Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 137]

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1936]

UNIVERSITY OF ILLINOIS ALLOCATION OF STATE REVENUES

135

At this point, President Karraker presented the following report.

December 14, 1936 To the Board of Trustees: T h e special committee appointed to consider sources of state revenue for the University with particular reference to the University mill t a x fund, submits this report: A property t a x of one-third mill for the University is authorized under an Act passed in 1911. In lieu of this tax, an amount equivalent to such a levy on present property valuation is set aside from the Retailers Occupational T a x under an amendment to the State Finance Act passed in 1935. F r o m 1912 to 1928 the average annual revenue from the property tax levy was $2,438,000. T h e amount now allocated to the fund in lieu of a property tax is $157,000 per month, or $1,884,000 per year. T h e Committee feels that the assessed valuation of property in the state is no longer a suitable basis for a stable revenue for the University and should be abandoned. It suggests also that the University should endeavor to secure a definite source of revenue which would cover its needs from year to year for all current operation, leaving only capital items to be provided for out of the general revenue of the State. All other special funds for which separate property taxes were formerly levied, have been adjusted t o meet increased needs, and are made a prior claim on the Retailers Occupational T a x receipts to the extent of these needs. T h e University fund is the only one in which such an adjustment has not been made. T h e plan followed in the State Distributive School Fund, whereby one twelfth of the total appropriation to the Fund for each year is transferred monthly to it, seems to the Committee to be the best arrangement. Accordingly, the Committee recommends: 1. T h a t the University Counsel be directed to prepare an amendment to the State Finance Act providing that there shall be transferred to the University of Illinois Fund monthly, out of the Occupational T a x Fund, one twelfth of the amount appropriated for that year from the University of Illinois Fund. 2. That the President of the University be authorized to secure the introduction of a bill covering such an amendment. 3. T h a t in the event of the passage of that bill all appropriations to be requested from the State from t a x revenues other than for capital additions to be made payable from the University of Illinois Fund.

O. M. KAKRAKER, Chairman

On motion of Mr. Barrett, this report was accepted and the special committee was discharged, and the President of the University was authorized to sponsor the legislation necessary to make effective the recommendations of the committee.

F I N A N C I N G OF RETIRING A L L O W A N C E SYSTEM

At this point, President Karraker brought up the matter of the study of methods and means of providing the necessary financial support for the system of retiring allowances. On motion of Mr. Mayer, the President of the University was authorized to sponsor legislation to provide for recognition of the system of retiring allowances on the present pay-as-you-go basis, and the Finance Committee was requested to continue its study of the details of the system. The Board resumed its consideration of matters presented by the President of the University.