DeKALB – An $18 million operating deficit for the fiscal year 2023 was reported by NIU’s Finance, Audit, Compliance, Facilities and Operations Committee.
The deficit of $18,563,414 is in part the result of the university earning $4.6 million less than budgeted in revenue from Sales and Miscellaneous and Investment income in its structural budget.
The university’s structural budget represents recurring aspects of the university budget, excluding capital repairs and grant-supported programs.
The university ended FY 2023 with $20.1 million in miscellaneous and investment revenue. The budgeted estimate for miscellaneous and investment income was $26.9 million.
The university’s total revenue was $1.3 million more than estimated and expenses were $5.4 million more than estimated.
“Personnel expenses finished $4.4 million below (the structural) budget, though some of those savings were redeployed in other areas, including contractual services, which exceeded budget by $3.1 million,” said NIU Associate Vice President of Budget and Financial Planning Andrew Rogers.
FINANCIAL YEAR 2024
The university projects total expenses to be $433.2 million and revenues to be $401.4 million, resulting in a $31.8 million deficit for FY 2024.
APPROPRIATIONS REQUEST
The university will request $116.4 million in funding from the state of Illinois. The amount to be requested was approved by the board in its special board meeting. If approved, $113.4 million will be spent on education and operational costs, and $3 million will be spent on new initiatives.
The new initiatives include enhanced student success services, adult learner initiatives, program expansions, Hispanic serving institution preparation, cluster hiring to support transdisciplinary teaching and research, and health professions education.
IBHE BUDGET REQUEST
The board approved a request for about $600 million from the Illinois Board of Higher Education to fund 11 capital projects and about $160 million to fund 15 capital renewal projects.
Capital projects are major investments for new construction and major renovation efforts. Capital renewal projects are major repairs and system improvement projects.
Part of the requested funds are for the construction of the Health Technology Center. Of the $600 million, $7.7 million has already been released to begin a schematic design with a consultant team selected through the Capital Development Board.
The rest of the funds are allocated for the renovation of McMurry & Wirtz Hall, Davis Hall, Gabel & Graham Complex, Still Hall, Still Gym, Reavis Hall, Watson Hall, the Psychology/Computer Science building, Montgomery Hall, DuSable Hall, and Williston Hall.
The $160 million renewal request included the replacement of Altgeld Hall’s automation system which controls centralized systems such as heating and energy along with campus boiler replacements, masonry repairs and other upgrades.
APPROVAL OF AMENDED POLICE UNION CONTRACT
The board approved an amended union contract for the Metropolitan Alliance of Police, Chapter 291. The previous contract was effective through 2027, but the agreement was opened to aid in officer retention.
“It was actually opened so that we could have the package more competitive for police officer retention,” Freeman said.
The new contract is effective through June 30, 2029.
APPROVAL OF AMERICAN FEDERATION OF STATE COUNTY & MUNICIPAL EMPLOYEES, COUNCIL 31, LOCAL 1890 CONTRACT
The board approved a bargaining agreement for the labor union representing approximately 500 employees.
The agreement includes a process to address inversion, instances in which newly hired employees earn higher salaries than employees with more experience.
The new contract is effective through June 30, 2025.
POTENTIAL CELLULAR TOWER TO GENERATE REVENUE
The finance committee approved a request to build a cellular tower on the school’s campus. The tower will be built in a lease with The Towers, LLC and is expected to generate $500,000 in revenue over a potential 50-year term.
The board will vote to approve or deny the request in a meeting on Dec. 7.
PRESIDENT FREEMAN RECEIVES BONUS
The board approved a $23,250 bonus for President Lisa Freeman. Freeman’s contract outlines a performance incentive given based on benchmarks such as student recruitment, success and experience, academic excellence and curriculum innovation, and resource development and fiscal responsibility.
The approved bonus is 93% of the $25,000 she is eligible for in the contract.
Freeman said she and her husband plan to donate $25,000 to a scholarship fund for NIU students.
INTERNET EXCHANGE POINT LAND LEASE
The finance committee forwarded a request for approval for a no-cost lease with Connected Nation Internet Exchange Points, LLC. The lease will allow Connected Nation Internet Exchange Points to construct and operate an Internet exchange point (IXP) on NIU’s campus. The IXP is expected to improve data connectivity, capacity and connection latency. The location of the IXP site has not yet been determined.
The board will make a decision on the request at its next meeting.
The next Board of Trustees meeting is Dec. 7 at 9 a.m.
