NIU President John Peters and other Illinois public university presidents testified during an Illinois Board of Higher Education hearing in Chicago on Monday that it is impossible to create requested budget reserves for fiscal year 2003 without having a negative impact on students.

The presidents said they might have to consider extensive layoffs, a reduction or elimination of their summer sessions, the reduction of academic programs, the elimination of some student employment opportunities, increased class size and reduced class offerings.

The IBHE held the hearing in order to hear directly from the presidents how the governor’s request that 8 percent of the remaining operations costs for fiscal 2003 be put aside.

Peters called the Illinois budget crisis an “unprecedented fiscal situation,” adding that making adjustments to meet the governors request “will be painful and everyone will have to make sacrifices.”

Peters described to the board steps NIU will consider to create the $8.9 million reserve, including layoffs of 300 to 400 staff, making negotiations with vendors for delayed payments, restructuring the summer session and extending a freeze on maintenance. He also said a surcharge on technology is also a consideration. He stressed that the NIU Board of Trustees has not made a decision about which, if any, of these ideas will be used yet.

Peters did say that there is one step toward saving money that he is ruling out – canceling classes that are already in session.

“It’s immoral to stop the production of this June’s graduates,” he said.

“I don’t know what we’ll do, but we will find a way to make sure they graduate,” Peters said.

Peters said students should not be worried.

“We are going to complete this term,” he said.

He also said that he doesn’t expect NIU to take any action on tuition.

Peters plans on sharing with the NIU Board of Trustees what he took away from the hearing during the board’s meeting on Wednesday. He believes Chairman Manny Sanchez will hold discussions about what NIU will have to do during its executive meeting. However, he doesn’t believe any decisions will be made then.

Peters said that he doesn’t expect to see a finished plan for NIU to produce the 8 percent budget reserve until early May, after Governor Rod Blagojevich gives his budget message on April 9.