By Kristina Goetz
The Cincinnati Enquirer

If the state doesn't provide more funding for higher education, the University of Cincinnati may have to reduce its academic and research activities, according to the school's latest financial report.

While the university is positioned to maintain its financial condition and stature in the national research community, there is little more to cut in the budget before programs begin to see the effects of the state cutbacks.

If future tuition increases are to be minimized, the report says, the level of state support will need to be "drastically increased."

"Unless the economy turns around and taxes kick in and we get more support, I see it happening within the next six months," UC President Joseph Steger said. "You have to start planning for it."

The report, which was presented Tuesday at the UC Board of Trustees meeting, comes on the heels of Gov. Bob Taft's announcement this week that Greater Cincinnati schools and universities will lose $20.8 million in state funds over the next five years if legislators don't raise cigarette and alcohol taxes.

Taft also proposed a 6 percent cap on tuition at most state colleges, except for Ohio State University, which would be permitted a 9 percent cap. Without the tax increases, UC will lose $3.7 million, according to figures released by the governor's office.

UC has been increasingly relying on tuition and fees as a primary funding source. During 2002, tuition rates were raised twice to respond to a 6 percent reduction in the level of state appropriations.

State money now accounts for 23 percent of the university's total revenues.

The governor said he would propose a 3 percent increase in funding for universities in the next fiscal year, which begins July 1, and an another 4 percent in 2005.

E-mail kgoetz@enquirer.com