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SIU President outlines budget cut proposals

Wednesday, Mar 9, 2016

* From Southern Illinois University President Randy Dunn…

As I promised in my last Connection column, I am using the space today to share with you budget reduction plans that I regretfully must present during SIU’s first round of appropriations testimony for FY17 — that being with the Senate Appropriations II Committee tomorrow in Springfield.

Let me say a couple of things right out of the gate. I apologize for this coming to you later in the day than normal — you’re used to getting it earlier, I know — but what you will read in the links below was under review literally up until the release of the message now. And please remember that the lists below — as you take them in line by line — are proposals only, and relate to the FY17 state budget.

Most regular readers at this point are aware that we will be able to make it through to the end of the current 2016 fiscal year on June 30, even though we have not received one thin dime of state support for general university operations since last summer. Indeed, if payments to the universities would have been made thus far this year — and done in a timely fashion (not a standard practice in Illinois, I grant you) — SIU would have had about 150 million more dollars passing through its coffers by this point.

Nonetheless, we’re managing for this year. As you also know too well, one way that is getting accomplished is by not filling positions. One of the key exhibits I’ll be presenting during the approps hearing is the number of positions sitting vacant right now across the SIU System. Look at it here … because it’s shocking to consider. But we’re making a go of it … to the extent that an independent third party has taken note of it. […]

To refresh everyone’s memory from my previous write-up, budget officers and other top administrative staff from across the SIU System gathered in Edwardsville a little over two weeks ago to build upon the earlier reductions made across our campuses heading into this year. The planning objective from that budget “war room” was to determine the reductions necessary to minimally cover the projected loss of state support for regular operations and other purposes (e.g., pension cost shift) next year under Governor Rauner’s budget proposal. Those revised numbers are as follows: SIUC, $22.856 million; School of Medicine, $8.799 million; SIUE, $14.074 million; and System, $807,000.

You can see that combined list of potential reductions here.

Further, I asked the campuses to draft additional short lists of “worst-case” reductions they would deem necessary to keep the campuses open and core operations intact through December 31 in the almost-unbelievable event there is no state budget deal until after the November general election.

You can see the list of those possible larger program cuts and eliminations here.

During tomorrow’s hearing, I will explain to the state senators gathered together all that is at risk under the budget the governor introduced three weeks ago. Obviously, we still are working collectively with the other public institutions for a solution that will allow us to avoid implementing these reductions.

As may become clear from your review of these cut lists, some actions will not translate into immediate savings. Rather, they represent structural changes for which financial benefit will only be realized further down the road. Additionally, I acknowledge that some actions displayed could demand certain steps be taken prior to implementation (e.g., impact bargaining under union contracts, program teach-outs); nothing you see of these reductions should be read as intending to contravene any required steps for winding down program operations.

Make sure to click on those links.

- Posted by Rich Miller        

  1. - Liberty - Wednesday, Mar 9, 16 @ 3:50 pm:

    SIU med over 8 million in cuts… Sangamon County GOP needs to comment…

  2. - Jack Stephens - Wednesday, Mar 9, 16 @ 3:53 pm:

    Not sure what the big deal is. Pickneyville Correctional Center isnt far from Carbondale and can educate the kids for less.

    Ask Illinois CEO Bruce (but you cant email him, he doesnt have email) that this is more cost effective.

    Plus the PCC folks are Union too!

  3. - SIU PROF - Wednesday, Mar 9, 16 @ 3:56 pm:

    And 22 million out of Jackson county. Perhaps Terri Bryant can vote against an appropriation again. And this is after Logan lays of 38% of its faculty-Just a few miles into Williamson county. Wonder how many local businesses will go down over the next year.

  4. - Saluki - Wednesday, Mar 9, 16 @ 3:58 pm:

    Banned word.

  5. - Ares - Wednesday, Mar 9, 16 @ 4:06 pm:

    Has anybody started registering students to vote, to start doing something about this?

