Administrators reject idea for student energy fee
September 4, 2008
By Sarah Small
Staff Writer
University administrators decided that they will not use a student fee to help pay for the increasing costs of energy and utilities.
University administrators determined that the energy budget for the three campuses will be greater than $100 million for fiscal year 2009, said University spokesperson Tom Hardy.
With knowledge of the budget increase, administrators assessed different options for covering the costs.
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“There was some uncertainty about how much additional support would be forthcoming from the state to help fill the gap of rising University operating costs,” Hardy said. “The menu of possible options to fill the gap included everything except an additional bump in tuition.”
The Board of Trustees had already agreed on a 9.5 percent tuition increase, which averages to 3.6 percent for four years.
The state issued a 2.76 percent increase, or about $20 million, in the University’s general revenue appropriation, and administrators determined that additional revenue sources would not be necessary, Hardy said.
Although enough funds exist to cover the energy and utilities for fiscal year 2009, during the past five years, the University has incurred an operating deficit of $117.6 million.
“The University has had a lot of problems with utilities and energy funding,” said Paul Schmitt, student trustee.
Hardy said that the deficit has been assessed, and since 2007 the University has been addressing it with a reimbursement plan.
“The University was obliged to balance its checkbook by dipping into reserves in other parts of the overall budget,” Hardy said.
At this time the University has substantial funds to cover the energy and utility costs, and a plan is in the works to eliminate the existing deficit.
Therefore, at this time, there will be no additional student fee.
“I express great frustration and concern that student fees keep going up,” Schmitt said.