University of Iowa may turn to stimulus funds to cover cuts

University of Iowa officials are considering using some federal stimulus money already committed to other initiatives to partially cover state budget cuts this year.

Doug True, senior vice president for finance, told the UI Faculty Senate Tuesday one option under consideration by UI President Sally Mason to cut nearly $25 million from the budget is using up to $13 million in unspent stimulus funds.

The faculty and staff initiatives that were pledged stimulus funds were expected to create campus jobs or generate revenue in support of the university's strategic plan. Some of the projects focus on energy conservation, strengthened research capabilities and advanced education.

Mason will present budget cut recommendations to the state Board of Regents at a meeting next week, and True said Tuesday no options have been “ruled in or out.”

The UI received $35.5 million in stimulus money for this year, with $20 million of it going to backfill the general fund after previous state cuts. The rest was awarded to 18 winning proposals by UI faculty and staff.

But a 10 percent across-the-board state budget cut announced this month forces the UI to cut another $25 million this year.

Most of the winning proposals would be affected if UI officials decide to use stimulus money to help cover the latest cuts, True said

The regents asked the leaders at the UI, Iowa State University and the University of Northern Iowa to consider eight options for cuts, including layoffs, temporary salary or benefit reductions, and a one-time tuition surcharge this spring.

The UI spends from its general fund about $345 million in salaries and benefits for faculty and non-bargaining staff, and another $75 million for bargaining staff, True said. If every UI employee went one day without pay, that would equal $1.3 million.

Several Faculty Senate members said they want faculty and staff to have the choice between a cut in salary or a cut in benefits. Some younger employees may prefer a cut to benefits, while older employees might prefer a cut to pay, they said.

“It does at least put individuals in the driver's seat for their own future,” law professor Shelly Kurtz said.

Faculty Senate opinion was split on whether students should be asked to help ease the budget crunch through a one-time tuition surcharge. Several faculty said it's only fair for everyone to pitch in. But others said they would rather shoulder the cuts via pay reductions or furloughs than have students face a midyear increase.

“I think it seems wrong to spring a tuition increase halfway through the year,” psychology professor Ed Wasserman said.