Iowa is the No. 1 state in cuts to student financial aid and No. 2 in cuts to higher education, according to a recent survey.

The study, which was conducted by the Center for the Study of Education Policy at Illinois State University, found Iowa appropriations for financial aid in the 2001-2002 fiscal year were cut by 33.5 percent.

The state’s 2001-2002 appropriations for financial aid are $6,247,000. It also showed spending for higher education operating costs was cut by 2.5 percent. The state appropriation’s for higher education in the 2001-2002 fiscal year are $830,226,000.

“People are always saying `we’re No. 1′ and they strive to be No. 1,” said Max Wortman, distinguished professor of management. “I really don’t want to be No. 1 or 2 in either of these categories.”

The state cut 1.8 percent of Iowa State’s state funding for operating costs. The state funding decrease was 4 percent of Iowa State’s operating budget, said Provost Rollin Richmond. The university expects an additional 2-4 percent deappropriation by May and an additional 6 percent deappropriation next year, Richmond said.

“As a student or faculty member or as any part of the Iowa State community, it’s not hard to see the effects this has had on the institution,” Richmond said. “The number of faculty we are able to recruit and retain has decreased. We expect 30-50 faculty to leave this year alone. The quality of education inevitably goes down, as does the student-to-faculty ratio, the resources available and the interaction and relationships possible between people.”

The deans of the colleges have been working with the Provost’s Office to make creative plans for reorganization and greater efficiency, Richmond said.

“If we don’t start to get our resources back in the next year or two, the benefits we can experience from reorganization will disappear,” Richmond said.

“It’s still a great institution and there is a lot that has remained here. For a state this size we are lucky to have three great public institutions of higher education,” he said.

Not included in the figures are midyear deappropriations. State legislators are now finding more cuts are needed, said Sen. Johnie Hammond, D-Ames.

“The governor recently found a $100 million shortfall, and we don’t know how he will handle that,” Hammond said. “I hope he will use as much of the emergency fund as possible, rather than taking more out of higher education.”

Hammond said next year will likely bring more cuts to higher education, which “will have a very negative effect.

“We probably have a year or two left of economic problems,” she said. “Unfortunately there are some students who will go through their entire college career with higher and higher tuition costs and without the financial aid they need.”

The Board of Regents announced in November they would increase tuition by 18.5 percent to deal with the budget cuts.

“The faculty were very concerned last year when they announced the tuition increases and the various program cuts, especially those to the elimination of state funding for the work study program,” said Wortman, president-elect of the Faculty Senate.

“But there has been very little discussion about that lately because we’re terribly concerned with the recent MGT findings.”

MGT America is a Florida-based consulting firm hired by the Board of Regents to study the regents institutions to make them more efficient, effective and accountable. One of MGT’s recent findings is a loss of 17-19 percent of Iowa State’s tenure faculty and a continuos loss of tenure-track faculty in the last 15 years, Wortman said.

“While number of faculty and state funding to higher education and student financial aid are decreasing, student enrollment and tuition continue to increase,” Wortman said.

Iowa State doesn’t have the faculty to teach all the classes students want to take, Wortman said.

“A few community colleges around the state raised tuition at the semester to deal with the cuts,” Wortman said.

“The only reason Iowa State’s tuition increases aren’t happening sooner than next year is because it takes too long to go through the approval process.”

The state cut a $2.75 million state-funded college work study program last year to help with budget problems.

“If you don’t have enough financial aid available, people will have more trouble getting an education,” Wortman said. “I’m absolutely astounded by the amount of money students borrow. It’s not uncommon to graduate from Iowa State owing $30,000 to $40,000. It’s really too bad because this is a public land grant institution.”