Budget cuts proposed

Gov. Scott McCallum proposes cutting some funding to the UW and the Wisconsin Technical College Systems to help eliminate the state’ s $1.1 billion budget shortfall.

The plan, which would cut funding by 1 percent in the first year of the budget and 4.5 percent in the second, will be referred to the Joint Finance Committee, which will make changes to the proposal before it is considered by the full Senate and Assembly. The UW System would need to cut $50.5 million through next year under the plan.

The Legislative Fiscal Bureau says the state’s projected budget deficit for the 2001-03 biennium is $1.117 billion. The estimate takes into account approximately $25 million the state has saved in spending over the past several months.

Regent President Jay Smith issued this statement in response to the budget plan:

“We are pleased that Governor McCallum recognized the positive role the University of Wisconsin System is playing in the state’s economy and we appreciate his efforts to minimize the impact of state budget cuts on the university.

“These are tough times and the university must do its share in helping the state to balance the budget.

“At the same time, this is a substantial reduction on top of cuts we have already taken this fiscal year. President Lyall and I will be consulting extensively with our Regents and Chancellors on what options we have for meeting these cuts.

“It is important to remember that the effect of these cuts will be felt in our campus communities, where UW institutions serve as major employers and economic engines.

“We feel it is important to keep our momentum going and to continue implementing our state economic stimulus package. We will do as much of that as we can but we may have to make some modifications in light of these budget numbers.

“We want to contribute to the state’s economic recovery and we trust that as the state’s income improves, these cuts will be restored so that we can remain affordable and accessible, and serve the state in a stronger role when it comes to economic development and workforce supply.”

“As a businessman, I have had to wrestle with tough choices during economic downturns. But I have always made such decisions with an eye toward what will help the company grow and prosper in the long run. If the Governor and legislators do the same, we are confident that they will continue to invest in the UW System.”

For more information about the proposal’s possible impact at UW–Madison, return to News@UW-Madison later today.