Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 524]

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1953]

UNIVERSITY OF ILLINOIS

521

exempting him from payment of tuition fees. Instead of collecting about $350 per year per veteran as in the present (1951-19S3) biennium, the University will not now collect any tuition from veterans who apply for military scholarships. (Obviously it is to their financial advantage to do so.) T h e University's present budget (for 1951-1953) includes not only payments due from the Veterans Administration for veterans' education during the current biennium but also amounts due for the preceding biennium (1949-1951) but not received until after July 1, 1951. While these funds were not available to the University prior to 1951-1953, their use now has nevertheless relieved the state of the expenditure in 1951-1953 of an equivalent amount from its own tax revenues. Paradoxically, this apparent increase for 1953-1955 is not truly an increase in the University's budget; it is rather a transfer back to the State of that part of the cost of operating the University which the United States government has borne for several years. In the judgment of your Committee, this adjustment is necessary in order to maintain the present total budget of educational operating expenditures. III. To provide for salary and wage rate increases $6 000 000 Convincing evidence was given your Committee, in addition to the information the Board as a whole received on October 24, 1952, to indicate that this amount is needed to maintain salary and wage scales at levels which will enable the University to retain faculty personnel in competition with other institutions and with governmental agencies. Salary and wage adjustments are indicated by cost of living factors, by the. comparative position of faculty and other groups, together with the comparative positions of nonacademic employees and other outside groups, and the University's policy of paying prevailing rates of wages. An effective presentation was made by representatives of the Illinois Chapter of the American Association of University Professors and by the Director of Nonacademic Personnel. The Chairman of the Committee received a telegram from the President of the Illinois State Federation of Labor urging support of the provisions in the budget which will permit adjustments for both academic and nonacademic employees. It will be noted that the original amount requested, supported as indicated, had already been reduced from $g,ooo,ooo to $6,000,000. Your Committee is of the opinion that this latter amount is justified. IV. To meet employer contributions required by the University Retirement System $303 868 This is in the nature of a pre-existing, statutory fixed charge. It is the amount required under the provisions of the Act establishing the University Retirement System of Illinois. Hence no reduction here is feasible. V. To meet anticipated increases in enrollment and to provide for growth and development $4 287 641 In this part of the budget, your Committee had before it a detailed breakdown of the budget estimates of all colleges and schools. Several of the deans and directors gave the Committee informative illustrations and examples of the educational and research programs of their respective divisions which require additions to their budget. As the Board was informed, the original estimates of the deans, directors, and other general officers, after a careful screening of the requests of departments and subdivisions, totaled $9,370,000. The President of the University recommended and the Board has approved less than half of this sum, namely $4,287,641. Your Committee does not recommend any further reduction in this part of the budget estimates. VI. Increase in activities which produce income $35o 000 Income of all auxiliary enterprises and revolving activities (for example, sales, income from rents and food services) must be deposited in the State Treasury for the use of the University and is appropriated to the University for the operations of these enterprises. Any increase or decrease in the volume of business of such auxiliary enterprises and revolving activities does not affect the state general revenue budget, but it must nevertheless be reflected in the appropriation from the