To: All Faculty & All Academic Professionals & All Civil Service Staff
           <everybody@illinois.edu> 
    From: "uipres@uillinois.edu" <uipres@uillinois.edu>

Reply-To: uipres@uillinois.edu
 Subject: MASSMAIL - Press release re: the new state budget

June 5, 2002


Members of the University of Illinois Community:


The following news release, issued Monday, outlines how the university 
fared in the new state budget passed Sunday by the Illinois Legislature. 
It is now on the governor's desk for his review and possible eventual 
approval. More details and impacts will be known in the coming weeks and 
months.

Thank you for your support during these last several months, which have 
been particularly active as our FY03 budget was being determined.


James J. Stukel
President
uipres@uillinois.edu



**************************************************




	URBANA--University of Illinois President James J. Stukel today 
commended Gov. George Ryan and the Illinois General Assembly for crafting 
a workable budget in a tough fiscal environment and he pledged the 
university's entire leadership will work diligently to manage the 
university's finances effectively.
	The Illinois General Assembly approved a new state budget Sunday 
and sent it to Gov. George Ryan for his action. The U of I's appropriation 
of about $780 million stayed at the level first recommended by the 
governor in February, and then again on Memorial Day evening. 
	The university's operating budget was cut $25 million below the 
start of the FY02 budget and another $25 million must be shifted to absorb 
health insurance costs. In addition, the university faces $15 million in 
costs that cannot be avoided, such as energy, union contract wage 
increases, and liability insurance.
	"The $65 million impact on our day-to-day budget calls for 
creative and dedicated leaders to help this great university maneuver its 
way forward for the next year--and beyond," Stukel said. "We believe that 
leadership is in place.
	"And, while this problem in our operating budget approaches 
historic levels, we know this university has overcome hard times before. 
We are resilient, and with the cooperation and goodwill of the Illinois 
family, we will overcome these obstacles, too." 
	The capital budget, on the other hand, contained only good news 
for the University of Illinois. University of Illinois projects in the new 
budget include $10.7 million for repair and renovation at all three 
campuses, $15 million for the UIS classroom and office building, $25 
million for the College of Medicine in Chicago, $57.6 million for the UIC 
Chemical Sciences Building, and $18 million for the Microelectronics Lab 
expansion at Urbana-Champaign. Additionally, three projects at Urbana-
Champaign were reappropriated from last year: $67.5 million for the Post-
Genomics Institute, $27 million for the National Center for Supercomputing 
Applications, and $8 million for the technology incubator. 
	"The capital budget is a sure sign of faith in the future," Stukel 
said. "Important in their own right, these projects have a strong symbolic 
value: they say that the university of Illinois will continue to grow 
deeper in the areas in which we already have the advantage of great 
strength."
	Stukel said the campus chancellors, provosts, deans, directors, 
and department heads have spent the last six months on FY02 and FY03 
budget issues and that their continued leadership is essential to keeping 
the U of I moving ahead even in difficult times. He estimates some 600 
positions will be lost across the whole university. Most positions will be 
through attrition, but there have been and will be layoffs of staff.
	"State general tax support is the backbone of the university's day-
to-day operating budget," Stukel said. "It is the essential third, 
however, in that it pays most salaries and wages for faculty and staff; 
puts books in the libraries and equipment in the labs; and powers our 
buildings at the Chicago, Springfield, and Urbana-Champaign campuses and 
at our off-campus sites, such as our extension offices, all across 
Illinois," he said.
	The University of Illinois, which enrolls more than 66,000 
students on campus, is labor intensive. Some 80 percent of the state-
funded portion of the university's operating budget is committed to 
salaries and wages and, in some academic departments, as much as 95 
percent of the budget is tied up in personnel. Earlier this year, Stukel 
announced a general hiring and salary freeze, with exceptions needing high-
level approval.
	"The magnitude of the cuts requires that we reach into our most 
valuable asset--our people--to help cover the loss," Stukel said. "All of 
us who care about this university are deeply concerned about long-range 
effects and jeopardizing our competitive edge."
	The university's Board of Trustees is scheduled to discuss a 
tuition increase soon that adds up to 7 percent to increases the board 
already endorsed for the coming school year: 3 percent at Chicago, 4 
percent at Springfield, and 5 percent at Urbana-Champaign. The total 10 
percent increase over the academic year just ending will generate about 
$17 million in net revenue; 25 cents of each new tuition dollar raised 
will be turned immediately into student financial aid so U of I students 
who are least able to pay the increase are essentially held harmless. If 
the additional tuition is not approved, the university will have to cut 
personnel more deeply.
	Stukel said the university cannot escape negative impacts on its 
essential educational mission. "It is a clear-cut cause-and-effect," he 
said. "Fewer faculty in the classrooms means fewer sections and fewer 
options for our students and other troublesome results. At our core we are 
educators, and it is this mission we will work hardest to protect."
	Stukel thanked Gov. George Ryan, who is an ex officio member of 
the university's Board of Trustees, the House and Senate leaders, and the 
other members of the legislature for their support during the budget 
session and last-hour negotiations. He singled out for special thanks 
Reps. Rick Winkel of Champaign, Tom Berns of Urbana, and Bill Black of 
Danville and retiring Sen. Stan Weaver of Urbana.  
	"This session has been quite a challenge and we're grateful to 
have emerged where we have; we know the outcome could have been far worse. 
For those who stayed with us, we extend our deepest gratitude," he said.
This mailing approved by:
The Office of the President

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