Just over one month ago, I introduced my Budget Reform Act — a document to balance the state’s budget and put us on solid financial footing for the future. These are tough times for not only the state of Wisconsin, but also the entire nation as well. The decline in revenues associated with the recession and the Sept. 11 attacks left the state with a $1.1 billion deficit. By law, I am required to submit a budget adjustment bill to the legislature.
My Budget Reform Act has a number of provisions to protect the students who will eventually lead this state. As you know, tuition for the 2002-2003 school year, discussed by the Board of Regents last July, was anticipated to increase by about 7 percent for the comprehensive campuses and 9.1 percent for the Madison and Milwaukee campuses.
My Budget Reform Act recognizes the importance of an affordable education for all students. I included a tuition cap that will allow for tuition increases of no more than an average of $32 above already expected amounts on the Madison and Milwaukee campuses and an average of $83 above already expected amounts on the comprehensive campuses. This cap is an important component of my Budget Reform Act.
I also increased financial aid by $2 million for the Wisconsin Higher Education Grant at both universities and technical colleges in our state. The Wisconsin Higher Education Grant provides financial aid to low and moderate-income students attending UW System schools. This large increase will be on top of a 4.5 percent annual increase to the WHEG program I approved in the 2001-2003 budget on Aug. 30, 2001.
Funding increases for the Advanced Opportunity Program and Lawton grants approved in the budget I signed last year will remain a priority in my Budget Reform Act. The AOP and Lawton grant programs will see an increase of 4.5 percent in the 2002-2003 school year.
Education is vital to the future of Wisconsin. I have said from the outset that although government spending must be reduced, we must protect our priorities. Education and economic development go hand in hand. We must have an educated workforce in order to attract high-paying jobs and build an economic base so we can afford to pay for education.
The UW System is an important component of economic development in this state. The Economic Summits held for the last two years under the leadership of System President Katharine Lyall and Regent President Jay Smith have reaffirmed that importance. I am proud of the Wisconsin Idea and am confident the UW System will be a leader in our state’s educational success.
Although the sheer magnitude of the budget deficit mandated some reductions to the university’s operating budget, higher education remains a priority in my budget. State government has and will continue to cut spending and I have asked state agencies to freeze hiring and eliminate positions. These are tough decisions, but they must be done.
Alternatives to my plan being circulated in the Capitol are devastating for university students and the university community. One plan calls for a cut of more than 20 percent to the UW System. This could result in a 35 percent or more increase in tuition. This alternative is a strong reason to support my Budget Reform Act. It is clear that changes to my Reform Act could result in deeper cuts for the UW System and other programs.
A national recession and the terrorist attacks of Sept. 11 have shaken the confidence of consumers and changed all of our lives dramatically. Forty-four states, including Wisconsin, are currently dealing with budget deficits. But I am confident Wisconsin is taking the right steps to come out of this stronger and well positioned for the future.
As the Budget Reform Act moves through the Legislature, I encourage you to contact your local representatives to share your opinion. In particular, voice your support for my proposed increase in financial aid and the cap I have proposed for tuition increases. The extra push you can provide in the quest to maintain an affordable education will lead us to a better future.
I encourage you to support my Budget Reform Act. Together we will build the state of Wisconsin and provide a place with more high-paying jobs and a bright future.
Scott McCallum
Governor
