UA receives funding from state Legislature
James Baker
Issue date: 4/15/09 Section: News
Overall state funding for all Arkansas institutions of higher education will increase by around $31 million during the next fiscal year, while $11 million in federal stimulus dollars will be distributed to state institutions.
The UA will receive more than $5.5 million that will, for the most part, go toward operations.
Speaking strictly on the various contributing state funds and federal help, Don Pederson, vice chancellor for Finance and Administration, said the bulk of the funds will go toward operations and getting by for the next fiscal year.
"I don't anticipate any construction being started in a tight budget," Pederson said.
The federal stimulus money is a one-time deal, and lawmakers, including the governor, agree that federal money should not go toward starting up continuing programs.
The $11 million in federal stimulus money will be distributed to institutions to make up for budget cuts during the fiscal year of 2008, state Rep. Lindsley Smith said in an e-mail.
As the recession drags through its 16th month, states from Arizona to New Jersey are facing shortfalls and the inevitability of tax increases to make up for declines in sales-tax revenue.
Arizona universities have proposed "economic recovery" tuition surcharges for at least two years.
Officials from the University of Arizona in Tucson have asked for a $1,000 a year surcharge, which would increase tuition to $7,000 a year for in-state students, according to the Arizona Daily Star.
This is not the case in Arkansas, which is operating on a $300 million surplus. Lawmakers and Gov. Mike Beebe agreed to put a third of the surplus toward paying for shortfalls in the budget.
The UA board of trustees will consider tuition at its next meeting.
"As of now, we're not recommending a tuition increase because of funds received from the state," Pederson said.
No scholarship money was affected by any shortfalls, though it remains to be seen whether any significant budget shortfall would put a dent in student scholarships, anyway. There is more than $58 million in state scholarship reserve funds waiting for qualified students to apply for.
The UA will receive more than $5.5 million that will, for the most part, go toward operations.
Speaking strictly on the various contributing state funds and federal help, Don Pederson, vice chancellor for Finance and Administration, said the bulk of the funds will go toward operations and getting by for the next fiscal year.
"I don't anticipate any construction being started in a tight budget," Pederson said.
The federal stimulus money is a one-time deal, and lawmakers, including the governor, agree that federal money should not go toward starting up continuing programs.
The $11 million in federal stimulus money will be distributed to institutions to make up for budget cuts during the fiscal year of 2008, state Rep. Lindsley Smith said in an e-mail.
As the recession drags through its 16th month, states from Arizona to New Jersey are facing shortfalls and the inevitability of tax increases to make up for declines in sales-tax revenue.
Arizona universities have proposed "economic recovery" tuition surcharges for at least two years.
Officials from the University of Arizona in Tucson have asked for a $1,000 a year surcharge, which would increase tuition to $7,000 a year for in-state students, according to the Arizona Daily Star.
This is not the case in Arkansas, which is operating on a $300 million surplus. Lawmakers and Gov. Mike Beebe agreed to put a third of the surplus toward paying for shortfalls in the budget.
The UA board of trustees will consider tuition at its next meeting.
"As of now, we're not recommending a tuition increase because of funds received from the state," Pederson said.
No scholarship money was affected by any shortfalls, though it remains to be seen whether any significant budget shortfall would put a dent in student scholarships, anyway. There is more than $58 million in state scholarship reserve funds waiting for qualified students to apply for.
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