  6. - Me too - Wednesday, Mar 9, 16 @ 4:07 pm:

    Any bets on when accreditation starts being jeopardized? Those unis won’t be worth a lick to private investors if they lose it.

    I’m not sure if the IL Rs are aware that with every passing day, it is more and more likely that each and every one of them is going to have to vote for a tax increase. They are going to have to pay for the damage they’ve done. They broke it, they should fix it.

    No one cares if it dooms their re-election chances. We know they are scared of the guv’s money being used to oust them. They should realize that unless they bail on him, all the money in the world might not help them. The governor can’t afford to go after all of them, or support all of them. If they go against him, en masse, they’ll be fine. It’s the only way. Either they risk the guvs ire, or they are going to have to explain an enormous tax increase down the road. No matter what, things are going to be bad for their party, but the damage could be contained if they just join together. If they can stand together for the guv for political survival, surely now they can see they’re districts are going to be after them with pitchforks if they continue to fail them. The only way they have a chance at re-election (next cycle) is to stand together to save themselves. A coalition of people acting as one to balance the power of management if you will.

  7. - Me too - Wednesday, Mar 9, 16 @ 4:12 pm:

    I should clarify, that if our social service and higher education systems are broken further, we’ll need a massive tax increase, and the speaker will demand their votes on it. What they can do now, is buck the guv and override some vetoes of appropriations. Worry about who votes for the tax increase later. Every one of them knows one is necessary unless they want the state in ruin. That’s where it is heading, not because of debt, but because college bound kids will leave and never return, businesses will not flourish here with an uneducated and poor populace. Massive out-migration will further reduce revenues, and the cycle will continue forever. It can be arrested now, but at some point inertia will take over and not only will we have massive debt, we won’t have any means to address it.

  8. - Anonymous - Wednesday, Mar 9, 16 @ 4:15 pm:

    Hope Rauner figured out that the enterprise funds universities operate, e.g., dorms, don’t pay for their own health insurance.

  9. - I Wonder.... - Wednesday, Mar 9, 16 @ 4:18 pm:

    In most of these communities, the universities are the main economic engine. How can the representatives and senators from these areas continue to allow this to happen? Yes, they may have needed to cut, but what is now being asked of them has now become economic suicide. Stores, jobs, and taxes are all at risk of being lost just for a “political position” that seems to take no enemies and no thought given for the people and communities that it will damage.

  10. - Saluki - Wednesday, Mar 9, 16 @ 4:23 pm:

    If higher education is allowed to go down the drain in Illinois, I will vote democratic for the first time in my life this November.

  11. - Dr X - Wednesday, Mar 9, 16 @ 4:29 pm:

    I don’t see cuts to football, baseball and basketball. These cuts mean nothin’ to the 62% who are not impacted. But the Salukis not being in contention in the future for March Madness? Cut the circuses and the crowd will notice.

  12. - Oswego Willy - Wednesday, Mar 9, 16 @ 4:37 pm:

    Dear Carbondale and Edwardsville,

    I’m addressing you, the towns, instead of the SIU schools because “you” both understand.

    Rauner is trying to see how long it takes to take away your economic engine, your jobs, the students who rent apartments, buy food, shop, rent hotel rooms for family coming to visit.

    Rauner is trying to do to “you” as Rauner is doing to Charleston.

    Empty stores, empty apartments, local businesses closing, empty houses as people leave the region.

    “Vote Accordingly” Carbondale. Understand what’s at stake, Edwardsville. You both are next, and Rauner won’t stop. Ask Social Service groups.

    With my thoughts toward “you” both,

    Oswego Willy

  13. - forwhatitsworth - Wednesday, Mar 9, 16 @ 4:41 pm:

    Another squeeze of the beast!

  14. - Dr X - Wednesday, Mar 9, 16 @ 4:48 pm:

    Rauner can walk away from readin’ this letter with a smile. He can say “I knew they could do it. I knew they could cut the bloat.” These missives do nothing but confirm his mission and message that colleges are full of waste. Full speed ahead on the Arduin Express!!!

