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Budget bill await final approval

July 11, 2002

A budget repair bill addressing Wisconsin’s $1 billion budget deficit now awaits the governor’s review.

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

The budget adjustment bill was finally sent July 8 to Gov. Scott McCallum after it narrowly passed the Assembly on a 50-47 vote. The Senate had passed the bill last Wednesday on a 17-16 vote.

McCallum has until Aug. 1 to review and act on the bill, although it is expected that he will take action sooner.

The budget deficit of $1.283 billion was resolved by using:

  • $829.3 million in funds from the tobacco lawsuit settlement.
  • $264.7 million in lapses, transfers and re-estimates.
  • $189 million in direct spending cuts.

Of the $189 million in spending cuts, the UW System’s cut is $44.2 million or 23.4 percent of the total. The UW System constitutes less than 9 percent of total state general fund spending.

“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.