The University of Idaho Argonaut

The University of Idaho is in the process of tweaking its budget in response to Gov. C.L. “Butch” Otter pulling the plug on 4 percent of statewide institutional spending for fiscal year 2009.
Otter announced Monday a 3 percent holdback in addition to the 1 percent already announced in September. He said it was a response to projected shortcomings of state revenues. 
“We have a responsibility to act prudently with taxpayers’ dollars and a constitutional requirement to balance the state budget,” he said in a press release. “This is a necessary step.”

In addition, Otter requested UI keep 2 percent of its budget in reserve for unforeseen emergencies. This totals 6 percent — or about $5.8 million of state funds — UI will not be able to use this fiscal year.
“What it means to us is that we finally got a number,” said Lloyd Mues, vice president for finance and administration. “We at the University of Idaho have already been working on this.”
Otter had previously warned of withholdings of up to 5 percent.

Meanwhile, Interim President Steven Daley-Laursen upgraded UI’s hiring “pause” to “freeze” status Nov. 27. He also announced all non-essential state travel would need to be approved by deans or vice presidents.
Mues said he estimated these precautions — as well as other budget re-allocations already in action — could save enough money to compensate for the cut in state funds.
“It would be premature to say it will,” Mues said. “But I believe it will … meet the demands of the governor.”
However, Mues acknowledged the possibility that other areas, including personnel, could be at risk for further reductions.
“Nothing is off the table,” he said. “We will do everything we can to avoid layoffs.”

Mues urged calm, however, saying the $5.8 million loss of state funds only represented 1.4 percent of the total UI operating budget.
“The key is that this is normal adjustment and normal reaction to what many are calling a recession,” he said. “We will move through it and be stronger when we come out of it at the other end.”

Regardless, Mues encouraged the UI community to spend responsibly.
“Spend every penny as if it were your own personal penny,” he said.
Mues said the State of Idaho is is required to balance its budget, and UI has to do the same.
Daley-Laursen reflected that sentiment in a statement released Monday.

“The University of Idaho echoes Gov. Otter’s stated commitment to responsible fiscal stewardship … I have initiated discussions to review the implications of the now 6 percent total permanent total … and will communicate more detail to the university community and its stakeholders in the coming days and weeks,” the statement said.
UI is one of many institutions statewide affected by Otter’s ordered holdbacks in response to a potential shortfall of state revenues. A little more than $11 million for higher education has been cut statewide. More than $70 million was cut for K-12 public schools.

“These are difficult decisions made in consultation with legislative leaders and based on the best economic information available at this point in time,” Otter said.
UI and the rest of the state institutions have been ordered by Otter to report their plans for budget changes to the state by Monday.
Mues said he thought any future withholdings of state funds in years to come would force UI to further tighten its belt but would not be catastrophic.
“This university will be here and doing great things when all of us are pushing up daisies,” he said. “I’ve worked in public service for 30 years — I absolutely believe we will move through this.”