Capitol Fax.com - Your Illinois News Radar » Public universities here estimate $224 million in losses so far
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Public universities here estimate $224 million in losses so far

Wednesday, Apr 8, 2020 - Posted by Rich Miller

* Press release…

Presidents of Illinois’ public universities sent the following letter to the state’s congressional delegation Tuesday, seeking additional relief from increasing costs associated with the COVID-19 pandemic.

Dear Senator/Representative:

We write on behalf of Illinois’ public universities to ask for your continued support—and additional federal resources—as we respond to the COVID-19 pandemic.

With over 180,000 students, more than 48,000 employees and a collective economic impact of greater than $21 billion, our institutions have a crucial role to play in helping Illinois manage and recover from this grave challenge. Over the past several weeks, we have taken unprecedented steps to safeguard the health, well-being and education of our students while maintaining our commitments to our employees and to the communities we serve. These measures have taken a significant financial toll, including:

    Refunds for room and board;
    Costs of transitioning to online education and telework;
    Expenses associated with mitigating and remediating the impact of COVID-19, including assisting relief and response efforts, cleaning our campuses, and safely ramping down research activities;
    Lost revenues from cancelled programs and events, closed facilities and delayed grants.

We are grateful for the support Congress has provided to date, particularly the assistance for students, institutions and student loan borrowers included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted March 27. As Congress crafts further legislation responding to the crisis, however, additional relief is urgently needed.

In particular, while the CARES Act included roughly $14 billion for grants directly to institutions of higher education nationwide, that is roughly a quarter of the funding that the higher education community had requested. Collectively, our institutions stand to receive approximately $140 million in direct grants under the CARES Act, at least half of which will be passed on to students for emergency financial aid grants. These institutional funds are welcome, but they do not cover the expenses and revenue losses we have incurred to date, which we estimate at approximately $224 million, let alone the additional costs and losses we expect in the coming weeks and months. Accordingly, we support the request made by the Association of Public and Land-grant Universities that Congress provide an additional $47 billion in emergency funding for students and institutions of higher education.

We also ask that Congress provide public institutions with the same assistance that private employers are receiving to pay for the expanded employee paid sick leave and Family and Medical Leave Act (FMLA) benefits included in the Families First Coronavirus Response Act (FFCRA), enacted March 18. We estimate that our universities will expend approximately $195 million to comply with these new requirements. While private employers will receive refundable tax credits to offset the costs of these benefits, FFCRA excluded public employers from eligibility.

We thank you for all that you are doing during this challenging time, and appreciate you considering this urgent request for assistance.

       

20 Comments
  1. - City Zen - Wednesday, Apr 8, 20 @ 11:21 am:

    Universities should consider liquidating any unrestricted endowments.


  2. - Jocko - Wednesday, Apr 8, 20 @ 11:28 am:

    Like CZ is saying, I have a hard time believing that the profit margins of UIUC (and others) are so tight that they had to furlough the majority of their minimum wage employees.


  3. - ArchPundit - Wednesday, Apr 8, 20 @ 11:32 am:

    I would expect the biggest impact to be on private colleges and universities. There are a lot of them in very marginal financial position and this is going to hit them hard and lead to a lot of closings.

    For publics, it’s going to be tough, but they may have an easier time recruiting if we have a recession that lasts past the fall (the fall semester is going to be a mess everywhere)


  4. - Big Jer - Wednesday, Apr 8, 20 @ 11:34 am:

    It is an absurd time when I agree with anything City Zen says but he is right.

    Not just liquidating unrestricted endowments but if the universities want financial help then require complete transparency of each universities financials.

    While it may be a “public university” I have have a hard time believing the University of Illinois is not lacking in financial resources. The smaller universities like Eastern, Northern, etc. probably need help but even then they need to be financially transparent.

    Unfortunately like many businesses etc in COVD-19 crisis the universities on the edge like Western and Southern-Edwardsville will probably not survive


  5. - illdoc - Wednesday, Apr 8, 20 @ 11:42 am:

    SIUE has grown to pass SIUC in total enrollment


  6. - 47th Ward - Wednesday, Apr 8, 20 @ 11:46 am:

    Agreed Archpundit. A lot of the privates are almost completely tuition dependent so if enrollments collapse, that’ll be the ball game for many.

    OTOH, the publics are likely to feel the squeeze next fiscal year and beyond as the state’s revenue craters and the budget ends up with a multi-billion hole in it.

    In either case, this is a major disruption event for all of higher education. We’re going to find out if on-line education is for real because the market is going to grow. Some will take advantage, like Arizona State and Georgia Tech. The colleges (and really it’s the faculty) who haven’t embraced on-line teaching and learning, are going to be dinosaurs.


  7. - Scamp640 - Wednesday, Apr 8, 20 @ 11:47 am:

    @ Big Jer. I am not sure you know what you are talking about. WIU will survive. SIUE has reached SIUC in student enrollment. Sheesh.

    A couple of people here are talking about public university budget transparency. University budgets are public record. Google is your friend if you think public universities in this state are somehow “hiding” money.


