Iowa City Press Citizen 02/22/06 $6M proposal disappoints Skorton Regents had asked state for $40M in 'transformation plan' By Gregg Hennigan Iowa City Press-Citizen Leaders at Iowa's public universities are expressing strong disappointment with an initial legislative proposal that would greatly reduce the money they get each year from the state. Last week, the House Education Appropriations Subcommittee recommended an increase of $6 million in new funding for the University of Iowa, Iowa State University and the University of Northern Iowa. That's well short of the $40 million each year that's called for in the four-year "transformation" plan adopted by the Iowa state Board of Regents. Under the plan, which is not guaranteed, the regents agreed to keep tuition increases low in exchange for $40 million annually from the Legislature. UI's share of the subcommittee's proposal would be $2.5 million. "This sum would not be sufficient to cover unavoidable cost increases, such as increasing energy costs and state mandated salary increases of $4.8 million," UI President David Skorton said in a statement. "In addition, the university would find it very difficult to replace faculty and staff as they resign or retire, to offer the courses and services our students need and to pay faculty for competitive salaries." ISU would receive $2.4 million and President Gregory Geoffroy in a statement called the subcommittee's recommendation "extremely disappointing." Tuition also could be affected. Last fall, the regents approved tuition increases for next year ranging from 4.5 percent to 5.5 percent for undergraduate in-state students at regent universities largely because of the transformation plan. That was a change from much larger tuition increases the previous few years, including 18.5 percent in 2002-2003 and 17.6 percent the following year. Regent Bob Downer of Iowa City said that while he was confident the state would increase the $6 million figure, not providing enough new funding would force the board to reassess tuition levels. "We're not the ones who will be making that happen if it occurs," he said. "This will be in direct response in inadequate funding from the Legislature." The subcommittee's proposal was just an initial step in the budget process. It still must go before the House Appropriations Committee, the full House, the Senate Appropriations Committee and the full Senate before being sent to the governor. Sen. Robert Dvorsky, D-Coralville, said the $6 million figure was a House Republican proposal that likely will be increased by the Senate. Republicans hold a slim majority in the House while the Senate is evenly split. "I'm not certain we'll get to the full $40 million, but we certainly can get closer than $6 million," said Dvorsky, who is co-chairman of the Senate Appropriations Committee. "Those are unacceptable targets." Gregg Hennigan can be reached at 339-7360 or ghennigan@press-citizen.com.