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Caption: Board of Trustees Minutes - 1972 This is a reduced-resolution page image for fast online browsing.
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EXTRACTED TEXT FROM PAGE:
1971] U N I V E R S I T Y OF I L L I N O I S 343 General Assembly for retirement contributions from $7,618,841 to $5,280,500 — a decrease of $2,194,323. His stated intention was to bring appropriations for the State Universities Retirement System as a whole "closer to a pay-as-you-go level." This overall goal apparently was accomplished, although the amount for the University of Illinois is estimated to be below the level of FY 1972 benefit payments. Thus the Governor has chosen to follow a funding policy for the Universities Retirement System that is directly contrary to the statutory direction established by the Seventy-fifth General Assembly — although in line with the actions of the Seventy-sixth and Seventy-seventh General Assemblies in failing to fund the System at the required statutory level. In the interest of the System's financial stability, the economic security of its future beneficiaries, and its comparative attractiveness to prospective faculty members, it is recommended that the Board of Trustees urge the General Assembly to restore these funds. Impact of the Governor's Reductions in Operating Funds By way of providing additional background for a discussion of the effects of the Governor's reductions in funds for F Y 1972 operations, the following is a summary of the overall increases over the F Y 1971 total for operations (exclusive of retirement contributions), as reflected in successive versions of S.B. 717: Increase over FY 1971 Approved by Board of Higher Education $21 597 573 Passed by the General Assembly 9 187 768 Approved by the Governor — 1 939 9041 Before summarizing the adverse effects of the Governor's reductions on University programs, the great importance of the special allotment of $2.0 million for expansion in the health fields should be recognized. Without this addition, it would be virtually impossible to maintain the development schedule for the University's new medical schools in Peoria, Rockford, and Urbana-Champaign; and this failure would have jeopardized a federal grant of some $3.8 million (covering a five-year period). The new School of Public Health likewise can go forward, although without as much support as desirable. A budget cut of $3.9 million below the F Y 1971 level for regular operations (aside from funds for expansion in the health fields) means a reduction of 2.16 per cent. T h e following are the most serious consequences of such a decrease, in the face of unavoidable increases in workloads and operating costs. Salary increases. General salary and wage increases will be impossible — beyond those required by law or by prior agreements. The General Assembly approved $6.3 million for salary increases, and the Board of Higher Education had recommended $8.99 million. The Governor's elimination of all funds for this purpose is by far the most serious deficiency in the F Y 1972 budget as it stands. Staff for increased enrollment. No funds can be allotted for staff additions to handle the excess of 2,546 students above the "budgeted" level for last year — except for the increases in the health fields. (The increase in overall enrollment is from a total of 54,165 students in F Y 1971 to 56,711 in F Y 1972.) Teaching overloads are inevitable. Price increases. Although price increases can be met to some extent by reduction in purchases, certain types are virtually "intractable" (e.g., the estimated increase of over $700,000 in the cost of fuel oil, and the sharp increases in the costs of the University of Illinois Hospital and the Division of Services for Crippled Children). Although the latter types of increases can be met in part through reductions in services, such curtailment would work great hardships upon clienteles least able to meet them; hence, the University will retrench in these areas only if compelled to do so. 1 As noted above, the Governor favors an addition of $3.9 million from University income to bring the net increase over F Y 1971 to slightly tinder $2.0 million — provided that the added increment comes from increased tuition.
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