The state Senate is expected to pass its version of the budget today, with amendments proposed during the Democratic caucus that would completely restore shared revenue and limit UW System budget cuts to $20 million.
At the UW System Board of Regents' monthly meeting Thursday, President Jay Smith reflected on the budget situation during recent months. While expressing gratitude for Senate Democrats' pledges to restore funding to the UW System, Smith maintained that the state cuts reflect a trend of diminishing financial support for the UW System.
The state budget has seen many incarnations since Gov. Scott McCallum's January proposal, starting with the Joint Finance Committee instituting a tuition increase cap of 8 percent rather than McCallum's suggested 10 percent. Following this action, the Republican Assembly further reduced the budget, bringing total UW cuts to more than $100 million. However, McCallum has pledged to work on restoring the cuts to his recommended level of $51 million, Smith said.
Smith cited various figures showing the decline of state support in proportion to the UW System's increased operating budget. He called projected cuts of more than $100 million to the UW System's $3 billion annual budget \problematic"" since they represent about one-eighth of the $893 million the UW System receives in state support.
""Higher education has become a lower state priority,"" Smith said.
A state budget official cited the general economic downturn as a deciding factor in granting funds.
""There are competing priorities in the state budget, primarily funding for elementary and secondary education,"" State Budget Director David Schmiedicke said. ""With the economic slowdown we're facing now ... all areas have had to share in the burden of trying to balance the budget.""
Schmiedicke also cited other programs requiring priority in the budget, including medical assistance to the poor and elderly and prescription drug subsidies for senior citizens.
State Senate Democrats responded to Gov. Scott McCallum's proposed phase out of shared-revenue aid when the Democratic Caucus passed a budget proposal to the state Senate. Shared revenue makes up anywhere from 50 to 60 percent of the most local governments' budgets.
""If we pulled the revenue from [the municipalities,] they would have no budget,"" Senate President Fred Risser, D-Madison, said.
In the Assembly's version of the budget repair bill, shared revenue was preserved for the current fiscal year but it reduced the amount local governments would receive in both 2003 and 2004.
The Senate will debate the budget today, and is likely to pass it on a partisan vote.
""I think the Senate will pass the bill [today] or Saturday and it will go to conference [committee] next week,"" Risser said, adding that he expects the budget will be finished by the end of April.
