June 20, 2001
Note: A complete and accurate summary of the Assembly budget based on the Legislative Fiscal Bureau's analysis is availble at www.staterelations.wisc.edu/0103budgetarc.html.
ASSEMBLY REPUBLICANS APPROVE HIGHER ED PACKAGE
Earlier today the Assembly Republican Caucus approved a number of higher education initiatives that will be included in their version of the budget bill. Their higher education package, which was put together by Representatives Rob Kreibich (Eau Claire), Mike Huebsch (Onalaska), Rick Skindrud (Mt. Horeb) and Judy Krawczyk (Green Bay), did not include any additional funding for the Madison Initiative. As a result, the Assembly version of the budget will likely maintain the Governor's recommendation for $2.0 million GPR and $9.8 million tuition for the Madison Initiative.
Last week the Senate Democrats provided an additional $16.2 million GPR for the Madison Initiative as part of their budget package. The Senate Democrat's budget passed the full Senate by an 18-13 vote last night. Differences between the Senate and Assembly funding levels for the Madison Initiative will be negotiated by leadership in both houses once the Assembly passes its final version of the budget, expected later next week.
Other items of interest to the university in the Assembly Republican's Higher Education Package include:
Spending Increases
- $7.4 million for selected UW Economic Stimulus Package initiatives, including funding for UW-Green Bay, UW- Platteville/Fox Valley, UW Eau-Claire and UW-Stout, UW-River Falls and UW-Whitewater.
- $450,000 for UW- Extension Small Business Development Centers.
- $3.1 million (a 2 percent increase each year) for the Wisconsin Higher Education Grant for UW, Wisconsin Technical College and private school students. The Senate budget provided a 7 percent increase.
- No additional funding for the Milwaukee Idea.
The Senate version of the budget bill fully funded the Economic Stimulus Package. Details of the Regent's Economic Stimulus Package are available at www.staterelations.wisc.edu/econstim.html.
Spending Cuts/Tuition Increases
- Reduces the UW System fuel and utilities funding increase by 20 percent, a $4.3 million GPR cut.
- Cuts $5 million over the biennium from the UW "auxiliary resources reserves" budget.
- Increases out-of-state tuition by 2.5 percent per year above what the Board of Regents would otherwise assess, resulting in an additional $6 million.
- Utilizes funds from the Wisconsin Advanced Telecommunications Foundation (WATF) dissolution to provide $8.75 million to the Technology for Education Achievement in Wisconsin (TEACH) program. Under the Governor's budget that funding was to be used for UW System distance education initiatives, although $500,000 from the WATF dissolution would still be used to fund the purchase of a digital mammography machine.
Policy Items
- Requires all four-year UW campuses to accept from Technical College transfer students all general education courses and courses covered in the credit transfer initiatives between the UW and Technical College System.
- Requires the UW System to ensure that at least 70 percent of undergraduate majors can be completed with 124 credits or less.
- Grants Program Revenue position authority to the UW System. The Senate budget bill also includes this provision.
- Provides the Board of Regents with full tuition flexibility as recommended by the Governor.
- Requires a study regarding the creation of a post secondary education commission that would be responsible for providing a comprehensive and coordinated statutory and policy framework for all post secondary education and training.
- Abolishes the Pharmacy Internship Board on 12/31/01 and reallocates its funding to a grant for the Wisconsin Public Safety Institute. The Senate budget bill has the same provision.
- Incorporates the language of Assembly Bill 320, which provides a business education tax credit. The tax credit would be effective July 1, 2003.
- Incorporates the language of Assembly Bill 243, which creates restrictions on state employment and student financial assistance based on failure to register with the selective service system.
- Incorporates provisions of Assembly Bill 298 relating to the EdVest "grandparents deduction."
The Assembly Republicans will continue to vote on individual packages and motions into next week. Because the Assembly Republicans control that house, it is expected that the budget they put together will pass the full Assembly.
A summary of all action to date on the budget is available on the state relations web site at www.staterelations.wisc.edu/0103budget.html.
For more information on state related issues contact:
Charles Hoslet
Senior Special Assistant to the Chancellor
Director, State Relations
hoslet@mail.bascom.wisc.edu
608-263-5510