In the face of a $400 million budget shortfall, the President of the University of Illinois will implement a three part plan to address the school’s financial problems.
 
UI Interim President, Stanley Ikenberry, sent out a press release on Jan. 5, to address the grim financial situation at the 142 year-old institution. The school’s problems are rooted in the state’s budget crisis—the state of Illinois’s credit is ranked 49th in the country.
 
Several times in recent months, the University has issued statements warning that unless they receive promised funds from the state, they may not meet payroll. Right now, the University is meeting payroll with a $65 million buffer that was created by setting aside $20 million in November and reducing expenditures by six percent.
 
“Until we see signs of this financial crisis lifting we must implement the following short term measures,” said Ikenberry.

 
Ikenberry plans to reduce spending quickly with furlough days. President Ikenberry is taking 10 furlough days, and directing chancellors, deans and other UI administrators to do the same. The rest of staff is asked to take only four, and the president is exempting those with an annual base salary of $30,000 or less, graduate assistants, and retirees whose tenure is up before August 15, 2010.
 
The University is also implementing a freeze on hiring and wage increases. Research support and emergency compensation agreements will be unchanged.

A working group has been charged with reorganizing and restructuring the administration for cost efficiency. The group will provide a preliminary report to the board of trustees and the UI community on Jan. 21.


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