Northern Kentucky University's operating budget will exceed $100 million for the first time in the 2001-2002 school year, but President James Votruba warned Thursday a faltering economy may require “give-backs.”

        No one in Frankfort is asking for cuts yet, but Dr. Votruba is keeping $820,000 in reserve to cover the possibility.

        “That could go deeper if revenues fall more,” he cautioned, adding that twice that amount is possible.

        Where cuts that deep would come from at NKU is unclear, Dr. Votruba said, but it would hurt.

        Earlier this month, Kentucky's budget director indicated the state would have to cut $115 million by June 30 because of shortfalls in revenues and higher-than-expected spending in the first year of the biennial budget.

        In the past, higher education budgets were among the first into which the commonwealth dipped to make up deficits, but the new state commitment to post-secondary education has changed that, Dr. Votruba told colleagues.

        “We're not on the table yet,” he said.

        Barring serious state financial problems, the money is NKU's, appropriated last year.

        Generally, Dr. Votruba was upbeat about NKU and its finances, pointing to the $101 million budget as evidence of continuing state support for NKU.

        His budget also anticipates state payments for student retention.

        This year, NKU's operating budget is about $93.5 million.

        Dr. Votruba is adding 10 full-time faculty members. That brings the additions to 54 since he arrived four years ago, for a total of 340 full-time teachers.

        “We're clear about what we value, and we're clear about where we are headed,” he said.

        NKU has about 12,000 students — mostly undergraduates — and hopes to reach 14,000 in the next few years. Its enrollment has been rising steadily.

        Consistent with his promise last year, NKU is allocating 7 percent for faculty raises.

        That would be reduced only if enrollment eventually failed to meet expectations or Kentucky reneged on its promise to help NKU approach salaries of similar institutions.

        Staff will share a 6 percent pool for pay raises: 4 percent for merit increases, and 2 percent to bring salaries/hourly pay closer to private employment.

        Dr. Votruba added $50,000 to athletic scholarships and $250,000 for need-based scholarships, for students who otherwise could not attend NKU.

        He said he is proud of NKU's Division II intercollegiate teams and their role in building community support for the school, but he remains unsure whether NKU should aspire to NCAA Division I status.

        It would cost NKU at least $2 million a year to compete in Division I. Yet, for all the benefits successful teams can bring in image and recruitment, Mr. Votruba said he doesn't want to subsidize sports at the expense of NKU “core values.”

        “You don't go Division I unless you can win,” he said, and winning in “Division I is very costly.”

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