Iowa regents don't like retirement plan variations at state schools

Next year's budgets for the University of Iowa, Iowa State University and the University of Northern Iowa were approved today, but several state regents said they do not like the fact that retirement contributions vary at each university under the plans.

The three universities in the past year had all reduced contributions to employee retirement plans from 10 percent to 8 percent as part of budget cuts. The UI will remain at 8 percent for its contribution through June 30, 2011. But ISU will go back to 10 percent and UNI will go to 9 percent for 2010-11.

“I think that's bad policy,” Regent Michael Gartner of Des Moines said of the varying rates. “I think there's certain inherent unfairness.”

Regents Bob Downer of Iowa City and Ruth Harkin of Cumming concurred with Gartner.

“Going forward I'd like to see a uniform percentage,” Downer said.

Regents President David Miles said it was a consequence of each university president adjusting to difficult financial circumstances in a way that fit each campus.

Also in approving the 2010-11 budgets, the regents increased funding to Iowa Public Radio for next year by about $135,000. The regents met at the Iowa Braille and Sight Saving School in Vinton.

Iowa Public Radio had been scheduled to receive just over $1 million from the three universities - $434,000 from the UI, $250,000 from ISU and $361,840 from UNI. The final budget increased the amount from ISU to $340,000 and the amount from UNI to $406,910. That increases the total Iowa Public Radio budget to about $6.9 million. The rest of the budget comes from fundraising, federal grants and state appropriations.

The three universities in recent years have been decreasing financial support to Iowa Public Radio as the system relies more on fundraising. Miles today said the regents want the university presidents in the coming year to bring forward a five-year plan for their financial support to Iowa Public Radio.

The university presidents presented their overall budget plans to the regents in April, with official approval happening today. There was little change to the plans from what was presented earlier.

UI and UNI leaders don't plan on layoffs next year, but ISU officials said some layoffs are likely in cutting the budget.

UI President Sally Mason said the UI will continue its temporary reduction in employee retirement contributions to 8 percent, and also eliminate paper billing statements to faculty and students, close several satellite libraries on campus, and rely on more energy efficiencies to cut the budget for the next fiscal year, which begins July 1. The UI plan also calls for a 1 percent budget reduction to all units, to reallocate $5.1 million, and an additional 0.5 percent reduction to academic units, to generate another $1.5 million. That money will be used to hire new faculty and fund average 2 percent salary increases, along with student retention initiatives such as living learning communities, Mason said.

The regent universities lost about $153 million in state appropriations to budget cuts over the past two years. At the same time, all three presidents expect very strong enrollments this fall. Mason said the UI's fall enrollment likely will be several hundred students higher than expected.

The UNI budget includes organizational restructuring, program eliminations or changes and increased collaborations for efficiency. ISU's plan includes some job reductions and combining or eliminating several programs, including cutting the Saturday MBA program.