20, No. 6, Sept. 21, 2000
Trustees approve FY2001 operating
budget of more than $2.5 billion
The UI Board of
Trustees has approved an operating budget for the fiscal year that began
July 1 of slightly more than $2.5 billion, 3.9 percent more than last
The board approved the spending plan at a meeting in the Illini Unions
Pine Lounge Sept. 13 and 14. Trustees also agreed on what theyll
ask for in next years budget.
The current spending plan contains direct taxpayer support of $756 million,
up about 5.9 percent. The rest of the budget is composed of tuition,
grants and contracts, the medical practice plan, federal support and
auxiliary activities, such as bookstores, student housing and parking.
"This university acknowledges both our gratitude and our responsibility
to the people of Illinois who directly contribute about a third of this
years budget," said UI President James J. Stukel. "Once
again the Legislature concurred with the governors program initiatives,
among them advancing the university in computer science and biotechnology
so the university can further the states interest in these
key high-tech areas and restoring faculty positions lost in the
last decade as well as upgrading and improving student access to advanced
The state-funded portion of the operating budget helps underwrite a
basic salary increase program averaging 3 percent for all employee groups.
For competitive reasons, the campuses will use reallocated funds to
supplement the basic salary for faculty. The university expects to reallocate
about $13 million for highest priority academic and support programs
and to cover unavoidable cost increases such as sick-leave payments
and utilities. More than half of the redirected money, however, is for
The operating budget is effective until June 30, 2001, and is the day-to-day
spending plan for the three campuses, which have a combined enrollment
of about 65,000 students.
The request for next years operating budget is about 8 percent
more -- $79.7 million -- than this years base budget.
It asks for a 4 percent increase in state funds for general salary increases,
which would cost about $30 million. Medicare and Workers Compensation
add another $940,000 to payroll costs. General price increases, utility
and library hikes are set at $7.4 million. With the cost of opening
new buildings added in ($2.9 million), the overall increase sought for
"continuing components" is nearly $42 million, or 4.2 percent
above the current year.
The next largest piece of the FY2002 request is $14.4 million for six
universitywide academic program initiatives. Included is a remodeling
request fund of $8 million for repair and renovations of major buildings
at Chicago and Urbana-Champaign; $750,000 for UI Online, which provides
development grants to cover the initial costs of converting an existing
degree or certificate program to an online format; and $750,000 to support
the initiation of a preschool-to-16 partnership, a collaboration among
education institutions from preschool through university levels.
The UI also seeks $14 million for four central areas in the universitys
academic programs. In the area called "strengthening the academic
base," for example, the Urbana-Champaign campus is asking for $1
million to sustain momentum in rebuilding the faculty, and $1.8 million
in recurring funds to meet the start-up requirements of new faculty
The UI seeks $3.75 million for instructional technology, to increase
network capacity at Urbana-Champaign, improve technology infrastructure
at Chicago and upgrade instructional technology at Springfield, among
The third area of academic program initiatives seeks $1.6 million for
outreach and service programs at Chicago and Urbana, and for the Fire
Service Institute at Urbana.
Finally, the FY02 operating budget request includes $9.6 million for
two statewide initiatives in higher education: $7.6 million in continued
support of a five-year Illinois Board of Higher Education Plan to increase
the ability of public universities to compete with peers in the faculty
and staff salary market; and $2 million to continue building a steady
and sustainable source of facilities renovation support.
This years operating base budget is just over $1 billion. If the
entire university request for FY 2002 were granted, the total would
be nearly $1.1 billion, or 7.95 percent greater than this year.
Also Sept. 14, the trustees approved a list of requested capital projects
totaling $243 million for the repair and renovation of existing buildings,
for new buildings and for utility upgrades. Eleven projects are on the
list; typically the Legislature supports bonding for the first few projects
and the remainder move up for consideration in subsequent years.
The top project is repair and renovation at all three campuses ($10
million total), followed by a campus chiller at Urbana for $45 million
and $32 million in matching funds for the construction of a new computer
science building at Urbana.
The operating and capital requests now go to the Illinois Board of Higher
Education for review, and later go to the governor and the Illinois
General Assembly for action in the spring legislative.