USU asked to cut budget by 2.5 percent
Governor Mike Leavitt said in a statement to educators on Oct. 12 he is exempting public and higher education from the $107 million budget cut. Utah State University departments were still asked to cut appropriations by 2.5 percent, Fred Hunsaker, administrative services vice president, said.
Initially, before the beginning of the fiscal year on July 1, Governor Leavitt had cut 4 percent from department budgets, but two weeks later Leavitt changed the deduction to 2.5 percent, Hunsaker said.
After this announcement, departments at USU had to make their own determinations about how to cut 2.5 percent from their normal appropriations, Hunsaker said. He also said departments were asked to do what is “least disruptive to the students, that courses go on and classes be taught.”
Then, because of the slowing economy and lost profits in the stock market, legislature noticed state revenue from taxes especially income taxes were way down, Hunsaker said.
As a direct result, on Oct. 12, Leavitt in a statement to educators, made another announcement to cut $107 million from state appropriations, exempting public and higher education.
Leavitt said in the statement, he is exempting public and higher education because he views it “as the foundation for an economic recovery.”
To accomplish this exemption, legislature “would be dipping into the state’s rainy-day fund to finish the year,” Leavitt said in his statement.
Hunsaker said, “This comes from funds legislature has been putting money into annually. It’s sort of like a savings account.”
However, Hunsaker said the budget cut “could have a little affect” on state-distributed student loans, but he said since most financial aid is federal, it is expected to have no problems.
A recent request for student loan appropriations of $400,000 has been placed and if this is granted there should be no reduction in state financial aid, Hunsaker said.
Also, in light of the Sept. 11 attacks, Hunsaker said if we hadn’t already reduced funding by 2.5 percent, the budget cut announced on Oct. 12 “would have been for a much greater amount.”