Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 50]

EXTRACTED TEXT FROM PAGE:

1982]

UNIVERSITY OF ILLINOIS

41

advocacy budget proposal as it should be; and a realistic budget proposal, as it must be. T h e key element in the ability of the University of Illinois to compete in the academic world and to meet the needs of Illinois and society at large rests in our capacity to attract and retain top quality faculty and staff members and place in their hands the tools in the laboratories, libraries, and classrooms to do their job. It is in this context that competitive compensation is essential. Recent losses must be recovered and efforts to close the gap between current compensation levels and our goal of at least third in the Big Ten must continue. The quality of the University of Illinois, over the long term, must be supported by a strong, competitive compensation program. Alongside of salaries in the system of priorities, however, we must restore the losses in purchasing power for goods, services, and equipment. Good people must have the equipment and materials to do their job. In our effort to sustain competitive salaries, we have shortchanged these supporting budgets and a proper balance must be restored. Library acquisitions, for example, must receive attention and investment in equipment must be increased. Overall, in our judgment, we should set aside approximately 2 percent of the instructional base each year for academic program improvements — and this we were unable to do in FY 1983, with no new program improvement funds. We will work to turn this around in FY 1984. The FY 1984 budget recommendations urge a special attack on the critical problems facing engineering education. Enrollment growth in engineering has strained these programs to the breaking point. As a stopgap measure, freshman admissions were cut by 10 percent this year and may need to be cut further. These cuts, however, are counter to the public interest. They do not provide an answer for the many highly qualified Illinois residents who were denied access nor do they provide an answer to the needs of the Illinois economy. Funds are needed to employ additional faculty and staff; to improve salaries to avoid losing the top people we already have; to modernize equipment; and to remodel laboratory facilities. We believe we must make a major move on this problem in FY 1984. A problem of substantial and growing proportions exists in the area of retirement funding. For the last two years, in order to help sustain the state's operating budget, the State Universities Retirement System has been funded at a level far below actuarial estimates of need and this must be reversed. Revenues available from Illinois Building Authority payments — no longer required in FY 1984 — should be shifted dollar for dollar to the State Universities Retirement System. Such action would provide a $20 million shot in the arm in FY 1984 and, combined with additional general revenue funds, would begin to restore the retirement system to sound fiscal health. T h e priorities for the University's capital program continue to focus on maintaining the substantial investment the state has in existing facilities through a program of renovation and remodeling. We must meet a few highly specialized needs

and move ahead with the Food for Century III program as part of a broader high technology thrust aimed at long term economic recovery.

Advocacy of the University's budget request is one of the major responsibilities in any year to be carried by the president and the Board of Trustees. T h e urgency this year, however, is more pressing than ever before. T h e quality of the University is in jeopardy. Our basic needs can be met, but will take a stronger tax base, a higher fraction of the state budget for this University and the rest of higher education, and the vitality of an improved economy. These elements will provide the foundation for recovery and enable the University of Illinois to serve the people of Illinois and the nation as we should. It is with this hope, and from this commitment, that I urge your support for these budget recommendations.

On motion of Mr. Madden, the budget was approved, and authority was given as recommended by the following vote: Aye, Mrs. Day, Dr.