Gov. Scott McCallum spared the UW System in his hiring freeze announcement for all state government and organizations, as a deal struck between the UW System and the state government will allow the system to continue hiring.

The UW System is exempt from the hiring freeze, but will have to help with the economic downturn by returning approximately $5 million of its budget.

“The UW System, essentially in exchange for not having the hiring freeze, will be lapsing back to the state’s general fund — the equivalent of $5 million,” Charles Hoslet, director of state relations, said.

The $5 million is comprised of both budget cuts as well as a reimbursement to the state for the cost of utilities. The budget cut amounts to $2.7 million and the reimbursement is estimated at $2.3 million.

These funds will come from all UW schools, specifically UW-Madison, which will forego about $1 million, Hoslet said.

“The UW-Madison campus will have to turn back about $1 million, but we are doing it in a way that doesn’t affect students at all,” Hoslet said.

He said this is possible by making cuts in administrative areas rather than student services.

In McCallum’s initial announcement regarding the freeze, he exempted the UW System and all state positions regarding safety and public health.

“The hiring freeze exempts positions in the areas of safety and public health, as well as the University of Wisconsin System,” McCallum said in a statement. “In order to maintain flexibility in instructional and research programs, the UW System will lapse savings to the general fund instead of freezing positions.”

The economic slowdown prompted the freeze; however, Hoslet said McCallum realized the importance of the university system in reviving the struggling economy.

“The governor recognizes that the Madison campus and the UW System as a whole is an important part of keeping the economy of state going and growing, and because we rely on faculty and staff to do it, he didn’t want to hamper that with the freeze,” Hoslet said.

Many areas of state government and business will receive cuts and changes in the initial budget approved by McCallum. The legislature and McCallum will debate the number and magnitude of changes to be made in order to catch the economy in its descent.