monday, fcbrusry 23, 1077
ixon 6nNU. the bodoev osid pe&idino
r - .
Editor 'i note: Ddly Nehraskm reporter Theresa
Foreman interviewed Gov. J. Jsmes Exoa Friday, Exon
egisk
ua 6vuui Uic isaiwiKiy, IC8 EIXe DUG "St
and some tills pccJirj in the Nebrscka Legislature, amenj
other thirds. Exca's remakes, edited fcscs!s r.f ewe
limitations, fallow.
D!y Ntbrsdcan: How do you determine what goes
into your budget b23?
Exon: By July 1 of each year, when the previous
budget has been decided by the Legislature, the budget
staff begins work on a zero-base budgeting principle that
weVe used in state government ever since I've been here.
The analyst builds onto that zero base what, in his
opinion, is needed. Then he visits with the budget makers
in each agency and makes revisions.
When the budgets come from the state agencies on
Sept. 15, the analyst compares that request with his
recommendations and makes adjustments.
I get into the budget-making process actively about
Oct. 1 and spend an awful lot of time on it between then
and the time I give my budget address. About the first
thing I do with budgets is find out the anticipated revenue
projections. How much win we have to spend with exist
ing tax rates?
, DN: Is thst the rnsln criterion?
Exon: No, although it is generally thought that this is
so. It's a fundamental criterion. That's the way any
business would look at how much money it's going to
spend the next year. We do try to fit the budget into
revenue projections.
If it won't fit we have to make reductions or we have
to recommend tax increases. For every agency, we try to
come up with a realistic budget which meets the needs of
the state.
"DN: Your budget lecomraendatica for the university
for 1977-78 is a&ouf $10 rnon less than whst the
university asked for. What was ia the university request
that could be cut out?
Exon: We felt that the sum of the total programs for
increased staffing or increased salaries was something we
couldn't afford at this time. Over $3 million was cut out
of the budget requested for the Institute of Agriculture
(and Natural Resources). Now, they came up with many
good plans, but we scaled back those we thought were
unnecessary.
We raised the university budget from -$94.6 million
this year to a recommendation of slightly more than $ 100
million for next year-and that's just general funds (state
tax dollars). The recommendation I have made to the
Legislature is approximately double the general funds the
university received only three years ago.
. Nebraska is one of the elites in higher education fund
ing. It ranks fifth in increased state appropriations for
higher education in the last two years and fourth for
increases over the past 10 years. ,
We think the university has been treated very well. The
university is one of the main assets we have but its
requests have always been highly in excess of its actual
needs.
The university has come up with an unbelievable
capital construction request. You have to have facilities,
and even though they can always be better, the univer
sity has excellent ones on every campus. .
The main thrust of a university is good teaching and
good research. I am critical of the direction of money
to an ever-sprawling university, rather than increased
support for the perpendicular function of teaching and
research-the heart of a university. We should expand into
new fields only when we have proper funding of the
teaching and research in areas already established.
DN: At the NU Board of Regents meeting last
Saturday, interim NU president Ronald Roskens sail your
recommendation for next year's budget wasnt enough
to cover university spending at its presert level. Is your
budget designed to coyer academic and other programs as
they are financed now?
Exon: Certainly. If a $6 million ina c.se is not enough,
then we have a lot of fat in the university we should start
whittling. If that's true, some restructuring needs to be
done. This university of ours comes in for the highest
increases each and every year, percentage-wise, of any
university in the United States.
The university talks and talks and talks about how
much the governor has cut its budget. They've had
fantastic increases in their budget. That point is
sometimes overlooked. ,
DN: The regents have shown and stated their support
for the central administration we have cow. You have
recommended both a reduced central administration end
lump-sum appropriations to the regents. Isn't this a
contradiction?
Exon: No, I think that's very consistent. The regents
are elected and they're supposed to represent the people
in their districts. Some of them think their sole
responsibility is to the university-its wants and its needs.
The majority of the board members act as cheerlead
ers for increased spending. Neither the governor nor the
Legislature should be telling the regents what to do. As
governor, I was not elected to run the university, but I
was elected to make recommendations. The regents, too,
should come to understand that there are other functions
of government which need attention.
DN: If the regents were given a lump-sum appropria
tion Bsd a request by both yourself and the LegiJature
to reduce the central administration, would they da it?
Exon: I don't know. That's a good point. I'm not try
ing to be a dictator, but I have recommended drastic
reductions in the central staff. Money the regents spend
on central administration is money they won't have to
spend elsewhere.
DN: Can the university ed.thrccgh the budget,
to psxt the central sdmidirstion if they don want to?
-4. . y .
V0
t 1 1 ,;,v ' '(
Daily Nabra&an photo
Nebraska Governor J. James Exon
mo
Exon: I cant answer that. The matter is being tested
in the courts. (A lawsuit is on appeal to determine
whether the Legislature or the regents have ultimate con
trol over the university). It may well be that the regents,
in their wisdom, decide they must have that central
staff. I don't agree, but I dont think it's proper for me to
say "yu nt" to the regents.
I will say that on capital construction, though. I ques
tion the wisdom of the regents in going along with every
whim that comes along in capital construction for the past
few years. The regents have not properly set priorities
for spending and that has hurt education and research.
DN: YouVe recommended that the regents have a
staff of their own. Why?
Exon: The individual regents are put in a very diffi
cult position. They are busy men in their own fields. The
regents dont have the opportunity to set priorities. There
have been cases when the budget package hasnt been
presented to them until August. The NU budget is very
complicated and represents a lot of money. Fve budgeted
for seven years and it would be impossible for me to func
tion on a budget in that amount of time.
How is the regent, with as little time as he ha and no
staff help, going to say "I think we should do this rather
than this?" It's an impossibility.
Can you imagine the directors of a large corporation
with a $100 million budget trying to run an operation
without any more information than the regents have?
If they didnt have time or staff, they'd resign. When I
cut recommendations I know why they're cut.
DN: How did you scale down the requested $73
million for the Health, Physical Education aad Recrea
tion (HPER) E3dg. at the tfeiveraty of Nebrrdsa at
Omaha?
Exon: I was not satisfied with the report that the
budget staff gave me on HPER. In fact, the budget staff
recommended against funding HPER again this year.
HPER is a high priority need at UNO but not for $7
million.
Study the facilities that Creighton and Wcsleyan built
for a lot less. Now you can make all kinds of arguments
Continued on p. 7
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