jcUpdates to faculty layoff plan and other stuff
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Neckfansince71
- Posts: 1184
- Joined: Sat Apr 19, 2014 7:06 pm
There is also an investigation going on of the president and administration of NIU which has costed to date, $100,000+ dollars of school/alumni money. Not really sure how this is going to end up. "In the mean time, in-between time, aint we got fun!" jc
jcSIU Board of Trustees approves loan from Edwardsville to Carbondale campus.
From The Southern Illinoisan:
In a special meeting, the Southern Illinois University Board of Trustees on Wednesday authorized a plan to allow the Carbondale campus to borrow from the Edwardsville campus until which time the state of Illinois approves a full annual state appropriation to the SIU System.
As to the borrowing authorization, the board’s affirmative vote on the resolution allows Carbondale to borrow up to $35 million in unrestricted funds from the Edwardsville campus. Under the terms of the borrowing arrangement, the Carbondale campus’s leadership is directed to develop a financial sustainability plan of necessary reductions to address the fiscal crisis facing the Carbondale campus, excluding the School of Medicine.
Dunn said the approved resolution attempted to address some of the concerns that have been expressed by constituency group leaders on the Edwardsville campus since Dunn announced the borrowing proposal in a System Connection letter this past month. For instance, it set a cap on the amount that can be borrowed from Edwardsville — $35 million — and reemphasizes a requirement that Carbondale come up with a plan to reduce costs by July.
The borrowing proposal was placed on the board’s last regular meeting held April 6 in Carbondale, but because the agenda item was added late, it required the approval of all board members to bring it up. One board member voted against allowing the item to be discussed in April. That is what prompted Wednesday’s special meeting.
The resolution further directs Carbondale’s interim chancellor to develop a plan of necessary reductions to be presented at the board’s July meeting, scheduled to be held in Springfield, according to the board’s written rationale for adoption of the resolution.
Further, it states that highest priority concerning improving SIU Carbondale’s financial picture will be placed on eliminating the Carbondale deficit as soon as practical. “First claim” for the replenishment of borrowed unrestricted funds by SIU Carbondale once a full budget is appropriated shall be to SIU Edwardsville.
If there is no state budget by the beginning of the 2018 fiscal year on July 1 or other actions taken to “sufficiently sustain Carbondale operations,” the resolution calls for SIU System President Dunn to make a recommendation that the board declare a “short term fiscal emergency” for the Carbondale campus, excluding the School of Medicine.
Without the loan agreement, the only option for continuing daily operations for the Carbondale campus would be the use of restricted funds, according to a written board summary of the resolution. The use of restricted funds would violate state statutes, bond covenants and other third-party restrictions, according to the board’s rationale for adoption.
The Carbondale campus has depleted all of its available sources of unrestricted funds as the state’s budget impasse has dragged on for close to two years. As of February, the campus had an unrestricted cash deficit of $23.2 million. The School of Medicine had a positive balance of $59.2 million. Without a state budget, it is projected the Carbondale campus will exceed the available unrestricted funds of the School of Medicine in May 2017. The School of Medicine, primarily based in Springfield, sits under the umbrella of the Carbondale campus.
From The Southern Illinoisan:
In a special meeting, the Southern Illinois University Board of Trustees on Wednesday authorized a plan to allow the Carbondale campus to borrow from the Edwardsville campus until which time the state of Illinois approves a full annual state appropriation to the SIU System.
As to the borrowing authorization, the board’s affirmative vote on the resolution allows Carbondale to borrow up to $35 million in unrestricted funds from the Edwardsville campus. Under the terms of the borrowing arrangement, the Carbondale campus’s leadership is directed to develop a financial sustainability plan of necessary reductions to address the fiscal crisis facing the Carbondale campus, excluding the School of Medicine.
Dunn said the approved resolution attempted to address some of the concerns that have been expressed by constituency group leaders on the Edwardsville campus since Dunn announced the borrowing proposal in a System Connection letter this past month. For instance, it set a cap on the amount that can be borrowed from Edwardsville — $35 million — and reemphasizes a requirement that Carbondale come up with a plan to reduce costs by July.
The borrowing proposal was placed on the board’s last regular meeting held April 6 in Carbondale, but because the agenda item was added late, it required the approval of all board members to bring it up. One board member voted against allowing the item to be discussed in April. That is what prompted Wednesday’s special meeting.
