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Higher education fears more cuts in Idaho

State Board may let colleges lay off staff, eliminate programs

MOSCOW — Higher education officials are worried deeper reductions in state support may
force them to take drastic measures such as pink-slipping tenured employees and cutting
more programs.

Officials fear that if state revenues fall short for May, the state Board of Education may be
forced to declare a financial emergency, allowing universities to lay off contract and tenured
workers and reduce the red tape so programs can be quickly eliminated. New cuts would be
subject to board approval.

“We decided to review our policies and make sure we were giving the presidents of the
universities the flexibility they needed,” said Gary Stivers, executive director for the State
Board of Education.

The board will consider formally adopting the policy on June 11. Officials from the state´s
universities will discuss any changes needed at that meeting. The schools are already coping
with a 10 percent reduction in state support.

The governor´s administration has set no schedule for announcing May tax collections. It
released collections for April just two days after the end of the month because of the attention
put on the largest revenue month in the state budget year. Receipts fell $60 million short of
expectations, and Gov. Dirk Kempthorne immediately imposed new cost-cutting measures.

May is one of the smallest collection months for the state and even a significant departure
from the target would not severely worsen the situation. The eroding economy has siphoned
about $170 million from the anticipated revenue stream so far this year and reduced
anticipated revenue for the next year by at least $100 million.

“Everybody´s concerned about a policy that deals with extremes like this,” said Wayland
Winstead, executive director of institutional planning and budget at the University of Idaho.
“From my concern, the policy provides the university options other than draconian layoffs.”

The state´s higher education system has already been hard hit by a lack of funding. Higher
education leaders have warned that further reductions will begin to erode the quality of
education.

The State Board has advised schools to develop a budget option for the 2002-2003 school
year that accommodates another 5 percent reduction in state support.

At the University of Idaho, officials have a contingency plan in place should the state institute
further holdbacks in higher education funding. The plans include deferring salary raises,
which could save about $1.3 million each year of the three-year plan.

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