Repository: UIHistories Project: Board of Trustees Minutes - 1974 Version B [PAGE 431]

EXTRACTED TEXT FROM PAGE:

1973]

UNIVERSITY OF ILLINOIS

423

regard to the 1974-75 budget requests of the University of Illinois. Of primary importance are two actions of the Illinois Board of Higher Education taken on December 4, 1973. First, the IBHE approved Executive Director's Report #116 which contained the budget recommendations for higher education in Illinois for 1974-75 as developed by the IBHE staff. These recommendations support a need for increased funding of all those agencies and programs included within the purview of the IBHE in an amount of $63,794,000. In order to meet this need, the IBHE recommends that $9,675,400 come from "productivity gains" in senior university systems; $6,421,200 come from increases in income fund sources in senior university systems; and that $47,697,400 be increased support from general revenue fund (tax) sources. For the University of Illinois, increased needs for 1974-75 are recognized in the amount of $18,683,800. Of this amount, $1,940,700 is to come from "productivity gains" (1 per cent of 1973-74 base); $1,547,300 through increases in income fund receipts; and $15,195,800 from general revenue funds. If the amount recommended to be supported through productivity gains is accepted as actual income in support of meeting new needs, the IBHE recommendations differ from the budget request of the University by $4,116,400. The primary elements of this difference are as follows: Division of Services for Crippled Children $ 870 000 Meeting deficiencies in programs, equipment, and libraries 2 230 000 Opening new buildings completed in FY 1974 394 000 Increases for operation and maintenance 417 000 Expansion of health professions program 300 000 Price and salary increases (IBHE recommendation higher than request) (95 000) Total $4 116 000 This recommendation of the Board_ of Higher Education is excellent in concept and does recognize major deficiencies in the support provided the University in recent years. However, it asks that "productivity gains" be made in a base budget which is recognized as inadequate. Because of rising costs and major deficiencies in the non-personnel portion of our budget, the attainment of a productivity gain in that portion of the budget merely adds deficiencies to deficiencies. If, however, the base budget is reduced "across-the-board" to recognize the productivity factor, the following "extreme deficiencies" result. 1. The amount needed to open new buildings $ 394 000 2. An amount needed to deal with a variety of known deficiencies which were recognized by IBHE in its budget discussion 686 000 Equipment deficiencies $392 000 Program deficiencies 294 000 Total $1 080 000 Even after dealing with these problems, the following amounts requested in our budgets would not be available: Services to Crippled Children $ 870 000 O and M increases 417 000 Expansion of health professions 300 000 Program, library, and equipment deficiencies 1 544 000 Total $3 131 000 An effort will be made to deal with the problem of the Division of Services for Crippled Children separate from our general budget request. The remaining unmet need in the amount of $2,261,000 will simply remain unmet. It should be noted that the University is facing severe problems_ in meeting increased fuel costs. It is possible that our efforts to meet deficiencies in the amount described above will be reduced because of needs to divert funds to meet these increased