Spring Break
Eastern's budget plans looking bleak
Stephen Di Benedetto / Staff Reporter
Issue date: 2/11/09 Section: News
The coordinating entity of Illinois public universities recommended a decrease in state appropriations to Gov. Pat Quinn for fiscal year 2010.
The Illinois Board of Higher Education gave Quinn two options: a 2.5 percent decrease in appropriations or a flat appropriation. The flat appropriation means public universities would receive no increase or decrease in appropriations next year.
The IBHE recommendation comes after Eastern requested a $10 million increase from fiscal year 2009 to IBHE. Eastern was projected to receive $50.6 million in state appropriations this year.
Paul McCann, interim vice president for business affairs, said the university is waiting to see what type of recommendation Quinn will make to the General Assembly during his delayed budget address on March 18.
"If the money is not coming from Springfield, then we have to do something," McCann said. "That means tuition goes up."
McCann added 2.5 percent roughly equates to $1.2 million. If IBHE's 2.5 percent decrease went into effect, Eastern's state appropriations could decrease from $50.6 million to around $49.4 million.
If there is an increase in tuition, the university will try to keep it to a minimal level, McCann said.
"We are always concerned about what it does to the students and their families," he said. "We certainly want to keep that tuition as low as it possibly can."
After former Gov. Rod Blagojevich recommended a flat appropriation for public universities last February, Eastern increased tuition by 12 percent for all incoming freshmen and transfer students. The difference translated into newly admitted students paying $217.70 per credit hour compared to students paying $194.40 per credit who were admitted for the 2007-08 school year.
The Illinois government has consistently cut funding to public universities since fiscal year 2002.
In response to the decreases, Eastern has steadily increased tuition. For the 2006-07 school year, tuition comprised more of the general revenue budget than state appropriations — the first time that happened in Eastern's history.
For the 2007-08 school year, tuition again comprised more of the general revenue budget than state appropriations.
In April 2008, Jeff Cooley, former vice president for business affairs, said historically Illinois appropriations comprised two-thirds of Eastern's general revenue budget. Now, the budget is practically split in half between tuition and state appropriations.
"As state funding continues to drop that creates a problem for us," McCann said. "It could mean something like increase class sizes."
He added the university hopes to save money by decreasing certain operating costs or not immediately filling open positions. Those vacant positions could be staff or faculty positions, McCann said.
"It's way too early to get into any of that," he said.
He added the university does not know what amount or percent the General Assembly will work with when planning the budget for fiscal year 2010, which takes effect July 1.
Typically, the governor makes a budget address to the General Assembly on Feb. 18; however, Quinn requested to delay the address until March 18 to give him time to assess Illinois' deficit, which is around $9 billion.
McCann said the delay does hamper the university's budget planning because Quinn's address is the first step toward finalizing the state budget. Quinn's late address delays planning for the university with other items like tuition and student fees.
McCann added the university would have to be thoughtful with planning increases to tuition if the state decides to decrease state appropriations.
"Depending on what the governor says, there could be other effects," he said. "None of us want to face that."
Stephen Di Benedetto can be reached at 581-7942 or at sdibenedetto@eiu.edu.
The Illinois Board of Higher Education gave Quinn two options: a 2.5 percent decrease in appropriations or a flat appropriation. The flat appropriation means public universities would receive no increase or decrease in appropriations next year.
The IBHE recommendation comes after Eastern requested a $10 million increase from fiscal year 2009 to IBHE. Eastern was projected to receive $50.6 million in state appropriations this year.
Paul McCann, interim vice president for business affairs, said the university is waiting to see what type of recommendation Quinn will make to the General Assembly during his delayed budget address on March 18.
"If the money is not coming from Springfield, then we have to do something," McCann said. "That means tuition goes up."
McCann added 2.5 percent roughly equates to $1.2 million. If IBHE's 2.5 percent decrease went into effect, Eastern's state appropriations could decrease from $50.6 million to around $49.4 million.
If there is an increase in tuition, the university will try to keep it to a minimal level, McCann said.
"We are always concerned about what it does to the students and their families," he said. "We certainly want to keep that tuition as low as it possibly can."
After former Gov. Rod Blagojevich recommended a flat appropriation for public universities last February, Eastern increased tuition by 12 percent for all incoming freshmen and transfer students. The difference translated into newly admitted students paying $217.70 per credit hour compared to students paying $194.40 per credit who were admitted for the 2007-08 school year.
The Illinois government has consistently cut funding to public universities since fiscal year 2002.
In response to the decreases, Eastern has steadily increased tuition. For the 2006-07 school year, tuition comprised more of the general revenue budget than state appropriations — the first time that happened in Eastern's history.
For the 2007-08 school year, tuition again comprised more of the general revenue budget than state appropriations.
In April 2008, Jeff Cooley, former vice president for business affairs, said historically Illinois appropriations comprised two-thirds of Eastern's general revenue budget. Now, the budget is practically split in half between tuition and state appropriations.
"As state funding continues to drop that creates a problem for us," McCann said. "It could mean something like increase class sizes."
He added the university hopes to save money by decreasing certain operating costs or not immediately filling open positions. Those vacant positions could be staff or faculty positions, McCann said.
"It's way too early to get into any of that," he said.
He added the university does not know what amount or percent the General Assembly will work with when planning the budget for fiscal year 2010, which takes effect July 1.
Typically, the governor makes a budget address to the General Assembly on Feb. 18; however, Quinn requested to delay the address until March 18 to give him time to assess Illinois' deficit, which is around $9 billion.
McCann said the delay does hamper the university's budget planning because Quinn's address is the first step toward finalizing the state budget. Quinn's late address delays planning for the university with other items like tuition and student fees.
McCann added the university would have to be thoughtful with planning increases to tuition if the state decides to decrease state appropriations.
"Depending on what the governor says, there could be other effects," he said. "None of us want to face that."
Stephen Di Benedetto can be reached at 581-7942 or at sdibenedetto@eiu.edu.
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