UI covers half of budget cuts with flood money - KWWL - Eastern Iowa Breaking News, Weather, Closings

UI covers half of budget cuts with flood money

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The University of Iowa has found a way to cover its $8 million budget cuts with flood money, student aid reductions, and other general investments.

In the new plan entails reducing $1.8 million in student aid, $2.5 million in general university commitments, and $4.9 million in flood money.

The student aid reduction is from students who lost their scholarships by failing to meet their minimum grade requirements. This is the money the university doesn't typically count on or budget for.

General university commitments is money used for non-recurring investments in university systems such as hardware and software and other institutional efficiency efforts.

The money dedicated for flood recovery are separate of that from money provided by FEMA and instead were set aside using general education money, such as tuition and fees. The university put an amount of $8 million per year for several years into that.

Ann Basset, a UI Spokesperson, said the university was holding an excess amount of extra money because of FEMA's ability to claw back recovery money for three years.

All FEMA-funded projects have been finished but the university's flood recovery process is continuing. Construction for a new Museum of Art building is expected to begin in spring of 2018.

The budget cuts comes from an overall state budget cut of $117.8 million, approved by Governor Terry Branstad in January.

The university originally planned to cover the cuts by taking away scholarships from students in the upcoming school year. That move sparked controversy and a lawsuit and was quickly reversed.

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