Low-income college students who rely on state funds are facing another year of financial uncertainty as Republican Gov. Bruce Rauner and majority Democratic lawmakers remain unable to make progress on resolving a budget war.
State universities have received about two-thirds of the funding they typically get from the state and have no money for tuition grants for low-income students this semester or the next.
Updates to faculty layoff plan and other stuff
The 18-month state budget impasse continues with no end in sight. It is damaging the state's fiscal health every day.
The relationship between the Democrat and Republican leaders has only grown more contentious in that time. The finger-pointing gives little hope legislative leaders can get a budget done by December 31 when a six-month partial spending plan expires, leaving some social service providers struggling to stay open, and the state's colleges and universities facing an uncertain future.
The relationship between the Democrat and Republican leaders has only grown more contentious in that time. The finger-pointing gives little hope legislative leaders can get a budget done by December 31 when a six-month partial spending plan expires, leaving some social service providers struggling to stay open, and the state's colleges and universities facing an uncertain future.
Viewers of Sunday night's "Capitol View" on Illinois PBS heard some disappointing news.
High school guidance counselors are discouraging their students from attending an Illinois state university. This is because of the uncertain funding.
It will take a generation to repair the damage being done by this Rauner vs Madigan staring contest.
High school guidance counselors are discouraging their students from attending an Illinois state university. This is because of the uncertain funding.
It will take a generation to repair the damage being done by this Rauner vs Madigan staring contest.
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sealhall74
- Posts: 5985
- Joined: Fri Apr 18, 2014 1:18 pm
- Location: Wherever, Windblows
Might never be repairable. IMO, choice of colleges to attend or avoid can be ingrained into the DNA of a family, just like political party affiliation.wiu712 wrote:Viewers of Sunday night's "Capitol View" on Illinois PBS heard some disappointing news.
High school guidance counselors are discouraging their students from attending an Illinois state university. This is because of the uncertain funding.
It will take a generation to repair the damage being done by this Rauner vs Madigan staring contest.
Embrace the pace of the race.
From the Chicago Sun-Times Editorial on December 22, 2016: "Gov and Dems looking like ushers at Illinois' exit door."
Let’s consider how Springfield’s failure to govern has played out in one specific area: Higher education. The quality of public universities is at the heart of why many people choose to live in one state or another, and Illinois has long been known for some of the best. But the state Legislature has chipped away at funding for universities for two decades, and Gov. Bruce Rauner came into office saying he wanted to cut higher ed funding by a third.
Then came the end of state budgets. Since then, money for higher education has been sporadic, unpredictable and insufficient. Current funding will end with the expiration of the state’s stopgap spending plan on Dec. 31, and the universities have no idea when they will see more funding. They are in crisis mode: freezing hiring, cutting staff and delaying maintenance.
When a state cannot be bothered to write a budget, a public university cannot plan. It cannot offer certainty about tuition or faculty pay or what programs will continue on.
Should anybody be surprised, then, that Illinois this fall suffered a net outmigration of 16,000 higher ed students? Our state is losing bright young people to other states. They will embark on careers and offer their talents elsewhere.
A preliminary report this week by the Illinois Board of Higher Education reveals that enrollment is dropping in all centers of higher education in Illinois — public universities, community colleges and private colleges, which typically depend on state scholarship aid for some of their students. Southern Illinois University at Carbondale suffered the biggest loss — 6½ percent of its enrollment, including 11 percent of its graduate students.
As tuition rises and university finances grow shakier, students and their families are hesitating to enroll at an Illinois school that might cut back on classes or even shut down, making it hard or impossible to graduate. As Illinois State University President Larry Dietz points out, this is the time of year when students and their families are making decisions about where to enroll in the fall.
Financial aid is contingent on a state budget, but nobody knows if and when there will be one. The stopgap budget that expires in a couple of weeks provided money to pay off last year’s Monetary Assistant Program scholarships, but included no such funding for this year.
Let’s consider how Springfield’s failure to govern has played out in one specific area: Higher education. The quality of public universities is at the heart of why many people choose to live in one state or another, and Illinois has long been known for some of the best. But the state Legislature has chipped away at funding for universities for two decades, and Gov. Bruce Rauner came into office saying he wanted to cut higher ed funding by a third.
Then came the end of state budgets. Since then, money for higher education has been sporadic, unpredictable and insufficient. Current funding will end with the expiration of the state’s stopgap spending plan on Dec. 31, and the universities have no idea when they will see more funding. They are in crisis mode: freezing hiring, cutting staff and delaying maintenance.
