April 15, 2005 Arkansas State University - Jonesboro This First Friday report is about outcomes from the 85th General Assembly of the Arkansas Legislature, which adjourned Wednesday. In general, the session was productive for the ASU campuses, for higher education, and certainly for the public education system of the state. The following material will depict progress in several areas of importance to the ASU-Jonesboro campus. First, all of us are grateful for the hard and effective work of the elected officials who represented districts of ASU campuses in the session. ASU-Jonesboro was especially well-served by our local delegation. Thanks to them for the outcomes for our campus. Biennial appropriations were made on the basis of a formulaic distribution of funds provided for higher education through the Revenue Stabilization Act: the relatively healthy Arkansas economy and the projected economic growth of the state gave confidence to increase state budgets over the next two years. A formula for higher education funding, discussed in earlier First Friday reports, projected funding for the coming biennium for four-year universities, two-year colleges, and the non-formula higher education entities. Attachments to this report define those distributions, and provide the basis for these observations:
To put these appropriation figures into the context of actual need on the Jonesboro campus, these comparisons may be helpful:
From a more positive viewpoint, despite the lack of full formula funding, we have seen growth in funding for higher education in Arkansas over the next biennium. By combining funding in the Revenue Stabilization Act, the Educational Excellence Trust Fund, and in Workforce Education Funds, higher education funding will increase 6.5% in the first year of the biennium, and 5.8% in the second. This overall growth is the greatest since the mid-1980s, and brings state funding back to the approximate levels that were reduced in 2001-02. If the economy continues to grow and if there is legislative and executive determination to address higher education through additional appropriations, full funding of the need-based funding formula may be realized over the next decade. Over the last 10 years, we have stated the need for funding from the state to provide for a new teaching facility to replace the function of Wilson Hall. More recently, we have added facilities for the College of Nursing and Health Professions and the College of Business to our list of needed facilities. The legislature did not provide funding for higher education building projects, due in large part to the court-mandated demand for funding for public school facilities. An opportunity to address higher education facilities may be provided because of an act of the recent legislature. The current funding to retire the debt from the College Savings Bond Program may be extended by a vote of the people on a coming ballot initiative. The currently funded stream of $25 million could produce a new facilities bond of $150,000,000 for higher education, without additional cost to the people of the state. This mechanism may permit funding for building priorities on the campuses. More information about this possibility will be provided later this year, and will be publicized to ASU constituents. General Improvement Funds are provided for one-time projects at the direction of the senators and representatives, and by the governor, for needs significant to the state. In the recent legislature, General Improvement Funds directed to ASU-Jonesboro include:
These funds are one-time, non-recurring allocations that add capability to address needs for ASU-Jonesboro programs and facilities. In addition to acts that address distribution of money, a number of bills were approved that will affect various aspects of university operations. A representative sample of such bills includes:
A great deal of work remains following the work of the General Assembly. It will be necessary to review all bills signed into law by the governor to determine whether they apply to any aspect of university operations. Internal policies and procedures will need to be created or modified to reflect these new statutes, and notice will be given to internal and external constituents about the implication of these new measures. Work will soon begin to construct the 2006 fiscal year operating budget, incorporating the appropriations described earlier, and by defining allocations, reallocations and new revenue production plans to meet the operational needs of the university next year. This consideration will begin immediately by the executive staff, and a tentative plan will be presented to the University Planning Committee in the near future. Following refinement of the plan, the FY ‘06 operating budget will be developed for presentation to the Board of Trustees for consideration and approval. The budget eventually produced will reflect the efforts of many persons to shape the strategic plan for ASU-Jonesboro, the discussions held over the last two years that prompted the development and acceptance of the higher education funding formula, and the interaction with agency personnel and elected officials over the last 18 months that led finally to the outcomes of the General Assembly this week. I am grateful to all who constructively joined these discussions, to those who labored to achieve these results, and to constituents who remain positive about the outlook for higher education and Arkansas State University. Your support and effort are genuinely appreciated. Thank you for reading First Friday. Please let me know your thoughts about this material or any other aspect of ASU by writing president@astate.edu.
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