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March 27, 2009

Legislators reach agreement on higher ed cuts

Higher education would see a budget cut, but would be spared double-digit cuts as part of a budget agreement reached by legislative negotiators this week.

KU has already implemented a 4.25 percent cut for the current fiscal year (FY 2009) and the agreement hammered out this week would make a further reduction for next year (FY 2010) of approximately 3 percent.

Overall, this would mean a roughly 7 percent reduction in funding from the original FY 2009 budget signed into law in 2008. Some details remain to be seen, such as how much of the money from the federal stimulus package will be dedicated to specific areas such as deferred maintenance.

While a 7 percent cut will still have an impact on KU, it is not as devastating as some proposed cuts would have been, such as the potential 12.7 percent cut considered by the Senate. The fact that legislators saw fit to not impose such a cut shows the value they place in higher education institutions due to universities' ability to grow the Kansas economy by educating our workforce.

This is not the end of the budget process, however, as this budget must still pass the Legislature and be signed into law by the Governor. Additionally, the April consensus revenue estimate is likely to show a decline in state revenues. This could necessitate additional cuts for the upcoming year.

Several other KU initiatives also saw action this week.

HB 2007, which provides tuition flexibility for universities and would permit KU to propose the Jayhawk Generations Tuition Plan was signed into law by Governor Sebelius, as was HB 2197, which allows the Regents to set admissions standards.

Additionally, SB 8, which provides tort claims coverage for medical students, has passed both chambers and is on its way to the Governor.

SB 9, which streamlines the process for construction projects using non-state money, has also passed both chambers and will be considered by the Governor.