Likins addresses proposed budget cuts
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Tuesday September 11, 2001
$14 million in proposed cuts would likely come from variety of sources
Recommendations for cuts in the UA budget for fiscal year 2002 - proposed last week by Gov. Jane Dee Hull - could be on Hull's desk as early as Friday, UA President Peter Likins said at yesterday's Faculty Senate meeting.
The proposed readjustments come in light of a $150 million shortfall in the state's budget, which will need to be accommodated by cutting into state agency budgets.
Likins said the governor has not set a specific date, but may need the recommendation soon - possibly by Friday.
He also stressed that the recommendations will not nessecarily lead to cuts.
"This is not a budget cut," he said. "It is a request for analysis."
He said the $14 million will need to come from various avenues. He and other UA officials have been exploring options and will continue to do so, but he is not sure when a resolution will be made.
Larry C. Schooley, professor of electrical and computer engineering and member of University Compensation Advisory Committee, said there is a shortfall in the amount needed for across-the-board salary increases UA employees have been promised.
However, he said the shortfall could be alleviated by capping salary increases set aside for vacant positions.
Likins said the university has sufficient funds to provide for the salary increase.
Proposed funding cuts to the UA, Northern Arizona University and Arizona State University would supply approximately one third of the amount Hull is trying to allocate.
Likins said one step the governor may use to avoid cutting agencies' budgets is to set up school construction bonds to allocate money for the state. Currently the state is using budget dollars for this construction.
"If she's able to get that debt financing through the legislature, then that's the major part of the problem solved," Likins said. "If she's not successful in getting that debt financing approved by the legislature, then our problems magnify in very, very serious ways."
Likins said the bond, however, may not be the ultimate solution to regaining the $150 million.
"Even if the debt finance is approved, there remains a shortfall," he said.
Hull could dip into Arizona's Budget Stabilization - or so-called "Rainy Day" - fund, but if the state economy continues on a downward path, the fund may be needed later on.
"The scene changes every day," Likins said. "We will survive, whatever happens."
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