Kip DeCastro
kdecastr@uwyo.edu
October’s CREG report predicts $159.7 million economic shortfall, which could affect tuition, raises and more at the University of Wyoming.
The Consensus Revenue Estimating Group report paints a bleak picture of the state’s financial situation, stating the current biennium (July 1st 2015 to June 30th 2016) should expect a shortfall of $159.7 million, representing a nearly 10 percent shortfall, and projects a shortfall of $617.5 million from fiscal year 2016 through fiscal year 2018.
CREG’s purpose is to make quarterly estimates about revenue to the state. The group is made up of a small selection of senior state officials familiar with the state’s economic profile. The state makes its budget in terms of bienniums, with the current 2015-2016 biennium ending June 30. State laws mandate the budget presented by Gov. Matt Mead be balanced before their presentation to the legislature.
At the university the most visible effects of the economic shortfall have been seen in terms of a hiring freeze and greater scrutiny for discretionary spending, meaning that allowances for hires and purchases not absolutely necessary to the continued functioning of the university may not be granted. UW President Richard McGinity said the Governor’s directive set the stage for the freeze and scrutiny.
“The hiring freeze and controlled spending [measure implemented] are responses to the Governor’s request that all state agencies, the university included, look more carefully at their spending,” McGinity said. “In keeping with the Governor’s request, the university has imposed a temporary hiring freeze and also very close scrutiny of new commitments to spending”
McGinity said he would like to emphasize that the nature of the freeze and scrutiny measures may change come meeting with Mead Nov. 4.
“Pending further guidance, that’s where we are for this fiscal year,” McGinity said. “Undoubtedly there will be discussion of whatever the CREG report predicts for the coming biennium.”
The Nov. 4 meeting is part of the yearly budget meetings various agencies have with the Governor each year.
One potential consequences of the state’s fiscal underperformance may come in the form of a tuition increase.
In July the university was awarded a top ten ranking for Forbes’ 2015 Best Value Colleges. Some of the causes of the universities affordability lay both in the significant amount of scholarships and Hathaway funding provided to students. Additionally the state constitution includes a directive to the legislature to guarantee the affordability of the institution.
“[I]n order that the instruction furnished may be as nearly free as possible, any amount in addition to the income from its grants of lands and other sources above mentioned, necessary to its support and maintenance in a condition of full efficiency shall be raised by taxation or otherwise, under provisions of the legislature,” according to the Wyoming State Constitution in section 97-7-016.
Due to the nearly $160 million shortfall this fiscal year, tuition hikes may affect the affordability of the institution.
“I will go out on a limb here and say I think that a coming tuition increase is certainly a possibility,” McGinity said. “It still will be guided by an underlying philosophy of as close to free as possible.”
The board of trustees is ultimately responsible for determining whether or not to increase tuition, but it takes into account advisement from the president, ASUW and other groups on campus.
Last week, ASUW brought forth a piece of legislation, written by ASUW President Brian Schueler, opening up discussions regarding a potential tuition increase. Schueler said by writing the legislation he hoped to shape the discussion both within student government and with the board of trustees.
“Ultimately I think we’re going to have the most impact by coming to the board of trustees,” Schueler said.
Schueler said he personally does not favor tuition increases, but it has to be weighed against other factors.
“If you ask me I think tuition should be free. Students shouldn’t have to pay a dime because I think education is really important. But is that feasible?” Schueler said. “If not having a tuition increase would really hurt the quality of education, I think that changes the conversation.”
Outside of potential tuition increases, ASUW has had other worries related to how the freeze affects their programs and budgets. When the freeze was first announced, ASUW was unsure of what it could do in terms of funding and RSO spending. An updated memo came out early last week, enabling RSO spending to return for the most part to what it was before. Schueler said RSO funding returning provided a measure of relief.
“Knowing that a lot of student programming can go ahead helps us out a lot,” Schueler said.
Not all funding that ASUW previously had access to is still available, but Schueler said ASUW will fight to ensure that as much money as possible is available for student programming.
“There’s going to be a strong effort to insure that student led programming will continue,” Schueler said. “We have to do some politicking to make sure that the funds are available to use.”
Schueler also said the way in which the freeze affects departments around the university means that those departments may be less able to fund RSOs and so may cause the burden on ASUW to increase.
“There might be a few more cuts and a few more requests to the RSOs to make more of this funding,” Schueler said. “I expect that money will go quicker.”
Schueler said some senators might be worried about the future of ASUW funding, but that also ASUW would be able to complete most of its mission even if funding were to be significantly decreased.
“I think senators are worried, but a lot of the outreach we do is person to person,” Schueler said. “Even if we didn’t have funding to help do events we would still strive and endeavor to represent [students].”
Staff retention and recruitment may be affected by the economic shortfall.
“Given the fiscal realities of the state it is possible that there will not be fiscal wage increases,” McGinity said. “The university’s highest budget priority was communicated to the governor if there are any raises for the state employees in the coming biennium that the university participate in them.”
Support for staff pay raises also comes from ASUW.
“One of our asks is to make sure that recruitment and retention spending is provided for,” Schueler said.
Recruitment and retention is constantly watched by department heads, McGinity said, adding that protocols this year will not be different than they have been in the past.
“Though the process around it is continuous,” McGinity said. “That question is not one that you only ask occasionally it is one that is always being asked.”
Despite these and other concerns arising ahead of the Nov. 4 budget meeting, McGinity said he is steadfastly committed to his earlier announced priorities: that students will be capable of competing and succeeding in a global environment, that academic excellence will be steadily increased and that closer engagement with the state will come about.
“Those goals do not change,” McGinity said.
McGinity said those fearing the impacts of the report need not worry, and he and other administrators are working closely with the Governor and the legislature to ensure the best outcome for the university will be provided.
“Keep calm and carry on,” McGinity said, echoing the statements of WWII morale posters displayed throughout London following the Blitz.
