In a MASSMAIL to all university students, faculty and staff, President Joseph B. White outlined the current financial situation at the University of Illinois.
Since I wrote to you in late October about our financial outlook, the global financial crisis has become a worldwide recession. At least 43 states — Illinois included — face revenue shortfalls in the current fiscal year with consequences for their public universities.
Last week I briefed the Board of Trustees on our financial outlook. I also spoke with leaders of 15 organizations that represent different groups of University employees to brief them and pledge cooperation in working together through difficult financial times.
In this message, I want to brief you. First, let me remind you of what I said in my October message: that the University of Illinois, in our 142 year history, has been through good times and hard times, periods of war and stretches of peace, campus tranquility and campus turmoil. Through it all, those who preceded us endured and built a great institution. We intend to do the same in the circumstances we face.
The situation in Illinois is this: the revenue shortfall for fiscal 2008-09 is conservatively estimated to be $2.1 billion, and the state has a $4 billion to $5 billion backlog in unpaid bills; the leadership situation in the state leaves us without clear direction on how much state-supported budgets may have to be reduced; and we must plan for fiscal 2010 in which economic conditions will continue to be difficult.
In light of this situation, the University’s leaders — chancellors and provosts, vice presidents, and deans and directors — have prepared contingency plans to handle a significant rescission of our fiscal 2009 appropriation should it come from the state in the next several months.
The planning has been guided by three principles: protect academic quality; serve well students and others who depend on us; and minimize adverse effects on our people.
Our plan is to handle a rescission by continuing the freeze on all except essential hiring that has been in place for the last three months and substantially reducing purchases, travel and other expenses. We will do our best to avoid significant budget-driven layoffs. However, in light of the financial circumstances some units of the University may face, I cannot provide complete assurance, especially if the rescission is large.
With regard to fiscal 2010 that begins July 1, 2009, there is substantial uncertainty about what our situation will be. If the recession deepens, if state revenues decline more, and if there is not help for the states and higher education from the Obama administration, fiscal 2010 could be a very difficult year. Should this be the case, there will be great pressure on all our costs at the University, of which 75 percent are faculty and staff. I cannot rule out the kinds of actions that we see occurring in some other states now, including voluntary and mandatory furlough days. I hope these will not be needed but we will keep you posted as the picture develops.
Each campus has scheduled a town hall meeting to discuss the budget outlook. I urge you to participate in these meetings to gain a better understanding of the challenges we face.
This week, like many of you, I watched with great pride and admiration the inauguration of Barack Obama as the 44th president of the United States. He called on us to look ahead, work together and make the changes required for a better future. This is exactly what we need to do at the University of Illinois as we get through difficult times that will give way to that better future.
Thank you for your excellent work and for your membership in the University community. I look forward to continuing to work together.
Follow The Quad’s continuous coverage of the University’s current economic concerns:
Tightening the Pocketbook
2009 UI Budget Outlook
Assembly Hall Remodel on Hold
Removing Majors in Hard Economic Times