  15. - Anonymous - Wednesday, Mar 9, 16 @ 4:53 pm:

    Crisis creates leverage

  16. - Honeybear - Wednesday, Mar 9, 16 @ 4:58 pm:

    Well, here’s an upside. I won’t have to cajole my fellow 1805’s to get out and canvas for Katie Stuart against Kay this fall. I will have plenty plenty plenty of activists from the university to organize and get out there. Kay, Rauner just signed your termination papers.

  17. - Wensicia - Wednesday, Mar 9, 16 @ 5:17 pm:

    It’s seems like more people are starting to plan on nothing, no budget, higher education funding until after the November elections.

  18. - jerry 101 - Wednesday, Mar 9, 16 @ 5:20 pm:

    Wow. I wonder if University of Phoenix would be interested in buying up the SIU campuses?

  19. - Etown - Wednesday, Mar 9, 16 @ 5:26 pm:

    Well said Oswego

  20. - illini - Wednesday, Mar 9, 16 @ 5:29 pm:

    ” The governor can’t afford to go after all of them,” — yes, he can!!!!

  21. - Joe M - Wednesday, Mar 9, 16 @ 5:35 pm:

    SIU Men’s Basketball will not participate in postseason tournament.

  22. - NoGifts - Wednesday, Mar 9, 16 @ 5:56 pm:

    Just another day of republican conservative values? How do you like it? Remember in November.

  23. - Oswego Willy - Wednesday, Mar 9, 16 @ 6:05 pm:

    Thanks - Etown -.

    The university towns hopefully understand, and I hope their citizens understand too.

  24. - Mama - Wednesday, Mar 9, 16 @ 6:19 pm:

    School of Medicine, $8.799 million is being cut. This will affect Springfield, and the service SIU School of Medicine provides.

  25. - Peon - Wednesday, Mar 9, 16 @ 6:35 pm:

    Engineered crisis in business is very different from engineered crisis in government.

    In government, your engineered crisis can ultimately overtake you. In business, many ways to keep control over events (if you are CEO).

  26. - Anonymous - Wednesday, Mar 9, 16 @ 6:43 pm:

    Yet University of Illinois can pay Lovey Smith 2 million a year to coach? Money priorities!

  27. - Anonymous - Wednesday, Mar 9, 16 @ 6:54 pm:

    Me too, A massive tax increase will drive more people and business to leave the state! We are already number 2, in the rate of people leaving a state! You want to make us number 1?

  28. - Oswego Willy - Wednesday, Mar 9, 16 @ 6:58 pm:

    Typical ” - Anonymous - ” tripe.

    Rauner’s own budget outline requires revenue.

    Requires. Not an option. K? K.

    Are you willfully ignorant or blissfully unaware?

  29. - illini - Wednesday, Mar 9, 16 @ 6:59 pm:

    Peon - interesting comment but fail to comprehend the comment you are trying to make. Maybe I am just being more obtuse and out of it than normal today, but I do not understand.

    Your real point?

  30. - ash - Wednesday, Mar 9, 16 @ 6:59 pm:

    Anonymous — that perpetuates part of the problem. We see issues at the U of I with big severances and paying three football coaches to not coach. The assumption, then, is that all universities are the same. They aren’t.

  31. - Ryan - Wednesday, Mar 9, 16 @ 7:00 pm:

    I guess this is what happens when Gordon Gekko is elected governor…

  32. - illini - Wednesday, Mar 9, 16 @ 7:04 pm:

    To the anonymous commenters - Lovies salaries are not being paid by your tax dollars and has nothing to do with the funding for higher education - totally separate issues.

  33. - DuPage Dave - Wednesday, Mar 9, 16 @ 7:05 pm:

    As Bruce Rauner once said, “There’s no success like failure, and failure’s no success at all.”

