Universities Give Regents Fund Requests, Get Cool Response

PHOENIX (By Judd Slivka, Arizona Republic) August 21, 2004 - The universities got a cool response on Friday after presenting their first budget requests for fiscal 2006 to the state Board of Regents. The offending budget items came from Arizona State University and the University of Arizona, which asked for $23 million and $6.6 million, respectively, in money for enrollment growth that the state did not pay in fiscal 2004 and 2004.

Particularly in ASU's case, the state's failure to fully fund the number of new students coming into the universities has created financial hardships. The universities are forced to allocate money from other accounts to make up the shortfall.

But when the universities came to Friday's meeting with their request, they ran into a wall.

"Asking the Legislature or the governor to do something they couldn't do or wouldn't do for good reasons, even if we disagree, two or three years ago," isn't a good idea, said regents President Gary Stewart.

The Legislature has rarely, if ever, fully funded enrollment growth at the state's universities. But heading back to the legislative well for money that wasn't given when it was originally asked for is a move designed to bring legislative ire down on the university system.

"That dog just won't hunt," said Regent Ernest Calderon. "I would much rather see us focus on prospective funding."

If that is the case, ASU President Michael Crow said, then the regents and the university system should abandon the old funding formula and embrace a funding formula developed by the regents earlier in the year.

"The entire slate is completely clean," Crow said. "We put to bed forever what has been . . . a counterproductive model that has created unnecessary tensions and dynamics."

But how do the universities approach a Legislature that has often been hesitant to fund the university system and has at times been outright hostile toward it? "There is a very fine line this year because this governor and the Legislature have actually been very supportive of the universities," said Northern Arizona University President John Haeger. "The question we're going to have to answer is are our budgets in line with the total amount of money available."

Portions of the budget request include:

• $50.6 million for enrollment growth. The request anticipates tremendous growth at all ASU campuses. ASU predicts increasing its enrollment by 2,219 full-time equivalent students in fiscal 2004 and an additional 2,912 students in fiscal 2004. UA projects its growth to be less than 1 percent in both years and NAU is predicting flat enrollment for 2004 and a 464-student uptick in fiscal 2004.

• $2.3 million for performance funding. For the first time, universities are asking to be paid for their success rate in granting degrees.

• $10.9 million in facilities support. This money would go toward operating new facilities scheduled to open in fiscal 2004.

• $5.4 million for student assistance. This request incorporates one of the regents' most-radical departures from past funding requests, as the universities are asking for the Arizona Financial Aid Trust to provide a 2-for-1 matching fund, totaling $4.8 million.

• $45 million for decision packages to address attracting and retaining highly skilled faculty and staff.

• $60.6 million for building renovations on university campuses.