December 19, 2008

Dear Members of the University Community,

As the holiday season approaches, I want to thank the University community for the tremendous strength you have shown during the past year.  I also want to encourage your continued strength, spirit, and support as we embark on a new year with new challenges.

The University has accomplished much despite the unprecedented challenges we faced in 2008.  Our community was recognized by the United Nations' UNESCO as a City of Literature, only the third city in the world to receive the distinction.  Psychology graduate student Jessica Horst, now teaching at The University of Sussex, won the top national dissertation prize - the Council of Graduate Schools/University Microfilms International Distinguished Dissertation Award.  Our field hockey and football teams have earned national recognition.  We celebrated a $25 million gift from the Fraternal Order of Eagles to establish a groundbreaking diabetes research center.   These are just a few reasons why we are among the shining stars of the nation's public research universities.

That being said, we are now facing daunting budgetary challenges.  We spent $100 million on flood recovery in order to fulfill our academic mission this fall, although some accommodations still need substantial improvement.  To date, we have received $17 million from FEMA and $50 million from our insurance providers to cover those costs, with the remainder coming from other sources, including the University itself.  We remain resilient and committed to meeting our obligations and sustaining our vision.  Our own resources have been stretched to manage the recovery efforts, and we will continue to pursue every avenue to make certain that progress continues.

The difficulties facing our state and national economies obviously place additional stress on the entire University.   As you know, our current state appropriation has already been reduced by $3 million.  Yesterday, the Governor announced an additional across-the-board cut of 1.5% for the state.  This means a new cut of approximately $4.5 million for the UI.   As we make these cuts here at the University, our actions will be thoughtful and measured, and we will continue to work diligently to deliver a high quality education.

Each and every decision we make will be weighed in the context of our core values and mission -- we place our students first, the UIHC places patients first, and we remain committed to the advancement of knowledge and creative work.  We must maintain the highest quality and standards of teaching, research, and service.

Once again, I have every confidence in our great people to do whatever is necessary to maintain strength, quality, and integrity of purpose as we advance The University of Iowa during these challenging times.

Thank you for your help.

Sincerely,

Sally Mason
President