The resolution further directs Carbondale’s interim chancellor to develop a plan of necessary reductions to be presented at the board’s July meeting, scheduled to be held in Springfield, according to the board’s written rationale for adoption of the resolution.
Further, it states that highest priority concerning improving SIU Carbondale’s financial picture will be placed on eliminating the Carbondale deficit as soon as practical. “First claim” for the replenishment of borrowed unrestricted funds by SIU Carbondale once a full budget is appropriated shall be to SIU Edwardsville.
If there is no state budget by the beginning of the 2018 fiscal year on July 1 or other actions taken to “sufficiently sustain Carbondale operations,” the resolution calls for SIU System President Dunn to make a recommendation that the board declare a “short term fiscal emergency” for the Carbondale campus, excluding the School of Medicine.
Without the loan agreement, the only option for continuing daily operations for the Carbondale campus would be the use of restricted funds, according to a written board summary of the resolution. The use of restricted funds would violate state statutes, bond covenants and other third-party restrictions, according to the board’s rationale for adoption.
The Carbondale campus has depleted all of its available sources of unrestricted funds as the state’s budget impasse has dragged on for close to two years. As of February, the campus had an unrestricted cash deficit of $23.2 million. The School of Medicine had a positive balance of $59.2 million. Without a state budget, it is projected the Carbondale campus will exceed the available unrestricted funds of the School of Medicine in May 2017. The School of Medicine, primarily based in Springfield, sits under the umbrella of the Carbondale campus.
While SIUC runs on fumes, borrows from SIUE, and drains the funds from the Med School, faculty at SIUC are questioning the SIU BOT's decision to approve a $2 million purchase of athletic gear. The SIUC faculty association is calling on the Board to prioritize its academic mission.
With declining enrollments and decreasing resources, it may be the time for some of the state universities to consider where to place its athletic program.
UIS plays NCAA Division 2. Governors State plays NAIA. Northeastern Illinois has club sports.
With declining enrollments and decreasing resources, it may be the time for some of the state universities to consider where to place its athletic program.
UIS plays NCAA Division 2. Governors State plays NAIA. Northeastern Illinois has club sports.
Today is May 15, which leaves 16 days until the General Assembly’s constitutional deadline for action.
Illinois hasn’t had a comprehensive budget in two years. It hasn’t spent or invested a penny in higher education since Dec. 31.
If something doesn’t change, Gov. Bruce Rauner will approach the third year of his term without a budget.
The state’s unpaid bills recently topped $13 billion and are expected to exceed $24 billion by Election Day 2018, with no sign of that devastating upward trajectory stopping.
Schools are now the latest to learn that no matter how much state money they were promised from a budget deal, the reality is that there’s simply not enough cash flow to back it up.
Without a budget, that situation dramatically worsens. Illinois’ credit rating has taken a beating and now hovers on the verge of junk status, making it prohibitively expensive to borrow money for things like road and bridge projects.
Illinois hasn’t had a comprehensive budget in two years. It hasn’t spent or invested a penny in higher education since Dec. 31.
If something doesn’t change, Gov. Bruce Rauner will approach the third year of his term without a budget.
The state’s unpaid bills recently topped $13 billion and are expected to exceed $24 billion by Election Day 2018, with no sign of that devastating upward trajectory stopping.
Schools are now the latest to learn that no matter how much state money they were promised from a budget deal, the reality is that there’s simply not enough cash flow to back it up.
Without a budget, that situation dramatically worsens. Illinois’ credit rating has taken a beating and now hovers on the verge of junk status, making it prohibitively expensive to borrow money for things like road and bridge projects.
Small and Mid-Size Public Universities Feeling Brunt of Illinois Budget Stalemate.
From Tri-States Public Radio WIUM-FM:
http://tspr.org/post/small-and-mid-size ... &utm_term=
From Tri-States Public Radio WIUM-FM:
http://tspr.org/post/small-and-mid-size ... &utm_term=
Editorial from the Springfield State Journal-Register:
Thriving higher education system needed for strong economy.
One could argue the state’s nearly two-year budget impasse has been most visible at the state’s public universities and community colleges.
Students aren’t getting their MAP grants. Faculty, staff and administrators are being laid off. There is concern one or more of the state’s public universities might shut its doors. In just one day in April, the bond ratings of six universities were downgraded, as rating agency S&P determined the uncertainty of state funding for higher education made them a bad risk for investors.
