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 - A Letter from the President

February 25, 2004


Dear Colleagues:

It is the time of year when we turn our attention to the state capital 
and the level of public financial support we can expect for the coming 
year from the governor and state legislature.

Governor Blagojevich presented his budget plan for Fiscal Year 2005 last 
week, and I will resume my meetings with lawmakers in Springfield this 
week. My visits to the statehouse this spring will include testimony on 
behalf of the university to appropriations committees in March and April. 
The legislative schedule calls for final action on the state's $43.5 
billion budget by the end of May.

Unfortunately, public higher education is an area of state funding 
recommended for a reduction again as Illinois's economic climate remains 
weak, and the governor's office projects a $1.7 billion deficit for the 
coming fiscal year, which begins July l.

The governor has proposed a Fiscal Year 2005 budget for Illinois public 
universities that is 1.9 percent lower than the appropriation for the 
current fiscal year. For the University of Illinois, the recommendation 
is $682.9 million, a reduction of $13.9 million, or 2 percent, from the 
university's state appropriation for Fiscal Year 2004. In addition, other 
reductions in statewide grant programs will have a negative impact on 
students and faculty on all three campuses. The governor's 
recommendations on capital projects spending will be issued in March.

As we know all too well, this represents the third year in a row of state 
funding cuts for the U of I and the state's other public universities. If 
there is a silver lining--a sign perhaps of a moderately improving 
economy--it is that this reduction is significantly smaller than those in 
each of the previous two fiscal years.

Some confusion arose last week when budget data was presented in 
Springfield showing "all funds" resources for public universities, not 
just state general revenue funds. Thus, including revenue from tuition, 
research, fees, auxiliaries, endowment earnings, etc.--in addition to our 
state funds--may have left some with the impression our funding had 
increased.

Yes, revenue from those important additional sources has risen and helped 
offset the impact of state funding reductions. But the bottom line is: 
those funds are not interchangeable with state dollars, which support our 
core salaries and operations, and we have experienced declining state 
support in a period of economic crisis.

As the legislative budgetary process unfolds, I will be working closely 
with leadership from each of the campuses to make a clear and convincing 
case for the needs of our faculty, students, and staff. I will keep you 
apprised of our progress and invite you to stay abreast of the process by 
connecting to my Web site, www.uillinois.edu/president/.

	
James J. Stukel
President
uipres@uillinois.edu 
This mailing approved by:
The Office of the President

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