Updated at 11:15 p.m. CDT May 5, 2005

CEDAR RAPIDS — The Board of Regents threatened Thursday to increase tuition by 3 percent in spring 2006 if the state Legislature does not provide enough funding for the state universities.

Regents officials were quick to stress that the 3 percent figure is an indication, not a decision.

The prospects for the regents to receive all the money they requested from the state seemed slim Thursday evening. Board President Michael Gartner suggested in the morning that the Legislature increase the cigarette tax to help fund education, which the Senate did, passing a bill doubling the tax. The increase, however, earmarked the $65 million to lower local property taxes.

The House has adjourned until Monday, meaning the legislative session — and a decision on appropriations — will stretch at least a second week beyond the planned length of the session.

The Associated Press reported Thursday that leadership in the House, which has a 51-49 Republican majority, is not satisfied with the spending bills coming out of the Senate, which is split 25-25. Related article

Earlier, in Cedar Rapids, Gartner said if revenue from a 10-cent increase in the tax on cigarette packs were completely committed to higher education, would cover the $18 million gap between the current bill and $40 million request by the regents.

“The cigarette tax would solve the problem,” he said.

During its meeting at Kirkwood Community College, the board also dealt with a number of fee changes and capital project plans related to Iowa State. Related article

For ISU students, if a 3 percent increase were adopted, tuition would increase $73 that semester for Iowa residents and $225 for non-residents.

That would mean residents would pay $5,707 for a year of tuition and fees, up from $5,634, and non-residents would pay $15,949, up from $15,724.

Gartner pleaded for changes to a bill being debated at the Capitol in Des Moines that would give the universities $22 million in additional funding instead of a requested $40 million.

“We appeal to the Legislature, on behalf of the institutions and Iowa’s students and their parents, to reconsider this appropriation,” he said. “We will dig into our own resources, but we also now are forced to turn to Iowa’s parents and students for further help.”

He said a tuition increase would be an appropriate and necessary step to increase revenue.

“We regret that this must be done, but providing quality education, spurring economic growth and conducting important research cannot be delayed,” Gartner said.

The uncertainty over state funding is also problematic for planning Iowa State’s budget, said Mark Chidister, assistant to the president for budget planning and analysis.

The universities have planned their budgets for the fiscal year that starts July 1 — but they have assumed the state will give $40 million.

“We have a balanced budget sitting there,” Chidister said.

There is some idea of how Iowa State will cope with less money, Chidister said. If the $22 million bill passes, Iowa State would get about $8.8 million of that, which would be “one piece” of the budget puzzle, he said.

“We have to look at all of the pieces of the budget,” he said. Other pieces include tuition, at whatever level it is ultimately set, and recovery of indirect costs budgeted but not incurred during research projects.

ISU President Gregory Geoffroy has repeatedly said that an increase in faculty and staff salaries to stay competitive is the top priority for next year’s budget.

Chidister said the expenditures in the budget have all been prioritized, with salary increases and financial aid considered most important.

But he said it is impossible to predict what the final budget will look like without more information on university income.

University officials and board members, along with many legislators and Gov. Tom Vilsack, have asked for the $40 million funding increase to counteract several years of funding cuts that have resulted in a myriad of problems for Iowa State, the University of Iowa and the University of Northern Iowa.

Those difficulties include larger classes, fewer course and program offerings, frozen salaries for faculty and staff that have made Iowa State’s compensation less competitive with peer institutions, and a 73 percent increase in undergraduate resident tuition and fees since 2000-01.

The board approved a 4 percent tuition increase for 2005-06 last fall to account for inflation.

Gregory Nichols, executive director of the Board of Regents, said an additional board meetings will take place in July in Ames if necessary. University presidents would have to make recommendations for tuition changes before the June meeting to be voted on in July.

Gary Steinke, the regents’ liaison to the Legislature, spoke at Thursday’s meeting by phone from Des Moines and said there was still a possibility the regents will receive an extra $40 million from the state.

Several senators, including Herman Quirmbach, D-Ames, introduced an amendment to the appropriations bill to give the universities $40 million.

“It remains to be seen if there is going to be any movement upward from that $22 million level,” Steinke said. “We’ll be working as long as they’re in session to increase that number.”

Steinke also said an e-mail campaign by students and parents of students, mostly from the University of Iowa, was making an impact on legislators who received the messages asking for increased state support.

Gartner said the board would still carry out other provisions of its Plan for Transformation and Excellence even if the state does not provide its part.

“We renew our own commitment to provide $20 million through internal efficiencies and reallocations, even though our own commitment was made on the expectation the Iowa Legislature would provide $40 million,” he said.