Perhaps most embarrassing was this: In April, a national report from the State Higher Education Executive Officers association on higher education finances in 2016 spotlighted Illinois as an outlier. That status was cemented due to per-student funding falling by 80 percent year over year, from $10,986 to $2,196, while enrollment at public institutions plunged by 46,000 students (or 11 percent).
Illinois was so bad that if you include it in the report, overall public support for higher education funding fell by 1.8 percent. Remove the Land of Lincoln, and overall support for higher education nationally increased by 3.2 percent.
Illinois needs outstanding higher education facilities that produce knockout research, breathtaking innovation and graduates eager to conquer the world. To do that, universities and colleges need focused strategic plans — and that is only going to happen when there is stability that comes from having a state budget.
As in other sectors, pension reform is key to freeing up more resources for instruction. A study of Illinois by the State Higher Education Executive Officers found that in fiscal year 2015, retirement appropriations consumed 44.3 percent of the total funding for higher education in Illinois. In 2007, it had been just 10.3 percent.
That’s a depressing and sobering shift. In fiscal year 2000, about $218.2 million in state funding was dedicated to pensions, according to the Illinois Board of Higher Education, and $2.13 billion went to operations funding. Fast forward to fiscal year 2015 (the last year there was a permanent state budget), and $1.55 billion went to pay off pension debt — nearly as much as the $1.95 billion the state spent on the actual teaching, research and support operations.
And who has borne the brunt of that shift? Students and their parents have forked over more to help bridge the difference. Average tuition and fees at public universities in Illinois were $4,786 in fiscal year 2002. They had more than tripled to $13,462 by fiscal year 2015, according to the Illinois Board of Higher Education.
The restructuring of the state’s pension debt will free up significant funds to actually be spent on instructional costs. So would making all new hires go into a self-managed plan retirement (already an option in the State University Retirement System), and allowing any current employees the option of switching to such a plan.
But stable funding is just a start for retooling our institutions of higher education. It’s time for a thorough examination of what they should be and a commitment to making our institutions centers of achievement that spur economic growth in Illinois.
Most of the four-year public universities in Illinois were established as regional education centers. They offered similar programs, with the thinking that students in those areas wouldn’t have to travel far for their education. That made sense 100 years ago when traveling was more difficult, but if the number of students who are heading out of state for college is any indication, they are willing to travel if it means access to excellent programs.
Universities are, and need to remain, the economic drivers of their home communities. Figures shared by the Illinois Coalition to Invest in Higher Education show that colleges and universities in Illinois employ 175,000 people statewide and generate more than $50 billion in economic activity. For every $1 the state spends on higher ed, it gets $25 back. It’s an outstanding value.
But each campus should have designated areas of specialization. In today’s specialized world, universities must adapt and put aside the notion that they can be all things to all people. Program offerings should be evaluated, and under-enrolled programs must be pruned, allowing institutions to focus on their strongest offerings.
Doing that might mean revamping the structure of the schools: Does each one need a board, or should we perhaps mirror our neighbor to the north? The University of Wisconsin system oversees 13 four-year universities and 13 freshman-sophomore UW Colleges campuses, which provides efficiencies in administration. Illinois needs to examine that. A 2015 report by the Illinois Senate Democratic Caucus found that the number of full-time administrative staff at public universities ballooned by 31.1 percent from 2004 to 2010. But during the same time period, the number of full-time faculty increased by just 1.8 percent, and there was only a 2.3 percent increase in part- and full-time students.
The last two years of belt tightening in the absence of a budget and funding have likely changed those numbers, and we understand the definition of “administration” in Illinois needs to be refined as it can include positions that no one would consider administration.
We aren’t ready to recommend a UW System of management — but we believe it’s a question that needs to be answered, and the Illinois Board of Higher Education should start that conversation now as a means toward setting a solid plan for the system’s future.
But make no mistake — the governor and General Assembly need to resolve the budget crisis and make the investment in higher ed that Illinois needs to make it a competitive, healthy state.
Thriving higher education system needed for strong economy.
One could argue the state’s nearly two-year budget impasse has been most visible at the state’s public universities and community colleges.
Students aren’t getting their MAP grants. Faculty, staff and administrators are being laid off. There is concern one or more of the state’s public universities might shut its doors. In just one day in April, the bond ratings of six universities were downgraded, as rating agency S&P determined the uncertainty of state funding for higher education made them a bad risk for investors.
