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Show ChuoNicU Paqe WtdwcsdAy, Four JuAy 20, lQfij GSI: LEGISLATURE lpS Icrfur Even though the 2.2 percent increase in higher education's budget is certainly nice, we have to look this gift horse in the mouth to see where the money is coming from. Gov. Norm Bangerter's 1988-8- 9 budget recommen-d?tioallow for an increase in the Uniform School Fund of $16 million, at 1.2 percent increase. Utah schools must Under Bangerter's plan, public education would receive $9 million of the $16 million total. Higher education would receive an additional $2 million from the general fund, social services $3 million and corrections would have its budget increased by $2 million. The governor also recommends a tuition increase of 8 percent for state universities, an increase that would generate an estimated $2,239,300 at the University of Utah alone. Overall, the higher education system will receive a 2.2 percent increase ($8.1 million) derived from state appropriations ($2 million), tuition increases ($5.6 million), changes in mineral lease funds ($143,600) and other fund transfers ($279,400). The U. will receive a $504,000 slice from the state's $2 million appropriation. This money would be added to the funds created by the proposed tuition increase to further fund U. programs. The money would be distributed at the University of Utah in the following way: Salaries: $998,800 Research overhead: $504,000 Enrollment growth: No money Mandatory costs increase: $960,600 Library acquisitions: $279,900 TOTAL INCREASE FOR THE U.: $2,743,300 Money for enrollment growth is key for the entire system of higher education. It is projected that by fall of 1988, higher education will be resrjonsihle for an additional 3,200 full-tim- e students. 3 adapt to shrinking budget intrinsic value of higher education and the economic development it brings. If that is diminished by a lack of By Fara Warner Chronicle staff writer ns ' einimoe y ind ffaeimxsi t The recommendations are in and the 47th Utah Legislature has once again found itself in an economic bind. Major interests such as higher education, corrections and social services are fighting over a general fund that is too small to satisfy anyone. But despite this year's gloomy budget predictions, some officials see a brighter future. Utah's Board of Regents asked for $26 million, or a 10.3 percent increase for higher education. As of now, they must be satisfied with a 2.2 percent increase that could be cut even more. Last week the legislative budget analysts projected a $300,000 cut from the governor's proposed budget. The state's total budget for higher education, recommended by Gov. Norm Bangerter, is $348,150,700, an increase of 2.2 percent. The governor also recommended a 6 percent tuition increase for two-ye- ar colleges and an 8 colleges. percent tuition increase for four-yeScott Gilmore, state budget analyst for higher education, said the Regents' budget was unrealistic and they knew it. However, he thinks the 2 percent increase is not enough. The state may be underfunding the basic functions of higher education, he said. And with revenue projections from sales tax not expected until the second week in February, it is almost impossible to determine whether the Legislature will adhere to the analysts' recommendations. "Bangerter has a very tight budget," University of Utah President Chase Peterson said. "Much was decreased. However, education was increased. However, the Legislature might come in with a slightly smaller budget." "We're stuck in a situation with no money and very few ar things we can do," Gilmore said. Gilmore does not think the $2 million increase is sufficient, but he does believe the governor is devoted to higher education. We have a strong reputation nationally. There is the Donontc cn dHi irnVirrr fi inHinn !o top priority this year they're worried By Todd Curtis only be between $2 million and $3 million, an amount that won't even fund the Regents' first priority. One area the Regents and the governor agreed on was where the money should be placed. Each proposal followed Chronicle staff writer Wait and see. That's the game the Utah State Board of Regents is playing with the 47th Legislature. the same priority list. However, the Legislature had "This year is a really quiet year," Vicki Varela, public different ideas. information officer for the Regents, said. "We don't have In a meeting before the joint appropriations any bill before the Legislature except the budget, and that is subcommittee on higher education, the Legislative Analysts' pretty well out of our hands." office released a budget calling for a 5 percent reduction in Varela explained there are usually bills before the the base budget and a $300,000 reduction in the governor's Legislature that the Regents push to have passed. Last year, budget. there was a drive to change the state's two-yecolleges to "The tax revenues for last year aren't looking as good as community colleges. was originally forecast," Boyd Garriott, a legislative analyst, "Last year, we had a large lobbying force trying to get our said. message across," Varela said. "But this year, all we're Both the governor's budget'and the legislative analysts' worried about is the budget." budget are based on esitimates from the fourth quarter tax And worry they must. revenues. The total tax figures for 1987 won't be released When the Regents sat down to formulate their budget until the middle of February. during their October and November meetings, they whittled But Bill Loos, director of governmental relations for the down requests from the state's nine institutions, totalling University of Utah, said it wasn't surprising that the 166 