Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 451]

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BOARD OF TRUSTEES

[January 14

Budget Report, Fiscal Year 1983

T h e University budget request moved into "Phase I I " in January when the Illinois Board of Higher Education approved recommendations for the support of higher education in Fiscal Year 1983. T h e recommendations, in my judgment, can be described as stringent and reflect the strains now clearly evident in the Illinois economy. Stringent as the recommendations are, if approved by the governor and the General Assembly, they would allow the University of Illinois to continue to make progress, even in an extraordinarily difficult economic time. Although the increase in general revenue support for the University is approximately 7 percent and well below the level of general revenue support recommended by the Board of Trustees, the recommendations adhere to the same fundamental priorities established by this board. Improved compensation for faculty and staff members at the University of Illinois remains the number one priority. This item alone consumes some two-thirds of the recommended increase for the University of Illinois. In the area of program improvements, these too reflect our priorities, including the need to revitalize programs in science and engineering, repair equipment budgets, and address needs such as those in law, veterinary medicine, the Extended Day program, and others. These program needs, as they were last year, are being met largely from the differential tuition revenues, underlining again, in my judgment, the importance of this program. Achievement of the budgets as recommended by the Board of Higher Education will require continued cooperation from the universities, students, the governor and members of the General Assembly. As for the University, we must recognize the difficult times in which we live and provide a portion of the monies needed to accomplish the overall budget program through internal reallocation. This we are willing to do, although I do not believe we can go beyond the figures already recommended. In the case of students and their parents, they too will carry a disproportionate burden in the form of higher tuition levels. These will come at a time when it is unlikely they will be compensated by corresponding increases in state and federal student aid. T h e governor in recent years has made clear his commitment to restore fiscal stability in our universities and to improve compensation for faculty and staff members. This has been recognized from the start as a multi-year effort. It will require that the governor and the leaders of the General Assembly again accord a stronger priority to higher education. A special word is in order in regard to the need to strengthen the fiscal health of the State Universities Retirement System ( S U R S ) . The Board of Higher Education recommended that SURS funding be increased by nearly $33 million in order to restore funding to the gross benefit pay-out level. Trustee Howard, president of SURS, has written me, indicating his strong support for that recommendation. Clearly, the SURS must receive a sharp increase in support to restore it, at a very minimum, to net pay-out and preferably, as recommended by the Board of Higher Education to the gross pay-out level. In the weeks and months ahead we will continue to work as aggressively as possible to articulate the needs of the University, recognizing that the fundamental fiscal problems faced by our universities are not likely to be resolved until the State of Illinois makes fundamental revisions in the tax structure necessary to strengthen the revenue base. I n the meantime, our approach for FY83 will be one of prudence and balance.

Campaign for Illinois

I am pleased to report to you that the Campaign for Illinois achieved its target to have in excess of $60 million in pledges and contributions by December 3 1 , >981. All of us in the University community owe a debt of gratitude to William Karnes and to others who are providing leadership to the campaign. Increasing