Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 360]

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1943]

UNIVERSITY OF ILLINOIS

357

BIENNIAL. BUDGET FOR 19 4 3 - 1 9 4 5 (2) The Board on April 29 directed the President of the Board and the President of the University to confer with State authorities on problems presented by the recommendations of the Governor for reductions in the budget requests of the University for 1943-1945. Such a conference was held with the Director of Finance on May 10, 1943, with the President of the Board, the Chairman of the Finance Committee, the President of the University, and other University officials present. T h e University presented for consideration a statement proposing adjustments both in the budget as originally presented by the University and in the recommendations of the Governor. T h e complete statement of proposed adjustments as submitted to the Director of Finance on May 10 (with minor revisions) is submitted herewith; and following is a brief summary of the changes requested by us in the budget recommended by the Governor: I. Restoration of the item of $500,000 for airport buildings was requested. II. Adjustments were requested in the operating budget as follows: Additions: Non-recurring, emergency expenses (revised) $312 398 Additional amount for salary increases 168 120 Additional amount for wage adjustments (revised) 173 616 Total Additions $654 134 Reductions: Added saving from salaries of persons on leave $158 848 Added saving on new programs 55 400 Total Reductions $214 248 Net Operating Increase Requested (General Revenue Fund) $439 886 I I I . Attention was called to the probable reduction of $500,000 in University income from the figure originally estimated in October when the budget was prepared, and the question was raised whether the State should offset this reduction by an additional appropriation from the General Revenue Fund. After thorough discussion, the Director of Finance indicated his concurrence in the following plan: 1. An addition of $500,000 to the appropriation for operation from the General Revenue Fund, in lieu of $439,886 requested by us, but without any further addition to cover decreased fee income. 2. A decrease of $500,000 in the regular appropriation of the University Income Fund. 3. A special appropriation of $500,000 from the University Income Fund, contingent on receipts under government contracts for Army and Navy training programs applicable to budgetary operations. The net result of these proposals is a total basic operating budget in the amount recommended by the Governor, but with an increase of $500,000 in the amount of that budget coming from tax revenues, and a corresponding decrease in the University Income Fund. The University would also be given special authority to expend an added $500,000 of University income if that income materializes, thus giving the University a total operating budget, including this supplementary sum, slightly above the revised amount requested, although still slightly below the original request. T h e provision of $500,000 for airport buildings and equipment was discussed very briefly but no commitment was made by the Director of Finance. He suggested, however, that this appropriation be requested in a bill separate from the University operating budget. The Director also indicated his concurrence in a special appropriation of $443,000 to enable the University to prepay all callable bonds on the Medical and Dental Building and to pay the balance of indebtedness on Illini Hall and the Union Arcade Building. This arrangement would result in a saving of approximately $44,000 to the University in its operating expenses for the coming biennium. Schedules I and II are submitted to summarize these proposals.