Budgets for Iowa’s public universities slashed by over $65 million for next year

URBANDALE, IOWA – Budgets for Iowa’s public universities will be slashed by over $65 million for next year by a state board.

At its July 29 meeting, the Board of Regents considered approval of Fiscal Year 2021 budgets. Regent university, special school, Iowa Public Radio and Board office budgets are included in the budget presentation. Because of the volatility of fall sports schedules resulting from the COVID-19 pandemic, university athletics department budgets will be presented at the September Board of Regents meeting.

The COVID-19 pandemic, a tuition freeze and an $8 million cut from the 2020 Iowa General Assembly have resulted in smaller projected budgets for 2021 than in 2020. In total, fiscal year 2021 general university operating budgets – money used for the day-to-day business of the universities – are more than $65 million less than they were in 2020.

Much of this shortfall is due to flat tuition rates, smaller enrollment numbers and cuts in state funding. Hiring and salary freezes have been recommended by many collegiate and administrative units and budget reductions have been implemented. Further, outfitting campuses with personal protective equipment, preparing classrooms for new capacity and physical distancing requirements and transitioning many classes to online formats requires significant investment.

Consistent with the service nature of Iowa’s public universities, three out of every four dollars in the general university budgets are used for instruction, academic support, scholarships and fellowships.

A document from the Iowa Board of Regents show the budgets for University of Iowa t $727.9 million, Iowa State at $626.9 million and University of Northern Iowa at $170 million in 2021.

The Board’s next scheduled meeting is September 23-24 at the Iowa School for the Deaf.