The Arizona Board of Regents on Saturday asked the presidents of Arizona’s universities to develop plans in case Proposition 100 fails on the ballot later this month, which would result in a reduction of $107.1 million from the university system.
Proposition 100 is a proposed three-year, 1 percent sales tax increase that would allow higher education’s state funding to remain at its current level. While the proposition does not directly set aside funds for higher education, its passage would make up for other aspects of the state’s deficit, sparing the university system additional cuts.
ASU President Michael Crow outlined to regents what the University’s future would look like should voters decide against Proposition 100 on May 18.
“The failure of Proposition 100 will mean $47.8 million in fewer resources for the University going forward that fiscal year,” Crow said.
The total amount of budget cuts at ASU if Proposition 100 passes would equal $158 million, he said.
“That would take our student funding back 43 fiscal years on a per-student basis,” Crow said, adding that the University’s per-student investment would then be less than that of community colleges and elementary schools in the state.
Higher education is currently operating at the state funding level it did in 2006 following 2009 budget cuts, which is the lowest it can legally be to qualify for stimulus money.
ABOR vice president Fred DuVal outlined four areas for university presidents to focus on while developing contingency plans that would go into effect by July 1.
Workforce reductions in the form of furloughs, vacant savings or position eliminations were the first area DuVal mentioned.
Student financing options such as recommendations for higher tuition, reductions in financial aid and proposals to close additional programs would be another option.
“Lastly, a systemic look at savings that might be incurred through a system redesign and other administrative changes,” DuVal said.
For ASU, Crow said that could mean about 650 positions eliminated, discontinuing of degree programs, reductions in financial aid, enrollment caps in higher-cost programs and further reductions in colleges.
Other large cuts affecting students could occur through ABOR’s central office, where $2.1 million would be cut, affecting 850 to 1,000 students relying on financial aid that rests within the office’s budget, ABOR executive director Joel Sideman said.
UA would be hit with $41.4 million in cuts while NAU would see a $16 million reduction under the current “Plan B” budget, should voters reject Proposition 100.
UA President Robert Shelton outlined possible plans to draw roughly $20 million from UA’s financial aid system to cover half the cuts.
“I don’t have to tell you what that would do,” Shelton told regents.
Other options for UA include potentially laying off 500 people, including those involved in instruction, staff and support roles, he said.
NAU President John Haeger said his university will look at closing some of its satellite colleges across the state as well as reducing its investment in health programs in order to meet cuts.
“Higher education is at a crossroads right now,” Regent Bob McLendon said.
ABOR president Ernest Calderón called the possible budget cuts “catastrophic.”
“Education in Arizona is going to be changing dramatically — if not in the next few months, certainly in the next year,” he said. “We are committed to keep the quality of education.”
In order to survive, Calderón said, the Board is going to have to make some tough choices.
Regent Mark Killian expressed concern that the political debates might distract the public from the importance of Proposition 100.
“There is a point at which the damage we are going to do to the institutions will be incalculable,” he said.
The board also unanimously approved three measures, including a 2.75 percent reduction in state-funded salaries at each university, totaling more than $12.8 million in savings going into the 2011 fiscal year.
To meet the salary cut, ASU disestablished or combined four colleges, consolidating and changing the name of the Mary Lou Fulton College of Education to The Mary Lou Fulton Teachers College and eliminating 98 employees within the University.
Regents also approved ASU’s decision to back out of the College of Medicine — Phoenix partnership between the UA and ASU, which will save the University an estimated $3.5 million in operational costs. UA will pick up those additional costs.
ABOR also approved a measure to fill a senior administrative position and change the title of that position from executive director to president; the elected leadership positions of regents will change from president and vice president to chair and vice chair, respectively.
Reach the reporter at kpatton4@asu.edu
