Additional state funding for higher education has been found by Iowa Gov. Tom Vilsack, making a mid-year supplemental tuition increase unnecessary.

The now-canceled 3 percent increase was proposed by the three regent university presidents after the Iowa legislature under-funded the Iowa Board of Regent’s request for $40 million in additional funding.

At a press conference at the state capitol Wednesday, Board of Regents President Michael Gartner said the single-agenda-item meeting scheduled for Thursday at Iowa State to consider the increase has been canceled. He said Vilsack looked in “every pot and barrel” for additional funding and began re-allocating leftover funding from state agencies after the fiscal year ended on June 30.

“We owe enormous thanks to Gov. Vilsack,” Gartner said.

Vilsack found approximately $10 million — $4 million came from a decision to work with the Regents to increase purchasing efficiency by state agencies and an additional $5.7 million in federal money for an expanded Iowa Medicaid program was given to the University of Iowa Hospitals and Clinics, allowing state money to be spent elsewhere.

“This is truly a happy day for the Regents and for higher education in Iowa,” said Iowa City Regent Bob Downer.

The Regent’s request for additional funding this year came after four years of cuts in state funding for higher education. The request was part of a plan to increase the Regent’s budget for “strategic initiatives” by $80 million this year — $40 million was to come from state funding, $20 million from a 4 percent tuition increase for the 2005-06 academic year and $20 million from university budget reallocations to areas most important to Iowa.

With allocations now set, more than $80 million was given to the Regents, with approximately $40 million coming from state funding, $17 million from next year’s 4 percent tuition increase and $25 million in university reallocations.

“On behalf of the students, I’d like to say thanks to the Regents,” said Joe Murphy, University of Northern Iowa student body vice president.

The 3 percent increase would have generated about $5.1 million, with $74 coming from each of the state’s 70,000 regent university students.

“In my experience, money is typically a good thing, more money is even better,” said Will Rock, former Iowa State Government of the Student Body vice president.

West Des Moines Regent Teresa Wahlert said the Board has established a tuition committee to develop a long-term strategy for keeping tuition stable. She said the committee should announce results in six to 10 months. The Board’s current policy calls for moderate tuition increases of 3 to 5 percent a year.