Branstad signs higher ed funding bill, vetoes UI Pharmacy money

Gov. Terry Branstad on Thursday signed the higher education funding bill that officially makes possible the promised tuition freeze for in-state undergraduate students at the state's three public universities this fall.

But the governor also vetoed several funding measures that would have provided state money to plan and design construction projects at the University of Iowa, Iowa State University and the University of Northern Iowa.

Branstad vetoed $3 million for the planning and design of a new UI Pharmacy Building, noting in a letter the project has an eventual expected cost of at least $67.6 million. He said it's not appropriate to spend taxpayer money designing and planning the project "until strategic plans and sustainable financing are secure."

The Pharmacy Building is at the top of the university's deferred maintenance priority list, UI officials have said. They want to raze the old building and replace it in the coming years with a new facility.

UI Spokesman Tom Moore said officials are disappointed, but said they will "continue to work with the board to make the case again next year" for state funding.

Branstad also vetoed $2.5 million for the planning and design of the new ISU Biosciences Building, and $1.5 million for the planning and design of UNI's Schindler Education Center renovation. He gave the same reasoning for vetoing funding on those projects, noting it's not appropriate to spend taxpayer money on the planning and design at this time.

State Board of Regents leaders in a statement said they remain committed to the three "highest priority academic capital projects" and were disappointed at the vetoes, though they understand Branstad's concerns. The regents will re-institute the property and facilities committee at the board's August meeting.

"Through the work 0f this committee, we will further develop our capital requests and again make the case to the governor and general assembly for these critical projects," Regents President Bruce Rastetter said in the statement.

Regarding the higher education funding package signed by the governor, Rastetter said the regents "could not be happier" with approval of that funding. It includes a 2.6 percent increase in general university operating appropriations, which allows for the undergraduate tuition freeze for resident students in 2013-14; $10 million in one-time funds for UNI; $2 million for the UI Entrepreneurship Initiative; $12 million for an Economic Development Core Facility at the ISU Research Park; $7.5 million for the Bio-Economy Initiative at ISU; and $1 million to construct a multipurpose training facility at the State Hygienic Lab at the UI.