UA will bear $8 million in cuts next year; ASU, NAU slated to split $16.3 million

PHOENIX ÷ Republican legislators released a new proposal yesterday that would cut UA's budget by 2.5 percent in 2003-2004, eliminating money to hire new instructors as enrollment grows.

The Republican lawmakers proposed cutting beyond what they proposed in late January ÷ $3.7 million more ÷ to bring the funding UA receives from the state's general fund down to $308,555,100 from this year's $316,546,300.

House Speaker Jake Flake (R-Snowflake) said the move wasn't a plan to cut universities, per se.

"We're working very closely with the universities on this. We're working with them and not against them," Flake said.

The UA would receive an $8 million cut next year under this proposal. Arizona State University and Northern Arizona University would share the rest of the $16.3 million cut to the universities.

UA enrollment has grown by an average of less than 1 percent per year over the past 10 years, according to the UA Fact Book. Usually the state legislature sends funds to hire new instructors and staff as enrollment grows.

UA lobbyist Greg Fahey said this proposal was worse than he'd expected.

"I'm just hoping that, before this is over, they'll see their way not to cut us like this," Fahey said. "We want to work with the leadership to get this worked out, but this proposal is not good for the U of A."

Flake said earlier this year that he expected to give UA more budget cuts, but that the universities would get new research buildings.

There is currently about a $1 billion gap between state revenues and state spending.

Republican leaders said the budget helps bridge the $430 million difference between their budget and Democratic Gov. Janet Napolitano's $6.6 billion budget, which relies more on borrowing and moving money temporarily. The Republican legislators also moved toward Napolitano's budget figures on revenue projections, K-12 funding and spending on health programs.

Napolitano's press aide, Kris Mayes, said Napolitano is still looking over the new Republican budget proposal and that Republicans will likely have to compromise some more before she signs a budget.

House Minority Leader John Loredo (D-Phoenix) said he hadn't completely reviewed the new Republican proposal, but he was not impressed with what he'd seen so far.

"It's amazing that it took this long for them to come up with a budget this weak. They cut millions on the backs of children and out of public education. They disinvest in public education," Loredo said. "These ideas are not well thought out or well researched."

The proposed budget cuts also wouldn't take into account about $10 million in costs that UA will have to absorb in retirement and healthcare this year due to rising healthcare costs and higher employer/employee retirement contribution rates, Fahey said.