Vilsack answers budget questions
November 5, 2001
With statewide budget cuts and double-digit tuition increases looming, Gov. Tom Vilsack answered student questions and explained the state budget at an open forum on campus.
“This is an opportunity for me to visit with students, faculty and the administration at the university,” Vilsack told more than 100 people who filled the Gallery Room of the Memorial Union on Friday. “I could give a long introductory speech, but what I really think I ought to do is open it up to questions.”
Austin Haygood, freshman in aerospace engineering, said he was concerned about education.
“I want to contribute to the size of the body that is voicing its opinion to the governor, saying, `We want to be higher on his list of priorities,'” he said.
Eric Taylor, freshman in pre-business, said he is concerned with the tuition increase and budget cuts.
“We just want to know where the surplus money has gone,” Taylor said.
In the question-and-answer session, Vilsack said there were “two different pots of money” in the state budget.
The general fund comprises revenue from income tax, corporate income tax and general taxes. Vilsack said $700 million from this fund was given to Iowa universities in regent assistance.
The second fund, the Rebuild Iowa Infrastructure Fund, contains money from what Vilsack called an “excess of Iowa’s gaming.” This has “no impact on the general fund,” he said.
To cope with the sluggish Iowa economy, the Legislature has had to cut state agencies’ budgets across the board to avoid dipping into the $400 million reserve account, which is slated for emergencies, Vilsack said.
To keep the quality of education in Iowa at its peak, Vilsack said, tuition has to go up.
“Tuition is about quality,” he said. “It’s a decision made by . the Board of Regents. The Board of Regents believes that to be able to maintain and enhance the quality of the universities, the tuition must go up.”
The Board of Regents proposed an 18.5 percent tuition increase for the 2002-2003 academic year. The board will make its final decision at its meeting Nov. 14-15 in Cedar Falls.
“At least half of that was going to occur regardless of state budget cuts,” Vilsack said, pointing to inflation and the regents’ decision to raise tuition.
He said it’s hard to tell whether state support for the regent universities will increase.
The governor said 44 states are facing similar budget problems that will increase tuition.
Iowa provides about 17-20 percent of university funding, Vilsack said, and by the time a kindergarten student has finished college, the state will have invested more than $100,000 in that student’s education.