Gov. Tom Vilsack reinforced his promise to make education “a No. 1 priority” Friday when he released his proposed $4.8 billion budget for 2003.

Vilsack’s education plans concentrate mainly on elementary and secondary education. But he has promised funding to provide competitive faculty salaries at the regent universities as well as money from “nongeneral fund sources” for construction and renovation projects.

Vilsack is recommending the regent institutions receive $680.3 million, according to his budget proposal at www.state.ia.us/governor/agenda/budget_in_brief/index.html.

ISU President Gregory Geoffroy said Vilsack’s proposals are good news.

“I am very pleased with the governor’s budget recommendations for Iowa State,” Geoffroy said in an e-mail. “He has proposed full funding of our salary request – which is our top priority – no further reductions in our state appropriations, and full funding for our top capital construction priorities.”

The governor’s recommendations include a $6.7 million appropriation for the College of Business Gerdin Building and a little more than $2.1 million for undergraduate classroom construction and renovation.

Iowa State will not get funding for all upcoming projects, Geoffroy said, if Vilsack’s recommendations are approved by the state Legislature.

“We are, of course, disappointed that there is no funding included for the Plant Sciences Initiative,” he said. “But given Iowa’s current fiscal circumstances, this is a very good budget proposal for us.”

Vilsack also proposed a $300,000 increase to reinstate work-study programs, which completely lost funding last year.

Sen. Johnie Hammond, D-Ames, said nearly $3 million was cut when work study was eliminated last year, and Vilsack’s proposal will restore only about 10 percent of the program.

Students will greatly benefit from the governor’s “continuing commitment to education on all levels,” she said.

“The governor said he has a commitment to fully fund faculty salaries,” she said.

The budget also calls to continue the Higher Education Tax Credit for students who graduate from an Iowa college or university after Jan. 1, 2003.

Students who receive a bachelor’s degree will be eligible for a $600 tax credit for up to 10 years, as long as they stay in Iowa after graduation.

Vilsack called for increased venture capital and investment in new jobs for college graduates during last week’s Condition of the State address.

The situation will only help students, Hammond said. Once more jobs are created, she said, the tax credit for Iowa’s university graduates will be even more beneficial.

Funding Vilsack’s promises may not be as easy as it seems, however. Reorganization continues within state government departments to maximize efficiency and minimize costs, Hammond said.

Vilsack said he will have cut 1,285 state jobs by the end of February, and more state employees before July 1.

“While we are tightening our belt, we’ll have to use some reserves,” Hammond said.

The Legislature promised $500 million in additional spending for this year, but only $70 million is expected in new funds, said Rep. Teresa Garman, R-Ames.

“My biggest concern right now is [Vilsack] is making promises he won’t be able to keep,” she said. “I don’t like skimming from the Economic Emergency Fund.”

Garman said she has not seen Vilsack’s proposed budget, since the Legislature was not in session when he presented it but she has seen analysis.

Whether or not Vilsack’s budget is realistic “depends on the situation,” Garman said.

Taking money from the reserves to fund programs might make it difficult for the state to pay its bills on time, she said.

The only thing to do was wait and see results from the Revenue Estimation Council, which is expected to release its findings in early March, Garman said.

“You have to know how much money you’re going to have,” she said.

The Legislature delayed talking about the budget until March to avoid midyear de-appropriations.

“The budget reversal is going to create some problems that haven’t really been discussed,” she said.