UW System to present budget proposal to Regents

The UW System 2001-03 biennial operating budget proposal, to be presented this Friday for consideration by the Board of Regents, will focus on building Wisconsin’s economy.

The proposal commits the statewide UW System to a larger role in Wisconsin’s economic development, in part by increasing the supply of graduates in such “new economy” industries as biotechnology and information technology.

The proposal also funds the second phase of the Madison Initiative, the first phase of the “Milwaukee Idea” program, an enhanced learning environment at UW-Green Bay, and measures aimed at improving the number and quality of K-12 school teachers in Wisconsin.

“The university — our students, our faculty and our graduates — is an investment in Wisconsin’s future,” says UW System President Katharine Lyall. “In return for that investment, we offer the state solutions to its most pressing problems. Right now, there’s concern about the state’s work force: can our companies hire the people they need and do those people have the skills required to succeed in the new economy?

“This budget proposal addresses both questions in a strong and positive way,” says Lyall, “with a series of initiatives, each of which is tied to very specific outcomes.”

Overall, the proposal calls for an average annual increase of 3.7 percent in tax money/fees in each year of the biennium for new initiatives and “cost-to-continue” items.

By comparison, the Board of Regents requested an average annual increase of 3.4 percent in tax money/fees per year for 1999-01. The new request includes an average annual investment of $48 million in state funding and $12 million in student fees. Lyall noted that the budget also calls on the UW System to generate nearly $285 million of its own “program revenue” funding.

“Of that amount, $92 million is in the form of projected additional gifts and grants,” she says, “while $52 million comes from auxiliary services, such as our residence halls, student centers and food services.”

The proposal to be adopted by the regents would support an increase of 8,300 full-time-equivalent resident undergraduate students systemwide by 2006-07. Overall, average annual tuition in the UW System would increase 3.2 percent per year under this proposal, which does not include the cost of compensation increases. A separate compensation request will be submitted in November.

Also on Friday, the Board of Regents will consider a GPR-supported capital budget borrowing request of $222.9 million for a mix of projects throughout the UW System, including the 10-year, $317 million BioStar program designed to replace and supplement biotechnology -related facilities at UW–Madison.

“Both the operating and the capital budget proposals rely on more than just the state for funding,” Lyall says. “The governor’s BioStar capital program in support of biotechnology, as well as the Madison Initiative and Milwaukee Idea, will challenge the UW System to enlist the backing of companies, foundations, alumni and communities if we are to be successful.”

Following Board of Regents action, the proposal will go to the Department of Administration for consideration as part of the governor’s budget, which is generally submitted to the legislature in February. Normally, the state’s biennial budget is approved and signed prior to the start of the new biennium July 1.

“Thanks to Gov. Thompson and legislative leaders, the last state budget was the best in a decade for the UW System,” Lyall says. “That trend needs to continue. We’ve made a strong case this time that the UW System can help build the ‘New Wisconsin Economy.’ To do that, we will need resources — money and staff — to match the eagerness of our institutions to be of service to the students whose future is also the future of our state.”