PUBLICATIONS Inside Illinois Vol. 21, No. 16, March 21, 2002

Trustees discuss budgetary shortfall, tuition increase

By Sharita Forrest, Assistant Editor
(217) 244-1072; slforres@illinois.edu

Given the state’s decision to reduce higher education funding, a special tuition increase is needed to preserve staffing and quality programs during the coming fiscal year, Chester Gardner, vice president for academic affairs, told the UI Board of Trustees at its March 14 meeting in Urbana.

Gardner asked for additional tuition increases of 5 percent at the Urbana campus, 6 percent at Springfield and 7 percent at Chicago for fall 2002. The additional funds are critical because of the projected $43 million deficit in state funding expected during the coming fiscal year, Gardner said.

If approved, the additional increases would raise tuition at each campus by 10 percent per semester – $117 at Chicago, $98 at Urbana and $90 at Springfield. The increase would generate about $10.76 million.

In response to a question from Trustee Robert Vickrey, Gardner said he and the provosts had determined an equitable amount for the students to shoulder would be one-fourth of the university’s anticipated deficit during the next fiscal year.

The board’s approval of the tuition increase could spare approximately 125 faculty and staff positions and assistantships/residencies that would have to be cut without the extra funds, Gardner said.

The university already has permanently eliminated 140 positions this fiscal year, including 40 faculty member positions.

"This university is about people," Gardner said. "So when it all boils down, I think it’s appropriate that we focus on what does this mean in terms of people. Without the special tuition increase, we are going to have to lose, through attrition and perhaps through layoffs, about 740 full-time equivalent employees and about 275 of them are going to be faculty [members]."

Cantor told the trustees that these potential staffing changes would not happen immediately but would have to occur gradually to avoid abrupt programming changes that would be detrimental to students.

"I don’t want it to be assumed that tomorrow there will be that drop in faculty," Cantor said. "So when we estimate the teaching load, we’re going to use as much cash reserves as we can to create a soft landing. We don’t know yet how it will impact particular roles in particular departments."

"Even though we’re trying as hard as possible to protect our educational programs, they will not escape unscathed, unfortunately," Gardner said.

Unless the board approves a tuition increase, reduced state funding during the 2002-2003 academic year may mean that classroom renovations at Urbana will have to be scaled back, the faculty excellence program eliminated, enrollment reduced by 400 in the College of Commerce and course sections reduced in the English and speech communications departments.

Programs to have been funded by the tuition surcharge would also be jeopardized if the Chicago and Urbana campuses are forced to use those funds to meet their budget shortfalls. Planned expansions of the Freshmen Discovery, general education, entrepreneur studies and study abroad programs at Urbana would all be affected.

Springfield Chancellor Richard Ringeisen expressed concern that because the Springfield campus elected not to impose a tuition surcharge, it would not have those funds to draw upon as would the Chicago and Urbana campuses. The surcharge imposed a $500 additional fee for incoming classes beginning fall 2001.

At the Chicago campus, reduced state funding next year may mean that classroom renovations will have to be halted, the Daley Library closed one hour earlier and services curtailed in the reference and document areas. Between 50-70 course sections may have to be canceled in the business administration department also, Gardner said.

Funding for the universitywide UI Integrate project might also be slashed by $11 million and plans suspended for installing high-speed LAN upgrades in more than 100 buildings if the board does not approve the proposed special tuition increase.

Provost Richard Herman told the trustees that he and Cantor are trying to find ways to reduce costs while preserving programs. They have asked the college deans to offer their recommendations, and Cantor has apprised the Urbana-Champaign Senate of the latest projected budgetary figures.

Trustee Robert Vickrey expressed concern that an increase might be detrimental to lower- and middle-income students.

Gardner responded that 24 percent of funds from tuition increases are dedicated to subsidizing the additional tuition costs for students receiving M.A.P. awards so such students are unaffected by increased tuition.

Trustee Kenneth Schmidt asked about the possibility of refinancing the university’s long-term debt but was advised that all eligible debt has already been refinanced.

Schmidt then suggested that the trustees be utilized to recruit endowments.

"It’s our cushion against this type of problem," Schmidt said. "The board has not been used effectively in this regard."

Chairman Gerald Shea expressed concern about the university’s deteriorating infrastructure if maintenance and renovation programs are not adequately funded.

Shea also suggested that funds be reallocated to avoid the need for eliminating faculty and staff positions.

Plummer and Trustee Jeffrey Gindorf agreed to meet with Gardner and the Finance Committee to review the proposed tuition increase further.

However, despite its financial woes, the university faces high demand for admission. Thus far, 31,000 students have applied for the 9,450 seats in the fall 2002 freshmen classes at the three campuses, Gardner reported.

Cantor and Manning said they expect enrollment to increase by only 200 students at each of their campuses.

Ringeisen said applications for the Capital Scholars program at the Springfield campus are up 100 percent, but he was uncertain how enrollment would be affected overall.

In other business, the trustees approved revised design plans for the $31 million North Campus Parking Deck slated for construction east of Beckman Institute. The lot is bounded by University, Matthews and Goodwin avenues and Clark Street.

The parking structure had to be redesigned because viable tenants could not be secured for the retail space included on the original schema, said Robert Todd, associate vice president for administration and human resources.

According to the new designs, the six-level structure will contain 21,300 square feet of retail space on the ground level and space for 1,600 vehicles. The designs also allow for the possibility of converting 20,000 square feet of parking into office space on the north side’s lower level.

The trustees also approved construction of a Structural Biology Research Facility on the Chicago medical campus. The 12,000-square-foot building will house nuclear magnetic resonance (NMR) and X-ray diffraction equipment related to the Center for Structural Biology, which is now located at various sites. The $4.6 million facility is being funded with a $2 million grant from the National Institutes of Health and $2.6 million from the campus.

In other business, the trustees also passed a resolution permitting the boards of the Research Park and Illinois VENTURES to convene in executive session to protect confidential business information.