Published: January 04, 2008 08:54 am      

Universities hear the bad budget news from Beshear

Frankfort — Surprise! The state budget crunch which new Gov. Steve Beshear has been talking about is likely to result in higher tuition costs for Kentucky college students.

But maybe not so high as might have been expected, according to at least one university president.

“I think there’s a limit to just how much tuition can continue to go up,” said Western Kentucky University President Gary Ransdell on Thursday after he and other university presidents met with Beshear for just more than a hour to discuss the state budget and the implications for higher education.

“We will not see double-digit increases at WKU – we just won’t,” Ransdell said. He said the university had budgeted 6-percent increases in tuition for each of the next two years and the state budget shortfall might push that up, but not to double digits.

Beshear, according to Ransdell and Eastern Kentucky University President Doug Whitlock, demonstrated a genuine understanding of the role higher education plays in the state’s economic development. Both called the discussion a “candid conversation.”

“The governor very eloquently expressed the value he places on higher education and the role we play in helping to drive the state’s economic engine,” Whitlock said. But he “presented a very candid picture of the financial straights the state finds itself in, both currently and for the coming biennium.”

Beshear said the state faces a $430 million shortfall for the fiscal year which ends June 30. A budget carryover from last year and a rainy day fund bring the total net deficit to about $300 million. He’s asking state agencies – exempting public schools and Medicaid – to come up with 3 percent cuts in the current year in order to wipe out that deficit.

And the picture isn’t bright for the next two years either, Beshear said after the meeting.

“Obviously, the projections that we’re going to have to deal with in determining the next two-year budget are not sufficient to support a (sufficient) increases,” Beshear said. Ransdell said he expects a “continuation budget,” at least in the first year of the next two years, but he hopes things will improve after that.

According to data from the Council on Postsecondary Education, the 3 percent reduction in higher education would total about $34.5 million. Western would have to find $2.5 million in savings, Eastern $2.39 million; Morehead State University about $1.44 million; the Kentucky Community and Technical College System would have to come up with $6.8 million; University of Louisville, $5 million and the University of Kentucky, approximately $10 million.

Whitlock said those cuts might result in higher tuition but he – like Ransdell – said Eastern will look to spread the cuts out over several areas including maintenance , reducing its contingency fund, and new initiatives the university had hoped to fund.

But about $650,000 will have to come from personnel costs and operating budgets. Both Whitlock and Ransdell said they foresee no layoffs but will likely accomplish the savings through hiring freezes or attrition.

Ransdell said he’s disappointed to face cuts in his budget again, but he is nonetheless optimistic about the long term after listening to Beshear Thursday.

“Long-term, I think higher education has some opportunity to have some impact with this governor,” he said.

Beshear is scheduled to announce specific cuts he will propose to the 2008 General Assembly at a 2 p.m. news conference Friday afternoon.



RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com.



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