Lyall outlines principles for dealing with state cuts

Gov. Jim Doyle says the University of Wisconsin System should expect him to propose major cuts in funding for the university when he submits his 2003-05 budget plan Feb. 18.

But Doyle told the UW System Board of Regents at its meeting Feb. 6 that the UW System would not receive deeper cuts than other state agencies.

“We won’t ask the university to do anything that the rest of the state isn’t willing to do itself,” Doyle said.

While Doyle said the university would have to be part of the solution for balancing the biennial budget, which takes effect July 1, he acknowledged that the university is an important economic engine for the state.

“I see the University of Wisconsin System as one of the great promises of opportunity to every person in this state,” Doyle told the regents. “This state is in a very difficult situation. If we don’t handle it correctly, it imperils the University of Wisconsin and, ultimately, the people of this state. If we slash education, we undermine what makes our state so attractive.”

After Doyle unveils his plan for closing the state’s estimated $3.2 billion budget deficit Feb. 18, it goes to the legislature, where it will likely be altered before returning to the governor for his final approval.

UW System President Katharine Lyall responded to Doyle’s comments by reiterating that the university will handle cuts without sacrificing quality. But Lyall said massive cuts mandated by the state could result in higher tuition and job reductions.

“Our obligation is to serve our students well at whatever scale is possible with available resources,” Lyall said.

Lyall presented the Board of Regents with five principles for dealing with state budget cuts, some of which will have a direct impact on staffing levels:

While making cuts in the “short run,” the university should preserve its “long run” ability to serve students and the state.
The university should minimize administrative costs that have the least impact on serving students, meeting our legal accountability responsibilities and generating external revenues.
The university should look to eliminate or merge academic programs and majors that are duplicated elsewhere in the UW System.
The UW System will support tuition increases that would place UW campuses close to the midpoint of their peer institutions. Tuition increases should be coupled with an increase in financial-aid availability.
The UW System will review and adjust enrollment targets only if necessary and as a last resort.

“After all these steps have been taken — cutting administrative costs, eliminating programs and moving tuition to the midpoint — if further position/personnel reductions are necessary, we may need to review and adjust enrollment targets to reflect the elimination of additional faculty and staff from the budget,” Lyall told the regents.

Since potential budget cuts were first announced last fall, UW campuses have been making cutbacks wherever possible, Lyall reported. All campuses have contributed to administrative savings by:

reducing state-funded travel,
restricting printed matter and publications,
eliminating advertising supported by state funds, except legally required job notices and public event information serving local communities, and
selectively filling vacant positions, with a priority to maintain instructional capacity.

Budget process will stretch out until August

Gov. Jim Doyle will unveil his budget plan Feb. 18. Although it will be a major indicator of how the university will fair in the 2003-05 biennial budget, it is only one step in a months-long process of building the state budget.

The UW System Board of Regents submitted its 2003-05 biennial budget request on Aug. 22, 2002.

Since that time, the governor’s office has reviewed budget requests from the UW System and other state agencies and monitored revenue estimates. Here’s what happens next:

Feb. 18
Gov. Doyle submits his budget recommendations to the Legislature. The governor’s budget will be the starting point for budget discussions and decisions.

February-April
The Joint Finance Committee and other legislative committees hold public hearings on the budget bill. Many of these hearings will be held around the state and the public is invited to testify.

May
The Joint Finance Committee acts on the budget bill and sends it to the full Legislature. Most changes made to the governor’s recommendations occur in the Joint Finance Committee.

June
The Legislature considers the budget bill. The bill will be approved by one house before being sent to the other for consideration. A conference committee made up of leaders from both houses will reach agreement on a final version, which is then adopted by both houses.

July
The Legislature passes the budget bill.

August
The governor exercises partial veto authority and signs the budget bill. Most provisions of the bill become effective immediately.