Governor Walker’s 2011–13 Proposed

State Budget

Despite One of the Largest Deficits in History, the Structural Deficit

is at an All Time Low

Fiscal Year 2012–13 Budget Allocation by Purpose

Wage and Benefit Proposals

• No furloughs starting July 1

• No funding available for state employee pay increases for the biennium

• Higher insurance costs (12.6 percent of premium)

• Higher pension costs (5.8 percent of salary)

GPR Cuts(in millions)

2011-12 Ongoing in 2012–13

Biennial Total

% Cut

UW-Madison Reduction $62.5 $62.5 $125.0 13%

System Admin Reduction $2.4 $2.4 $4.8 25%

Other UW Institutions $60.1 $60.1 $120.2 11%

Total Reductions $125.0 $125.0 $250.0 11%

Tuition Increases

The budget adjusts tuition expenditure authority to allow for a 5.5 percent tuition increase in each academic year.

Funding provided is $35.75 million in 2011–12 and an additional $35.75 million ($71.5 million ongoing) in 2012–13.

UW-Madison/UW-Milwaukee

• The Governor recommends creating a separate authority for UW-Madison. The authority will have complete control over tuition and employee compensation, but will need to comply with statutory requirements regarding employee benefits.

• Requires the Board of Regents to submit a plan to the Department of Administration for the conversion of UW-Milwaukee into an authority.

Not Funded or Approved

• Recruitment and Retention of Faculty and Academic Staff

• Funding for the Growth Agenda

• Restoration of the 2% Pay Plan Increase from June 2009

• Expand Tuition Authority for Education Quality Initiatives

• Expand Employee Compensation Authority

• Reduce Procurement Reporting Requirements

• Expand Procurement Flexibility (although overall authority statewide increases)

• Broaden Program Revenue Position Creation Authority

The Future

Gov. Walker, in his speech to the Legislature last week, left the door open for other campuses to achieve some of the same flexibilities being offered to UW-Madison.

The governor said: “Throughout the budget process I am open to working with lawmakers from both political parties on expanding this concept to the other campuses throughout the University of Wisconsin system.”

The Process

• The Joint Finance Committee will hold hearings on the budget across the state

• The budget bill then will be considered by the Assembly and Senate

• Gov. Walker has a powerful line-item veto to rewrite the final document

• The end of the fiscal year is June 30, but there is no government shutdown if the budget is late