To: All Faculty & All Academic Professionals & All Civil Service Staff &
           All Undergrad Students & All Grad Students <everybody@illinois.edu> 
    From: "B. Joseph White" <presidentwhite@uillinois.edu>

Reply-To: presidentwhite@uillinois.edu
 Subject: MASSMAIL - University Outlook

As you know, we have been experiencing a global financial crisis and 
weakening U.S. and Illinois economies. 

I write to let you know what this may mean for the University of Illinois 
and how we are preparing for whatever financial conditions we could face 
in the months ahead. 

My message is that we must be prepared for the possibility of reduced 
state support, some students and families struggling with tuition bills, 
difficult research grant and contract conditions, and reduced income from 
the University's endowment. 

The U.S. and Illinois economies are weakening rapidly as evidenced by 
rising unemployment and other indicators. While the outlook is uncertain, 
we may be in the early stage of serious recessionary conditions. 

Already we are seeing signs of difficult times with more likely to come. 
Most notable are weak state revenues and slow disbursements to state 
agencies, including the University, and a reduction in the value of the 
University's endowment that reflects the serious decline in U.S. and 
global equity markets. 

Overall, the University is in a reasonable position financially to weather 
a difficult economic period. We have diversified revenue sources, some 
financial reserves, and a strong credit rating. We cannot, however, fully 
immunize ourselves from the painful effects of a severe recession, should 
one occur. 

Experience has taught me that to deal with the effects of a recession 
wisely, we must plan for the worst while we hope for the best. That is 
exactly what University leaders -- vice presidents, chancellors and 
provosts, deans and directors -- are doing. 

I have directed University leaders to prepare contingency plans for 
whatever financial hardships may come our way in the next six to 18 
months. Immediately, we must save money by not filling many open jobs and 
by controlling expenditures of all kinds. Further action will be required 
if financial conditions worsen. 

I expect to receive and review these plans in the next several weeks. We 
will then brief the Board of Trustees, faculty governance groups, and 
representatives of employee and student groups. While strong leadership is 
necessary to navigate a period of financial difficulty, the University is 
a family and we want all members of the family to be fully informed and 
involved as appropriate in determining how to manage through hard times. 

I believe that three principles should guide our approach to dealing with 
tough financial times for the University:

* Protect the academic quality that has been built over many decades. 
* Ensure students have access to the courses and programs they need and 
patients have access to the clinical health care on which they depend.
* Share in a thoughtful and fair way whatever sacrifices are required.

This is a good time to remember that we are the stewards of a great 
University that has experienced and successfully weathered nearly every 
challenge over its 140-year history: booms and busts, recessions and 
recoveries, wars and homecomings, turbulence and triumphs. Through it all, 
the University of Illinois has persevered and thrived. I assure you that 
this will again be the case in the present circumstances. 

Thank you for your work and your membership in the University of Illinois 
community. We will keep you posted in the months ahead. 


This mailing approved by:
The Office of the President

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