Eastern Illinois University has reduced its costs for fiscal year 2027 by $1.4 million as a result of plans enacted over the 2025-2026 school year to address the upcoming deficit budget.
A Sept. 11, 2025, Board of Trustees report projected a $596,000 deficit in fiscal year 2027. If Eastern had been given no increase in the amount of state appropriations it received from fiscal year 2026 to fiscal year 2027, the deficit number would’ve swelled to $5.3 million, based on the information in the report.
However, Illinois Gov. JB Pritzker proposed earlier this month giving Eastern Illinois University $49.8 million, a 1% increase, in state appropriations for fiscal year 2027.
This figure contrasts with Eastern’s anticipated state appropriation figure of $52.7 million, which would have been a 6.8% increase.
Eastern will still be facing a deficit budget come the start of fiscal year 2027 on July 1 even if the university receives the full 1% increase. The deficit would be roughly $3.4 million if the proposal is realized.
Eastern President Jay Gatrell was appreciative of the 1% increase proposed by Pritzker.
“Do I wish it was more? Of course I do, but the reality is I’m grateful,” Gatrell said. “I can’t complain.”
Vice President for Business Affairs Matt Bierman also expressed gratitude via email for the 1% proposal and was disappointed Eastern wasn’t budgeted more despite its requests for more state appropriations.
Based on estimates for fiscal year 2027, tuition and fee revenue is expected to decrease by $1.3 million.
To offset the upcoming deficit budget, Eastern executed a series of savings plans throughout the 2025-2026 school year.
Gatrell’s fall update on Sept. 11 kickstarted these initiatives by outlining his budget relief plans, starting with aiming for a student-to-faculty ratio of 17-to-1.
Gatrell said the 1% increase in appropriations proposed by the state has impacted the progress to reaching this ratio.
“I won’t know [how it’s been affected] until next year or two years out,” Gatrell said. “When you deal with a complex organization, it takes at least one year but usually two years to see the impact of a metric.”
On Sept. 12, 2025, the day after Gatrell’s fall update, eligibility letters for the Voluntary Separation Incentive Program were sent to eligible university employees.
Through the VSIP, eligible faculty and staff received a one-time payment worth 20 weeks of their base annual salary, so long as eligible faculty separated from Eastern on Dec. 31, 2025, and academic support professionals, administrative staff and professional staff separated on Jan. 31.
Vice President for Business Affairs Matt Bierman said Eastern expected to save $1.2 million as a result of the VSIP, but $1 million may be put back into the rehiring process.
Despite investing in the hiring process, Gatrell issued a hiring freeze at his spring update that he described as more of a “hiring slush” in a post-update interview.
“In a complex organization, you can’t stop all hiring,” Gatrell said.
Whether or not positions are filled depends on program and departmental need, which results in a case-by-case hiring scenario, Gatrell said.
The hiring freeze is set to last at least through the end of December, and fall enrollment will dictate how much longer the freeze is in effect for, Gatrell said.
The amount saved as a result of the hiring freeze is not yet known.
Cost savings also came from the elimination of 44 positions on Oct. 14, 2025, comprised of 17 staff positions, 23 annually contracted instructors and four academic support professionals.
Gatrell said these layoffs and nonrenewals would save $2 million. However, $1 million will not be realized until fiscal year 2028, according to Bierman.
Bierman also said $270,000 of the $2 million figure would address Eastern’s current deficit. The September 2025 board report indicated a $1.9 million deficit for fiscal year 2026.
Reorganizational mergers are set to move from four colleges to three and merge at least six departments, if approved by the Board of Trustees. If approved, the mergers will go into effect July 1.
Estimated administrative savings under this restructuring proposal total $549,500, according to a memo released by Interim Provost Holly Farley on Jan. 23.
To make up the remaining savings needed to balance the budget, Gatrell said Eastern will review tuition and fee structures and room and board.
Luke Brewer can be reached at 581-2812 or at [email protected].
