Representative Kulp Puts UW Budget Into Perspective
Monday, February 9th, 2015 -- 8:33 AM
-Representative of the 69th District, Bob Kulp, puts Governor Walker's UW budget cut into perspective.The following is an opinion piece from Representative Kulp:
I'm honored to be serving the friends and neighbors of the 69th District! I'm also delighted to be taking part in the first budget process since my election over a year ago.
The Governor's budget proposal has stirred the normal controversy and concerns among various groups of people. I understand some of the reasons for the concern and would like to give you some of what I've uncovered as I was investigating. This may take several articles as the next weeks and months unfold.
As you may remember, I try to put things into perspective in a way that can be understood by me. If I can get my head around something, it's my hope that others can as well.
Let's start with the Governor's proposed "cuts" to the UW System.
The news media has been reporting "state funding slashed by over 13%". While this is technically true, it's not the whole story. Let's calmly look at the whole picture, and resist the urge to run around like our hair is on fire.
Budget cuts are seldom well received. But how drastic are they really, and what will it mean to the UW System? In numerous meetings and communications with Deans and a Chancellor, as well as many emails with faculty and students, I have some insight into this very complex issue.
After looking at private and for-profit universities in comparison to the UW System, I find that the student to faculty ratio at the UW Universities and Colleges is very much in line with those private universities. If the numbers and ratios are calculated the same, and I trust they are, I can deduce from this that the UW is a competitive entity and not bloated or inefficient as compared to private and for-profit universities.
Next, allow me to put into perspective the proposed $300 million ($150 million per year) budget cut.
The overall budget for the UW System is $6,098 million per year. The $150 million cut per year represents about 2.5% of the total yearly operating budget. I understand that not all of these funds are "accessible" and many are already committed in "cost-to-continue" operations. Many small and large businesses experience much greater fluctuations than this...and survive, and even thrive. 2.5% certainly does not constitute the "end" of a very resilient UW System!
Further if you look at the "Net Position" (Net Worth) of the UW System over the last several years you can see that the university is doing very well. From the audited Comprehensive Annual Financial Report I learned that the University of Wisconsin System has increased its net worth year after year for the last 4 years. Following are the numbers:
2011 $4,393 million
2012 $4,418 million
2013 $4,513 million
2014 $4,674 million
The increase in the UW System net position was $161 million from 2013 to 2014. The $150 million "cut" is almost exactly what the change in net worth was in the past year.
$150 million amounts to 3% of the net position. This, while substantial, does not equate to "gutting" the system. If the UW System operates as well as I believe it will, it will not run out of money. Given the "flexibility" that the UW System has been asking for, the UW will continue to be very strong for many, many years!
There are several other revenue sources that could and possibly should be considered. Out-of state tuition could be raised. That is a bargain when you look at other schools of the same caliber in the USA. Keeping Wisconsin citizens' tuition frozen is a good idea, and I applaud that.
This proposed budget, as with all others in the past, will require a good deal of collaborating, negotiating, and talking. Remember that it is a "proposed" budget and it's nearly 4 months before a balanced budget will be agreed on by the legislature and Governor.
I remain committed to listening well and working hard to the concerns of every one of the stakeholders in this Great State; taxpayers and the education community!
I have every confidence that our UW System will continue to deliver quality education and workforce readiness to students. The reason I believe this is because I trust the very capable leadership of President Ray Cross, the Chancellors and Deans of the UW System.
State Representative Bob Kulp
69th Assembly District
Feel free to contact us with questions and/or comments.