UA administrators urged to agree on a more realistic request after last year's cuts

Thirty-five million dollars is too high a budget increase for UA to ask from the Arizona State Legislature for next year, the Arizona Board of Regents told university administrators at an Aug. 16 meeting.

Administrators are renegotiating a number this week.

Regents are in favor of a more modest request ÷ one that came via administrators ÷ to replace the $20.3 million UA lost last year between budget cuts and lower than expected state funding.

The requested amount is an increase of nearly 11 percent in the university's state-allocated budget.

If approved by the legislature, the additional funds in 2003-2004 would be used to fund building renewal and supplement increases in health insurance rates and enrollment.

UA is starting this year with $368.5 million in state funding out of a roughly one billion dollar budget also accrued from research contracts, donations, endowments and other sources.

The proposed budget requests were presented to the Arizona Board of Regents at their Aug. 16 meeting as an "advanced preview," said Greg Fahey, associate vice president of government relations.

But many regents were taken aback by the increases in the budget requests, and four of the regents said that they didn't want to look "foolish" by asking the Arizona State Legislature for a large increase in funding when the state itself is preparing to enter fiscal year 2003 on October 1 with a potential $1 billion deficit.

"We understand very well that the government won't have much to work with," said board president Jack Jewett.

The request might prove to be more symbolic than practical.

Regent Chris Herstam said he wanted the universities to get the appropriate amount of money from the state, but the university leaders need to keep realistic goals in mind.

"I don't want to look foolish," he said. "I would rather be more realistic with the budget numbers but show the consequences" of more funding cuts.

UA president Peter Likins said $35 million would not begin to repair the damage sustained in massive cuts in state funding.

The entire university system would need $157 million just to bring employees' salaries on par with peer institutions, Likins said.

"We know damn well we're not going to get $157 million," Likins said.

But he added that UA will request at least $3 million to try and stem the problem of disproportionate salaries.

UA's final budget requests will be substantially less than the figures presented to the regents, Fahey said.

Likins and UA provost George Davis will be meeting this week to discuss the final budget numbers, Fahey added.

The graduate assistant workload program, salary retention, employee retention and classroom technology improvements are among the programs that would not receive additional funding if the UA gets an increase of less than $35 million.

"We realize we may be in for another cut, however, we want to put the needs on the table so the regents, the legislature and the governor are aware we need this money," Fahey said.

UA officials are hoping for an increase in state funding, but say they would be satisfied to just get the same amount of money as this year with no cuts.

The budget request must be presented to the regents by Sept. 11. The regents will vote to approve the budget request at their next meeting at ASU Sept. 26 and 27.