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

Reply-To: presidentwhite@uillinois.edu
 Subject: MASSMAIL - A Message from President Joe White

Dear Colleagues,

This is a busy and exciting period for the University as the academic year 
winds down, commencements are held and we prepare for a productive summer. 
I write at this time to provide a brief update on the resource outlook for 
the University and, more important, what it means for academic quality and 
responsible stewardship of the University of Illinois.

I am pleased to report that, in a nutshell, the resource picture has 
brightened.

The state legislature just provided the University its first appropriation 
increase in five years; the Board of Trustees last month increased tuition 
and established a funding source to eliminate the academic facilities 
deferred maintenance backlog over the next decade; and, private giving is 
up this year.

I believe these are leading indicators of a trend toward a better future. 
They mean that we can maintain and strengthen academic quality, thus 
ensuring attraction, retention and development of an exceptional faculty 
and providing the courses, sections and classes our students need to 
receive a high-quality education and graduate on time. They also mean that 
we can make progress on fixing our physical infrastructure - repairing 
leaky roofs, crumbling concrete and the like. 

I have spoken many times about the need to forge a new Compact for 
financial support of the University of Illinois.  The Compact simply means 
that five parties must do their parts to ensure the University has the 
resources that are a necessary, but not sufficient, condition to create 
the brilliant future we all want for the University of Illinois.  

As we put together the University's budget for Fiscal Year 2007 (FY07), 
which begins on July 1, 2006, the Compact is taking shape very 
effectively. Here is a summary.

The first party in the Compact is the state of Illinois. The University of 
Illinois is the state's most valuable asset in creating a prosperous 
future for the people of Illinois.  We have asked the state to do what it 
can, when it can, to support the University.  After four years of cuts and 
no increases in operating support, I am pleased that the legislature has 
approved a 1.8% appropriation increase for fiscal 2007, which means an 
incremental $10.1 million in base operating funds for the University of 
Illinois. Unfortunately, a capital budget did not pass.

Tuition payers and their families are the second party in the Compact. 
University trustees last month adopted the administration's recommendation 
for new tuition levels to support its core teaching mission and a new 
Academic Facilities Maintenance Fund Assessment designed to help bring 
down our $800 million deferred maintenance problem to a proper level 
within a decade. These actions will provide $35 million in FY07.  
Financial aid from the University and the state has increased and will 
continue to help many students and their families pay for their U of I 
education.  Thanks to strong financial aid, only half of all U of I 
students pay full tuition and fees.

The third party in the Compact is our own faculty. Through your success in 
attracting research grants and contracts, faculty bring almost $700 
million a year into the University to support research and the operation 
of the University.  We are counting on continued success.  

The fourth party in the Compact is private donors.  Individuals, 
corporations and foundations play an important role in supporting the 
University of Illinois through annual and special gifts, both expendable 
and endowment.  This year, total giving is running considerably ahead of 
last year.  We believe that another increase in expendable gifts and 
endowment income from gifts is a reasonable assumption for FY07.  

The fifth party in the Compact is University leadership at every level.  
Reallocation of current spending from lower to higher priorities has 
become, and must remain, a way of life at the University of Illinois.  
This will come as no surprise to every budget manager.  We are counting on 
a 2.5% reallocation to free up resources across the University to 
strengthen academic quality and address other priority needs.  
Reallocation is hard but necessary to ensure that University leadership is 
doing its part to support the University of Illinois as we ask the state, 
our students and their families, the faculty and private donors to do 
their share.

As the Compact comes together, I believe that we can accomplish the 
following:

*Keep a high-quality U of I education accessible and affordable.

*Turn the corner in strengthening academic quality after four extremely 
tough budget years.  

*Serve as good stewards of state assets and fix a large deferred 
maintenance problem within a decade.

I said in my inaugural address that we must strive to create a brilliant 
future for the University of Illinois. Our strategic plans are intended to 
set that high aspiration level.  We must also have the resources required 
for excellence. I am pleased that we are making significant progress in 
this regard.  

I thank all of you for striving for excellence in your own work and for 
your efforts on behalf of the University of Illinois.  I look forward to 
working together in the months and years ahead.

Sincerely,


B. Joseph White
President
This mailing approved by:
The Office of the Chancellor

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