UI President B. Joseph White predicted that FY07, which begins July 1, would be a good year for the university in terms of marshaling the $100 million in resources needed to help the UI meet its most urgent needs and objectives. He made his comments about the FY07 preliminary operating budget during a teleconference meeting of the UI Board of Trustees on June 5.
The $3.7 billion preliminary budget was an increase of 5.9 percent over the current fiscal year and was based upon estimated increases of $67.9 million or 4.5 percent in unrestricted funds and $136.6 million or 6.9 percent increase in restricted funds. Restricted funds – which include revenue from grants and contracts, federal appropriations and private gifts – are designated for specific uses by the donor, grantor, contractor or state statute. Unrestricted funds can be allocated at the discretion of the university.
White projected a good year in terms of striving toward his five-year/$500 million plan, which aims to garner $500 million over the next five years. However, “a difficult but necessary 2.5 percent reallocation”– a total of $2.5 million – will be necessary by all “budget holders” next fiscal year, White said. State appropriations are expected to total $12.8 million next year; tuition and the new Academic Facilities Maintenance Fund Assessment – a fee that new students will begin paying this fall to help address the backlog of deferred maintenance projects – will generate $45.6 million. The projections also included a $10.5 million increase in private giving, which White called a conservative estimate.
Trustee Robert Sperling voiced concerns about the board’s approving the preliminary budget through a conference call, and suggested that such items be addressed at regular meetings in the future. “Out of courtesy to all our board members, this is a pretty significant issue when you’re approving a budget … and I believe we owe it to everyone to deal with these types of matters at a board meeting,” Sperling said.
Chairman Lawrence Eppley responded that the proposal was only a preliminary budget and that the board would review the final budget proposal at its regular September meeting.
The trustees approved a list of 19 retired employees who were proposed for rehire between June 5 and July 13. White said after careful review that he and the chancellors supported the rehires because of “value and urgency.” White said that a policy on retiree re-employment would be presented at the board’s July meeting, and added: “The goal is to prevent abuses, to utilize wisely a valuable pool of talent for the benefit of our students, our research enterprise and the entire university, and to ensure that the board is in proper control of the situation.”
White also told the board that within the week he and Vice President Chester Gardner would send the board a comprehensive report on the proposed global campus initiative, a new university entity that would offer degrees, certificates and outreach programs on a large scale via the Internet. White urged the trustees to review the report carefully prior to the July meeting.
Pursuant to discussion at the board’s May meeting, White said that “a great deal of work has been done” on the UIC Medical Center renovation project and that staff members would update the board soon.
Other business
- The board awarded a $1.7 million contract to Nogle and Black Mechanical Inc. of Urbana for heating work related to construction of the College of Business Instructional Building; the lowest bidder, Gingher Process Piping Inc. of East Peoria, rescinded its bid of $1.6 million.
- The board pproved the appointments of Lizanne DeStefano, a professor of educational psychology in the College of Education, as interim dean of the college from June 16 through July 31 until Mary Kalantzis begins as dean Aug. 1; of C. Renee Romano as vice chancellor for student affairs beginning July 1; and Elyne Cole, currently director of employment services in academic human resources, as associate provost, effective June 16.
Trustee Kenneth Schmidt expressed concern about Romano’s $200,000 salary, a figure that he and Michele Thompson, board secretary, said often elicits questions. Chancellor Richard Herman said that he believed the proposed salary was “the right number” and offered to share the analysis used to derive it.
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