When a state cannot be bothered to write a budget, a public university cannot plan. It cannot offer certainty about tuition or faculty pay or what programs will continue on.
Should anybody be surprised, then, that Illinois this fall suffered a net outmigration of 16,000 higher ed students? Our state is losing bright young people to other states. They will embark on careers and offer their talents elsewhere.
A preliminary report this week by the Illinois Board of Higher Education reveals that enrollment is dropping in all centers of higher education in Illinois — public universities, community colleges and private colleges, which typically depend on state scholarship aid for some of their students. Southern Illinois University at Carbondale suffered the biggest loss — 6½ percent of its enrollment, including 11 percent of its graduate students.
As tuition rises and university finances grow shakier, students and their families are hesitating to enroll at an Illinois school that might cut back on classes or even shut down, making it hard or impossible to graduate. As Illinois State University President Larry Dietz points out, this is the time of year when students and their families are making decisions about where to enroll in the fall.
Financial aid is contingent on a state budget, but nobody knows if and when there will be one. The stopgap budget that expires in a couple of weeks provided money to pay off last year’s Monetary Assistant Program scholarships, but included no such funding for this year.
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leatherface
- Posts: 423
- Joined: Sun Apr 20, 2014 4:42 pm
Inexcusable. Poor leadership. Madigan nor Rauner should ever be voted back into office- both share equal blame. I don't care what your politics might be, both have hurt the state. Childish leadership by both. IMO
Chicago State University faces year-end deficit, needs to slash expenses.
Interesting article by Peter Matuszack and Dawn Rhodes from today's Chicago Tribune. Chicago State is looking at adding football. This article also talks about a dark future for both Eastern and Western if this budget battle is not resolved.
In messages to prospective students and the public, Chicago State University officials are promising an optimistic future — one that might someday even include a school football team.
In documents submitted to state officials responsible for funding, however, the same administrators are painting a picture of financial distress. They describe how the university will burn through its cash reserves before the end of the school year and be forced to make additional cuts unless more money comes from Springfield.
This is the fine line that Chicago State officials have walked as they create a sense of financial urgency, while, in the face of declining enrollment, also try to assure current and prospective students that the nearly 150-year-old university's future is strong.
"We are adequately reserved for any contingencies we may have," Cecil B. Lucy, the university's interim president, said in an interview earlier this month. "What you have to realize is that if you look historically we have never gone without an appropriation of some sort from the state."
For the past 18 months, throughout a protracted state budget stalemate, those appropriations have been irregular, at best. There are currently no plans for state dollars to flow to Chicago State — or to any other public college or university — next year.
Documents obtained by the Tribune through a public records request show the university could exhaust its $26 million of cash reserves by May and end the academic year short $3.5 million — about one month's payroll. The financial projections were submitted to the Illinois Board of Higher Education, which approved just more than $3 million in emergency funding for Chicago State last month.
Chicago State University
Of all the public universities in Illinois, Chicago State has been among the hardest hit by the budget gridlock that has cut off regular appropriations for higher education, social services and other areas. The school receives about one-third of its funding from the state.
Through two stopgap budgets, Chicago State has received about $32.5 million during the past year and a half. That compares with the $36.1 million it received from the state during 2014-15, the last year of full state funding.
In response, Chicago State trustees declared a state of financial exigency, or emergency, in February. The university laid off about 40 percent of its employees in the spring, reduced library hours and shaved spending on travel and campus supplies.
The trustees voted earlier this month to lift the emergency designation in a resolution stating Chicago State was in a stronger financial position. However, there was no discussion and no financial documents presented to support that assertion.
It's been a difficult year in other ways for the Far South Side university, which serves mostly a minority population from Chicago. A new president arrived in January only to resign nine months later. Enrollment dropped this fall to under 3,600 students, less than half of what it was six years ago. There were fewer than 90 new full-time freshmen when school started in September.
The fiscal problems also led to the university being sanctioned by its accrediting body; the Higher Learning Commission will visit the campus in January to determine whether the sanction can be lifted or if other penalties are needed.
To analyze the university's finances, the Tribune obtained various financial documents through public records requests, including those submitted to the higher education board last month to qualify for the $3 million in emergency funding.
