NIU may see cutback in finances

By Beth Behland

NIU could see some cutbacks this year, but it’s too soon to hit the panic button.

NIU President John La Tourette said the university is not in financial trouble right now, but he is trying to prepare for a possible rescission—the cancellation or cutback of funds—in December or January.

“I don’t want to panic people … but I also don’t want to lose the chance of relatively painless savings.”

La Tourette said he is trying to get ahead of the game in case Gov. James Thompson or Governor-elect Jim Edgar deem it necessary to cut the higher education budgets for this academic year.

Although Illinois usually makes it through economic problems, there is evidence that an “economic slow down” will hit, La Tourette said. He anticipates a rescission will occur either this year or the next. With rescission comes unemployment and falling tax revenue.

NIU has an operating budget of $121 million—$90 million of which is from state tax revenues. If a rescission occurs, NIU could be asked to cut 2 percent or $1.8 million from the tax revenue budget. Because this semester is almost over, the $1.8 million would have to be cut from December until the end of the academic year.

About two weeks ago, the Illinois Board of Higher Education notified all state universities that Comptroller Roland Burris is requesting that universities don’t spend operating budget monies.

Burris indicated the state is ripe for a rescission and pointed out the state cash balance is at $150 million. About $200 million is what the state considers a comfortable level.

In order to prepare for the potential money crunch, La Tourette said there is a hiring delay in effect until Jan. 7. This will prevent any holiday hiring in which a person works about 20 days during the holiday season and gets paid for the month they don’t work during the Christmas break.

Vice presidents may approve hiring of essential staff before then for positions that are not being filled during an interim. People like administrative secretaries might fall into the exception category.

During the holiday breaks, the use of heat and electricity will be limited, La Tourette said.

These measures could save NIU up to $400,000 before a rescission hits, La Tourette said. If and when a rescission does occur, NIU will cut back on plans to replace things like old carpeting and draperies in addition to delaying minor construction plans like fixing broken sidewalks.

La Tourette said the cutbacks he is preparing are normal, he is just stressing them more this year.