No layoffs planned at University of Iowa under budget plan

UPDATE: University of Iowa President Sally Mason said today that layoffs are not part of the UI's budget plan for the 2010-11 fiscal year.

“It's just never been part of the plan and it's not something we need to implement across the board,” she told news reporters Thursday morning during a break in the regents meeting.

Mason presented a brief overview of the university's 2010-11 budget plan Thursday morning to the state Board of Regents during a meeting in Iowa City.

The University of Northern Iowa plan also does not include layoffs or furloughs. Iowa State University's plan does not include furloughs, but will include perhaps more than two dozen layoffs through June at ISU, President Gregory Geoffroy has said.

Mason said the UI has managed budget cuts through early retirements, job attrition and good management strategies.

The 1 percent reallocation from every UI unit in 2010-11 will generate about $5.1 million, and an additional .5 percent reallocation in the academic units will generate about $1.5 million. That money, cut from the units, will go back to the central administration, which will use the funds for other intiatives, such as hiring new faculty, providing average salary increases of 2 percent and boosting student retention programs such as living learning communities and freshman seminars.

All three university presidents said they expect very strong enrollment, perhaps record numbers, this fall.

Earlier today, Mason told regents that the UI will continue a temporary reduction in retirement contributions, eliminate paper university billing to faculty and students, and close several satellite libraries on campus to cut the budget for the next fiscal year.

The UI plan does not outline any layoffs for the next fiscal year, which begins July 1.

Contributions to faculty and staff TIAA CREF retirement plans will be reduced, from 10 percent to 8 percent, through June 30, 2011, under the UI budget plan, Mason said. That will result in savings of $4.7 million. The plan also includes average salary increases of 2 percent for faculty and staff.

The UI plan also calls for a 1 percent budget reallocation from all units, with an additional .5 percent strategic realignment within academic units.

University of Northern Iowa President Ben Allen is next in presenting budget plans to the regents, followed by Iowa State University President Gregory Geoffroy.  ISU officials already have said their plan includes job cuts. The UNI plan includes organizational restructuring, program eliminations or changes and increased collaborations for efficiency.

The regents are hearing the budget plans Thursday morning, with approval of next year's budgets slated for the June meeting.