By Al Harris
News Bureau

JACKSONVILLE -- May 23, 2001 -- JSU will begin the 2002 fiscal year in October with 3.85 to 4.85 percent less money than the institution had two years ago but hopefully will avoid another year of proration.

A special, three-member committee created by the legislature has the power to reduce the Education Trust Fund budget by one percent before August 31 as a safeguard against proration next fiscal year. The JSU administration believes the committee will exercise their option.

In practical terms, JSU’s budget will have a 3.85 percent cut, and it could lose another one percent if the committee acts. The 3.85 percent reduction is a loss of about $700,000. Another one percent cut would cost JSU about $270,000 and would bring the total loss to about $1 million.

The University’s 2001 appropriation was $29,367,275, which was prorated 11.17 percent (a loss of $3,280,324), giving an actual budget of $26,086,951. The senate’s version of JSU’s 2002 appropriation, which takes effect Oct.1, is $28,384,426.

The legislature authorized a bond issue to offset the effects of this year’s 11.17 percent proration, pending the outcome of the case before the Alabama Supreme Court. In that court case, Higher Education forces challenged Gov. Siegelman’s decision to cut higher education’s budget more than he cut the K-12 budget.

If higher education wins the Supreme Court case, JSU would be due about $703,000 from the bond issue. If higher education loses the case, JSU would receive about $2 million.

This holds true if the Supreme Court decides the case by Sept. 30. A provision was added to the bill by Sen. Gerald Dial which kills the bond issue if the Supreme Court case is not totally completed by the end of this fiscal year. It was Dial’s vote that allowed the bond bill to pass the Senate.