NIU is again budgeted $101 million from the state for fiscal year 2005, but Gov. Rod Blagojevich may ask state universities to reserve 4 percent of their budgets, Rep. Bob Pritchard (R-Hinckley) said.

The $101 million for NIU mirrors the recommendation of the Illinois Board of Higher Education.

A 4 percent “holdback” would mean NIU administration would have to set aside about $4 million in case the state’s revenues fall short in the next year, Pritchard said.

Blagojevich requested a 2 percent holdback for FY04. He then requested that $2 million of the funding be returned just before the end of the fiscal year this past June, leaving NIU to quickly find ways to cut spending.

Although he was pleased with the way NIU pulled the funds together for return to the state, NIU President John Peters said he does not expect to have to do so again this year.

Peters said he considers the question a moot point, as he couldn’t envision holding back more than $2 million.

“I don’t know how we would do it,” Peters said.

After returning this year’s money, NIU waited for the outcome of budget negotiations to form its own budget.

In a record-breaking session extending 54 days, the Illinois General Assembly approved a $46 billion state budget late Saturday.

The governor said he will sign it. Blagojevich was in Massachusetts Monday for the Democratic National Convention and had not yet signed the budget.

The final budget represents an end to three years of cuts to NIU totalling $30 million, Peters said.

In a move signaling their distrust for the governor and his promises, legislators created “memoranda of understanding.” The memoranda are a written reminder of deals the governor made in the negotiation process, Peters said.

Pritchard said he thinks the governor will ignore the terms of the memoranda. He and legislators who represent districts with universities are urging the institutions to refuse the holdback.

Pritchard said he worries about another shortfall in the state’s revenues next year.

“This budget is based on increased fees and assumed revenue,” Pritchard said.

The governor may need holdback money returned because business fees may not come in as expected, Pritchard said.

Peters said that technically speaking, NIU could refuse the governor’s request for a holdback, but he doesn’t plan on having to answer such a request.