Thursday, August 28, 2008
The University of Kansas is considering ways to lower its budget by about $5.5 million next year because of possible state-ordered budget reductions.
If the reductions suggested by the Kansas Board of Regents are approved, the University will have to reduce its overall budget by about 2 percent next year. The Lawrence campus budget would decrease by about $3.1 million and the Medical Center budget would decrease by about $2.4 million.
In July, Governor Kathleen Sebelius asked state education institutions to plan on spending 1 to 2 percent less than the state had approved for the 2009 fiscal year.
Kip Peterson, media coordinator for the Kansas Board of Regents, said that if a budget reduction was necessary, the University would face the biggest cut, because it was the largest of the six state universities.
Peterson said the health of the Kansas economy would determine whether Sebelius decided the budget cuts were necessary. He said the state consensus revenue estimates that would be released in November would be helpful in determining the health of the state’s economy.
Chancellor Robert Hemenway said 65 percent of the state’s expenditures were on education.
“We know that education is very important to the future of the state,” Hemenway said.
Hemenway said in a letter to the Regents that a 7 percent reduction in the state budget for education institutions by 2010 would erase all gains in state funding the University had received during the past three years. That cut would mean that in 2010 the University would be operating on the same budget as it did in 2006.
Hemenway said that if the cuts passed, the University would be concerned about maintaining its computing and wireless capabilities.
“We want to maintain the degree of computing we have,” Hemenway said. “If that capability is cut, it’s going to affect how efficiently people learn.”
Hemenway said in the letter that the proposed budget cuts would mean a reduction of $70,000 for the School of Pharmacy expansion and the School of Medicine-Wichita.
The Regents suggested a 5 percent cut for 2010 in addition to the 2 percent cut for 2009. If the 5 percent cut for 2010 were approved, it would reduce the University’s budget by $19.2 million: a $10.7 million reduction in Lawrence and an $8.5 million reduction at the Med Center.
The proposed cut for 2010, the Chancellor said in the letter, would surpass the entire general use budget for the School of Pharmacy, for example, which is $9.4 million.
Hemenway said the Lawrence campus was still looking at what kind of reductions in revenue it might have to deal with. This summer the Med Center declared a 90-day delay in hiring any new faculty or staff to prepare for possible budget reductions.
Hemenway said the Lawrence campus hadn’t made a hiring decision yet, because it operated on a different hiring schedule than the Med Center.
“They’re studying it, which is the responsible thing to do, to make sure they get themselves ready to deal with any cuts,” Hemenway said.
Hemenway said the University would consider raising tuition only as a last resort, and that it had not entered into the tuition compact lightly. The compact ensures incoming freshman pay a fixed tuition rate for four years.
Lynn Bretz, director of University communications, said the administration was hoping for the best but planning for the worst.
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