News

Officials calm despite crisis

By Nikie Johnson
Senior Staff Writer

Donit panic. Those are the words coming from the UH administration every time the impending state budget crisis is discussed.

The state will bring in $1.8 billion less than it expected this year, and at least $9.9 billion less than expected in the next two years. But donit panic.

UH will have to cut its budget this year and, although the state hasnit told UH to cut its budget for next year, it likely wonit get nearly as much as it is asking for. But donit panic.

Large cuts would have a "devastating impact" on the University as a whole, but at this point, stay calm.

The UH System submitted its Legislative Appropriations Request to the state government Monday, requesting much less funding than it had hoped to.

Originally, UH was planning to ask for $335.4 million for the next two years (Texasi budget is figured in two-year cycles). That was a $69.6 million, or 26.2 percent, increase from what it received for this biennium.

But the Legislature told UH in January that it had to submit an LAR asking for 12.5 percent less than what it received for this biennium, or $232.6 million.

To comply with the demand, President Arthur K. Smith said this week in a letter to the UH community, UH eliminated $2.3 million from its request and split the rest into two categories.

The $232.6 million UH was allowed to ask for went into a category called "Relevant General Revenue." The money from that would go to whatever UH deems most necessary.

The remaining $100.5 million went into a category called "Enhanced General Revenue." In this way, UH was able to comply with Legislatureis request, but by dividing up its LAR into two categories, it was able to ask for significantly more if there is room in the state budget.

"In effect, we have been asked to respond to a hypothetical question," Smith said in his letter. "If the State were able to provide us with only the $232.6 million … what problems would such a reduced appropriation create?"

According to Smith, such a situation would have "devastating impacts … on our students, on our research productivity, and on the future economic growth and quality of life in Houston and in Texas."

Smith and other UH officials will make the Universityis case before the Senate Finance Committee and the House Appropriations Committee later in the legislative session.

Provost Edward Sheridan said he thinks that for UHis students, this is an especially bad time to be facing budget cuts.

"So much is going on that is good here," he said. "These are our best years in retention."

He said that the record number of students at UH this year canit all be attributed to the bad economy. UHis acceptance rates of freshmen has stayed around 3,400 per year for the last several years.

"Weire not taking in any more freshmen than we have before," he said. "We have more sophomores, juniors and seniors."

He said it would be a shame to have to reduce the quality of education offered at UH because of the bad economy.

"We donit want to cut back at a time right when the University is prospering," he said.
 

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