Future funding actions remain unclear for UI
October 30, 2008
Possible University action remains unclear after a mass e-mail sent to students and faculty members Tuesday afternoon by President B. Joseph White’s office.
The e-mail discussed what the current economic situation would entail for the University, and how it is “preparing for whatever financial conditions we could face in the months ahead.”
Robert Gregg, a graduate student and member of the UC-Senate’s Executive Committee, said the e-mail was somewhat ambiguous.
“It’s obvious that President White is aware of the planning situation, and he made similar comments in the e-mail as he did when he spoke to the student senate about the economic situation,” Gregg said. “He’s pointing out that we’re going to have to get ready for cuts in certain areas, but he didn’t specify where or how it’s going to happen.”
The message also alluded to contingency plans being made for increased financial hardships. University of Illinois spokesperson Thomas Hardy reiterated that President White was working with vice presidents, chancellors and provosts from each campus on a plan to respond to the economic situation.
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However, he said no specific procedures to reduce expenditures had been finalized.
According to Hardy though, what remains clear is that the University budget has been negatively impacted by a slumping economy.
“State appropriations and obligations rely on tax revenue to fund them,” Hardy said. “Right now, there are less income taxes and less sales taxes coming in, and there’s a whole ripple effect. So what you see in a down economy effects what the state is able to disperse to all those who rely on it.”
According to Randy Kangas, vice president of the University’s Office of Planning and Budgeting, an appropriation of $743.4 million to the University was passed by the state legislature and signed by the Governor during the summer. While he said the state had been slower than usual in disclosing the amount to the University, he added that at this point, the University still expects to see the full appropriation even if it ends up coming later than expected.
“We work with the state on cash flow issues,” said Kangas. “We know that revenues don’t come into the state in a city-to-city stream just like our tuition revenue doesn’t come in one-twelfth increments every month.”
Gregg said the economic situation had been an item of discussion at Senate Executive Committee meetings throughout the semester. He added that while the topic had not been discussed in large detail, one suggestion that troubled him was the proposal to cut graduate tuition waivers in an effort to decrease University expenses.
“Terminal master’s students go the University with the intention of getting a master’s degree and not staying for a Ph.D.,” Gregg said. “So smaller programs like Library Information Sciences, which is made up of primarily master’s students, would be tragically affected by these cuts.”
Still, while Kangas said state funding issues would impact the goals of the University, he said he was also unaware of how specifically University action would affect faculty and students.
“When we have problems with the state budget, it directly impacts the instructional mission of the University,” said Kangas. “Now, what form would that take? I, at this point, don’t know.”
The severity of the economic situation, however, is not lost on University officials.
“I would guess that the Great Depression was a similarly impactful time,” said Hardy. “The economy is always cyclical, and we’re still waiting to see just how serious this current downturn is going to be. But I think that all indications are that this going to be one of the worse, if not, the worst situation that this University and others experiencing it are going to go through.”