The UW Budget: From bad to worse in 2 days.

My posting on Wednesday on the reductions in state funding of UW was incorrect. I relied on a number of news accounts (Milwaukee  Journal-Sentinel, WSJ, etc.) for the information. Now, having read Vice Chancellor Bazzell’s memo, it is clear that the cuts will be far worse than originally reported.

To recap, news accounts in all major media initially stated that the UW-System would be subject to about $65 million in cuts over the biennium as a part of an overall state budget reduction of $174 million. (UW-Madison’s share of the reduction would be $24.6 million.) The Dept of Administration, which apportions the cuts, did not explain why UW would shoulder 37% of the reduction despite the fact that it constitutes only 7% of the state budget.

Today, the other shoe dropped. The other shoe in this instance is the probable loss of $111 million over the biennium; our share of an overall budget reduction of $300 million. Madison’s loss would be $42.6 million. This loss alone could not be “made up” if tuition for every student was increased $1000/ year. This is, of course, in addition to the $250 million loss to the System (and Madison) in the budget passed last summer. In contrast, aid to local government ($1.9 billion) is only nicked ($3 million) as is aid to K-12 education, the biggest item in the budget. Under the “$300 million scenario”, the UWS would still lose a disproportionate share of its state funding at a ratio of 5:1.

While the budget reduction of $300 million has not been ordered, agencies have been told to prepare for the loss. The reduction will be ordered if tax revenues do not increase in the next few months.

Under the $300 million reduction scenario, the Dept of Corrections would reduce its budget by $23 million or 1.4%. This would result in the UW receiving 6.7% of the state budget and the Dept of Corrections receiving 6.8%. The trend lines have crossed.

UW System
Budget % of Total State Budget % of Agency Budget
Before Cut $2,095,251,600 7.2%
Cut $163,900,000 7.8%
After Cut $1,931,351,600 6.7%
Department of Corrections
Budget % of Total State Budget % of agency budget
Before Cut $1,994,614,400 6.9%
Cut $27,924,602 1.4%
After Cut $1,966,689,798 6.8%

DMA

5 Responses to “The UW Budget: From bad to worse in 2 days.”

  1. Frank Rojas says:

    So, you ready to sign-up with my program? Cut Madison instate slots 25% (about 1000/yr) in favor of increasing out of state and increase all tuition by $1000/year. Time to get real folks. This is the final battle for the UW’s future. Time to change the game.

  2. badger for public education says:

    Frank- What is going to happen to those 25% who were presumably qualified to go to Madison? Will they go to other system schools? To schools in other states where THEY now will bring in the out-of-state revenue? This is not just a battle for UW’s future, but for higher education in the country. If the current trend continues (not just in higher ed, but also in K-12), a good education will become the privilege of those who can pay for it, while the population as a whole will become less educated and will fall behind other nations even further than it already has. A real game changer would be to address public education as a national issue.

    So here is my suggestion: The good citizens and corporations of Wisconsin decide to pay higher taxes (yes, pay higher taxes!) to drastically reduce (even abolish) tuition for all students. Admission to the flagship Madison will be strictly by academic merit and will include a much higher percentage of out-of-state students. Madison will now attract the most capable students from around the nation and not just the capable ones whose families can also afford out-of-state tuition. With such a competitive student body, Madison will become even more attractive to funding agencies, donors and investors, which ultimately should keep costs reasonable for the tax payer. I personally would gladly pay taxes to support high quality truly PUBLIC education which–unlike prisons — would be a real investment in our country’s future.

  3. Admin says:

    The author of the article wrote: “Under the $300 million reduction scenario, the Dept of Corrections would reduce its budget by $23 million or 1.4%.” But the table accompanying the article indicates that 1.4% is closer to $28 million. We suspect that the first figure was a typographical error — we are contacting the author for clarification.
    – Admin

  4. Frank Rojas says:

    BFPE–you are not being either serious or realistic by a MILE. Make that 100 miles. That idea is more DOA than suggesting we hit up Steve Nass for UW donations.
    Yes they can go to other UW schools. The lower 25% of instate kids are better matched to the UW-L and UW-O anyway. Or thay can start at the local 2 year schools and work their way in with great grades. What is realistic that the UW Madison cannot afford to educate instate kids without money. I’d even suggest that if not admitted in the instate group those that really still want to go to UW anyway can be full pay just like OOS kids. Maybe we also need to look at all those Minny kids coming to Madison. Charge them full freight. Many can afford it.The others can go and be Gophers.

    cleaned up for typos.

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