By James El-Mallakh–
During Steve Beshear’s budget address, Tuesday, January 17, the Governor announced that in his budget proposal for the next two fiscal years, public funding for universities would receive a 6.4 percent reduction in funding.
“In these agencies, folks, the fat has long been burned away,” said Beshear. “And now we’re cutting muscle and we’re cutting bone.”
According to a copy of a letter obtained by InsiderLouisville.com, President James Ramsey, speaking to U of L personnel, said, “While we understand and appreciate the financial realities the state is facing and the tough decisions the governor and legislators must make, this will have a dramatic impact on the University of Louisville, our students and the future of Kentucky, if it is enacted.”
A 6.4 percent cut translates into about $9 million less in state funding. Last year, funding for higher education was cut only one percent, a significant amount less than how much it would be cut in Beshear’s proposal. In the proposal, fiscal 2013-2014 would have funding for higher education go back up 0.9 percent.
“U of L currently gets $177 million from the state,” said Mark Hebert, the Director of Media Relations. “That’s 39 percent of U of L’s general fund budget and 15 percent of all money tied to U of L.”
Despite the sharp increase in the amount taken out of the budget for universities, Beshear believes that higher education is still one of the state’s top priorities “Other areas — like our universities and law enforcement agencies — will see lesser cuts,” Beshear said, comparing the reduction to the 8.4 percent cut that tourism, parks and the governor’s office would receive.
In anticipation of the budget cuts, the University, on January 10, a week before the budget address, enacted a hiring freeze. In a letter to top university staff, Shirley Willihnganz, the Executive Vice President and University Provost, said, “In order to prepare the University to manage potential budget cuts with the least adverse impact on mission-critical needs, all vacant positions are frozen.”
This hiring freeze does not apply to positions commonly held by students on campus such as positions in the library and in the SAC.
Beshear’s budget proposal comes just one week after he firmly rejected a merger between University of Louisville hospital and St. Mary’s Healthcare, a private institution. The merger was controversial because it would have restricted University Hospital from performing tubal ligations, which are sterilizations for women. The merger between the two hospitals was supported by U of L staff and was viewed as a necessity because of U of L hospital’s continuing loss of money.
With state funding in a continuous decline, the governor’s new budget proposal raises the question as to how much authority the state should have over an institution that it is giving less money to every year.
“I’m surprised that [decision] isn’t delegated to the legislature, I’m surprised that he has the sole authority over that,” said Andrew Skaggs, a freshman chemical engineering major.
“He definitely has some say, part of the money from the university comes from [the state] but there are a lot of other private donors who give to the university as well.”
Because of continuous budget cutting on behalf of the state, the university has had to increase tuition costs in response. This year’s budget proposal will ensure that tuition will be increased again for U of L students next year.
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Photo courtesy Bluegrass Politics
