Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 362]

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352

BOARD OF TRUSTEES

[September 10

have been completed within the funds available to the University. For the purpose of determining payments for a fractional year of academic service, the academic year at the Chicago campus is defined as September 16 through June 15, and at the Urbana-Champaign campus as August 21 through May 20. Accordingly, I recommend approval of the budget document entitled "Academic Personnel 1987-88" 1 and request authorization, in accord with the needs of the University and the equitable interests involved, and within total income as it accrues: (a) to accept resignations; (b) to make such additional appointments as are necessary and to approve the issuance of notices of nonreappointment, subject to the provisions of the University of Illinois Statutes, General Rules Concerning University Organization and Procedure, and Policy and Rules — Nonacademic; and (c) to make such adjustments in items included in the budget as are needed, such adjustments to be covered in periodic reports to the Board of Trustees. O n m o t i o n of M r . F o r s y t h , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d a n d a u t h o r i t y w a s g i v e n as r e q u e s t e d b y t h e f o l l o w i n g v o t e : A y e , M r s . C a l d e r , M r . Forsyth, M r s . Gravenhorst, M r . H a h n , M r . H o w a r d , M r . Logan, M r s . S h e p h e r d , M i s s S m i t h , M r . Wolff; n o , n o n e ; a b s e n t , G o v e r n o r T h o m p s o n . ( T h e s t u d e n t advisory vote w a s : Aye, M r . Evenson, M r . Wylie; no, none.) Tuition A d j u s t m e n t s , Fiscal Y e a r 1 9 8 8 (2) In July, the governor reduced the University's FY 1988 General Revenue Fund and Agriculture Premium Fund appropriations by $18 million below the "level budget" figures approved by the General Assembly. Beyond absorbing this reduction, the University faces an additional $6 million in unavoidable requirements related to last year's salary obligations, operations and maintenance needs for space, medicare costs for employees, and other items. This combination of appropriations reductions and unavoidable costs has produced a FY 1988 budget shortfall of $24 million. Several actions have been taken to help bring the University's FY 1988 budget into balance: salary and cost increases have been foregone, and all new program initiatives have been halted. T h e operating budgets of academic and administrative units have been reduced; funds normally available for renovation projects or equipment replacement have been eliminated; and the income available from tuition increases already approved has been allocated. Even with these measures, however, the budget remains nearly $6 million out of balance. T o make further cuts in unit budgets would seriously threaten the quality of instructional programs throughout the University. At the same time, students have indicated a willingness to share in the burden of protecting University programs as much as possible from further threats to quality. T o do so, additional tuition income is required. An increase of $150 per semester for the second semester a t Urbana and $75 each for the winter and spring quarters at Chicago is recommended to generate sufficient funds to bring the FY 1988 budget into balance. An increase of this magnitude is estimated to generate almost $6 million ($5.85 million). Proportional increases are recommended for part-time students, for nonresidents, and for correspondence and extramural courses, continuing tuition policies that now exist for these areas. T h e specific changes in tuition rates are outlined in the following table.

1 Vice president and comptroller Bazzani reported that the "Budget Summary," a document normally available at this tune, will be presented to the board within the next two months. It has been delayed due to the need to consider the question of tuition and the possible restoration of funds in the base budget. (The "Budget Summary" was completed and distributed at the October 15, 1987, meeting.)