Leatherneck Nation

Neckerchief wrote: ↑Sat Jun 15, 2019 6:41 amThe Board passed a deficit budget for 2019-2020.

When it was originally announced, the FY20 Budget was $20 million out-of-balance. The hope was that the State would increase its funding to cover that $20 million short-fall.

I have not heard if the 5% increase will be enough to cover that $20 million.

The new fiscal year starts on July 1. If there are more cuts to be made, we should be hearing about them soon.

Our appropriation for FY 20 will be something like 2.5 million more than last year. Nowhere close to plugging a 20 million deficit.

Leatherneck10 wrote: ↑Sat Jun 15, 2019 8:36 pm Our appropriation for FY 20 will be something like 2.5 million more than last year. Nowhere close to plugging a 20 million deficit.

At the BOT meeting it was indicated that even if the admin got all the cuts it wanted, we still wouldn't make the $20M cut.

Rather than trying to cut our way out of the financial mess, as indicated by one of the speakers and reiterated by one of the Board members, we must GROW out way out. The financial mess is not a state funding issue, but a nearly 40% decline in enrollment since the peak in 2006 and one that is projected to be a best case 2% reduction, and as much as 9% for Fall 2019 compared to Fall 2018.

There simply are not enough at the lower end of the pay scale to cut, and even if cuts finally hit the $100K+ administrator range, we cannot cut our way out and continue to function. We must grow!, something the Board emphasized in terms of program opportunities at Friday's meeting.

Tere North wrote: ↑Sat Jun 15, 2019 11:28 pm

Leatherneck10 wrote: ↑Sat Jun 15, 2019 8:36 pm Our appropriation for FY 20 will be something like 2.5 million more than last year. Nowhere close to plugging a 20 million deficit.

Rather than trying to cut our way out of the financial mess, as indicated by one of the speakers and reiterated by one of the Board members, we must GROW out way out. The financial mess is not a state funding issue, but a nearly 40% decline in enrollment since the peak in 2006 and one that is projected to be a best case 2% reduction, and as much as 90% for Fall 2019 compared to Fall 2018.

Is that 90% a typo. If the 2019 enrollment trends even halfway to negative 90% from preceding year, the new President better be the next Helen Keller (i.e. a miracle worker). He/She had better also understand the impact of the elephant in the room which is the flagship system. Their enrollments have increased over the last decade at the expense of the directionals IMHO. The flagship put up a couple of new residence halls in the last decade. If they were not filling them up with a lot of international students like they did in the past, they were going after the Illinois students. My cousin about my age graduated from WIU and now lives up in the Chi burbs. Guess where her four kids are going to college? One is going to Iowa State. The other 3 are in Champaign.

Also, my degree was in math not accounting, but I think the only way you can make a serious dent in a $20M deficit is to do some creative juggling of the endowment funds which supposedly are in the 60M+ range. Not ideal but sometimes you have to do what you have to do to make ends meet.

I was not aware the budget deficit was that big. No wonder no one from the university wanted to mention a new athletic building funded by private funds. The optics would not have been good.

sealhall74 wrote: ↑Sun Jun 16, 2019 6:33 am

Tere North wrote: ↑Sat Jun 15, 2019 11:28 pm

Leatherneck10 wrote: ↑Sat Jun 15, 2019 8:36 pm Our appropriation for FY 20 will be something like 2.5 million more than last year. Nowhere close to plugging a 20 million deficit.

Rather than trying to cut our way out of the financial mess, as indicated by one of the speakers and reiterated by one of the Board members, we must GROW out way out. The financial mess is not a state funding issue, but a nearly 40% decline in enrollment since the peak in 2006 and one that is projected to be a best case 2% reduction, and as much as 9% for Fall 2019 compared to Fall 2018.

Is that 90% a typo.

YES - should be 9%

They can't use restricted endowment money. That is legally associated with specific purposes.

Tere North wrote: ↑Sun Jun 16, 2019 9:04 am

sealhall74 wrote: ↑Sun Jun 16, 2019 6:33 am

Tere North wrote: ↑Sat Jun 15, 2019 11:28 pm

Rather than trying to cut our way out of the financial mess, as indicated by one of the speakers and reiterated by one of the Board members, we must GROW out way out. The financial mess is not a state funding issue, but a nearly 40% decline in enrollment since the peak in 2006 and one that is projected to be a best case 2% reduction, and as much as 9% for Fall 2019 compared to Fall 2018.

Is that 90% a typo.

YES - should be 9%

They can't use restricted endowment money. That is legally associated with specific purposes.

There is always an escape hatch in dire circumstances. Not sure if $20M in the hole is dire enough though.

https://www.investopedia.com/terms/c/cy ... ctrine.asp

If a program is cut and there was endowment money to support it, that money has to go somewhere else. Some endowment dollars probably fall into the unrestricted category and can be used for whatever purposes are needed at the moment. My past donations to the university have usually been to the "General Fund" which gives the administrator more flexibility to use them wisely.

My gut is telling me that how to handle the endowment dollars is ultimately what cost Bainter his job but I might be way off base there.

"Growing our way out ..." is a good long-term goal.

But there is the more immediate problem with the $20 million budget shortfall that will need to be addressed now.

sealhall74 wrote: ↑Sun Jun 16, 2019 9:16 am My gut is telling me that how to handle the endowment dollars is ultimately what cost Bainter his job but I might be way off base there.

My gut agrees with your gut

In other business at the June 14 meeting, the Board of Trustees voted to remove Emergency Management from the program elimination list. Emergency Management will merge with the School of Law Enforcement and Justice Administration. The board also voted to table the resolution to eliminate seven undergraduate major degree programs so that further discussion could be had at the Board’s retreat next month.

Last year, the University’s Academic Program Elimination Review Committee evaluated 18 programs. The Office of the Provost and Academic Vice President originally brought eight degree programs forward for consideration.

Trustees also approved WIU’s Fiscal Year 2020 preliminary spending plan of $209.1 million. The plan must be prepared prior to July 1 for submission to the Illinois Board of Higher Education, the Illinois State Legislature, and the governor.

How much money are Illinois colleges getting in the new budget? ‘It’s definitely good news for colleges and universities.’
From the Chicago Tribune:
https://www.chicagotribune.com/news/ct- ... story.html