University to rely on tuition money until late February at most
Eastern has received $907,000 to date from the state of Illinois, about 3 percent of its total appropriations.
As of mid-November, the university had only received $382,000 of the Fiscal Year 2011 general revenue allocations.
The university has billed the state for $35.8 million of its $47.4 million appropriation, but the state has been unable to meet the majority of its financial obligations to the university.
At this time last year, the university had received $5.7 million from the state, 11 percent of the total fiscal year 2010 appropriations.
However, due to the state still owing other institutions FY2010 funds, this figure was not a reality, Treasurer Paul McCann said.
The receipt of the additional $525,000 before the end of 2010 came as a surprise to McCann, due to the state comptroller not guaranteeing award monies until after Jan. 1.
Eastern will be relying heavily on tuition money for the first two months of the semester to make up the $34.9 million gap the state owes the university. However this is not a long-term solution, McCann said.
“I start worrying at the end of February,” he added.
During that time, the state will begin receiving the sales tax monies from the holidays as well as income taxes.
However, McCann said they have “made no promises yet.”
In both Fiscal Years 2009 and 2010 the university was appropriated $50.5 million.
This $3 million loss is due to the stimulus money allotted from the American Recovery and Reinvestment Act of 2009 no longer being available.
Last year, the Board of Trustees authorized the university to borrow funds in a situation of dire financial need.However, this measure was not needed for last year.
Although the university has potential borrowing authority, this option is not ideal, McCann said.
Despite the economic crunch, McCann said he believes the university will receive money from the state in the nick of time.
“The state has come through every year, but it’s a lot to assume,” he said.
Since mid-November of last year, the Council on University Planning and Budget has been generating cost-containment ideas for the university, some of which may help the university save money in tight financial times.
McCann said the university is working to implement all the suggestions that the CUPB has received, including sending out employee check stubs digital rather than paper format.
These efforts aren’t going to save the university millions of dollars, but every dime helps,” McCann said.
He added that the university will do what it can to minimize the effects of the budget constraints on student education.
“I think maybe students may see that they aren’t getting as much paper, otherwise, we are using tuition money until we get the state appropriation,” he said.
Shelley Holmgren can be reached at 581-2812