  34. - wordslinger - Wednesday, Mar 9, 16 @ 7:22 pm:

    – Indeed, if payments to the universities would have been made thus far this year — and done in a timely fashion (not a standard practice in Illinois, I grant you) — SIU would have had about 150 million more dollars passing through its coffers by this point.–

    I’m sure that EXPECTED appropriation might have have made for some multiplyin’ economic goodness in Little Egypt and the Metro East.

    This is like bad Monty Python. Dunn is warning of proposed CUTS in FY17 from what they were supposed to get in FY16 — but they didn’t get anything in FY16.

    Who’s to say they’ll get anything in FY17? The governor has gotten away with this so far. I didn’t think that would be possible.

    Why wouldn’t he do it again next year, if given the chance?

  35. - Jimmy H - Wednesday, Mar 9, 16 @ 7:37 pm:

    Dunn included this in his letter-
    From the Moody’s credit opinion:

    “SIU’s prudent budgeting, expense cuts and positive operating margins despite state operation appropriation cuts and delays is credit positive. The university carefully manages cash flow and engages in scenario planning, which indicates that it has room to reduce expenses to withstand the likely sizeable general fund appropriations cuts for FY 2016. This ability and willingness is an important factor … coupled with sizeable assets and low debt burden given modest liquidity. Given the extended duration of the budget impasse, SIU continues to identify additional expense contingency plans to manage cash flow during this difficult time.”

  36. - Oh Come On - Wednesday, Mar 9, 16 @ 8:41 pm:

    If a state budget is not passed before Election Day apparently one of the first SIU facilities to close is the National Corn to Ethanol Research Center (NCERC) at SIUE. The director of that very same NCERC is John Caupert. This same John Caupert was all over his Facebook page in the lead up to the 2014 general election bashing Quinn and singing the praises of one Bruce Rauner. I wonder if Director Caupert is having any buyer’s remorse now?

  37. - btowntruth - Wednesday, Mar 9, 16 @ 9:22 pm:

    =The governor can’t afford to go after all of them, or support all of them.=

    Actually,he can.
    That is the scary part.

  38. - btowntruth - Wednesday, Mar 9, 16 @ 9:43 pm:

    jerry 101:

    “Wow. I wonder if University of Phoenix would be interested in buying up the SIU campuses?”

    Well,we might find out at this rate.

  39. - Chucktownian - Wednesday, Mar 9, 16 @ 10:07 pm:

    CSU, EIU, WIU and now SIUC.

    Pretty soon this could get serious.

  40. - Capitol View - Wednesday, Mar 9, 16 @ 10:16 pm:

    No state funding for Touch of Nature field campus? There are special ed summer camps and yearlong teacher education courses offered there. Even a summer camp for burn victims, with firefighters as camp counselors. Closing down the field campus, or charging so much rent that no one can use it, is a derogation of responsibility by the university and the governor/legislators forming this fiscal crisis. Stop the nonsense now.

  41. - Midway Gardens - Wednesday, Mar 9, 16 @ 11:57 pm:

    Why does anyone think the Nov elections will solve this? I thought maybe the Chicago schools going on strike might push an agreement but there is so much anti-Chicago rhetoric from both sides, I’m doubting it.

  42. - Anonymous - Thursday, Mar 10, 16 @ 7:28 am:

    Maybe now many others who are affected by the governor’s cuts to their services will understand how outraged those who are in the public pension funds feel. As we all have paid our taxes and done our jobs the government has decided to flip us the middle finger. I guess his goal is to outrage everyone as much as those whose pension money was stolen from them. He’s doing a good job but it sure is bringing clarity to the need for revenue.

  43. - Anonymous - Thursday, Mar 10, 16 @ 2:12 pm:

    I have been following this tragedy from Las Cruces, NM for sometime now. As this event spirals downward, I have noticed apparently no one has the power to stop the governor or is willing to do so. With events at such a level, cannot the Illinois congressional bring pressure to bear?

    Thank you - Ivan White - Las Cruces, NM

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