Iowa Board of Regents approves $9.37B university budgets, UNI faces cuts

The Iowa Board of Regents on Wednesday approved nearly $9.37 billion in university budgets for fiscal year 2027, praising leaders at the University of Iowa and Iowa State University for cost-cutting while the University of Northern Iowa faces a budget reduction of 1.7%.

Across the three state universities, general education operations total $1.9 billion. After accounting for a shift in Iowa State's funding structure, the general operating budget grew by 2.5%. State appropriations for general education and operations remained flat.

Regent Kurt Tjaden noted that universities start the budget process with a significant financial gap after tuition rates are finalized. 'This is not new; they have faced this challenge for the past 20-plus years due to flat or declining state and federal support,' he said. 'The universities have once again done a great job of reallocating costs and reducing expenses to support strategic initiatives and fund compensation increases for faculty and staff.'

University of Iowa budget grows $22 million

The University of Iowa expects its general education funding to increase by $22 million, driven by tuition increases and continued enrollment strength. Nearly 70% of that increase will go to salaries and fringe benefits, with the rest funding building repairs, utility costs, and student financial aid.

Reallocations include $2.6 million from centralizing marketing and communications, $1.4 million from a teaching assistant budget reduction, and $3.8 million moved from colleges and central units to cover rising utility and cyber insurance costs.

UI President Barbara Wilson told board members the university is continuing its Revenue and Efficiencies Strategic Plan Action and Resource Committee initiative to find cost savings.

Board extends Wilson's contract, boosts salary

The board also voted to extend Wilson's contract by two years and increase her salary by $50,000 to $875,000. She will receive a new deferred compensation plan starting July 1, 2028, matching current contributions of $555,880.

Board President Robert Cramer praised Wilson's performance. 'You're just knocking it out of the park with so many constituencies, with the healthcare, with the students, with the faculty, with athletics, just doing a great job,' Cramer said.

Wilson emphasized the university's commitment to fiscal stewardship. 'We're doing it because we want to increase our capacity to support students, to support faculty, to support research growth, to support our healthcare enterprise, and of course to be good stewards of what we do,' she said.

The Center for Intellectual Freedom at the University of Iowa received $1 million in state appropriations for fiscal year 2027, which will fund a permanent director, staff, programming, and marketing.

UI Athletics saw a 7.5% budget increase to $182.3 million, driven by revenue growth in men's and women's sports and increased fundraising from $17.1 million to $24.1 million.

Iowa State University budget rises 3.4%

Iowa State University's general education fund state appropriations total $229.9 million, now including combined line items from the Agricultural Experiment Station, Cooperative Extension, and STEM workforce initiative. Enrollment is projected stable this fall with a nearly 90% retention rate.

Tuition revenue is set to increase by 4.5% to more than $588 million. Student financial aid expenditures will rise 11% to $16.7 million.

ISU President David Cook stressed affordability. 'Affordability is always going to be top of the list when you talk to our students, and it's really important to us as well,' Cook said. 'Our ability to be able to redirect dollars to financial aid is critical.'

ISU Athletics is seeing a 2.7% budget increase to $144.9 million, helped by projected increases in football and men's basketball ticket revenues, conference revenue, and multimedia rights. The department will use more than $18.6 million in cash reserves, a decrease of more than $8 million. Regent Steve Lacy questioned future planning as the reserve is now under $10 million.

Senior Vice President Sean Reeder said officials are working on a three- to five-year plan to tighten the budget and find new revenues. 'We're working in close partnership with the athletics as well as with the foundation to come up with a plan that addresses that to get us through the intervening period until we have the opportunity to really drive more athletic revenue from the renewal of the next television contract, which will be in 2031,' Reeder said.

University of Northern Iowa faces 1.7% budget cut

UNI closed a $7.7 million budget gap created by flat state funding, declining enrollment, and other cost increases through personnel reductions and operational reallocations. Eliminating open positions made up the majority of savings.

Projected enrollment is 9,085, a drop of 119 students from last fall. While freshmen enrollment is helping, declining graduate and international student enrollment are limiting growth. UNI President Mark Nook said more recent projections may exceed current predictions.

Non-academic departments are finding new revenue sources, from expanding summer programming to opening athletic facilities for non-athletic use.

'We have asked all of these institutions to really shoot for a 10-year horizon to be able to pull back on the level of state support that they receive for non-academic purposes,' Nook said.

Tuition revenue is projected to decrease by 3.1% to more than $66.5 million, due to enrollment declines and the neighboring states tuition program. Despite salary increases, strategic budget reductions decreased salary and benefit expenditures by $4.5 million.

UNI received $1 million in state funding for its Civic Education Center, $1 million for its contiguous states tuition program, and $600,000 to expand its nursing program.

UNI Athletics expects $16.5 million in revenue, driven by game guarantee revenue for football and wrestling, among other sports. University support includes $3.51 million in operational support, $1.65 million in supplemental support, and $1.28 million for scholarships.

FAQ

Why did the University of Northern Iowa's budget decrease?

UNI's budget decreased by 1.7% due to flat state funding, declining enrollment, and cost increases. The university closed a $7.7 million gap through personnel reductions and operational reallocations.

What is the total budget for Iowa's public universities?

The total budget for fiscal year 2027 across the three universities is nearly $9.37 billion, with $1.9 billion in general education operations.

How much did the UI president's salary increase?

UI President Barbara Wilson's salary increased by $50,000 to $875,000, and she received a new deferred compensation plan.

What is the neighboring states tuition program?

The program provides students from states bordering Iowa with a resident tuition rate, helping attract out-of-state students but reducing tuition revenue for universities.