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Budget agreement near

July 3, 2002

The Legislature has passed a budget repair bill addressing Wisconsin’s $1 billion budget deficit, and the plan includes some cuts to the UW System budget.

The governor has the final say on the bill before it takes effect.

Cuts will reduce the UW System budget by approximately $44 million for the coming academic year and beyond, says Katharine Lyall, UW System president.

“We appreciate the governor’s and legislators’ special consideration for the role the university plays in economic development and the need to protect this mission even in tight budget times to the extent possible,” Lyall says.

“Within our means, the UW System will continue to look for ways to strengthen the state’s economic future through producing skilled graduates, educated citizens and cutting-edge research,,” Lyall adds. “As the Board of Regents has made clear earlier, we are committed to maintaining a quality education for all UW students and will manage budget reductions in this context.”

The impact of the cuts on UW–Madison is still being calculated.

Meanwhile, a number of specific proposals that have been included in various versions of the budget adjustment package were dropped, including:

  • Cut advertising budget.
  • Eliminate study abroad funding.
    Reduce UW travel budgets by 50 percent.
    Reduce state printing by 10 percent.
  • Reduce the compensation reserve
  • One-time out of state tuition surcharge of 10 percent

A plan to remove taxpayer tuition subsidy after 165 credits remains in the budget.

Also, the agreement:

  • Accelerates the BioStar program so that full funding is authorized over 8 years instead of 10 years.
  • Does not include advertising and printing restrictions or targeted budget reductions in those areas; however, a provision that requires the Department of Administration to review all state agency publications and to prohibit non-essential publications remains in the budget.
  • Does not require state employees to make minimum contributions toward health insurance premiums.
  • Increases Wisconsin Higher Education Grants $1,673,500.
  • Increases Lawton grants by $400,000.
  • Links future increases in both WHEG and Lawton to tuition increases.
  • Increases funding for the State Lab of Hygiene by $223,300.
  • Increases funding for the Waisman Center by $300,000.
  • Cuts funding for the Vet Diagnostic Lab by $133,200