IBHE provided Chicago State, along with Eastern Illinois University and Western Illinois University, with the equivalent of one month's payroll. Western received about $8.4 million and Eastern about $5.6 million.
Without further state funding this school year, Eastern would spend $19 million from its cash reserves, while Western would burn through $16 million of unrestricted cash and begin spending restricted funds set aside under bond covenants, according to documents submitted to the IBHE.
None of the universities will have reserves of this magnitude next year and will need to find new sources of funding to continue operations for another school year.
Even after receiving the state funds in late November, Chicago State is projected to still be in the red by $3.5 million, according to the cash flow statements the university submitted to the state.
Chicago State will receive tuition revenue throughout the remainder of the year, but the amount is not enough to offset the projected deficit. As the school's enrollment has declined, so has its tuition revenue. Last year, the school billed $26.5 million for classes and fees and this year only expects to bring in $20.6 million. Fall enrollment was down 25 percent.
Lucy disputed the contention that the university is financially vulnerable. He said the university's forecast to IBHE included some "wish list" items and about $4 million earmarked for emergency repairs that could be eliminated to make ends meet.
Administrators later gave the Tribune an amended list labeled "possible cost levers to reduce spending." The document included more than $9.6 million of construction projects and program reductions that administrators could cut to eliminate the potential deficit.
But those same items are ones that administrators said were "critical unfunded needs to rebuild CSU" in documents submitted to the higher education board. The cuts, which totaled $26.9 million, would come in areas that school leaders are trying to emphasize in their efforts to revitalize Chicago State.
The reductions would include $6.6 million in maintenance projects, including fixing emergency generators instead of replacing them and canceling library roof repairs.
Rather than $1 million originally planned for marketing — deemed a critical component to drive enrollment — the department would only be allotted $200,000. A $1.5 million software update for the enrollment management department would be postponed. A $750,000 plan to expand on-campus child care provided to students, teacher and staff would be tabled.
If all the cost savings were successful, the belt-tightening combined with the emergency funding would leave Chicago State with a surplus of about $6 million rather than a deficit of $3.5 million, officials said. There are no plans for further staff layoffs, Lucy said.
Michael LaFargue, a Chicago State alum who sits on an advisory council to the school, said such sacrifices would not be ideal but may be unavoidable.
"You always want to maintain the integrity of your property," LaFargue said of the proposed changes to maintenance spending. "But in this situation, it's a reality that the state has financial problems. This is what has to be done."
But instead of focusing on possible cuts, Chicago State officials are making big plans for the future.
In a letter sent to the campus community last week, Lucy said the university is "rebuilding" and encouraged everyone to "spread the word widely that CSU is alive and well," including by encouraging students to apply for admission.
"Now is the time to roll up our sleeves and work even harder to build on the legacy of quality education for our students," Lucy wrote.
At a board meeting on Dec. 9, when trustees declared an end to the school's financial emergency, school leaders outlined plans to move the school ahead.
The plans include advertising in Chicago's northern suburbs and several nearby states to attract new students. There was talk about purchasing space on billboards and sending direct mailings. Administrators and trustees discussed the idea of creating a football team with an accompanying marching band and cheerleading squad as a potential enrollment booster.
There was no talk, however, of management's plan to slash spending in all of those areas in order to make it through the school year.
Darren Martin, student government president, said students will be watching. He said Lucy and Provost Angela Henderson have improved community outreach but said more transparency would improve the student experience, restore confidence in the leadership and reassure students that administrators are doing everything they can to help Chicago State prosper.
"For students, they've lost faith in the Legislature and the governor to actually come up with a budget. Now they're looking to Chicago State to solve the problem internally and externally," Martin said. "They want the school to respect them as students and they're willing to do what it takes to help Chicago State succeed. But Chicago State has to help them succeed in the same way."
Ann Kuzdale, an associate professor who has taught at the university for 20 years, said that at a recent faculty meeting, administrators did not mention further reductions for the current year or a broader solution to the fiscal crisis.
"If there's a plan I don't know it. It seems like they have their finger in the dam, but there's not a lot of big thinking going on to come up with creative solutions," Kuzdale said. "There's not a culture of shared governance in place at Chicago State, so if there is a plan — God love them, but my feeling is they are just flying by the seat of their pants."
Interesting article by Peter Matuszack and Dawn Rhodes from today's Chicago Tribune. Chicago State is looking at adding football. This article also talks about a dark future for both Eastern and Western if this budget battle is not resolved.
