From Deseret News archives:

USTAR may be a costly victory for higher ed

Published: Thursday, March 2, 2006 9:29 a.m. MST
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A push to fuel economic growth with research landed two Utah universities $200 million but may have cost the entire higher education system a larger bite of the budget.

Education leaders worked throughout this year's Legislature to sever the Utah Science, Technology and Research Economic Development Initiative from the higher education budget, touting it as a purely economic program. Those officials worried whether legislators may view USTAR as a gift to higher education and an excuse to deny other requests.

"It was fear from the beginning, but we made a decision early on that we'd have an intact higher education budget separate from USTAR," said Rich Kendell, commissioner of higher education. "I don't think USTAR got in the way . . . It boils down to must haves and nice-to-haves and higher education is not seen as a must have."

USTAR, which passed in the final hours of the legislative session, got full funding with a $110 million bond, $50 in one-time building costs and another $15 million in ongoing state dollars.

Meantime, higher education as a whole received only 30 percent of its requested funds.

"It's disappointing in a budget year like this," Kendell said. But "when you start with tax cuts and road projects and water projects, you're getting to the end of the row."

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While much-needed fuel costs were part of the $11.7 million in ongoing costs given to schools, Kendell noted his top goal of securing retention funds for key faculty went unfunded this year.

The nursing and engineering initiatives also did not get a requested $2.2 million in ongoing funds, which will make it difficult to hire faculty to increase the number of nurses entering the work force, Kendell said.

"Our view is these are just kind of slam dunk items because these are in such high demand statewide. Everybody thought those would be fully funded," he said.

The final budget, however, was much better than one week ago when university presidents pow-wowed at the state Capitol to demand more funding. At that time, Kendell expected only $4 million in state funds.

Higher education also received roughly $11.3 million in one-time funds, $2 million of which will beef up need-based financial aid. Carrie Flamm, director of the Utah Student Association, spent much of the legislative session lobbying legislators to put that financial aid money in ongoing funds, but compromised in the final days to accept the one-time funds.

Utah's universities got a few perks from bills this session, including an increased number of tuition waivers for non-residents and active military members who have lived out of state.

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