Perhaps most embarrassing was this: In April, a national report from the State Higher Education Executive Officers association on higher education finances in 2016 spotlighted Illinois as an outlier. That status was cemented due to per-student funding falling by 80 percent year over year, from $10,986 to $2,196, while enrollment at public institutions plunged by 46,000 students (or 11 percent).
Illinois was so bad that if you include it in the report, overall public support for higher education funding fell by 1.8 percent. Remove the Land of Lincoln, and overall support for higher education nationally increased by 3.2 percent.
Illinois needs outstanding higher education facilities that produce knockout research, breathtaking innovation and graduates eager to conquer the world. To do that, universities and colleges need focused strategic plans — and that is only going to happen when there is stability that comes from having a state budget.
As in other sectors, pension reform is key to freeing up more resources for instruction. A study of Illinois by the State Higher Education Executive Officers found that in fiscal year 2015, retirement appropriations consumed 44.3 percent of the total funding for higher education in Illinois. In 2007, it had been just 10.3 percent.
That’s a depressing and sobering shift. In fiscal year 2000, about $218.2 million in state funding was dedicated to pensions, according to the Illinois Board of Higher Education, and $2.13 billion went to operations funding. Fast forward to fiscal year 2015 (the last year there was a permanent state budget), and $1.55 billion went to pay off pension debt — nearly as much as the $1.95 billion the state spent on the actual teaching, research and support operations.
And who has borne the brunt of that shift? Students and their parents have forked over more to help bridge the difference. Average tuition and fees at public universities in Illinois were $4,786 in fiscal year 2002. They had more than tripled to $13,462 by fiscal year 2015, according to the Illinois Board of Higher Education.
The restructuring of the state’s pension debt will free up significant funds to actually be spent on instructional costs. So would making all new hires go into a self-managed plan retirement (already an option in the State University Retirement System), and allowing any current employees the option of switching to such a plan.
But stable funding is just a start for retooling our institutions of higher education. It’s time for a thorough examination of what they should be and a commitment to making our institutions centers of achievement that spur economic growth in Illinois.
Most of the four-year public universities in Illinois were established as regional education centers. They offered similar programs, with the thinking that students in those areas wouldn’t have to travel far for their education. That made sense 100 years ago when traveling was more difficult, but if the number of students who are heading out of state for college is any indication, they are willing to travel if it means access to excellent programs.
Universities are, and need to remain, the economic drivers of their home communities. Figures shared by the Illinois Coalition to Invest in Higher Education show that colleges and universities in Illinois employ 175,000 people statewide and generate more than $50 billion in economic activity. For every $1 the state spends on higher ed, it gets $25 back. It’s an outstanding value.
But each campus should have designated areas of specialization. In today’s specialized world, universities must adapt and put aside the notion that they can be all things to all people. Program offerings should be evaluated, and under-enrolled programs must be pruned, allowing institutions to focus on their strongest offerings.
Doing that might mean revamping the structure of the schools: Does each one need a board, or should we perhaps mirror our neighbor to the north? The University of Wisconsin system oversees 13 four-year universities and 13 freshman-sophomore UW Colleges campuses, which provides efficiencies in administration. Illinois needs to examine that. A 2015 report by the Illinois Senate Democratic Caucus found that the number of full-time administrative staff at public universities ballooned by 31.1 percent from 2004 to 2010. But during the same time period, the number of full-time faculty increased by just 1.8 percent, and there was only a 2.3 percent increase in part- and full-time students.
The last two years of belt tightening in the absence of a budget and funding have likely changed those numbers, and we understand the definition of “administration” in Illinois needs to be refined as it can include positions that no one would consider administration.
We aren’t ready to recommend a UW System of management — but we believe it’s a question that needs to be answered, and the Illinois Board of Higher Education should start that conversation now as a means toward setting a solid plan for the system’s future.
But make no mistake — the governor and General Assembly need to resolve the budget crisis and make the investment in higher ed that Illinois needs to make it a competitive, healthy state.
