Vol. 16, No. 8 - A Publication For Faculty, Staff and Friends of Wichita State University - December 2, 1999

[Inside]

By Amy Geiszler-Jones

A few months ago, budget directors were told to plan for cuts of up to 6 percent for fiscal year 2001, which starts July 1.

In mid-November, President Beggs and his staff found out the state’s budget division isn’t recommending cuts that severe, but will suggest other ways to reduce the budget. Its recommendations are:

• No increase in state general funds, which come from tax revenues. The recommendation for FY 2001 is 1 percent less than the original FY 2000 level. That means WSU would receive about $61.5 million in state funds in FY 2001.
  
  Although WSU expects an increase of $648,044 in tuition because of rates going up in FY 2001, it will gain only $27,216 in general use funds for next year. Yet, WSU will have increased expenditures of $821,617 in FY 2001 because of the shortage in fringe benefits funding this year and increases in fringe benefits for FY 2001, along with money needed for annualizing FY 2000 classified step movements. That means WSU faces a shortfall of $794,401 for FY 2001, according to Mary Herrin, associate vice president of administration and finance. If enrollment patterns for fall 1999 continue into FY 2001, WSU could face even more red ink, possibly another $1.1 million.
  

• Increasing the shrinkage rate for WSU from 2.28 percent to 2.45 percent. Each year, WSU has to give back part of the money it receives from the state, which is called shrinkage. The rates vary among the universities.
  

• No increase funds for unclassified merit raises, classified step movements or student employees.
  

• No increase for what’s known as OOE (other operating expenses).
  

• Eliminating the tuition equity adjustment, which was $158,000 for WSU this year. This year was the first time the Legislature gave WSU the adjustment. It would have allowed WSU to get an increase in its state funds equal to 25 percent of the revenue generated from the tuition rate increase.
  

• No program enhancements. It also suggests nixing the library enhancement, which would have assessed students a $1 fee to be matched by the state for library funding.

While the budget division is making these recommendations, the governor has the option of asking the Legislature to consider other scenarios. Ultimately, it is the Legislature that passes the budget, usually at the end of its session in late spring.

Beggs shared the division’s recommendations at a Faculty Senate meeting Nov. 15. He said the Board of Regents would request that the existing base budgets remain the same, that increases for salaries and OOE be included and that the tuition equity adjustment and library enhancements be retained.

The budget division recommendations do not include the more than $20 million promised in the legislation that reorganized higher education in Kansas. The funding included more than $8 million in faculty salary enhancements.

WSU is already facing potentially $2 million in budget cuts for FY 2000. Division vice presidents were to have told Beggs how they plan to make cuts by Dec. 1.

[Inside]