Salaries covered by banks
July 16, 1991
NIU is taking care of its own—for the time being.
With the help of three local banks, 204 NIU employees who were without paychecks Tuesday will be getting no-interest loans to compensate their pay that was withheld by the state.
The General Assembly’s impasse on the budget has left many state employees without their paychecks, and 336 NIU employees feared having empty pocket books because they were unsure of exactly where their salaries come from.
These employees include professional, administrative and technical civil service employees who get paid every two weeks and are on annual salaries.
However, 132 of the 336 employees who receive money from non-appropriated funds—such as student fees and grants—will not be affected because they do not receive salaries from the state.
Checks for these employees have been available since 2 p.m. Tuesday.
The remaining 204 who get paid from state-appropriated funds had their paychecks held up until the state legislature reaches an agreement.
In order to beat this obstacle, NIU President John La Tourette called three banks, First National Bank in DeKalb, 141 W. Lincoln Hwy., First of America Bank, at 363 E. Lincoln Hwy., and The National Bank & Trust Co. of Sycamore, 230 W. State St., Sycamore.
These banks were called first and said they would accommodate NIU so the university didn’t ask any other banks, said Ken Beasley, assistant to the president. No banks were excluded, it was just that the first three called said they would help, he explained.
“This action is for only those who missed the July 16 payroll,” Beasley said.
“The university really appreciates the efforts of the banks to help employees at this critical time,” La Tourette said.
“It’s a stopgap solution,” said Dewey Yaeger, president of First of America Bank. “It’s such a vital factor in our local economy.”
However, the banks’ aid only covers the July 16 paychecks and is not a permanent solution.
Student employees are unaffected by the General Assembly’s delay because they are either paid through non-appropriated funds or by an hourly wage, Beasley said.
However come Aug. 1, all employees receiving appropriated funds, about 3,500, will be out of luck. “You’re talking big money,” Beasley said.
NIU has not made any contingency plan either, said James Harder, vice president of Business and Operations. But the university believes appropriations will pass by then, he said.
And Yaeger said the banks “are certainly willing to work with” the university if the Aug. 1 deadline is not reached. “We certainly hope and assume the legislature will recognize” the seriousness of the situation, he said.