Joseph Ryan

Administration editor

A budget shortfall of $2.9 million is expected for next year despite the 5.9 percent increase in Eastern’s funding recommendations from the Illinois Board of Higher Education, said Eastern President Carol Surles in a letter.

Several administrators met with Faculty Senate Tuesday to discuss the university’s anticipated fiscal year 2002 budget and its $2.9 million shortfall.

Lida Wall, acting vice president for academic affairs; William Weber, acting associate vice president for academic affairs; and Jeff Cooley, acting vice president for business affairs, met with the Senate in an attempt to brainstorm ways to resolve the budget short fall issue.

In the letter, Surles said the majority of the increased funding recommendations, which amount to an increase of $3.67 million in state funding, have been designated for specific initiatives by the IBHE.

“As a result, there is relatively little flexibility in the FY02 budget for us to address,” Surles said in the letter.

Wall said in anticipation of the budget shortfall, department heads are being asked to review their priorities in the context of university-wide priorities and to develop graduated budget reduction scenarios.

The following specific budget shortfalls were detailed by Wall during her presentation:

n $569,800 1 percent faculty salary match

n $39,175 25 percent deferred maintenance match

n $93,750 Incentive funding matches

n $900,000 Annualization of FY00 and FY01 UPI salary agreements

n $350,000 Restore microcomputer replacement budget

n $800,000 Eliminate Network Deficit

n $182,844 3 percent inflationary increase for fixed costs

“The university has to find additional means to fund its outstanding obligations which are projected at $2,935,570,” Wall said.

The largest amount of the budget shortfall, annualization of fiscal year 2000 and 2001, are a result of the past two faculty salary contract negotiations.

Cooley said it is a faculty and staff salary back payment for the months in which contract negotiations exceeded the previous contract for the last two contract negotiations.

The second largest amount of the budget shortfall, $800,000 for network deficit, is a result of the lack of funding due to long-distance telephone deregulation.

Cooley said previously the network system was funded by long-distance telephone tax revenues, which have now diminished severely since the introduction of competition to the market that has resulted in lower long-distance telephone charges.

Other options that may exist to correct the problem include going wireless, changing long-distance telephone providers or operating telephone systems individually, Cooley said.

The third largest budget shortfall is $569,800 for a 1 percent faculty salary match.

Of the $3.6 million state funding increase, 1.1 million was designated for faculty and staff salary increase and $1.14 million was designated for retaining and recruiting critical faculty and staff.

These allocations amount to 5 percent of the 6 percent faculty and staff salary increase that is mandated by the University Professionals of Illinois, the faculty and staff union, recently-agreed-to salary contract.

“Eastern must come up with 1 percent of the salary increase in order to receive the 5 percent from the state,” Wall said.

Weber said it is not just Eastern’s plan to do it this way; it is part of Illinois’ initiative to raise faculty and staff salaries statewide.

In an interview before the meeting, David Radavich, president of UPI, said, “We simply have to find a way to come up with the funds, and I think we can. We have the potential to do so.”

Wall said the projected budget shortfalls are based on an enrollment drop of 150 students. A decrease of much more could harm the budget even more.

However, Cooley said if enrollment increases, that increase will give Eastern available funds to work with.

According to the IBHE, Eastern’s preliminary fall enrollment for 2000 was 9,673 students, which is a drop of 6 percent from the enrollment of 1999’s fall semester, which was 10,816 students.

Cooley said Eastern cannot just raise tuition to increase funds because the IBHE wants to keep college affordable across the state. If Eastern raised tuition, the IBHE would decrease the state funding.

Senate member French Franker, a professor in the department of counseling and student development, asked if there was any way to receive funding from other outside sources or if there was a position that handled such initiatives.

Wall said there was the position of vice president of internal development,t but the position has been vacant, and there is currently no staff or funding for the position.

“This is a university-wide problem, and it is critical that we work together on this,” Wall said.

Radavich said in an interview before the meeting that it is important for UPI to participate in these discussions, and he will support any decisions made by the entire campus, including students.

Wall, Cooley and other vice presidents will be meeting with more than 25 university councils to review the fiscal year 2002 budget projections and to answer questions.

The next scheduled presentation will be at the Council on Academic Affairs meeting at 2 p.m. Thursday in the Arcola/Tuscola room of the Martin Luther King Jr. University Union.