Eastern recieves $6 million
Pablo Rodriguez/ Campus Editor
Issue date: 7/22/10 Section: News
Eastern received a figure close to $6 million on July 9, from the state, reducing the university's fiscal year 2010 budget deficit by 12 percent.
The money received is a reimbursement from the state and will help avoid a monetary gap predicted for August.
Prior to the state's reimbursement, Eastern's Board of Trustees was contemplating borrowing a credit line of $7 million to address the monetary gap.
President William Perry said the money received will put the university in a good economic standing for the fall, however, the state is considerably behind paying what they promised.
Perry said calculations indicate the state still owes approximately $23 million from fiscal year 2010 which ended on June 30.
Perry also said the previous situation should not be a concern.
"We are (always) going to be here for our students-there should not be concern. We will adjust to our resources to meet our needs," he said.
Perry said adjusting to resources might mean to increase the size of classes and reduce other expenses as much as possible.
He added Eastern's economic standing will strengthen a little more once tuition money is received.
Paul McCann, treasurer and director of business services, said 85 percent of state appropriated funds are used for payroll.
McCann said the state has not committed to set a date to pay off the rest of the money.
He said Eastern's deficit derives from income tax not generating revenue funds for state universities.
McCann said as a result Eastern might have to borrow money by the end of December if nothing is reimbursed by then.
Pablo Rodriguez can be reached at 581 7942
or at jprodriguez@eiu.edu
The money received is a reimbursement from the state and will help avoid a monetary gap predicted for August.
Prior to the state's reimbursement, Eastern's Board of Trustees was contemplating borrowing a credit line of $7 million to address the monetary gap.
President William Perry said the money received will put the university in a good economic standing for the fall, however, the state is considerably behind paying what they promised.
Perry said calculations indicate the state still owes approximately $23 million from fiscal year 2010 which ended on June 30.
Perry also said the previous situation should not be a concern.
"We are (always) going to be here for our students-there should not be concern. We will adjust to our resources to meet our needs," he said.
Perry said adjusting to resources might mean to increase the size of classes and reduce other expenses as much as possible.
He added Eastern's economic standing will strengthen a little more once tuition money is received.
Paul McCann, treasurer and director of business services, said 85 percent of state appropriated funds are used for payroll.
McCann said the state has not committed to set a date to pay off the rest of the money.
He said Eastern's deficit derives from income tax not generating revenue funds for state universities.
McCann said as a result Eastern might have to borrow money by the end of December if nothing is reimbursed by then.
Pablo Rodriguez can be reached at 581 7942
or at jprodriguez@eiu.edu
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Viewing Comments 1 - 2 of 2
Drew Evans
posted 7/22/10 @ 8:28 PM CST
Large enough to matter, small enough no more.
Spell Check
posted 7/23/10 @ 2:08 PM CST
Spelling mistakes are bad enough in the body of a story, but it's always crippling to your credibility when you can't even avoid them in the headline. (Continued…)
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