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 - Budget Update

To:    Members of the University of Illinois Community
From:  President B. Joseph White
Re:    Budget Update

  I write to provide an update on where things stand regarding the 
University of Illinois budget for fiscal 2009 and 2010.

  The work of the University is education, research and service, including 
health care delivery. We are fortunate in that our work, in general, has 
not declined as it has in so many organizations during the severe economic 
recession of the last sixteen months.  We have just as many students to 
educate as a year ago, no fewer research grants and contracts to fulfill, 
the same number of buildings to maintain, and so on.  We have financial 
challenges to manage, but in general we are holding our own during a very 
difficult time.

  The total budget deficit for the state of Illinois for fiscal year 2009 
(July 1, 2008-June 30, 2009) and 2010 (July 1, 2009-June 30, 2010) is 
estimated to be more than a combined $11 billion. Last fall, the 
University was directed to reserve 2.5 percent of its fiscal 2009 
operating appropriation, and we did so without impacting our core missions 
or employment thanks to prudent financial planning. Now, Gov. Pat Quinn 
has proposed a fiscal 2010 budget that would restore the 2.5 percent 
rescission and provide a 1.1 percent increase in the U of I general 
operating appropriation. Included in the governor's spending priorities 
are additional funds for student assistance and capital support for 
renovation of existing buildings and construction of new facilities.

  The Illinois Senate and House have begun their legislative deliberations 
and I am cautiously optimistic that the final state budget will provide 
additional support for higher education and the U of I. We take nothing 
for granted given the state's fiscal condition, but in several recent 
trips to the Statehouse, I have found that our message of the University's 
value has been well received by Senators and Representatives, legislative 
leaders and Gov. Quinn. During U of I Lobby Day on April 1 nearly 200 
students and alumni representing all three campuses fanned out through the 
Capitol to make our case to their respective legislators.

  In Washington, the federal economic stimulus plan (American Recovery and 
Reinvestment Act of 2009) passed by Congress contains numerous beneficial 
provisions. These include additional student financial aid grants to keep 
college accessible and affordable, as well as funds to assist the state 
with our operating budget. Also, the plan invests billions more in new 
money for science and research that our faculty, provosts and vice 
chancellors for research, and their staffs, are pursuing aggressively. As 
in Springfield, we are in touch with these federal funding agencies and 
members of the Illinois congressional delegation to make our case.

  In sum, our aspiration is to be part of the solution to the severe 
economic downturn and not to add to the problem. We want to keep our 
people working--stimulating the economy, educating our citizens and making 
the discoveries that will keep Illinois and America globally competitive. 
When a decision about tuition for 2009-10 is made this spring, our desire 
will be to hold it to a level that recognizes the financial circumstances 
of students and their families in a troubled economy. 

  The Trustees and I are mindful of the need to prudently manage the 
institution, and we deeply appreciate your on-going efforts to contain 
costs while maintaining quality. While the near-term future is uncertain, 
I am confident that the University of Illinois will weather this storm, as 
it has countless others over 140 years, and will continue to be the 
state's most valuable asset in creating a prosperous future for our 
citizens.

  A website -- <http://www.uillinois.edu/our/news/BudgetOutlook.cfm> -- 
established last fall and updated regularly continues to be your best 
central source of information about the state budget, the federal stimulus 
package, University plans and priorities, internal communications and 
ongoing media coverage of the economy. 

  Again, my thanks for all you do for our students and the University.  I 
will keep you posted as new developments occur.  


This mailing approved by:
The Office of the President

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