NIU’s budget crunch might sting just a bit more if proposed state legislation passes.

A new bill being negotiated by the Illinois General Assembly, which may become a new state law in 2009, would greatly restrict the sale of soft drinks to students in state schools. The bill prohibits a public school or school board from entering into a contract with a beverage vending company if the contract contains certain provisions, according to www.ilga.gov.

Many state schools have existing contracts with soft drink companies that include the exchange of money to the school from the company for rights to sell only their products to students.

If this law goes into effect, it is possible NIU will not renew its contract with Pepsi Co. after it expires in 2008, said Robert Albanese, NIU’s associate vice president of Finance and Facilities.

The relationship between NIU and Pepsi has always resulted in guaranteed lucrative benefits for both sides. The 10-year contract Pepsi and NIU signed in 1998 assured a yearly minimum of $400,000 from Pepsi in exchange for “exclusive pouring rights” on campus.

NIU annually allocates $50,000 to $200,000 of its guaranteed Pepsi money to different school programs and scholarships, Albanese said. Athletic scholarships, student life initiatives and the Undergraduate Special Opportunities in Artistry and Research program have each received $50,000 per year from the Pepsi contract. The Centennial Scholarship has regularly received $200,000 of yearly Pepsi money, and the school has regularly distributed $50,000 of its Pepsi money to improve undergraduate teaching, Albanese said.

“If this law goes into effect, students are the ones who will be hurt the most,” said Eddie Williams, executive vice president of Finance and Facilities.

NIU’s academic programs are not the only ones that would feel the sting of an obvious lack of money in the future. Residence halls have been permitted by school officials to keep the money gained from having Pepsi vending machines and distribute that money to upgrade resident life.

NIU officials said they will not begin negotiating the prospect of a revised contract with Pepsi until next year. Until then, program coordinators may have to reorganize funding for a possibly impending budget crunch.

“We anticipated this already,” Vice Provost Earl Seaver said.

“We’re moving away from Pepsi for more stable support,” he said.