Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 571]

EXTRACTED TEXT FROM PAGE:

1936]

UNIVERSITY OF ILLINOIS

569

Of those who are subject to State Civil Service, 736, or 82.5 per cent, have been certified by the Civil Service Commission as a result of examination. T h e remaining 156 have been employed by the University, subject to examination, and have not yet been called for examination. These positions include 21 of an administrative character, 37 of a clerical character in various departments, and 98 of a mechanical and labor type. Of persons employed in positions not subject to Civil Service, 7 have passed Civil Service examinations and have been certified, leaving 28 persons who have been employed through other than Civil Service procedure. T h i s report w a s received for record. MEMORANDUM ON MODIFICATION OF RETIREMENT SYSTEM (25) I wish to bring to the attention of the Board that in case it seems desirable to propose a change in our method of financing retirement allowances by the contributory and reserve plan now under discussion, it will, if inaugurated, have a very serious effect on the next (1937-39) biennial appropriation. Among the items which it is already clear must be considered in this are: 1. In order to furnish and equip the medical-dental unit, we will have to request about $225,000 more from general State funds in 1937-39. 2. In order to carry out the announced policy of the Board in amortizing the Federal Government loan on the medical-dental unit, it is proposed to apply the balance received from delinquent real-estate taxes and credited to the University of Illinois Mill T a x F u n d (accumulated since July 1, 1935, and formerly assigned to the construction of the Library Addition) as a first payment on the Federal loan. This item may amount to $350,000 or more for the next biennium, 1937-39- ( T h e minimum amount which must be paid on account of this loan during 1937-39 is $167,280.) 3. In order to provide for the Library Addition as the first building item for 1937-39 already approved by the Board and endorsed by the Council, we will have to request $350,000 more from general State funds in 1937-39. 4. In order to begin the accumulation of a retirement fund under the proposed change in method for financing retirement allowances, it is estimated that a lump sum appropriation of $440,000 more from State funds would be needed in 1937-39. 5. In order to merely maintain our present total State appropriation for the current biennium (1935-37), we will have to request about $800,000 more from general State funds in 1937-39, because in the current biennium there was available an accumulated surplus of this amount in the Mill T a x Fund. A summary of these items follows: (1) Furnish and equip medical-dental unit $ 225 000 (2) Amortize loan on medical-dental unit 350 000 (3) Capital item for Library Addition 350 000 (4) Retirement Fund capital item 440 000 Actual increase over present budget Add item ( 5 ) , which is a shift from the University of Illinois Mill T a x Fund to State General Fund and therefore a new demand on general State funds $800 000 Less item (2) payable out of Mill T a x Fund 350 000 Net increase necessary from State General Revenue Fund.. $1 $1 365 000

450 000 815 000

The Comptroller, at this point, presented a preliminary report on the financing of the retiring allowance system. These reports were received for record.