Under a grim economic forecast, President Gregory Geoffroy proposed a plan to the Board of Regents to meet budget restrictions for the 2002-03 fiscal year.

Geoffroy said Iowa State is not planning to use employee furloughs as part of the budget cutting plan.

Instead, the university is cutting 44 unfilled faculty positions, increasing course sizes and the student to faculty ratio.

“The overall priority is to continue the advance of excellence at the university,” Geoffroy said. “It becomes difficult during economic times, but we’re trying to preserve the excellence of our programs for students.”

Sixteen professional and scientific employees and 24 merit employees will be cut, said John McCarroll, director of university relations.

The university has been forced to find $19 million in addition to the $15.4 million planned for by ISU’s Task Force on Strategic Effectiveness and Budget Priorities, McCarroll said.

“Unfortunately that means our academic departments won’t be able to recruit faculty,” Geoffroy said. “That means fewer classes, larger class sizes and less contact between students and teachers.”

ISU faculty and professional and scientific employees will see a pay increase, but it will be small – around 2.6 percent, McCarroll said.

According to Iowa State’s proposal to the Board of Regents, increases in salary will be based on performance.

Geoffroy estimated half of the Big 12 universities were not giving a pay increase.

To fulfill the other $4.1 million, the Iowa Legislature cut appropriations to several programs, including the Institute for Physical Research and Technology, the ISU Research Park, the Leopold Center for Sustainable Agriculture and the Small Business Development Centers.

“I do not understand the rationale,” Geoffroy said. “We ought to be investing more into these programs rather than gutting them as was done this year. They are very important to the state.”

Geoffroy voiced his displeasure with cutting the programs at the Board of Regents meeting Thursday.

“This will result in 1,200 businesses not receiving the assistance,” he said. “It seems very shortsighted to me to cut programs that stimulate the state’s economy.”

“The state reduced their appropriations,” Geoffroy said. “It is possible that layoffs may occur.”

Regent David Neil said the decision to reduce appropriations to development programs was made by state Republicans.

“All of these cuts wouldn’t be necessary if the Legislature had followed the Governor’s recommendations,” Neil said. “But they wanted to build highways.”

Neil said this is the first time in 50 years the state has seen this kind of decline in revenue, but he has faith in Iowa State’s proposal.

“I’m not going to second guess them,” he said. “They know where we need to put the revenue.

“I don’t want to see economic programs cut, but we don’t want to see too much of a raise with tuition. It’s kind of a hell if you do, hell if you don’t.”

Executive Director Greg Nichols said the board will vote in final approval of the university’s budget at their meeting July17-18 in Cedar Falls.

“Usually the budget is decided in June,” Nichols said. “But because the Legislature ran long the governor didn’t sign the bill until the first week in June. Usually that process begins in May.”