Eastern has been asked to put $1,264,163 of its general revenue appropriations in reserve by Gov. Rod Blagojevich.

The governor announced recently the state is facing a $2 billion shortfall in the current budget, according to a memo sent to Eastern officials late afternoon on Wednesday from the Illinois Board of Higher Education.

The memo stated: “The Governor’s Office of Management and Budget approached the (Illinois Board of Higher Education), the (Illinois Community College Board) and the (Illinois Student Assistance Commission) and requested a 2.5 percent reserve on General Fund appropriations for public higher education institutions/agencies for the current (2009) fiscal year.” President Bill Perry sent out an e-mail to the campus community on Nov. 20 identifying potential ways to capture 8 percent after legislation was introduced in the Illinois General Assembly.

The university is going to have to generate steam from the old plant for the next two heating and two cooling seasons, Reed said.

The e-mail outlined a list of six tentative impacts including the reduction of non-safety related maintenance, the postponement of filling some vacant positions, the reduction of spending on programmatic and equipment needs, the reduction of summer school offerings, the reduction of utility expenditure and the implementation of some layoffs.

Perry said Eastern would look at the top of the list and work its way down.

“I’d hope the impact would be on the first three here – the first three only with the 2.5 percent,” Perry said.

Perry met Monday morning with the President’s Council to discuss plans for the reserve.

“We’re beginning an assessment of the impact should we indeed have to give it back,” he said.

Perry said they will have a rough analysis within a week or so.

Once the analysis is complete, Eastern will communicate its results to the director of IBHE.

“We’ve been requested to put this in reserve,” Perry said. “That doesn’t mean it’s been called back. We’re going to analyze the situation and prepare in case there is a call back on those funds.”

Jill Nilsen, vice president for external relations, said the university is just making sure that it has 2.5 percent of its general revenue appropriation available if asked to return it.

She said the university would not be able to do some maintenance projects, might not be able to buy all the equipment it needs and may wait to fill vacant positions a little bit longer.

“It’s not just a separate pot of money,” Nilsen said. “We’re not doing these things so that we know that we can come up with that money if we needed to.”

She said the first priority is on the academic environment.

“I think our wish is that there is a minimal impact on our students,” Nilsen said.

Perry said the university has budgeted conservatively for the fiscal year, and so is in a better position in the economic downturn than if it had not.

“I believe that should this reserve have to be returned, the impact – although it will be felt – the impact will be confined to the first three items of that previous e-mail,” he said.

Perry said he will be meeting with the Council of University Planning and Budget on Dec. 12

“At that time we will discuss this matter at more detail,” Perry said.

Emily Zulz can be reached at 581-7942 or at eazulz@eiu.edu.