Dialog, UA Faculty and Staff News

Advisory

State Budget Update

Riley's Cuts

After the failure of Gov. Bob Riley's $1.2 billion accountability and tax plan to pass the Sept. 9 referendum, he drafted a proposed state budget and called the state legislature into a special session (which began Sept. 15) to pass a budget for the fiscal year beginning Oct. 1. Riley's budget is based on the highly publicized shortfall of nearly $700 million, and it includes the expected severe cuts in both the Educational Trust Fund (ETF) and General Fund (GF). His budget reflects cuts of 5.25 percent to the $1.27 billion GF ($66.7 million); and of 18 percent to the $4.15 billion ETF ($7.4 million). His budget cuts up to 100 percent in some agencies.

Riley's proposed budget can be viewed at www.budget.alabama.gov. The Birmingham News is continuing its on-line special report about the Alabama budget problems at www.al.com/specialreport/?taxplan.html. Riley's cuts would cost UA approximately $8.7 million.

A summary for FY 2004 appropriations follow: revenue based on prior-year budgeting; pass-through grants and appropriations for special projects or line items cut by $59 million; state agencies cut by 10 percent ($13.2 million); scholarship programs cut by $9 million; K-12 and higher ed cut proportionally (from 68.6 percent to 67.9 percent and 27.3 percent to 27 percent respectively). Cuts specifically to higher ed four- and two-year institutions follow: operations and maintenance level-funded from FY 2003; institutions billed for telephone costs ($2 million). Universities will be billed for PEEHIP costs for retirees ($25 million) and line items will be cut ($12 million).

Legislators' Cuts

At press time, a Senate committee approved a counter plan that would restore partial state funding for dozens of non-state programs and private funds, then cut everyone by 10 percent. This budget would cost UA upwards of $14 million, rather than the $8.7 million represented in Riley's proposed budget. Some think that this budget represents a more general movement in the Legislature that would cost UA significantly more.

Faculty Senate Resolution

UA's Faculty Senate steering committee has passed a resolution in support of Riley's plan, urging that legislators support it rather than cut 10 percent across the board. The resolution will be sent to legislators, including the Tuscaloosa delegation. The resolution follows: Resolved that the UA Faculty Senate Steering Committee commends Gov. Bob Riley for bringing a budget proposal that attempts to fund the essential functions of government as equitably as possible under the current budget constraints. We strongly urge the legislators to follow his lead and approve his budget proposal.