Budget Cuts Temporarily Stop University of Iowa Construction

IOWA CITY, Iowa  --  The University of Iowa is halting construction in response to budget cuts.

The school was hit with $5 million in cuts from the Board of Regents. Some of the projects being impacted include the art museum that was damaged in the floods of 2008. The old building was fixed up but insurance won't allow artwork back inside, so a new facility is needed.

The UI hospitals were planning a $120 million expansion and another $120 million in improvements to the main location, and the Finkbine Clubhouse was to be torn down and rebuilt. Other buildings will have to wait on improvements.

University of Iowa president Bruce Harreld says although the hold is temporary, it may end up costing the university more money down the road.