Budget recommendations halted

By Kristin Cavarretta

Despite the impact the state budget crisis has had on public universities, budget recommendations for fiscal year 2005 are at a standstill. Unlike last year, the Illinois Board of Higher Education isn’t recommending budget increases, but they’re not recommending decreases, either.

Kevin O’Kelly, an IBHE student board member, said the IBHE not only recognizes that universities are suffering because of budget constraints, but also that the state is in a tough economic situation.

“We don’t want to ask for money that we aren’t going to get,” O’Kelly said.

The IBHE will meet on Tuesday to finalize recommendations of a general operating budget of $2.34 billion for all public higher education institutions in Illinois, which is a $79.8 million decrease from FY04 allocations. The proposal will be sent through Gov. Rod Blagojevich and the Illinois General Assembly, who will make final budget decisions.

Although there is a general decrease in funds, the IBHE did not look to university budgets for the cuts.

Instead, the IBHE cut funds from several other areas, including a 62.1 percent cut in workforce and economic development, and a 13.8 percent cut in the state universities retirement system.

Last year, the IBHE increased recommendations for most state university budgets, only to later see cuts averaging 7.7 percent across the state. NIU’s budget was recommended to be increased by 2.3 percent from FY03, but was instead cut by 8.2 percent for FY04.

NIU requested about $120 million for FY05, but the IBHE is recommending that the state give NIU about $101 million, which is the same as NIU’s FY04 budget.

O’Kelly said the IBHE knows universities are in tough situations and need more money, but they hope by not asking for more money from the state, final university budget cuts, if any, will be minimal.

Although the IBHE is not recommending an increase in funds appropriated to NIU, the overall NIU budget, which includes the state-appropriated funds, university income funds and other non-appropriated funds, will see a 0.5 percent increase if recommendations are approved. University income funds include things like tuition and fees and donations NIU receives.