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Since opening its doors in 1867, the University of Illinois has continued to offer exceptional value to its students and outstanding service to the state in its services. Despite the financial struggles it has been faced with in recent years, the University has remained committed to providing a first-rate learning experience to all its students. In September 2011, the University announced it had produced more than $26 million in annual recurring savings as a result of the Administrative Review and Restructuring (ARR) initiative. As part of the initiative, which was started in 2009 to help address financial challenges, a working group issued 43 recommendations for savings. By 2014, the University hopes to achieve $60 million in recurring annual savings. Also in September, the Board of Trustees approved a $5 million fiscal 2012 operating budget, a 5 percent increase over 2011, with the goal of maintaining the University’s world-class academic and research missions. Fiscal year 2012 continues to be challenging. An online chart shows the current status of lagging state payments to the University. The state of Illinois has a budget deficit of $9 billion and a $4.6 billion backlog of unpaid bills. The underfunding of state pension systems has generated considerable debate. In an effort to not pass these challenges on to already-strapped students, the Board adopted a tuition setting policy in January 2011. The policy seeks to hold increases to the rate of inflation to address affordability while retaining the University’s purchasing power.
The Budget Explained
May 2012 |
