Regents OK future budget cuts

After refusing in August to submit a slashed budget for the next two years, the university system Board of Regents on Friday recommended a method the governor could use to make the cuts himself.

"If we don't create a methodology," said board Chairman Michael Wixom, "someone will create one for us."

These cuts, which could approach $200 million, would likely result in elimination of programs, the possibility of layoffs, and a defacto enrollment cap because students would have to be turned away, officials said.

In August, the board voted to submit a two-year, $1.9 billion budget without the cuts demanded by Gov. Jim Gibbons for the period beginning July 1, 2009. But on Friday, members of the 13-member governing panel said it was better to have some say in cuts if they came to pass.

Executive Vice Chancellor Dan Klaich told the board that the governor's office wanted budgets submitted with 14 percent cuts, 24 percent cuts and 34 percent cuts.

Klaich said he refused to consider cuts above the 14 percent mark.

"Beyond that level," he told the regents, "we will not function as a system in the same way the system functions now."

Outgoing Regent Bret Whipple abstained from voting. Regent Ron Knecht was the only dissenting vote.

"I'm worried, frankly, that we're playing a dangerous game by not being timely and not doing our duty," Knecht said.

The plan regents OK'd Friday includes the following:

•Continuing to use the same funding formula they've been using to divvy up the entire pool of money among the eight colleges and universities;

•Using only current enrollment figures in the formula instead of a three-year average, as is typical, because enrollment trends are going to be unpredictable amid falling budgets;

•Setting aside about $1 million in equipment money for Nevada State College's operating budget, which would otherwise be hit inordinately hard;

•And "strongly" recommending to the governor that he use this methodology in creating his budget for the system.

The state's general fund provides about 70 percent of the university system's operating budget.

Wixom began Friday's meeting by noting that no additional cuts would be needed this year. He and others praised the governor and the Legislature for coming up with a plan earlier this week to stave off further cuts now. But most agree that large cuts will be necessary next year because of declining tax revenues.

System Chancellor Jim Rogers has staked his hope on new revenue. For months, Rogers has pitched new taxes and other plans to bring more money into the state.

"God knows what's going to happen as we go forward," said Rogers, though mostly quiet at Friday's meeting.

Under the method adopted Friday, each of the eight institutions would be affected differently.

UNLV' President David Ashley is the only one of the eight presidents who opposed the plan. The appropriations for the University of Nevada, Las Vegas, would be cut about 18 percent, while most other schools would see smaller cuts.

Because the funding formula divides the money based on enrollment, institutions with higher growth would see smaller cuts. UNLV's enrollment grew just over 1 percent this year, while CSN's was up 6 percent.

Ashley pushed for a cap in how much each institution's budget would be cut. He was unsuccessful.

Nevada State College would see an even bigger percentage cut, about 24 percent. President Fred Maryanski said that's because their enrollment numbers used to include high school students who participated in an NSC program designed for them. Since the program's elimination, those students are no longer included in NSC's enrollment numbers.

Contact reporter Richard Lake at rlake@reviewjournal.com or 702-383-0307.