A look at the UW-Madison’s financial prospects
Opportunities and challenges
Opportunities and challenges
Darrell Bazzell is vice chancellor for
administration at the University of
Wisconsin-Madison
administration at the University of
Wisconsin-Madison
going to have to self-fund it. And the governor as he did back in the old 2003-2005 budget, asked us to take money out of our auxiliary programs to fund that
financial aid increase. Auxiliary programs are essentially user fee, self-funded operations on campus. Those are things like housing, the student union, student
health services and recreational sports. UW athletics also, by definition, is an auxiliary. But the cut doesn’t touch them because they actually have their dollars
in a separate corporation. They aren’t going to be impacted by this.”
Another bad news situation is that there is going to be a tuition increase although the administration is confident it can keep it below 10 percent over the
course of two years. Bazzell put it in perspective. “If you think back to 2003-2005 — which is a benchmark year that we think about when we had the record
deficit that time of $3.2 billion — we saw over a two-year funding period a 34 percent increase in undergraduate tuition,” he said. “That was very common all
across the country, particularly in public institutions. And what we are seeing across the country is similar types of double digit increases. In Wisconsin, we’re
going to try and manage that as best we can. But we will still see some increases. We’re fortunate to be in a state, though, where tuition relative to our peers is
still very affordable. Within the Big 10, our tuition is tenth out of 11 institutions. And even with whatever anticipated increase we will see this upcoming
academic year, we’ll still probably be in tenth place. So we’re still a pretty good bargain.”
Next issue: The good financial news
financial aid increase. Auxiliary programs are essentially user fee, self-funded operations on campus. Those are things like housing, the student union, student
health services and recreational sports. UW athletics also, by definition, is an auxiliary. But the cut doesn’t touch them because they actually have their dollars
in a separate corporation. They aren’t going to be impacted by this.”
Another bad news situation is that there is going to be a tuition increase although the administration is confident it can keep it below 10 percent over the
course of two years. Bazzell put it in perspective. “If you think back to 2003-2005 — which is a benchmark year that we think about when we had the record
deficit that time of $3.2 billion — we saw over a two-year funding period a 34 percent increase in undergraduate tuition,” he said. “That was very common all
across the country, particularly in public institutions. And what we are seeing across the country is similar types of double digit increases. In Wisconsin, we’re
going to try and manage that as best we can. But we will still see some increases. We’re fortunate to be in a state, though, where tuition relative to our peers is
still very affordable. Within the Big 10, our tuition is tenth out of 11 institutions. And even with whatever anticipated increase we will see this upcoming
academic year, we’ll still probably be in tenth place. So we’re still a pretty good bargain.”
Next issue: The good financial news
By Jonathan Gramling
Part 1 of 2
Darrell Bazzell, the UW vice chancellor for administration, has had extra homework this semester. In
addition to his usual work of pouring over every line of Governor James Doyle’s proposed 2009-2011 budget to
assess the potential impact on the University of Wisconsin, Bazzell has also had to pay attention to the federal
stimulus plan to assess the opportunities for the university as well.
For the university, the governor’s budget has some bad news and some good news. “We know system-wide we
received a $100 million cut over the two-year funding period,” Bazzell said as we sat in his office overlooking
Bascom Hill. Each state agency is expecting that type of cut. A second cut is an interesting one in that the
governor has now proposed to reduce all non-federal appropriations by one percent, which is quite interesting.
We believe that our gift funds will also be exempt. It’s very difficult to tax gift money. I’m not sure of the legalities
around that. But that is another cut and we’re still trying to figure out what the impact of that cut is.”
There is an addition cut that the UW is facing, but the implication is it will be a matter of taking out of one
pocket to place it in another. “The third area of reduction is a good news/bad news situation,” Bazzell confided.
“The good news is that the governor has provided for a financial aid increase for all students across the UW
System in a way that helps them manage the increased cost of tuition. The not so good news is that we are
Part 1 of 2
Darrell Bazzell, the UW vice chancellor for administration, has had extra homework this semester. In
addition to his usual work of pouring over every line of Governor James Doyle’s proposed 2009-2011 budget to
assess the potential impact on the University of Wisconsin, Bazzell has also had to pay attention to the federal
stimulus plan to assess the opportunities for the university as well.
For the university, the governor’s budget has some bad news and some good news. “We know system-wide we
received a $100 million cut over the two-year funding period,” Bazzell said as we sat in his office overlooking
Bascom Hill. Each state agency is expecting that type of cut. A second cut is an interesting one in that the
governor has now proposed to reduce all non-federal appropriations by one percent, which is quite interesting.
We believe that our gift funds will also be exempt. It’s very difficult to tax gift money. I’m not sure of the legalities
around that. But that is another cut and we’re still trying to figure out what the impact of that cut is.”
There is an addition cut that the UW is facing, but the implication is it will be a matter of taking out of one
pocket to place it in another. “The third area of reduction is a good news/bad news situation,” Bazzell confided.
“The good news is that the governor has provided for a financial aid increase for all students across the UW
System in a way that helps them manage the increased cost of tuition. The not so good news is that we are