million, into a more workable plan. Legislature's proposal called for a reduction in the base After consulting with the presidents of all the colleges, the budget. Regents decided to ask for a $25.5 million increase in their "Sometimes it's easier for legislators to work with a lower budget. budget and then add to it rather than start with an inflated The budget was constructed in a building block form, budget and take away form it," Loos said. with the Regents' top priority being the first building block, Not only was the Legislature's budget smaller, it proposed and so on. different priorities. "When we sat down and hammered out the budget, we Instead of placing research access and research overhead looked at the master plan as a guide," Wm. Rolfe Kerr, first, the legislative budget calls for mandated costs to be first commissioner of higher education, said. "The master plan on the list. gives us several directions on what role higher education "If these costs have to be paid, they should be at the top of should play in Utah. the list, not placed third or fourth," Rep. LaMont Richards, "Among other things, the master plan directs the Regents Lake City, of the committee, said. to provide access for students into college," Kerr said. "So told the committee the Regents wanted to fund as Kerr that's where we began." much as they could and then let the universities come up The Regents also felt there was a need to fund research with money to fund projects which were not in the budget. overhead at the state's universities. Research overhead is "The universities know what's best for them. They know money used to defray research costs such as lab equipment what projects are important to them and which ones aren't. and building facilities. They should have the ability to look at their budget and find These two priorities, access and research overhead, were ways to pay for programs and mandated costs which aren't put at the top of the Regents list. The total amount to fund included in the budget," Kerr said. these top priorities was $4.5 million. Even Other priorities included investments for quality libraries, though the bickering over the budget has just teacher scholarships, mandated or unavoidable costs, and started, it's far from over. The higher education subcommittees plan to meet with all of the college presidents investments in engineering, nursing and vocational training. look at their requests, before any decision is made. to Norm finalized their budget, Gov. After the Regents And when the Legislature begins to put its budget Bangerter released his budget projections, which were based on the state's tax revenue. together, the Regents will act as consultants on where the Bangerter estimated higher education's bugdet would money will go. ar funding, then the National Science Foundations or Howard Hughes Medical Institute won't compete for us." But Utah's bleak economic outlook is growing brighter, say many officials and sources throughout the state. Gilmore said current spending levels will result in excess funds from income tax in a few years. These are the funds public education depends upon. State education officials would see this excess as an opportunity to catch up, Gilmore said. Public education, which doesn't have to enter the budget lottery because of its Constitutional mandate, has a billion-dollbudget recommendation. However, there is no guarantee that this year's budget will satisfy Utah's educators or provide for the large school-ag- e population. The Uniform School Fund, which pays for all public education, receives its money from income tax. Last year's tax increase took some pressure off this budget, but overly optimistic projections in 1988 have forced public education to tighten its belt again. Over the years, there have been several proposals to make education funding less reliant on income tax. Gilmore said the Utah Constitution would have to be amended if the base of education funding is to change, and there is no real impetus to do that. However, the Utah Constitution does not provide for higher education funding. The State Board of Regents must vie with corrections, social services, health and other ar necessary services. "Utah will always be hindered by a lack of money that is exacerbated by growth. But our economy is growing and diversifying," Gilmore said. Since its peak in 1982, the school-ag- e population has been a slower rate. In 1987, there were increasing at approximately 35,500 births, the lowest in 10 years. "The growth surge, however, will hit higher education. We are already beginning to feel it," Gilmore said. see "budget" on page eight MAJOR BUILDING BLOCKS BOARD OF REGENTS BUDGET REQUEST 1988-8- 9 STATE FUNDS Other Priorities L1 Investments related to Economic Development four partsequai Vocational-TechnicShort-Ter- 4 J $5.3 million m priority al Intensive Training, 100 students $250,000 Engineering, 200 Students $1.7 million Nursing, 125 students $393,700 Medical sciences and Biotechnology $500,000 Miscellaneous costs and cost increases, including cost of early retirement Dill, benefits cost increases, new facilities operation & maintenance, fuel and power cost increases, other utilities and rent increases, state insurance cost increases $6.6 million : R-S- alt co-ch- air Investment in Quality I 2. Libraries Purchase additional books, periodicals and supplies. Virtually the entire cost- -Si million will be funded by tuition. 1. Salaries 2 partial cost of living; 1 .5 to 3.3 for one-fiftof compensation gap $42,000 h Two partsequal $7.2 million priority Research and Development $1 Enrollment Increase of 1,621 Students $2.6 million 9 million Total Request $203.0 million Increase in state funds $26.6 million |
