BUDGET
H.B. 2209, the Feed Bill, restores the original FY 2008 permanent base and then mandates that the Regents allocate the "…$50,000,000 general fund reduction among university campuses." Enrollment growth was also funded, which is $1 million for the UA.
Whatever the Regents do, there is no doubt that the reduction will pose difficulties for the University System, but in the face of the worst deficit in percentage terms of the 50 states, our supporters in the Legislature and the Governor were successful in sparing as much pain as possible. The reduction might have been against the FY 2008 base after the 2008 cuts were taken, and enrollment growth might not have been funded. Also, without the use of the K-12 rollover and bonding, the University cuts could have been several times worse, and we have the Governor and key legislators to thank for that.
SPEED
Our crucially important construction program was also passed as part of the appropriations package (H.B. 2211). Instead of $1.4 billion the University system received $1 billion in debt authority – still a grand victory. The State Lottery – which is being enhanced to generate more revenue – and the General Fund will pay the debt service. While the total authorization is for $1 billion, the Regents are limited to entering into lease-to-own and bond agreements not to exceed $285 million in FY 2009 and $500 million in FY 2010. Of the $1 billion total for the system, $470 million must be allocated by the Regents "… to the construction of the
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The final outcome was far better than any of the lobbying team imagined when the session began in January in terms of the modest level of the cuts and the passage of $1 billion of SPEED debt authority. A number of people were crucial to this result, for now I want to single out for profound thanks the Governor and Senate President Tim Bee of
I will say more about this session in the near future.
Greg Fahey
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