MADISON, Wis. – The legislature’s Joint Committee on Finance today advanced a budget that cuts state funding for the University of Wisconsin System by $66 million over two years and requires that UW reallocate $78 million for new initiatives and other expenses.
In addition, the Committee voted to transfer $58 million of UW funds to the Higher Education Aids Board (HEAB) in fiscal year 2014. Because an equivalent amount of state funding would be withdrawn from that agency’s budget, the transfer will not result in any additional financial aid for UW students.
To the extent possible, UW System will use balances to cover fixed costs such as faculty and staff salaries, fringe benefits, debt service, and utilities. However, the permanent funding reductions and the absence of any new tuition revenues are expected to leave a structural shortfall of at least $61 million in UW’s annual budget starting in fiscal year 2016.