War Budget Forces IAIA to Face the Possibility of Rescission

Santa Fe—With President Bush’s request for $74.7 billion to finance the war in Iraq, the Institute of American Indian Arts has been forced to step back and prepare for the possibility of a cut in funding as a result of ongoing war.

IAIA currently has an operating budget of roughly $6 million a year, with $4.9 million coming from the United States government, and the rest coming from tuition, room & board, admission fees at the IAIA museum, revenues from the Museum gift shop, and donations.

If Congress is to approve Bush’s budget, and ask for money back in what is called a rescission, IAIA would have to give back a percentage of the money given from the federal government.

According to Bob Sutton, director of finance and administration at the Institute, allowances are being made in the event Congress approves Bush’s war budget, and the budget is now being prioritized.

Minimal Impact Anticipated

“Our job is to anticipate and plan for potential glitches in the system,” said Sutton. “If something were to happen because of what is happening in the world and the crises we are in, it could impact us.”

According to Sutton, every September IAIA submits its budget request to the financial arm of the White House, and is built into the president’s budget. A similar budget is also submitted to Congress, and once approved a request is made to the U.S. Treasury. With Bush’s new request to fund the war in Iraq, a portion of the money may have to be given back.

In the case of a rescission, said Sutton, the current estimate is that IAIA may be asked to reduce their budget by two percent. “If we do have a rescission of our 2003 budget, the impact will be minimal. It would probably less than $100,000 that would be rescinded and we would be able to reduce our budget by that much,” said Sutton.

As of March 20, IAIA President Della Warrior sent a memo to students and faculty, putting a hold on new travel requests, and restricting travel to critical needs only. Not only has travel been restricted, but other expenditures are now being closely watched, and the IAIA staff and community will meet to discuss prioritizing the budget.

According to Sutton, there will be no cut across the board for programs at the Institute. “The worst thing you can do is make decisions that impact people without their input.”

Copyright © 2003 IAIA Chronicle

If Congress is to approve Bush’s budget, and ask for money back in what is called a rescission, IAIA would have to give back a percentage of the money given from the federal government.

“Our job is to anticipate and plan for potential glitches in the system."

—Bob Sutton
Director of Finance and Administration