State owes universities millions
October 25, 2011
Southern Illinois University Carbondale is one of the nine public universities in Illinois owed more than half a billion dollars in state appropriations. The state is almost $54 million behind in payments for fiscal year 2011 and almost $23 million for fiscal year 2012 to the Carbondale campus. These payments are usually due in August but legislators extended the deadline last spring to Dec. 31.
In the 2010-11 academic year, 4 percent budget cuts to all departments and four furlough days were implemented at SIUC to make up for the deficit. This academic school year, Chancellor Rita Cheng has said furlough days will not be implemented but a 2 percent budget cut was made to all departments.
SIU President Glenn Poshard said the payments for FY11 must be paid by Dec. 31., but this might not happen.
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Sabrina Imundo | Daily Egyptian
In her first quarterly report in April, Comptroller Judy Baar Topinka predicted the deadline to be extended again.
“If the backlog of general funds bills at the end of the fiscal year is indeed similar to last year, the state will be unable to close the fiscal year 2011 lapse period by the traditional August end,” the report said. “In fact, Illinois was unable to pay off all of fiscal year 2010’s liabilities until Dec. 31 last year, and could face similar challenges this year.”
Poshard said if the money is not received by the state it could be devastating to both Carbondale and Edwardsville campuses and their communities.
“After going through years of cuts here to our state appropriation, the last two years or so we’ve seen a tremendous cash flow back up. We’re just saying that we can’t manage effectively if now they’re going to say, ‘Well, you’re not going to get all that money that’s left,’” he said.
SIUC tuition increased by 6.9 percent in May, but unlike other state universities SIUC had a decrease in enrollment of 1.1 percent for fall 2011.
Poshard said if the money is not received by December as planned, the university will have to make adjustments such as additional cuts and efficiencies.
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“We’ve been going on the fact that we’ve been told that we are going to get our money,” Poshard said. “But it’s so late now that we’re getting worried.”
The University of Illinois in Champaign-Urbana is owed the most of the nine universities. University of Illinois is still owed $174 million from FY11 which led to furlough days and a 6.9 percent tuition increase in the 2010-11 academic year.
Randy Kangas, University of Illinois’ associate vice president of planning and budgeting, said the university has no plans to institute furlough days this year and cash flow is monitored daily.
“All the units have reduced spending, reduced purchases, all of the usual cash flow things,” he said.
Kangas said the university has a tremendous deferred maintenance backlog that needs to be addressed. He said there is no indication there will be a tuition increase.
The university has carried forward balances and tightened cash flow so payroll can be made first, he said.
“I don’t see the state catching up anytime soon so we are kind of caught in that situation right now,” Kangas said.
Western Illinois University President Jack Thomas sent a letter to employees of the university in Macomb Sept. 28 saying the university is owed $12.4 million for FY11 and $15.6 million for FY12.
Darcie Shinberger, director of university relations for Illinois State University, said WIU’s primary obligation is to continue and meet payroll, which is $9 million a month, and to provide necessary services to students.
“For the past several years, Western has been extremely fiscally conservative in order to meet these obligations,” she said. “All spending continues to be limited to immediate operational needs only, and all purchases over $500 must continue to be submitted for vice presidential approval.”
Shinberger said the university continues to review vacant positions in order to hold as many to conserve funds. The vice presidents and presidents approve all new hiring, she said, and the current cash balance will allow payroll to be met through December.
According to the Associated Press, administrators at Eastern Illinois University in Charleston have relied on internal borrowing and expense cutting to make up for lack of money.
EIU Vice President for Business Affairs William Weber said tuition has been increased and the number of employees has been decreased.
According to the AP, Northern Illinois University has filled fewer positions when people retire as a result of late payments.
SIUC has 280 vacant positions that Cheng has said most likely will not be filled.
Poshard said SIU administration has tried to take the proper steps to keep the universities running when so much money has been backlogged.
“We haven’t laid off anyone,” he said. “Nobody’s missed a paycheck.”
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