In messages to prospective students and the public, Chicago State University officials are promising an optimistic future — one that might someday even include a school football team.
In documents submitted to state officials responsible for funding, however, the same administrators are painting a picture of financial distress. They describe how the university will burn through its cash reserves before the end of the school year and be forced to make additional cuts unless more money comes from Springfield.
This is the fine line that Chicago State officials have walked as they create a sense of financial urgency, while, in the face of declining enrollment, also try to assure current and prospective students that the nearly 150-year-old university's future is strong.
"We are adequately reserved for any contingencies we may have," Cecil B. Lucy, the university's interim president, said in an interview earlier this month. "What you have to realize is that if you look historically we have never gone without an appropriation of some sort from the state."
For the past 18 months, throughout a protracted state budget stalemate, those appropriations have been irregular, at best. There are currently no plans for state dollars to flow to Chicago State — or to any other public college or university — next year.
Documents obtained by the Tribune through a public records request show the university could exhaust its $26 million of cash reserves by May and end the academic year short $3.5 million — about one month's payroll. The financial projections were submitted to the Illinois Board of Higher Education, which approved just more than $3 million in emergency funding for Chicago State last month.
Chicago State University
Of all the public universities in Illinois, Chicago State has been among the hardest hit by the budget gridlock that has cut off regular appropriations for higher education, social services and other areas. The school receives about one-third of its funding from the state.
Through two stopgap budgets, Chicago State has received about $32.5 million during the past year and a half. That compares with the $36.1 million it received from the state during 2014-15, the last year of full state funding.
In response, Chicago State trustees declared a state of financial exigency, or emergency, in February. The university laid off about 40 percent of its employees in the spring, reduced library hours and shaved spending on travel and campus supplies.
The trustees voted earlier this month to lift the emergency designation in a resolution stating Chicago State was in a stronger financial position. However, there was no discussion and no financial documents presented to support that assertion.
It's been a difficult year in other ways for the Far South Side university, which serves mostly a minority population from Chicago. A new president arrived in January only to resign nine months later. Enrollment dropped this fall to under 3,600 students, less than half of what it was six years ago. There were fewer than 90 new full-time freshmen when school started in September.
The fiscal problems also led to the university being sanctioned by its accrediting body; the Higher Learning Commission will visit the campus in January to determine whether the sanction can be lifted or if other penalties are needed.
To analyze the university's finances, the Tribune obtained various financial documents through public records requests, including those submitted to the higher education board last month to qualify for the $3 million in emergency funding.
IBHE provided Chicago State, along with Eastern Illinois University and Western Illinois University, with the equivalent of one month's payroll. Western received about $8.4 million and Eastern about $5.6 million.
Without further state funding this school year, Eastern would spend $19 million from its cash reserves, while Western would burn through $16 million of unrestricted cash and begin spending restricted funds set aside under bond covenants, according to documents submitted to the IBHE.
None of the universities will have reserves of this magnitude next year and will need to find new sources of funding to continue operations for another school year.
Even after receiving the state funds in late November, Chicago State is projected to still be in the red by $3.5 million, according to the cash flow statements the university submitted to the state.
Chicago State will receive tuition revenue throughout the remainder of the year, but the amount is not enough to offset the projected deficit. As the school's enrollment has declined, so has its tuition revenue. Last year, the school billed $26.5 million for classes and fees and this year only expects to bring in $20.6 million. Fall enrollment was down 25 percent.
Lucy disputed the contention that the university is financially vulnerable. He said the university's forecast to IBHE included some "wish list" items and about $4 million earmarked for emergency repairs that could be eliminated to make ends meet.
Administrators later gave the Tribune an amended list labeled "possible cost levers to reduce spending." The document included more than $9.6 million of construction projects and program reductions that administrators could cut to eliminate the potential deficit.
But those same items are ones that administrators said were "critical unfunded needs to rebuild CSU" in documents submitted to the higher education board. The cuts, which totaled $26.9 million, would come in areas that school leaders are trying to emphasize in their efforts to revitalize Chicago State.
The reductions would include $6.6 million in maintenance projects, including fixing emergency generators instead of replacing them and canceling library roof repairs.
Rather than $1 million originally planned for marketing — deemed a critical component to drive enrollment — the department would only be allotted $200,000. A $1.5 million software update for the enrollment management department would be postponed. A $750,000 plan to expand on-campus child care provided to students, teacher and staff would be tabled.
