Recent cuts in state funding to ASU may force the University to cut jobs, but academic programs, tuition and financial aid will not be affected by the cuts, President Michael Crow said in a meeting with The State Press editorial board Friday.
Crow reinforced the message he sent the student body in a video address via e-mail last Monday, when he said tuition for current students would not be raised any more than the 5 percent increase proposed last year.
“We’re sticking to that even in the moment now, where it’s financially not in our interests,” Crow said in the Friday meeting. “I’m still advancing the model we put on the table last year, where if you’re already here, your tuition increase this year will be 5 percent.”
Crow said the state has reduced funding by about $50 million since July 1, a cut of about 10 percent, which could grow to 25 percent over the next year.
Money from the state makes up about a quarter of ASU’s budget, Crow said. The largest funding source is tuition.
Crow said the cuts would not affect academics.
“We don’t want to have fewer faculty members; we actually need more faculty members,” he said.
Instead, Crow said, the University would reduce services in certain areas to save money. This would include reducing staff, not repairing or replacing some equipment, cutting back on technical support and increasing class size.
Although tuition will not be affected, the University is considering raising program fees for certain programs — including business, nursing, engineering and design — because the faculty in those departments are paid higher than the faculty in other departments, he said.
“The cost to educate in those schools is so much above the tuition, there may be a program fee,” Crow said.
The state of the economy has had a severe negative impact on the state budget.
According to a report released by the state’s Joint Legislative Budget Committee on Oct. 16, tax revenue in the state is down 9 percent since September 2007, which is $300 million below forecast for this year. The committee is also projecting a budget shortfall between $550 million and $1 billion in the next year.
This translates to a $50 million reduction in state funding to ASU, a number Crow said may continue to grow over the course of the year as the state makes further budget adjustments.
The reduction has forced the University to begin looking at ways to cut back on administrative and support staff in August, said Virgil Renzulli, ASU’s vice president of public affairs.
Renzulli said the cutbacks would not include students currently enrolled in federal work-study programs but could affect those looking for work in the University.
“It should not affect federal work-study, but some student employees were cut,” Renzulli said. “It's a lot harder to find a job anywhere.”
Renzulli said the University responded by recommending mergers between the School of Global Management and Leadership with the W.P. Carey School of Business, and the colleges of Human Services and Public Programs, eliminating many administrative positions. The University will take the idea to the Arizona Board of Regents as early as next month.
The restructuring plan will not affect the academic programs in any way, Renzulli said.
“No classes were lost,” he said. “What we did was restructure the administration.”
John Hepburn, dean of the College of Human Services, said the restructuring, which would cut about 12 support positions, was the best way for the University to cut costs without affecting the academic programs offered by the college.
“I think the College of Human Services served its purpose, but given the situation with the budget … the merger was necessary,” said Hepburn, who would join the faculty of the College of Public Programs if the plan is carried out.
Reach the reporter at derek.quizon@asu.edu.
