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

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

January 21, 2009

To:     Members of the University community
From:   B. Joseph White
Re:     University financial outlook

  Since I wrote to you in late October about our financial outlook, the 
global financial crisis has become a worldwide recession.  At least 43 
states -- Illinois included -- face revenue shortfalls in the current 
fiscal year with consequences for their public universities.

  Last week I briefed the Board of Trustees on our financial outlook.  I 
also spoke with leaders of 15 organizations that represent different 
groups of University employees to brief them and pledge cooperation in 
working together through difficult financial times.
	
  In this message, I want to brief you.  First, let me remind you of what 
I said in my October message: that the University of Illinois, in our 142 
year history, has been through good times and hard times, periods of war 
and stretches of peace, campus tranquility and campus turmoil.  Through it 
all, those who preceded us endured and built a great institution.  We 
intend to do the same in the circumstances we face.

  The situation in Illinois is this: the revenue shortfall for fiscal 2008-
09 is conservatively estimated to be $2.1 billion, and the state has a $4 
billion to $5 billion backlog in unpaid bills; the leadership situation in 
the state leaves us without clear direction on how much state-supported 
budgets may have to be reduced; and we must plan for fiscal 2010 in which 
economic conditions will continue to be difficult.

  In light of this situation, the University's leaders -- chancellors and 
provosts, vice presidents, and deans and directors -- have prepared 
contingency plans to handle a significant rescission of our fiscal 2009 
appropriation should it come from the state in the next several months.

  The planning has been guided by three principles: protect academic 
quality; serve well students and others who depend on us; and minimize 
adverse effects on our people.

  Our plan is to handle a rescission by continuing the freeze on all 
except essential hiring that has been in place for the last three months 
and substantially reducing purchases, travel and other expenses.  We will 
do our best to avoid significant budget-driven layoffs.  However, in light 
of the financial circumstances some units of the University may face, I 
cannot provide complete assurance, especially if the rescission is large.

  With regard to fiscal 2010 that begins July 1, 2009, there is 
substantial uncertainty about what our situation will be.  If the 
recession deepens, if state revenues decline more, and if there is not 
help for the states and higher education from the Obama administration, 
fiscal 2010 could be a very difficult year.  Should this be the case, 
there will be great pressure on all our costs at the University, of which 
75 percent are faculty and staff.  I cannot rule out the kinds of actions 
that we see occurring in some other states now, including voluntary and 
mandatory furlough days.  I hope these will not be needed but we will keep 
you posted as the picture develops.

  Each campus has scheduled a town hall meeting to discuss the budget 
outlook.  I urge you to participate in these meetings to gain a better 
understanding of the challenges we face.

  This week, like many of you, I watched with great pride and admiration 
the inauguration of Barack Obama as the 44th president of the United 
States.  He called on us to look ahead, work together and make the changes 
required for a better future.  This is exactly what we need to do at the 
University of Illinois as we get through difficult times that will give 
way to that better future.

  Thank you for your excellent work and for your membership in the 
University community.  I look forward to continuing to work together.



More detailed information about the budget is available at 
<http://www.uillinois.edu/our/news/BudgetOutlook.cfm>. 
This mailing approved by:
The Office of the President

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