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Gregory Geoffroy, President, (515) 294-2042
Benjamin Allen, Vice President for Academic Affairs and Provost, (515) 294-0070
John McCarroll, University Relations, (515) 294-6136


Iowa State University president Gregory Geoffroy today announced plans to cut $8.3 million from the university's current budget to comply with Gov. Tom Vilsack's Oct. 10 budget reduction order and to adjust for other unexpected revenue shortages.

As a result of the governor's order, Iowa State's appropriation this year is reduced to $227 million, which is less than the university's appropriation for 1996-97. During that time, enrollment has increased by nearly 2,500 students. Including the latest cut, state appropriations to Iowa State now have been reduced by $63.7 million since 2001.

The latest budget reductions will impact academic and administrative units, research and extension activities, and access to university services and programs. Funding for student financial aid, the Office of Admissions and fuel and utilities will not be reduced.

"This is a painful and difficult process that will affect our ability to carry out the many services of Iowa State University. But we are making every effort to protect the core mission of this university -- the education of students," President Geoffroy said.

The cuts to Iowa State's academic colleges and administrative units will result in layoffs, but the number of affected jobs is not known at this time, Geoffroy said. In addition, many faculty and staff searches will be stopped and many vacant positions will be eliminated.

The governor's order requires Iowa State to cut 2.5 percent of the FY04 state appropriation, or $5.8 million. In addition to the governor's order, the university must reduce spending to compensate for a $1.5 million shortfall in tuition income resulting from lower fall enrollment and a potential $1 million shortfall in reimbursement for costs associated with large research contracts.

"Through previous budget cuts, we have maintained our focus on meeting the needs of students. And we will continue to make that our highest priority, but that requires cutting other university services -- all of which are important to the people of Iowa. I regret we have no choice but to make these reductions if we are to maintain the excellence of our educational programs."

The four divisions of Iowa State's general university budget -- academic affairs, business and finance, president's office, and student affairs -- will make cuts totaling $6.9 million. The largest percentage cut will be in the president's office (8.1 percent, $1.3 million), followed by business and finance (3.5 percent, $1.2 million), student affairs (1.9 percent, $246,000) and academic affairs (1.8 percent, $4.2 million). The percentage reductions to specific programs and services within these divisions will vary.

The remaining $1.4 million reduction will be achieved by 2.5 percent cuts to the following units that were included in the governor's order: Agriculture Experiment Station, Cooperative Extension, Leopold Center, Livestock Research, Institute for Physical Research and Technology (IPRT), Small Business Development Centers and the ISU Research Park. The last three of these units are directly involved in strengthening Iowa's economy, but they have sustained budget cuts totaling $3.7 million, or 61 percent of their appropriations, since FY01.

Cuts in the general university budget totaling $1.2 million will be made to the following units: Department of Intercollegiate Athletics ($560,000), Iowa State Center ($250,000), Reiman Gardens ($50,000), University Museums ($95,000) and WOI Radio ($239,285).

"These are highly visible units that broaden and enrich the learning experience at Iowa State University. Unfortunately, when we're forced to reduce the university budget, these units must rely even more heavily on fees for services and private giving to balance their budgets," Geoffroy said.

Vice President for Academic Affairs and Provost Ben Allen has reduced the budgets of each college and has asked deans to provide by Dec. 12 details of how they will make the reductions. The Office of the Vice Provost for Undergraduate Programs will be eliminated, and after careful review all functions associated with that office will be reassigned within the Office of the Provost or eliminated.

The Graduate College will be moved from the Vice Provost for Research to the Office of the Provost. All functions of the Graduate College also will undergo careful review to determine which ones are retained and which ones are eliminated.

Vice President Allen and the college deans will immediately begin an extensive review of the long-standing college academic and administrative organization. The review is to be completed within the next three months, and significant changes are likely, Allen said.

"This review underscores just how seriously these budget cuts are impacting the university," Allen said. "The traditional system of individual colleges devoted to particular academic disciplines has worked very well in helping Iowa State carry out its land-grant mission, but the budget reductions of the past several years have caused severe strain in this system. We must consider reorganization, including the possibility of combining colleges and other academic units."

Vice President for Business and Finance, Warren Madden, will reorganize the university's risk management functions and reassign staff involved in asset recovery and printing services. Funding for fuel and utilities is not being reduced, but the aggressive energy management program, which has produced substantial savings, will continue, Madden said.

These changes in the FY04 Iowa State budget are subject to approval by the Board of Regents, State of Iowa.


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