Spotlight on Rotary: Board of Regents of the State of Iowa

Jack Evans was the featured speaker this week at our Rotary Club ...

Here's a spotlight on the July 20, 2009 meeting of the Rotary Club of Cedar Rapids from

Ripples from the Rapids ...

JACK EVANS, PRESIDENT, HALL-PERRINE FOUNDATION & PRESIDENT PRO TEM, BOARD OF REGENTS, STATE OF IOWA

The Iowa Board of Regents was established in 1909 to govern and coordinate the state’s universities. The Regents “govern.” They do not administer the institutions. Administration is the job of the school’s CEO’s – the presidents of the University of Iowa, Iowa State University and the University of Northern Iowa. The regents also govern the Iowa Braille and Sight Saving School in Vinton and the Iowa School for the Deaf in Council Bluffs.

The Board of Regents has nine members, eight of whom are selected at large. The ninth member is a full-time university student. All Regents are appointed by the Governor for six-year terms and require approval by 2/3 vote of the Iowa Senate.

The universities employ 21 thousand full-time and 25 thousand part-time employees and an additional 7.8 thousand employees at the University of Iowa Hospitals and Clinics. Total enrollment at the three Regent universities totals 70.2 thousand (30.5 thousand at the University of Iowa, 26.8 thousand at Iowa State University and 12.9 thousand at the University of Northern Iowa).

In Fiscal Year 2008, 15,094 degrees were awarded including 11,107 undergraduate degrees, 3,082 graduate degrees and 905 professional degrees. The six-year graduation rate for Iowa public universities was 65% in 2008 compared to a national average of 46.3% for public four-year institutions. High enrollment programs (over 700 enrolled) include accounting, animal science, biology, communication studies, elementary education, English, finance, kinesiology & health, mechanical engineering, nursing, political science and psychology.

The Regent FY 2009 Enterprise Budget amounts to $3.9 billion. Restricted functions such as capital expenditures account for approximately 44% of total budget with university general education accounting for an additional 31% of the total and University of Iowa Hospital & amp; Clinics accounting for approximately 22%. The balance of the budget services general education at the special schools and other state Regent supported functions.

Revenue supporting the 2009 university general education costs of $1.2 billion comes primarily from state appropriations (49.5%) and tuition and fees (44.9%). State appropriations have declined steadily since 1981 when they accounted for 77.4% of general education funding for the universities. Tuition has increased from 20.8% of funding in 1981 to almost half of funding currently. Stimulus funds (American Recovery & Reinvestment Act) received by the state will also affect the 2009 budget for the universities.

The largest percentage of general expenditures is for salaries (71.9%). Aid to individuals accounts for 9.6%, supplies and services (7.9%), utilities (5.6%) and other expenses (5%). Salaries are, of course, a top priority. & nbsp; Although the University of Northern Iowa is in the middle of the salary structure of its peers, the University of Iowa ranks 8 out of 11 in the Big 10 and Iowa State University is last when compared to its conference members.

One bright spot is the growth in external funding in the form of gifts, grants and contracts received by the universities in recent years. External funding has increased from just under $500 million in FY2000 to over $750 million estimated for FY 2009. There are approximately twenty-five hundred colleges and universities in the United States.

The prestigious Association of American Universities has 62 members and both the University of Iowa and Iowa State University are members. Other AAU institutions include the University of California (Berkeley), University of Michigan, Harvard, Yale and Princeton.

The economic impact on the state of the Regent universities and University of Iowa healthcare are substanti l, but there is a definite state budget challenge to maintaining their leadership. Appropriation cuts for FY 2010 amount to approximately $86.4 million. There is a one-time federal stimulus package that will make $80.3 million in American Recovery & Reinvestment Act (ARRA) funds available in FY 2010, but it must be wisely used. There are committed and unavoidable cost increases for salaries and wages, benefits, utilities, inflation etc. The state budget condition for FY 2011 is very uncertain.

by Editor Larry H. Christy of the Rotary Club of Cedar Rapids, Iowa