If all the cost savings were successful, the belt-tightening combined with the emergency funding would leave Chicago State with a surplus of about $6 million rather than a deficit of $3.5 million, officials said. There are no plans for further staff layoffs, Lucy said.
Michael LaFargue, a Chicago State alum who sits on an advisory council to the school, said such sacrifices would not be ideal but may be unavoidable.
"You always want to maintain the integrity of your property," LaFargue said of the proposed changes to maintenance spending. "But in this situation, it's a reality that the state has financial problems. This is what has to be done."
But instead of focusing on possible cuts, Chicago State officials are making big plans for the future.
In a letter sent to the campus community last week, Lucy said the university is "rebuilding" and encouraged everyone to "spread the word widely that CSU is alive and well," including by encouraging students to apply for admission.
"Now is the time to roll up our sleeves and work even harder to build on the legacy of quality education for our students," Lucy wrote.
At a board meeting on Dec. 9, when trustees declared an end to the school's financial emergency, school leaders outlined plans to move the school ahead.
The plans include advertising in Chicago's northern suburbs and several nearby states to attract new students. There was talk about purchasing space on billboards and sending direct mailings. Administrators and trustees discussed the idea of creating a football team with an accompanying marching band and cheerleading squad as a potential enrollment booster.
There was no talk, however, of management's plan to slash spending in all of those areas in order to make it through the school year.
Darren Martin, student government president, said students will be watching. He said Lucy and Provost Angela Henderson have improved community outreach but said more transparency would improve the student experience, restore confidence in the leadership and reassure students that administrators are doing everything they can to help Chicago State prosper.
"For students, they've lost faith in the Legislature and the governor to actually come up with a budget. Now they're looking to Chicago State to solve the problem internally and externally," Martin said. "They want the school to respect them as students and they're willing to do what it takes to help Chicago State succeed. But Chicago State has to help them succeed in the same way."
Ann Kuzdale, an associate professor who has taught at the university for 20 years, said that at a recent faculty meeting, administrators did not mention further reductions for the current year or a broader solution to the fiscal crisis.
"If there's a plan I don't know it. It seems like they have their finger in the dam, but there's not a lot of big thinking going on to come up with creative solutions," Kuzdale said. "There's not a culture of shared governance in place at Chicago State, so if there is a plan — God love them, but my feeling is they are just flying by the seat of their pants."
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Neckfansince71
- Posts: 1184
- Joined: Sat Apr 19, 2014 7:06 pm
712,
I know this is what we call "rude" reality but it just depresses me when I think about how Madigan does not really care about the "state" of the state of Illinois. It's obvious we need some change. Too bad Rauner walked into office with a baseball bat instead of working through the politics first. Ugh!
jc
I know this is what we call "rude" reality but it just depresses me when I think about how Madigan does not really care about the "state" of the state of Illinois. It's obvious we need some change. Too bad Rauner walked into office with a baseball bat instead of working through the politics first. Ugh!
jcI do not like either Rauner or madigan, but, you have to question ones intentions when they donate $50 mil of their own money to their campaign. All while stating "plenty more where that came from".
To make myself feel better I'll pretend he cares that much about the citizens of the state that he is willing to spend millions to make everyone's life better.
Lol.
To make myself feel better I'll pretend he cares that much about the citizens of the state that he is willing to spend millions to make everyone's life better.
Lol.
#ALLIN #YOLO
Stopgap budget set to expire, returning Rauner-Madigan stand-off to where it was last summer.
From today's Chicago Tribune:
By Monique Garcia.
A stop-gap budget expires Sunday, and with it state government funding for public universities, social service agencies that provide care for the elderly and disabled, and day-to-day expenses such as electricity for buildings.
This effectively puts Illinois back where it was last summer as the historic deadlock between Republican Gov. Bruce Rauner and Democratic House Speaker Michael Madigan extends into the new year.
Courtesy of various laws and court orders, about 90 percent of state spending will continue, covering things such as money for school districts, the child welfare agency and debt payments. The spigot is again turned off, however, for higher education and social services, which will have to tap into reserves, stretch lines of credit and lay off workers to stay afloat.
Those groups say the long-running struggle has left them weaker and less able to weather another state funding drought.
The question now is a matter of how long such areas again will go without funding, as some Democrats warn they don't see a resolution before the end of Rauner's term in January 2019. The governor is pursuing changes he says will spur Illinois' economy, an agenda that includes cost-cutting adjustments to the workers' compensation system and a scaling back of collective bargaining rights for unionized workers. It's met resistance from labor-allied Democrats who say the moves will hurt the working class.
