Vol 20. No. 3
Summer 2004

SYSTEMWIDE

A Final Farewell:
Lyall commences to a new stage
—Katharine Lyall goes out in style

Gov. Jim Doyle addresses UW System graduates

Words of Wisdom

A roundup of the best quotes from commencement speakers around the UW System

Regents plan to restore UW partnership with the state

UW System readies for 2005-07 state budget debate
—Rising utility costs continue to impact UW budget

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It seeks to emphasize the teaching, public service and research done throughout the UW System, and to inform faculty and staff on issues and trends of higher education and their impact on the UW System. University Relations welcomes your feedback.

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Rising utility costs continue to impact UW budget

By Bryan Gadow

In a display of bipartisan support for the university, the Legislature's Joint Committee on Finance (JCF) agreed June 30 to help the UW System cope with a budget shortfall in its 2003-04 utilities budget. The committee members voted unanimously to transfer more than $10 million in state funding from the 2005 fiscal year to the current budget to cover a gap in charges for the university’s use of fuel and utilities.

Although the Committee’s vote for the funds transfer represents a short-term solution to the utility challenge, it also highlighted the importance of continued dialogue and cooperation between the UW System and the state. During their deliberations, JCF members questioned the model that the State Department of Administration (DOA) uses to estimate future energy costs.

“We need a better way to deal with [these utility costs],” Rep. David Ward (R-Fort Atkinson) said to DOA staff at the June hearing.

Department of Administration officials replied that while the UW System has made strides to control its energy usage, the university and other state agencies are still dealing with the impact of a natural gas price spike in 2001.

Rep. Kitty Rhoades (R-Hudson) asked how closely DOA officials have worked with UW System in estimating energy costs for each fiscal year. State Budget Director David Schmiedcke indicated that DOA and the UW System will continue to work together to develop a more effective model to predict future energy costs.

While Sen. Ted Kanavas (R-Brookfield) agreed that continued cooperation was necessary to solve this problem, he suggested that DOA and the UW System begin to forecast utility costs from a 10-year model, rather than a more traditional 3-year perspective. Kanavas asked DOA and UW officials to return to the committee in January with a better model for estimating energy costs.

The state and the university are likely to address potential solutions to the utility budget shortfall in the 2005-07 state biennial budget.

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