Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 559]

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548

BOARD OF TRUSTEES

[March 17

BUSINESS PRESENTED BY THE PRESIDENT OF THE UNIVERSITY President's Reports

President Corbally presented a report on selected topics of current interest, copies of which were distributed at the meeting, and a copy was filed with the Secretary of the Board. President Corbally also reported that the contract between the University and the Levis Sponsors had been signed and that copies of that contract and that of the Sponsors with the Macke Company had been sent to the Trustees for information. He further reported that the contract with Control Data Corporation had been signed since the last meeting and invited questions from the Trustees on either of the two documents. The President then presented the following statement.

Statement Concerning Fiscal Year (FY) 1977 Budgets

On March 3, 1976, in his annual budget message Governor Walker recommended total appropriations of $817,559,200 for higher education for fiscal year (FY) 1977. This recommendation for FY 1977 operating funds represents increases of $43,352,300 in total resources and $40,108,200 in general revenue funds for FY 1977 over FY 1976 for all of higher education. T h e increases recommended in the Governor's budget message contrast with the Illinois Board of Higher Education (IBHE) recommendations of increases of $90,447,400 (with tuition increases) and of $85,556,300 in general revenue funds. T h e impact of potential reductions to the University's budget request in terms of this budget message are major. T h e budget increment for FY 1977 of $26,780,400' approved by the Board of Trustees was described as a: . . . set of items and programs which are needed to continue the scope and mission of the University of Illinois — tempered by the awareness of restricted resources. and yet, significant reductions to the University's request, beyond IBHE recommendations, may take place in the State's legislative and executive budgetary decision-making process. I n view of the numerous budget-related uncertainties facing the University for the next few months, a set of decisions must be made now, based on the Governor's budget message, to allow the internal campus budget process to continue. These decisions should not be construed as the final set of recommendations, which I will bring to you in September, but rather should be treated as the minimum maintenance continuation elements to which we must commit now. T h e following budget allocations for FY 1977 are necessary merely to continue the operations of the University: 1. Salaries — 2.5 percent ($6,218,200). First priority will be given to the annualization of salary increases which were granted in FY 1976 ($2,238,600). T h e remaining funds ($3,979,600) will be sufficient to provide periodic and superior performance increases to open-range nonacademic personnel and to grant an average 2.5 percent merit increase to all other employees. 2. General Price Increases—7.0 percent ($2,239,300). Consistent with the original philosophy of the University and reinforced by the recommendations of the IBHE, the loss of purchasing power for expense and equipment items cannot be allowed to continue. 3. Utility Price I n c r e a s e s — 1 5 percent ($1,770,600). Current trend d a t a indi1 Adjusted by inclusion in FY 1976 base of Chicago Public Health Hospitals and Clinics — $2,495,900.