New University budget attempts to battle tuition raises

By Michael Logli and Sarah Small

The Illinois Board of Trustees approved the final operating budget for the 2009 fiscal year at their meeting Thursday. However, plans for fiscal year 2010 were put on hold after debate arose regarding state capital funding.

The overall budget is $4.2 billion, a $265.2 million increase from last year, and will cover the expenses for all three campuses. This also includes an extra $19.9 million of funds from the state over last fiscal year.

The budget increase allows for an increase in funding to different departments, such as an extra $27 million for auxiliary services and another $27 million for medical programs, said Walter Knorr, chief financial officer for the University.

University President B. Joseph White said this budget should reduce overspending and decrease any possible chance of increasing tuition costs.

“This is how we lay the groundwork to reduce tuition increases,” White said.

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Student trustee and former Illini Media employee Paul Schmitt later praised the Board members for deciding to make the budget accessible online to the public. Schmitt said it is nice the University is ahead of the curve for putting their budgets online, which will eventually become the law.

“People are confused and wondering what (the trustees) are doing with this money,” Schmitt said. “We’ve had a lot of issues with transparency.”

But when trustees looked at the proposed capital and operating funds for fiscal year 2010, Trustee Robert Sperling debated that the University was not asking for enough money for deferred maintenance projects like Lincoln and Burrill halls.

“Lincoln Hall has been on our to-do list since I became a trustee,” Sperling said, “And it’s still there.”

Of the $109 million the University is asking for from the state, only $5.9 million of that would go to construction projects on campus. Sperling said this was not enough to keep Lincoln Hall from falling apart.

“We are going to lose one of our premier facilities,” Sperling said. “There is no excuse for it.”

White said Lincoln Hall was on the state’s list of renovation projects that needed a capital bill for state funding. The list has no priority system and there are other projects on the list, but White said he was confident the University would soon receive a capital bill. However, he also believes that a back-up plan should be in place, which is why work is currently being done and classes are no longer held there.

“We’re trying to stabilize Lincoln Hall to prepare it for the renovation,” White said. “But we can’t close the gap in a year.”

For fiscal year 2009 the University’s utilities budget is $120 million, with $65 million being spent solely on natural gas. In order to curb the expenses of natural gas, a policy is in the works that will allow the University to sign a contract with their provider, Nicor. This will allow the University to purchase natural gas in advance when the market is favorable and pay that same price when the gas is delivered, even if the market price has gone up, Knorr said.

The Board is looking to put this policy in place for the 2010 to 2011 school year. The proposed capital and operating funds for 2010 were later put on hold until the next meeting on Nov. 13.

The Board of Trustees also approved the demolition of Garner Hall in order to build the new Residence Hall West for the Stanley O. Ikenberry Commons. The Garner demolition will cost $1.5 million and begin in spring 2010.