I want to provide an update on our state FY11 budget that begins on July 1, 2010. Much remains uncertain. The full picture for FY11 may not emerge until the legislature adjourns, which could be late this month.

But we know the starting point is planning to make permanent the $24.5 million mid-year reversion to the university last fall. To make that reversion, the Provost’s office has provided differential reduction targets to colleges and other units (see Feb. 26 memo, http://www.public.iastate.edu/~budget/bdFY11/budmemos/memo5.pdf). We’ve learned that the integrated CALS/Experiment Station’s share of the reduction is $3,019,896. The reduction target for ISU Extension is $1,961,183, and in the near future we will know what portion will be allocated to our Agriculture and Natural Resources Extension programs.

Needless to say, the picture beyond FY11 also is clouded. In many ways we are just beginning to make plans for the future. Uncertainty about state and federal support, declining numbers of Iowa high school graduates and what is likely to be an uneven economic recovery means that we must continue to shape a vision for a new kind of College.

It is important to keep the FY11 budget in context of budget developments over the past year and over the past decade. During the current fiscal year, the CALS/Experiment Station and ANR Extension lost nearly $9 million in state funds, a reduction of more than 12 percent. In the years from 2001 to 2006, the Experiment Station and Extension lost 25 percent of their budgets while the College lost over 8 percent.

We need to submit CALS preliminary budget plans by April 1. This week we will be allocating budget reductions to departments, centers and administrative units, which likely will range from zero up to 37 percent. Shown below is a summary of on-going discussions, both general and specific:

Revenue Generation

• Regents approved a 6 percent tuition increase for in-state students and 4.1 percent increase for out-of-state students for fall 2010.
• CALS has established a $100 course fee to cover extraordinary costs of teaching facilities, effective fall 2010.
• On average, faculty must teach more (increasing total student credit hours), work to achieve more success in obtaining research sponsored funding and generate more revenue through their Extension programs.
• Increased fees for use of research facilities.
• A planning committee has been established to consider differential tuition for CALS students.

Costs Savings

• Potential mergers of departments and centers, with shared leadership and support staff.
• Departmental reorganizations to reduce operation costs; for example, animal science teaching and research farms.
• Elimination of low-enrollment undergraduate and graduate majors and courses.
• Reduction or elimination of graduate student assistantships and stipends, except for students working directly in support of departmental and/or College programs. In a transition period, faculty will begin to move all, or a greater share, of graduate students onto grants and contracts.
• Loss of vacant faculty positions.
• Continued energy-saving strategies to reduce utility bills.

Because more than 87 percent of CALS’ state funds are devoted to personnel, many cost-savings decisions will affect people in the short-term. We also need to begin thinking long-term. On Feb. 19, the Provost’s Office sent a message encouraging campus leaders to think about long-range planning for personnel, http://www.ag.iastate.edu/budget/node/10. For faculty and staff in a position to consider retirement or a different level of appointment, now is a good time to consider options as we talk and plan about our future.

Budgets will improve again, though not soon enough. Until that time, we must do our best to meet the needs of students and Iowans. I encourage you to continue thinking creatively. Please continue to send me your thoughts on how we reorganize to address the budget reality while maintaining our competitive position for the future.

Finally, I appreciate the personal sacrifices you already have made to help the College and the university meet budget reductions. Despite some of the most difficult economic times ever, we continue to successfully fulfill our mission in many ways, great and small. Your accomplishments truly are extraordinary. It’s because of your dedication and hard work as faculty and staff. I’m grateful for all your efforts. We are one of the very best land-grant colleges of agriculture and life sciences in the nation and the world. We need to focus on critically important programs and reduce or eliminate others. We have faculty and staff who have a powerful impact every day on students, the state and the world. Now we must resize our portfolio to fit our budget reality.

Sincerely,

Dean Wintersteen