And so the uncertainty builds, as universities and human service providers try to plan for what was once unthinkable.
"I understand it may be very difficult to see a path by which we get a budget done, possibly even for the next two years," said Randy Dunn, president of Southern Illinois University. "We understand that political reality. What we won't be able to live with is going that period of time without some sort of stopgap appropriation or more limited spending authority … it's an untenable situation."
Under the stopgap budget, $1 billion was set aside for universities, community colleges and scholarships for low-income students. It was the second time lawmakers had rushed funding to higher education during the budget impasse, with particular focus on providing the most help to schools in greater need.
For instance, Chicago State University received $12.5 million, which came on top of an earlier $20 million in funding; Eastern Illinois University got $26 million, which followed $12.5 million in the spring; and Western Illinois University obtained $31.4 million, which followed an earlier $15 million.
Those efforts provided all three universities with 90 percent of funding when compared to the year before. Most other universities received supplemental cash that equated to about 82 percent of prior-year funding. But by the time the dollars were approved, colleges and universities had to make less than a year's worth of state money cover 18 months of expenses stretching over two school years, causing the institutions to trim costs and dip into reserves.
Already, Chicago State, Western and Eastern appealed to Illinois higher education officials for additional emergency funding, with the schools splitting $17 million of a $20 million pot of funds set aside to help the most financially vulnerable universities. The remaining $3 million will be funneled to community colleges.
To receive the help, the schools had to demonstrate a "financial emergency," submitting detailed financial reports and laying out efforts to cut expenses through layoffs or program reductions. If no other money arrives from the state, all three schools would have to spend down their cash on hand to bankroll operations.
Officials at Eastern noted that they've already spent roughly $24 million from accounts funded through student fees to pay for general operations, while warning that the more than 400 layoffs put in place to preserve cash flow are "not sustainable and must be treated as temporary."
"Those positions and employees are necessary for the continued success of our mission," EIU president David Glassman wrote to the Illinois Board of Higher Education in an email obtained by the Tribune through an open records request. "You cannot ask your top-ranked regional public university to go the equivalent of a full year without state funding and expect it to have no impact on operations — not when we were already the leanest in terms of administrative spending per capita prior to the impasse."
Glassman declined an interview request to further discuss budget matters, instead sending a statement saying the university "remains strong thanks to the proactive measures that EIU took last year to significantly lower operating expenses and the various stopgap appropriations authorized by our elected officials."
At Western's campus in Macomb, officials detailed program reductions, and are no longer offering majors in African-American studies, women's studies, philosophy and religious studies. The school also eliminated the men's tennis program and offered cash incentives for employees to retire early.
Matt Bierman, interim vice president for administrative services, told state officials that with January tuition payments, the school will have enough money to meet financial obligations "for a couple months." But if no assistance comes from the state, the school may have to tap into restricted funds earmarked to pay back loans used to finance construction projects.
Bierman told the Tribune that Western has "adequate cash to get through the spring semester," but said the school will have to make some tough decisions if state funds don't come sooner rather than later.
"We continue to believe that higher education plays a role in the future growth of the state of Illinois, and at Western we are doing everything we can to make sure we are providing a high-quality education," Bierman said. "We aren't going anywhere."
Further adding to university cash-flow problems is the lack of funding for scholarships for low-income students known as the Monetary Award Program. Most schools fronted that money last school year so students could enroll. The stopgap provided $151 million to pay back those costs but did not provide any scholarship money for the current school year — again leaving schools to decide if they can take on the extra burden or require students to make up the difference.
"It's Groundhog Day over and over again," said Dunn, the SIU president. "We're basically back at zero, or even a little less than zero, and we are replaying this drama once again, putting together a number of scenarios depending on what may happen in the spring … only we're at that point of crisis even earlier than last year."
From today's Chicago Tribune:
By Monique Garcia.
A stop-gap budget expires Sunday, and with it state government funding for public universities, social service agencies that provide care for the elderly and disabled, and day-to-day expenses such as electricity for buildings.
This effectively puts Illinois back where it was last summer as the historic deadlock between Republican Gov. Bruce Rauner and Democratic House Speaker Michael Madigan extends into the new year.
