Plan reduces UConn’s financial ability

As part of the Deficit Mitigation Plan approved by the Connecticut State Senate last week, UConn will be required to pay $5 million this year and $10 million next year to cover interest costs of funds used for building construction as part of the UConn 2000 project.

Essentially, this plan will reduce UConn's ability to meet its obligations to all of its programs in the upcoming year by $15 million.

"The state is essentially proposing to take income from the university and use this money to help bail out the state's deficit," said Steven R. Donen, an active UConn alumnus and member of the Steering Committee of the UConn Advocates.

Already this year, Gov. M. Jodi Rell has rescinded $3.2 million in state funds allocated to UConn.

Revisions to the budget last year made by the General Assembly transferred an additional $3 million from UConn's reserve accounts to the General Fund and will require a similar transfer of $5 million next year.

"For the first time in history, revenue from tuition and fees next year will be greater than the percentage of support the university receives from the state," Donen said.

This year, state support is 33 percent of UConn's overall budget.  Student tuition and fees make up 33 percent as well.  But, state support will decrease while tuition will increase next year.

"This plan will grab a lot of money that comes from parents and students to pay for other state funds," Donen said.

The governor's office is working with the House legislature to reach an agreement on how to erase the state's 341 million deficit.

This proposal, approved by the Senate, is essentially part of that compromise.  The plan was signed off by both the legislature and Rell last week.

Donen said that this plan will be considered by the House of Representatives this week, as early as this Tuesday.

"I strongly urge students and faculty and staff to call or e-mail their legislators and tell them what a devastating impact these cuts would have to UConn," Donen said.