Racquet

Education Refund

Wisconsin government wants funding back from UW system

By Nick Kammers

Campus Editor

Published: Tuesday, November 1, 2011

Updated: Wednesday, November 2, 2011

Having reduced state funding for the UW school system by $250 million while setting the 2011-13 budget, the state is demanding $174 million more from state agencies, $46 -$74 million of which will come from the UW system. This sum comes from the lapse provision from when the budget was initially balanced.

The UW system makes up 7 percent  of the state's spending and is being asked to provide around 38 percent of the lapse payments. UW-La Crosse's personal expenditure is expected to total around $1.9-3.1 million, as it receives around 4.2 percent of the UW system's funding.

Certain organizations remain exempt from the extra cuts  including K-12 schools and technical colleges.

"I think it's smart that the governor and his administration said ‘let's not put the burden on the technical colleges and K-12, but I question the wisdom of putting even more of a burden on universities," said Chancellor Joe Gow, "Why are we not as important as K-12 or technical education? I don't think that makes a lot of sense."

While Gow acknowledges his position as chancellor may make him somewhat bias on the matter, this is another in a long string of cuts to the UW system dating back to the turn of the century.

"46 percent of our budget is funded by the state, while it was around 60 percent ten years ago," said Vice Chancellor of Finance and Administration Bob Hetzel, "UW-L has lost $14 million in base budget cuts in the last decade, equal to 78 full time staff." The money lost over the last decade has been offset somewhat by the Growth Quality and Access plan.

"We knew there would be some kind of lapse, but we didn't know we would be expected to pay such a high share," said Gow, "We can handle the cuts this time, but down the road we'll have some real problems." Thanks to strong enrollment, the university has some money saved in a rainy day fund, making it possible to pay UW-L's share of this lapse, but a larger lapse of $300 million is expected down the road for which the UW System would not be able to pay the same percentage as they are currently, at least without significant increases in tuition or other drastic changes.

While the construction projects that have occurred on campus would seem a luxury given the current financial state of the UW System, the money for those projects has no bearing or relation to state education funding. "Money for building is entirely separate from our operations budget," said Gow, "The government actually wants to see buildings happen during the recession because it gives construction workers employment."

Money for the construction of the last couple of years has been borrowed, received from the state and donated, and it is impossible to use for any other purpose. The state is expected to provide funding for the eventual Cowley additions as well.

If asked for more money after these most recent cuts, university leaders may have to meet with government officials in an attempt to change their minds on the division of costs, as there may not be any more money to give, though school administrators are not confident in their ability to change the government's and/or public's mind.

 One hypothetical floated at last Friday, Oct. 28 open forum was the potential response to cut some state athletic programs. Citing the uproar when UW-L's baseball and tennis teams were threatened due to finances, the threat of athletic cuts may be the aspect that stops schools from being siphoned.  

 

Comments

Be the first to comment on this article!

Click here to leave a comment
View full site