NU’s appropriation hasn’t kept pace with general fund increases

When the Nebraska general fund appropriation rose more than 12 percent in 1998-1999, the University of Nebraska’s allocation from the state increased less than 4 percent.

Editor’s note: This article is the second in a three-part series focusing on the UNMC budget. Friday’s article will compare the University of Nebraska’s budget situation with other public universities.

In fact, the University of Nebraska’s allocation increase percentage has matched or exceeded the state’s general fund growth rate in only three of the past 11 years.

“We didn’t share in the wealth of the strong economy of the late 1990s, but we’re being asked to take a severe cut now,” said Kim Robak, J.D., NU’s vice president for external affairs. “We are concerned about the impact the additional budget cuts will have on our students. The university will become less affordable, with fewer choices and fewer services, which will make our campuses less attractive to current and potential students.”

During the past 14 years, the state’s general fund has grown by 119 percent. The university’s allocation has increased by 70.5 percent, compared to 125.3 percent for aid to local government, 97.3 percent for state agencies and 189 percent for aid to individuals, such as Medicaid.

Those are numbers the university will point out to lawmakers and the public over the next few weeks as the Nebraska legislature decides how it will close a projected $760 million budget gap over the next two years. On Monday (March 10), NU President L. Dennis Smith, Ph.D., will address the Legislature’s Appropriation Committee.

“It would take years to recover from the cut being proposed,” Robak said. “Coupled with unavoidable cost increases in areas such as insurance and utilities, the net effect is actually much worse.”

John Adams, UNMC assistant vice chancellor for budget and strategic planning, said basic operational costs, including utilities, operation of new buildings, library costs and campus insurance, are projected to increase by $8.2 million in 2003-2004. If health insurance increases 5 percent and salaries increase by 1.5 percent, another $8.1 million in new costs is added, Adams said.

Adams is working with models that compare the mandated expense increases with varying levels of both tuition increases and reductions in state appropriation.

“The question is how to balance the appropriate level of a tuition increase with less state support, with more infrastructure expense while moving forward on our strategic priority issues,” Adams said.