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Friday News Roundup: Week of May 21-25

University of Wyoming reveals more than $15 million in budget cuts

Governor O’Malley signs Maryland tax increase legislation

Kansas tax cuts worry education advocates

New Jersey university planning costs hit $566,000

University of Wyoming reveals more than $15 million in budget cuts
This week, University of Wyoming president Tom Buchanan released a budget proposal that would reduce the state’s operating budget from current fiscal year 2012 levels by $15.7 million annually, beginning at the start of the new fiscal year in July 2013.  The proposal is a response to Governor Matt Mead’s order last month that all state agencies design budget cuts of 8 percent for 2013.  The order was written after forecasts suggested state revenue from natural gas would be lower than anticipated.  Under the University of Wyoming proposal, the school would cut 80 to 125 faculty and staff positions, cutting personnel costs by 3.5 percent.  Additionally, non-personnel spending would be cut by 14 percent in the form of smaller budgets for sports teams, equipment, and technology.  The specific programs that would experience cuts were not identified by the university’s president. More here…

Governor O’Malley signs Maryland tax increase
Maryland Governor Martin O’Malley this week approved two bills passed by the legislature in a special session that would collectively raise taxes by $260 million in fiscal year 2013 in a marathon signing-session that included almost 300 bills.  The bills would transfer some costs of teacher pensions from the state to counties.  In addition, the legislature voted to raise income taxes for the top 14 percent of income earners in the state.  The funds will be used to reverse more than $400 million in pending budget cuts to education and health programs, as well as local aid for municipalities.  The cuts were scheduled to take effect because lawmakers did not pass revenue legislation during the regular session, but during a special legislative session the cuts were averted.  Another bill the governor signed this week raised the age to which students are required to attend school from 16 to 17.  More here…

Kansas tax cuts worry education advocates
Kansas Governor Sam Brownback this week signed a tax reform bill that, according to projections, will leave the state with a $2 to $3 billion budget shortfall within five years, one third of the state’s general fund.  Public school funding consumes about half of the general fund, so education advocates are concerned about potential cuts to school districts.  A report from the state’s deputy commissioner of education Dale Dennis said that if $1 billion in cuts to K-12 schools were put in place, school districts could face substantial strains to their operating budgets, including $29.2 million for Topeka Unified School District. The cuts would be on top of major budget cuts that districts sustained during the recession. Although the governor’s office claims the report is inaccurate because it doesn’t account for his expectations for job growth as a result of the bill’s passage, lawmakers remain concerned.  The governor has suggested other measures – like negotiating with energy companies for lower utility rates – be enacted to fill the hole districts will face. More here…

New Jersey university planning costs hit $566,000
New Jersey Governor Chris Christie introduced a plan earlier this year to restructure several of the state’s largest public universities, including redesigning the University of Medicine and Dentistry of New Jersey and consolidating Rowan and Rutgers universities.  The proposal, introduced in January, has a July 1 deadline.  The governor’s office has required the campuses at the center of the proposal to cover the planning costs associated with the proposed change. The schools will pass on those costs to taxpayers and students through state subsidies and tuition hikes.  A records request reveals that, so far, the schools have spent $566,000 hiring consultants, lawyers, and accountants for the project.  Those figures also do not include the time spent by university staff on the project.  The governor’s office has not issued any public estimates of the cost of the mergers, but is continuing to push the July 1 deadline. More here…

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Clare McCann
Friday News Roundup: Week of May 21-25