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University Daily Kansan, August 30, 1902
Legislators predict tighter purse strings
KU's 1984 budget will hinge on economy
By BRUCE SCHREINER Staff Reporter
The fate of the University of Kansas' fiscal 1984 budget, to be decided by the Kansas Legislature next spring, will depend on the condition of state and national economies and passage of the law. In accordance with the justice legislators said late last week.
Failure to pass a mineral tax on oil and natural gas and the anemic Kansas economy have already forced the University to shave 4 percent, or $3.17 million, off its fiscal 1983 budget after a $47 million shortfall was discovered this summer in the state's general operating budget.
If the state's economy continues to flounder, the Legislature may not be in a giving mood next spring, which could complicate the jobs of KU administrators lobbying for the University's budget, the legislators said.
One legislator said the prospects were bleak for substantial increases in classified and unclassified salaries if the state's recession continued.
"It becomes difficult for legislators from many areas to vote for faculty increases when they come from districts where thousands are being laid off," Jess Branson, D-Lawrence, said yesterday.
Branson and her two Lawrence colleagues attributed the state's budgetary headaches to the depressed Welfare system and near non-existent profits for farmers.
"When your state general fund depends on income and sales taxes, and when you have an economic recession and people are unemployed, then revenue dries up." State Rep. Betty Jo Carlson, D-Lawrence, said.
Dwindling orders for airplanes have forced recurrent layoffs in Wichita's aircraft industry, and high interest rates and low grain prices have caused farm profits to evaporate, the legislators said.
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Although lower revenues will make passage of appropriation bills more difficult, legislators were hopeful that some advances could be made.
Branson said proposals for increased benefits for both classified and unclassified employees could be one of the reasons he must meet with a receptive Legislature.
Branson singled out improved health and retirement benefits as possibilities
Two other portions of KU's budget that Branson vowed to emphasize are the research and Other Operating Expense budgets. OOE expenditures include library acquisitions, equipment and supplies.
"If anything has a chance, increased benefits will, for a great deal has been going on in interim committees about making improvements low in benefits compared to its peers."
State Rep. John Solbach, D-Lawrence, said the threat of further losses of faculty members at Regents schools could motivate the Legislature into trying to forsail added resignations. Many KU teachers have chosen jobs in private industry over continued employment at the University.
By stepping up research expenditures here and at other state universities, Branson said the chance of attracting high technology industry would be enhanced, which could bolster the state's tax base.
"In the past, when the Legislature has seen us falling behind in some area, it has increased salaries. In a crisis situation the Legislature might want to infuse more money in a one-time situation." Solbach said.
The legislators said a key factor in determining the University's budget would be the state's revenue growth rate. Predictions of a double-digit
"When the budget was appropriated, the Legislature was estimating a 10 percent growth rate," Branson said. "On June 30 it was discovered the revenue rate had grown only 3.8 percent, so if we went ahead and spent as the Legislature had appropriated we would have run our balance low."
increase in the rate were off the mark, which led to the budget cuts this year.
Even with this summer's budget reductions, Branson said a dramatic increase in the revenue growth rate will be necessary to justify his budget decisions to run their course.
"We need a 14 percent growth rate to maintain the budget as appropriated from now on," Branson said. "If we can get the growth rate up to seven nine per cent, we will be able to maintain the budget until the Legislature reconvenes in January."
July's growth rate remained steady, but new figures expected to be released soon could provide a guide to state leaders who determine future budget decisions.
If the new totals show insufficient growth, one alternative for Carlin would be to call a special Legislative Committee to review and will resort to that because of the cost.
"It would cost around $40,000 a day because of the support services," Branson said. "Also, the disagreements between the House and Senate leadership would come up again."
That disagreement is over the severance tax, which was passed by the House in the past two sessions only to face defeat in the Senate.
Most of the budgetary problems could have been avoided with the passage of the waverance tax, which limits the amount of oil and natural gas. Charlton said.
"We would have at least stayed where we were," Charlton said. "We had a $50 million loss from the federal government, and state revenues were $47 million less than what they were for fiscal 1962. But revenues from the severance tax would have been $108 million for the first year."
The future of the severance tax could be decided Nov. 2 when Kansans elect either Carlin, the leading severance tax proponent, or Republican Sam Hardage, a foe of the tax, as governor, Solbach said.
"This election will send a message about what type of revenue bill the public wants passed," Solbach said. "If Carlin is re-elected and the House races are decided on the severance tax, then the Senate will see the handwriting on the wall and we will have a good chance of winning passage."
Besides the failure to pass a severance tax, Solabbach blamed on Republicans who proposed a trio of lids that he said were inadequate.
During three recent legislative sessions, Republicans proposed spendingid bills of seven, eight and nine percent to ensure that a certain percentage of the budget was held over for the next fiscal year in case of a financial crisis.
"If we had passed those lids we would be in much worse shape," Solbach said. "Many people fought for 10 percent just to protect against the problem we're in now. Carlin vetoed those three because they were less than 10 percent.
"With the 10 percent lid we would have had an assured cushion."
Although Solbach agreed the University faced a tough situation, he said today's problem seemed miniscule compared to one that happened long ago.
The University of Kansas is doing its part to help Johnny read by improving education students' preparation to cope with classroom situations, the associate dean for undergraduate studies said yesterday.
Future teachers coping
Lelon R. Capps said that the five-year program and the minimum competency standards now required would prepare students for the situations they would face as teachers.
The KU program is a leader in the education field, Capsa said. Since the program was started here a year ago, a couple of other schools have joined the year program and several other schools were considering it, he said.
Martha Ridder, Alexandra, Va., sophomore, said she thought the five-year program was beneficial because the students were able to work together and be doing before their junior year, before it was too late to change fields.
"I know one girl who, after observing what was going on, decided that teaching was not really worth it," she said. "I was able to get out early." she said.
Capps said the KU program put more emphasis on field work and liberal arts classes.
Ridder, a secondary physical education major, said KU students had the opportunity to observe real class situations in their freshmen and sophomore years. However, under the old program, the students did not begin observation until their junior year.
"The chances of getting a job are better, simply because we are getting into the field two years further with our best education students," she said.
Cappa said there were a few more education classes required, but most of the emphasis was on liberal arts. For example, he said, elementary
Most of the fifth year of the program is spent in an internship, he said, adding that the first two years of work were primarily for observation.
Ridder said that during her first year she observed two hours of class in each of the three levels of education; primary, middle and secondary. Although she was unable to observe any physical education classes, she said she profited from the experience.
Western Civ spots available
Late enrollment for the budget-pinched western civilization program has been extended to all students who are required to take the course.
Any student needing to enroll, change sections or drop the class should notify the western civilization office between 10 a.m. and 1:39 p.m. and 3:39 p.m. in 2106 Wescow.
A spokesman in the western civilization department said space was available for both semesters of the course at a time when three or four sections were some limited.
Because late enrollment is handled on a first-come, first-served basis, the department cannot provide information over the telephone.
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