Cautious spending of funds with delay in tuition money
The university is slowly receiving the tuition monies needed to stay afloat from lack of state funding. However, this money is trickling in at a slower pace than past years, said Adam Dodge, information technology security officer, at Friday’s meeting of the Council of University Planning and Budget.
“Tuition money is not coming in at the same pace as it usually does,” said Dodge, a member of the CUPB’s vice president for business affairs subcommittee. “This adds to some uncertainty along with the budget issues from the state.”
William Weber, the vice president for business affairs, anticipated the delay on tuition money.
“The economy is still slow and this is affecting students whose parents who provide financial support,” Weber said at the CUPB meeting.
However, this development is not surprising given the economic situation, Weber said.
“What this does is exasperate our cash flow situation a little bit,” he continued.”It looks like we’re in the same situation we were in a year ago today.”
To date, the university has received $4.75 million from the state, 10 percent of the total appropriations.
Eastern has billed the state for $35.8 million of its $47.4 million appropriation.
“That’s 10 percent more than I expected to have from the state,” Weber said.
Despite receiving these funds, the university will still be in a tight budget crunch.
“Just this time last year I started spreading the years for class flowing saying we’re two months from Armageddon – that’s where were at now,” Weber said. “If no money comes in from the state, we’re going to be feeling some difficulties.”
Earlier this month Illinois Democrats pushed legislation to temporarily raise income tax rate from 3 percent to 5 percent, a 66 percent jump. Gov. Pat Quinn, who signed this legislation last week, said the income tax increase is something the state needs to pay its bills, The Chicago Tribune reported.
This tax increase, effective Jan.1 is expected to raise $6 billion in total revenue, roughly what the state needed to fix its structural deficit, Weber said.
“It’s just enough money (for the state) to stop digging the hole, but not enough money to begin filling the hole up,” he added.
Because of this, Weber said the university will continue to remain very conservative when it comes to spending.
“Last year we really cut back our spending,” Weber said. “We will spend what we need to to keep running, but we need to continue doing that as conservatively as possible.This is a dry spell.”
Shelley Holmgren can be
reached at 581-7942
