Dear Colleagues:

As we enter a new academic year, I would like to offer a summary report on the current financial status of the campus. First, I would like to thank all of you for your incredible dedication, resolve, and energy. Any large, complex institution is ultimately defined by its people and the excellent reputation that our university enjoys is because of your efforts.

Our campus received an almost $18M reduction in our state appropriation. (This adds to a total decline of $46M since FY10).  We anticipated this decrease and took appropriate steps. Because of the measures we took we did not have to reduce the current operating budgets of units to fund the reduction.

As we have experienced all too often in recent years, the State currently owes the University $221M for FY12. We do anticipate that the State, as it has done in the past, will make these overdue payments by the end of December. Still, the late payments cause an undue burden on our cash-flow planning strategies and create some financial uncertainty.

Despite these challenges, we have taken steps to remain competitive in salaries. We had a salary program in FY12 and we have another in place for this current year. For those not represented by collective bargaining agreements, we have provided 2.5% for a general merit program with a portion of that program targeted to special market/equity concerns. Of course, as this is a merit program, no one is guaranteed an increase.

Finally, we continue to closely monitor the State's attempts to put our pension system on a firmer financial footing. Pension reform by the State is inevitable and we will work closely with President Easter and our campus counterparts at UIS and UIC to ensure that changes made will protect the interests of our employees and the campus.

Yes, we face difficult and persistent challenges but I am confident in our ability to not only confront these current challenges but also to plan a long-term future that is sustainable while allowing for growth. Again, thank you for all that you do on behalf of this great university.


Phyllis M. Wise
Vice President, University of Illinois
Chancellor, University of Illinois at Urbana-Champaign


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