Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 118]

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1982]

UNIVERSITY OF ILLINOIS

109

Hahn, Mr. Howard, Mr. Madden, Mr. Neal, Mr. Stone; no, none; absent, Mrs. Shepherd, Governor Thompson. (The student advisory vote was: Aye, Mr. Bandala, Mr. Cobb, Miss Forsyth; no, none.) Mr. Forsyth and Mr. Neal expressed appreciation for the services over the years of Dr. Begando and Dr. Riddle. Dr. Langenberg spoke briefly, expressing his pleasure at the appointment. He acknowledged that these are difficult times for the University, but expressed the belief that it could also be a time of opportunity. At 11:00 a.m. the board recessed to reconvene at 1:00 p.m. All those present at the morning meeting of the board were present widi the exception of Mr. Neal. The board reconvened to consider the following recommendation.

Recommended Response to the Mandated Reduction in State Support for the University of Illinois in FY 1983

(2) On December 8, 1982, this University and the rest of public higher education in Illinois received the following letter from Governor James R. Thompson outlining the fiscal crisis facing the State of Illinois and its implications for the State's ability to support University of Illinois programs at the levels specified earlier in the appropriation bill. The essence of the governor's message follows: Based upon financial trends and the economic outlook through October, together with a preliminary review of November's experience and outlook, Bureau of the Budget estimates of State revenues have been reduced by $200 million. The legislature approved two measures that allow: • An acceleration of public utility tax revenues. This measure will yield a one-time cash gain of $34 million in Fiscal Year 1983. • Authority for the governor to establish a reserve for all appropriations. Based upon these measures, I am preparing to make reductions in State spending to bring the State budget into balance. In total, I will request the agencies of State government to reserve $164 million in State general fund revenues. Therefore, I am requesting that the Board of Higher Education recommend a specific allocation of the reduced amount of General Revenue funds among all higher education programs and agencies. In the remainder of Fiscal Year 1983, I will exercise my authority to request a spending reserve of $20,159.5 thousand from higher education agencies and institutions. T h e harsh implication for the University of Illinois is a further reduction in operating support from the State's General Revenue Fund by 2 percent, or some $7.1 million for the balance of this academic year. The impact is even heavier than appears on the surface since only six months remain in which to make the reductions and capture the necessary savings. Moreover, the fiscal picture continues to remain uncertain. The governor and other public officials have indicated that a continued downward spiral in the State's fiscal condition could lead to more reductions in state programs and services before the end of the fiscal year. Members of the Board of Trustees and others in the University community are acutely aware of the context in which these reductions must be made.