The administration will continue its conservative approach to budget planning for the upcoming fiscal year despite Gov. Pat Quinn’s favorable appropriation recommendation for public universities.

President Bill Perry said the university is maintaining the same approach because Quinn’s recommendation is comprised from federal stimulus money. Because of this, the slight increase in appropriations for fiscal year 2010 might disappear by fiscal year 2011.

“That’s one-time money,” Perry said.

Quinn proposed his budget to the General Assembly March 18. In it, he recommended a $40 million increase in state appropriations to all public universities.

Perry said the administration also decided to continue the conservative approach because of another complication. He said, after Quinn proposed the budget, the governor issued a written warning that in the event of a budget shortfall during fiscal year 2010, public universities might be asked to put 2 percent of their appropriations on reserve.

In November, the public universities were asked to put 2.5 percent of their state appropriations in reserve. Eastern ultimately put $1.26 million of its appropriations on hold. The money still remains on reserve.

“Because of these two factors, we have to be very careful going forward,” Perry said.

He said Quinn’s recommendation, as it stands right now, brings Eastern’s state appropriations back to the amount the university received this year before Eastern put $1.26 million on reserve.

“Our planning next year is not assuming very much of an increase,” Perry said. “If the governor’s budget holds, we will be in a reasonable position.”

Because of the uncertain future with state appropriations, Perry said tuition for new students would again increase.

For this school year, incoming freshmen and transfer students had to pay a 12-percent increase to tuition after former Gov. Rod Blagojevich recommended a 0 percent increase to state appropriations.

Perry added the administration does not yet know how much tuition will increase.

Typically, the university starts its budget planning based off the governor’s recommendation, Perry said.

For the upcoming fiscal year, the university will work with Quinn’s recommendation with the possibility of putting 2 percent on reserve, he added.

The university also has to especially careful of not spending the stimulus money for long-term items such as a continuing salary.

“We got to be careful,” he said. “That doesn’t mean we aren’t going to spend it.”

Eastern started to take a strict conservative approach to budget planning last year, thinking Blagojevich would want to recall some appropriations, which ultimately happened, Perry said.

When the university announced it would put appropriations on reserve, Perry stated only essential faculty and staff positions would be filled. He also stated only facility projects that would threaten the safety of the campus would be executed.

Perry said, even with Quinn’s recommendation, the administration will continue to carry out those plans.

“Essential means that, if we didn’t have that position filled, we would really be in danger of not being able to complete our mission,” Perry said.

Gary Reed, director of facilities, planning and management, said his department prioritizes infrastructure projects based on the condition of the facility to deliver essential services to the campus community.

“For example, replacing a leaking domestic water line trumps repainting a wall,” he said.

Deferred maintenance costs for the university are $176.5 million. The university’s base budget for this year that goes to conducting deferred maintenance work is $1.9 million.

Deferred maintenance is postponed construction projects to infrastructure. The amount of projects will accumulate throughout time.

Reed said the university commits 0.5 percent of funds to deferred maintenance projects, while facilities, planning and management guidelines calls for 1.5 percent to repair existing facilities.

In February, Paul McCann, interim vice president for business affairs, said most people would never notice a facility on campus that has accumulated deferred maintenance.

But Reed said the longer a facility is ignored, the more maintenance it needs.

“If deferred long enough, any maintenance issue can become a safety-related concern,” he said.

Blair Lord, provost and vice president for academic affairs, could not be reached for comment about being able to fill essential faculty and staff positions.

Perry said the university would continue budgeting conservatively in the future. He added the university should take a conservative approach each year, despite the state of Illinois’ economy.

Making a budget is based on future revenue projections to certain areas, he said.

Perry added those projections need to have a cushion because, when the fiscal year plays out, unexpected expenses, such as a spike in gas prices, to other areas will need attention.

“As you move along, you are always adjusting,” he said.

Despite Quinn’s recommendation containing only stimulus money and the warning of returning some of the appropriation, Perry said students should not notice a change to their education.

He added the university would not risk spending Quinn’s short-term recommendation unwisely.

“We are trusted to have a balanced budget and that is always what we are going to put together,” Perry said.

Stephen Di Benedetto can be reached at 581-7942 or at sdibenedetto@eiu.edu.