CEDAR FALLS — The Iowa Board of Regents has approved a nearly $4 billion budget for Iowa’s three public universities with expected layoffs and bigger classes.

The regents on Wednesday in Cedar Falls approved the spending plan for the University of Iowa, Iowa State University and the University of Northern Iowa.

The universities expect hundreds of employees to take early retirement this year. Details about possible layoffs are expected this fall.

The schools faced a 12 percent cut in state money, or $86 million, because of state revenue shortfalls. Money from the federal economic stimulus package filled most of the gap, but only for one year.