2008 Woodie Awards
UA responds to state budget cuts
Decrease of $4.7 million expected
Jaclyn Johnson
Issue date: 4/14/08 Section: News
A substantial budget cut is expected for the UA in the 2008-09 fiscal year because of a decrease of $4.7 million in state funding, according to a UA press release.
This figure amounts to a 2 percent decrease of the university's $233 million education and general funds budget, said Tysen Kendig, associate vice chancellor of university relations.
Although a 2 percent decrease might not sound like much, this cut actually decreases state funding close to 4 percent, because Arkansas state funds provide half of the educational and general revenue, Kendig said.
Last month, the Board of Trustees approved a 5 percent tuition increase, along with other hourly increases.
Kendig is not aware of any plans to increase this further, and if and how this could further affect students' costs is unknown, he said.
Other options will have to be considered and will force the UA to "tighten our belts and address this budget shortfall," he said, adding that he appreciates the cut being made in advance of the fiscal year rather than in the middle.
Some difficult decisions will need to made along the way, said Kendig, who hopes "the state's revenue situation will be better than projected."
The UA, however, is not the only school to face budget cuts.
All state agencies receive funds through the Revenue Stabilization Act of the General Assembly, so any decreases needed in the state budget will also be felt by state agencies, Kendig said.
University funding comes from two primary sources - state appropriations and tuition, said Donald Pederson, vice chancellor for finance and administration.
Much of the tuition increase was needed for more competitive salaries and the rising cost of utilities, he said.
The state budget for next year will decline by $107 million overall, according to Friday article in the Arkansas Democrat-Gazette.
Some legislators have suggested that Gov. Beebe's tax reduction on groceries - costing the state about $98 million each year - is the direct cause of the state budget cut, according to the article.
NorthWest Arkansas Community College also will face a $1 million budget cut, which leaves a $300,000 gap in the college's budget for next year, according to a Wednesday article in The Morning News.
This figure amounts to a 2 percent decrease of the university's $233 million education and general funds budget, said Tysen Kendig, associate vice chancellor of university relations.
Although a 2 percent decrease might not sound like much, this cut actually decreases state funding close to 4 percent, because Arkansas state funds provide half of the educational and general revenue, Kendig said.
Last month, the Board of Trustees approved a 5 percent tuition increase, along with other hourly increases.
Kendig is not aware of any plans to increase this further, and if and how this could further affect students' costs is unknown, he said.
Other options will have to be considered and will force the UA to "tighten our belts and address this budget shortfall," he said, adding that he appreciates the cut being made in advance of the fiscal year rather than in the middle.
Some difficult decisions will need to made along the way, said Kendig, who hopes "the state's revenue situation will be better than projected."
The UA, however, is not the only school to face budget cuts.
All state agencies receive funds through the Revenue Stabilization Act of the General Assembly, so any decreases needed in the state budget will also be felt by state agencies, Kendig said.
University funding comes from two primary sources - state appropriations and tuition, said Donald Pederson, vice chancellor for finance and administration.
Much of the tuition increase was needed for more competitive salaries and the rising cost of utilities, he said.
The state budget for next year will decline by $107 million overall, according to Friday article in the Arkansas Democrat-Gazette.
Some legislators have suggested that Gov. Beebe's tax reduction on groceries - costing the state about $98 million each year - is the direct cause of the state budget cut, according to the article.
NorthWest Arkansas Community College also will face a $1 million budget cut, which leaves a $300,000 gap in the college's budget for next year, according to a Wednesday article in The Morning News.
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