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sealhall74
- Posts: 5985
- Joined: Fri Apr 18, 2014 1:18 pm
- Location: Wherever, Windblows
All of those baby-boomers went into retirement during that period and there are more of them to come. What more evidence do you need that pensions should be taxed?wiu712 wrote: Sat May 20, 2017 9:17 am
As in other sectors, pension reform is key to freeing up more resources for instruction. A study of Illinois by the State Higher Education Executive Officers found that in fiscal year 2015, retirement appropriations consumed 44.3 percent of the total funding for higher education in Illinois. In 2007, it had been just 10.3 percent.
Embrace the pace of the race.
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Neckerchief
- Posts: 67
- Joined: Thu Mar 30, 2017 10:07 pm
Taxing pension income in Illinois would do little to help the situation. I just read an article on Connecticut's pension crisis which ended with this quote which also perfectly describes Illinois' situation:sealhall74 wrote: Sat May 20, 2017 10:25 amAll of those baby-boomers went into retirement during that period and there are more of them to come. What more evidence do you need that pensions should be taxed?wiu712 wrote: Sat May 20, 2017 9:17 am
As in other sectors, pension reform is key to freeing up more resources for instruction. A study of Illinois by the State Higher Education Executive Officers found that in fiscal year 2015, retirement appropriations consumed 44.3 percent of the total funding for higher education in Illinois. In 2007, it had been just 10.3 percent.
The forces that have brought about the blue model crisis are structural: Overly-powerful public sector unions, dishonest accounting practices, chronic political can-kicking, and a defined-benefit pension model that doesn’t work in the 21st century. These are deep-rooted problems that will require major reforms in the way government runs and the way the civil service is organized. As Connecticut Democrats are realizing, the Bernie Sanders approach to government deficits—tax the millionaires and billionaires, then tax them some more—is simply not adequate to the scope of the crisis.
Ten days to go to get a State budget. Will this be the year ????
In Decatur, the lack of a state budget has played a major role in cuts made at Richland Community College. Since the start of spring, the college has eliminated five administrative positions and announced plans to lay off 18 employees, eight full time and 10 part time, and offer buyouts to an additional 14 full-time staff. It has also closed its child care center, with administrators pointing to the state situation and declining enrollment as factors.
Richland officials have said they also plan to approve a budget for the coming fiscal year without any money from the state, which used to make up 14 percent of its total budget.
Jak Tichenor, interim director at the Paul Simon Public Policy Institute at Southern Illinois University-Carbondale, sees a very dark future for the state universities if the budget impasse continues. He said: “If we have no movement until after the 2018 elections, I think it would be a certainty some universities would not open that fall. I think Eastern, Western, Northeastern, and Chicago State are all the top of the list. The Carbondale situation is pretty tenuous as well.”
Probably time for the smaller regionals to re-assess their resources. Perhaps remaining a NCAA Divison 1 program may no longer be sustainable.
In Decatur, the lack of a state budget has played a major role in cuts made at Richland Community College. Since the start of spring, the college has eliminated five administrative positions and announced plans to lay off 18 employees, eight full time and 10 part time, and offer buyouts to an additional 14 full-time staff. It has also closed its child care center, with administrators pointing to the state situation and declining enrollment as factors.
Richland officials have said they also plan to approve a budget for the coming fiscal year without any money from the state, which used to make up 14 percent of its total budget.
Jak Tichenor, interim director at the Paul Simon Public Policy Institute at Southern Illinois University-Carbondale, sees a very dark future for the state universities if the budget impasse continues. He said: “If we have no movement until after the 2018 elections, I think it would be a certainty some universities would not open that fall. I think Eastern, Western, Northeastern, and Chicago State are all the top of the list. The Carbondale situation is pretty tenuous as well.”
Probably time for the smaller regionals to re-assess their resources. Perhaps remaining a NCAA Divison 1 program may no longer be sustainable.
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Tere North
- Posts: 1152
- Joined: Wed Apr 16, 2014 10:59 pm
When Carbondale runs their own campus into the ground, strands their Springfield medical school, and then robs $35M from Edwardsville, it's hard to see how Western is in more dire straights than Carbondale that is only "tenuous."wiu712 wrote: Sun May 21, 2017 7:07 pm Jak Tichenor, interim director at the Paul Simon Public Policy Institute at Southern Illinois University-Carbondale, sees a very dark future for the state universities if the budget impasse continues. He said: “If we have no movement until after the 2018 elections, I think it would be a certainty some universities would not open that fall. I think Eastern, Western, Northeastern, and Chicago State are all the top of the list. The Carbondale situation is pretty tenuous as well.”