Courtesy of various laws and court orders, about 90 percent of state spending will continue, covering things such as money for school districts, the child welfare agency and debt payments. The spigot is again turned off, however, for higher education and social services, which will have to tap into reserves, stretch lines of credit and lay off workers to stay afloat.
Those groups say the long-running struggle has left them weaker and less able to weather another state funding drought.
The question now is a matter of how long such areas again will go without funding, as some Democrats warn they don't see a resolution before the end of Rauner's term in January 2019. The governor is pursuing changes he says will spur Illinois' economy, an agenda that includes cost-cutting adjustments to the workers' compensation system and a scaling back of collective bargaining rights for unionized workers. It's met resistance from labor-allied Democrats who say the moves will hurt the working class.
And so the uncertainty builds, as universities and human service providers try to plan for what was once unthinkable.
"I understand it may be very difficult to see a path by which we get a budget done, possibly even for the next two years," said Randy Dunn, president of Southern Illinois University. "We understand that political reality. What we won't be able to live with is going that period of time without some sort of stopgap appropriation or more limited spending authority … it's an untenable situation."
Under the stopgap budget, $1 billion was set aside for universities, community colleges and scholarships for low-income students. It was the second time lawmakers had rushed funding to higher education during the budget impasse, with particular focus on providing the most help to schools in greater need.
For instance, Chicago State University received $12.5 million, which came on top of an earlier $20 million in funding; Eastern Illinois University got $26 million, which followed $12.5 million in the spring; and Western Illinois University obtained $31.4 million, which followed an earlier $15 million.
Those efforts provided all three universities with 90 percent of funding when compared to the year before. Most other universities received supplemental cash that equated to about 82 percent of prior-year funding. But by the time the dollars were approved, colleges and universities had to make less than a year's worth of state money cover 18 months of expenses stretching over two school years, causing the institutions to trim costs and dip into reserves.
Already, Chicago State, Western and Eastern appealed to Illinois higher education officials for additional emergency funding, with the schools splitting $17 million of a $20 million pot of funds set aside to help the most financially vulnerable universities. The remaining $3 million will be funneled to community colleges.
To receive the help, the schools had to demonstrate a "financial emergency," submitting detailed financial reports and laying out efforts to cut expenses through layoffs or program reductions. If no other money arrives from the state, all three schools would have to spend down their cash on hand to bankroll operations.
Officials at Eastern noted that they've already spent roughly $24 million from accounts funded through student fees to pay for general operations, while warning that the more than 400 layoffs put in place to preserve cash flow are "not sustainable and must be treated as temporary."
"Those positions and employees are necessary for the continued success of our mission," EIU president David Glassman wrote to the Illinois Board of Higher Education in an email obtained by the Tribune through an open records request. "You cannot ask your top-ranked regional public university to go the equivalent of a full year without state funding and expect it to have no impact on operations — not when we were already the leanest in terms of administrative spending per capita prior to the impasse."
Glassman declined an interview request to further discuss budget matters, instead sending a statement saying the university "remains strong thanks to the proactive measures that EIU took last year to significantly lower operating expenses and the various stopgap appropriations authorized by our elected officials."
At Western's campus in Macomb, officials detailed program reductions, and are no longer offering majors in African-American studies, women's studies, philosophy and religious studies. The school also eliminated the men's tennis program and offered cash incentives for employees to retire early.
Matt Bierman, interim vice president for administrative services, told state officials that with January tuition payments, the school will have enough money to meet financial obligations "for a couple months." But if no assistance comes from the state, the school may have to tap into restricted funds earmarked to pay back loans used to finance construction projects.
Bierman told the Tribune that Western has "adequate cash to get through the spring semester," but said the school will have to make some tough decisions if state funds don't come sooner rather than later.
"We continue to believe that higher education plays a role in the future growth of the state of Illinois, and at Western we are doing everything we can to make sure we are providing a high-quality education," Bierman said. "We aren't going anywhere."
Further adding to university cash-flow problems is the lack of funding for scholarships for low-income students known as the Monetary Award Program. Most schools fronted that money last school year so students could enroll. The stopgap provided $151 million to pay back those costs but did not provide any scholarship money for the current school year — again leaving schools to decide if they can take on the extra burden or require students to make up the difference.
"It's Groundhog Day over and over again," said Dunn, the SIU president. "We're basically back at zero, or even a little less than zero, and we are replaying this drama once again, putting together a number of scenarios depending on what may happen in the spring … only we're at that point of crisis even earlier than last year."