State facing hard choices, says Kulik

By Sarah R. Buchholz, Chronicle staff

alling the failure to fund University employee contracts "a real black mark on the Commonwealth as an employer," State Rep. Stephen Kulik (D-Worthington) told the Faculty Senate the state's budget picture is not improving.

     Kulik told the Faculty Senate Nov. 14 that the $1.5-2 billion deficit anticipated in the state's coffers during fiscal year 2004 and a possible $150-200 million shortfall in the current year will likely result in all areas of the state's budget being cut.

     "The budget picture does continue to be pretty grim," he said. "And this is all in the context of our having passed the '03 budget using a very substantial portion of our budget reserves, the so-called "Rainy Day Fund," making significant budget reductions and spending cuts, and also passing a revenue package, a tax package worth $1.1 billion.

     "So, you get this feeling that we've made a lot of hard choices already in fiscal '03, and it hasn't moved us forward at all," he said. "It's almost like we're standing still or sinking a little bit further. It's frustrating for us as it's frustrating for you.

     "Most people think we're looking at probably 18 months of difficult times, if not a full two years before the state revenue picture turns around and we can begin to restore some of the investments that we've had to cut."

     Kulik urged the faculty to help keep the issue of the University's unfunded contracts visible.

     "It really is an unprecedented move, and I think it's a real black mark on the Commonwealth as an employer not to be treating its employees fairly. No matter what our fiscal crisis is, you need to find the money to do this as soon as possible. I'm committed to that. I know that all of my colleagues who represent this area are, as well as a number of other people."

     Kulik said that he isn't optimistic about the issue being resolved in the near future, in part because Governor-elect Mitt Romney could decide not to take responsibility for them.

     "They are commitments that were made by a previous governor whom he was instrumental in having move on out of office," Kulik said. "The easiest thing in the world for him to say is probably, 'not my problem.' He may surprise us and say the right thing, which is that it would be unprecedented to continue to break properly ratified contracts and not fully fund them. They should be fully funded. But we'll have to wait and see what he has to say about that."

     Kulik said his other concern for the University is that Rom-ney's promise to cut $1 billion from the $23 billion state budget without adding taxes or cutting "essential services," might not include higher education as an essential service.

     "I think it's incumbent upon us as a legislature to hear his proposals, to consider them very seriously and to adopt any good proposals that he puts forward that we may have missed," Kulik said. "But the rub of this, of course, is what does he consider to be essential services? We don't know if he's going to pursue further cuts to higher education."

     Kulik said Romney has indicated that he'd like to see public higher education limit financial aid to those with need; to consolidate state higher education funding into a single line item; to allow schools to retain all tuition and fees; and to create a secretary of education to coordinate state education spending.

     "That leaves open a question about the Board of Higher Education, governance on campuses, governance through boards of trustees and so forth," Kulik said. "Tuition retention is certainly a long-standing debate that has been on this campus for a long time and throughout the higher education world. My knowledge of the issue here is that tuition retention, if we were to have it on this campus, would essentially be a wash with the fringe benefits paid by employees. But what's the flip side of that proposal? Is the University then going to be responsible for the fringe benefits for all of its employees? He's not specific about that, but it appears that he may put that issue on the table. He also wants to prioritize capital and spending based on student enrollment."

     Kulik said he is happy with Chancellor John Lombardi's plans to broaden the University's financial base, including through significant outside fund-raising.

      "But it's very important, from my perspective as a legislator, that whatever success the University achieves in that area not be allowed to supplant the state appropriation,"

     Kulik said. "This should be supplemental to state appropriation. We can't be having you all go out and improve the University through private fund-raising and then only find yourself penalized with the reduced state appropriation. That will be tempting for some legislators to see it that way, perhaps even for the governor to see it that way, and it will be our job, those of us who are advocates for the University, to see that it doesn't happen."