increase in programs initiated by student government.

Regents also approved a 3.7 percent increase in room and board rates at UW–Madison to about $5,019 per semester.