Iowa Regent Boosts University Funding

With rising university finances, certain members of the Iowa Board of Regents express worry over insufficient oversight regarding the money and efforts made to conserve it, particularly amid present instability and potential shifts in financial support.

The board gave approval to the fiscal year 2026 budgets on Wednesday for the University of Iowa, Iowa State University, and the University of Northern Iowa, anticipating further exploration of specific budget details with university administrators at a later date.

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Board members Christine Hensley and David Barker each cast votes against endorsing the budgets, although they emphasized this did not stem from a lack of confidence in the figures or the effort invested in preparing them for the board. Hensley mentioned her desire to review matters further with university chief financial officers to guarantee appropriate supervision.

Barker mentioned that he believed there was insufficient data regarding the risks associated with specific parts of the budget and the backup strategies in place if funding runs out for particular initiatives or programs. Even though Board President Sherry Bates had previously instructed colleges to intensify their search for opportunities to improve efficiency, Barker noted that he found very limited signs of this effort within the budget reports.

In previous discussions, I've mentioned that financing for higher education is evolving rapidly," Barker stated. "The president is now giving serious attention to federal expenditures, and the Iowa Legislature is paying greater focus to higher education than it has in half a century, which means adjustments in our budgeting methods will be necessary. I feel the current proposal doesn’t sufficiently consider the potential impacts of shifts in both federal and state financial support.

Universities see increases in their general education funding Colleges experience rising allocations for general education programs Institutional financial support for core curriculum expands Higher education institutions boost funds for foundational courses Enrollment-related expenditures for broad-based learning increase Educational organizations allocate more resources to introductory studies Academic bodies enhance financing for universal coursework Campus-wide budget expansions include general education initiatives Funding for comprehensive educational requirements rises Schools invest additional capital into wide-ranging academic subjects

Public university general funding in Iowa is expected to increase again for the 2026 financial year, as reported by budget reports primarily because of rises in tuition income resulting from both fee increases and anticipated greater student numbers. The overall budget for the entire regents system amounts to $8.4 billion for the current financial year.

Hensley mentioned that Governor Kim Reynolds contacted her regarding the university budgets and expressed that she "wasn't pleased" with the higher percentage rise compared to the 2% "approved by the state."

UNI is the sole institution reporting lower tuition-based revenue for the fiscal year; however, reductions in indirect costs and additional sources of income contributed to an increase in the total budget by $400,000, reaching $174.4 million.

The user interface indicated an expected rise in tuition income exceeding $51 million, partially counterbalanced by a decrease of $3.2 million due to lower federal support and reduced indirect cost reimbursements, resulting in overall educational financing amounting to $871.2 million.

The Illinois State University's fiscal year 2026 general education funding is expected to reach approximately $767 million, including $44.1 million in tuition income, while earnings from indirect cost reimbursements are anticipated to decrease by about $2.7 million because of "uncertainties regarding federal grants and reimbursement rates."

Members are asking for more discussion about specifics and potential dangers

Although concerns about potential financial adjustments due to federal policies were noted in the universities' budget reports, Barker stated that there was not sufficient examination of the effects these institutions might experience or conversation regarding the dangers involved in budget choices and backup strategies in case financing fails.

A part of the discussion that Barker noted provided sufficient depth regarding the future and the challenges it presents was ISU's. athletic department budget The university mentioned in the budget plan that it anticipates approximately $30 million in "ongoing yearly financial impacts" beginning this year and lasting for many more years ahead. The university foundation offered a single payment of money to the department to cover shortfalls this year; however, the report indicated that this approach won't work going forward.

Barker may leave board

The Board of Regents meeting on Wednesday could potentially be the final one for Regent David Barker, as he informed the board.

Barker was nominated In May, President Donald Trump nominated him for the position of Assistant Secretary for Postsecondary Education, and he is still awaiting confirmation before taking up the role. If confirmed, he might have to resign from the Board of Regents as instructed by the U.S. Office of Government Ethics, he mentioned.

Barker mentioned that the confirmation may take some time, so he might still have the opportunity to join upcoming meetings, although he isn't certain. He expressed his admiration and affection for all the public universities, having studied and taught at the University of Iowa himself, with his father attending the University of Northern Iowa and his grandmother going to Iowa State University.

There are countless amazing events taking place at these organizations, and they contribute significantly to Iowa. I believe this board plays a crucial part in overseeing them," Barker stated. "I have thoroughly enjoyed and valued each moment I've spent on the board.

"We require more open dialogue such as this in the budget," Barker stated.

During the meeting, Barker mentioned that following his vote against a capital initiative proposed by the UI to upgrade its memorial union, Bates took him off the board's executive and property and facilities committees. Additionally, he was prevented from joining the advisory committee for the UI Center for Intellectual Freedom, even though there was an available position for a regent.

Hensley expressed her disappointment with the way the budget was developed, noting this was her initial experience serving as a regent. She mentioned that there were no conversations about the budgets during the meetings of the investment and finance committees, nor did she have access to the budget details beyond the set tuition and campus housing fees until the documents became publicly available. Additionally, Hensley pointed out that the reports didn’t include real financial figures, which made it difficult for her to determine if previous budgets had gone over or under their limits, or where funds currently stood.

She suggested that the board delay the approval of the budget until a later session, allowing members time to discuss with financial officials and those engaged in the budgeting process before expressing their full endorsement.

“How can I sit here and say I really have done my job, because I haven’t,” Hensley said. “I really don’t know how any regent can sit here and say that, because you have not had the opportunity to really sit down with the CFOs and whoever else is appropriate to have some good in-depth discussion.”

Board members who supported the approval of the budgets stated they concurred with the arguments presented by their colleagues, yet believed it was essential to pass the proposal now and revisit it for changes at a later time if necessary.

Regent Nancy Dunkel proposed establishing an advisory panel akin to the one she joined during the peak of the COVID-19 crisis, which focused on efficiency and various issues to better handle unforeseen circumstances, noting that current uncertainties mirror those faced previously.

A proposal supported by Regent Robert Cramer and accepted by the board will require the board's financial investments committee to convene within the coming month to review the budgets again and suggest ways to improve the procedure.

I believe David's remarks regarding risks and sensitivity are extremely important and must be considered; they might be discussed at an upcoming meeting," said Regent Kurt Tjaden. "I also support what Regent Hensley mentioned concerning the necessity of implementing procedural changes moving ahead." However, he added, "I remain neutral on this matter since I don't expect the figures to significantly alter ... for this year.

Iowa Capital Dispatch Is affiliated with States Newsroom, a non-profit news organization funded through grants and backed by a group of supporters as a 501c(3) charitable entity. Iowa Capital Dispatch upholds journalistic autonomy. For inquiries, reach out to Editor Kathie Obradovich: info@iowacapitaldispatch.com .

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READ THE FULL STORY: The Iowa Board of Regents raises funding for public colleges and universities.

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