  8. - up2now - Wednesday, Apr 8, 20 @ 12:06 pm:

    The universities haven’t caught many breaks the past 10 years or so.


  9. - ArchPundit - Wednesday, Apr 8, 20 @ 12:11 pm:

    ===The colleges (and really it’s the faculty) who haven’t embraced on-line teaching and learning, are going to be dinosaurs.

    I wouldn’t take this too far. Many students need in person to focus. Online can be great in an emergency and for those who are self-motivated and have a strong understanding of how to learn. Face-to-Face is still a benefit to students who need to the discipline and in person guidance. I think we’ll see some further expansion, but there is a limit on it.


  10. - 47th Ward - Wednesday, Apr 8, 20 @ 12:30 pm:

    ===but there is a limit on it===

    Agreed 100%. Many students prefer face to face, and it’s pretty evident that the learning is much better in small classroom settings.

    But this temporary need to provide remote learning is going to further refine it for many, and some students will find they prefer it to moving away from home for four years.


  11. - Jimmy baseball - Wednesday, Apr 8, 20 @ 12:41 pm:

    == Universities should consider liquidating any unrestricted endowments.==

    With respect, how do you think they got through the budget impasse? Not a lot of meat left on those bones.


  12. - Generic Drone - Wednesday, Apr 8, 20 @ 12:42 pm:

    McMurray in Jacksonville has closed. Don’t think the Corona virus had much to do with it, but didn’t help.


  13. - Because I said so.... - Wednesday, Apr 8, 20 @ 12:56 pm:

    Most if not all the regional universities had not fully recovered from the budget impasse. Remember, one of those years they got a 70% cut in appropriations. And most endowments are set funds set aside for specific scholarships. You can’t get access that money when you need it for something else.


  14. - Big Jer - Wednesday, Apr 8, 20 @ 1:13 pm:

    illdoc and Scamp:

    It is rare that I comment on Capitol Fax without data or evidence so admittedly my comment may not have been fact based or accurate in the details. However, I still stand by the message that “some: public and private universities are well prepared to deal with the crisis.

    Many people have criticized higher education, public and private for their administrative bloat, expansion, etc.

    One example is Roosevelt University in Chicago which from what I have read has been completely mismanaged since went there for graduate studies in 2006. They built a state of the art high rise dorm in downtown Chicago but a few years late cut many programs at it’s Schaumburg campus. Meanwhile the presidents of RU get paid like CEO’s.

    https://www.chicagotribune.com/investigations/ct-roosevelt-university-finances-met-20151008-story.html

    I also do not believe that public universities are “hiding money” but some are better off than others. That being said, like some private colleges, due to underfunding of public higher ed many public universities are essentially private as they are largely tuition dependent.

    Scamp: my poor examples of WIU and SIEU aside, I feel I do know what I am talking about as I have been connected to academia for many of my 61 years.


  15. - ArchPundit - Wednesday, Apr 8, 20 @ 1:14 pm:

    ===Some students will find they prefer it to moving away from home for four years.

    We agree. I do have one worry and that is if some of the online during this period is a bad experience it might scare some off, but given the situation there’s only so much anyone can do.


  16. - Big Jer - Wednesday, Apr 8, 20 @ 2:50 pm:

    Addendum:

    I am amending my earlier comments slightly in that the impacts of the budget impasse on the universities slipped my mind. As commenters have pointed out some of the universities endowments got eaten up during the impasse and have less to deal with in a crisis.

    But many authors have written articles and books criticizing higher ed for administrative bloat, expensive expansion, luxurious amenities, turning many professors into adjuncts/temps. I am just urging caution when we give money to any entity, public or private, that there is some accountability and transparency.


  17. - Farmer Boys - Wednesday, Apr 8, 20 @ 3:53 pm:

    Sell all university owned farms more than 30 miles from C-U.


  18. - Rich Miller - Wednesday, Apr 8, 20 @ 4:17 pm:

    ===Sell all university owned farms===

    Everyone has their own priorities.


  19. - filmmaker prof - Wednesday, Apr 8, 20 @ 4:20 pm:

    47th - The colleges (and really it’s the faculty) who haven’t embraced on-line teaching and learning, are going to be dinosaurs.

    Really? Name them please. Give me the names of the faculty who are not currently embracing on line teaching. I’ll wait.


  20. - 47th Ward - Wednesday, Apr 8, 20 @ 4:52 pm:

    Whoa, try some decaf professor.

    Over the past decade and a half that I’ve worked in higher ed (staff, not faculty, but you probably guessed that), I’ve heard dozens of reasons why on-line learning wasn’t good enough, didn’t save money, didn’t make college more affordable, wasn’t worth trying as an enterprise.

    Most adjuncts and term faculty embrace it, and some schools do a really good job. I mentioned two up above. But in my experience, many tenured faculty have been reluctant to get on board or take the technology training they need to be effective on-line instructors. That’s their choice, certainly, but my guess is that will make them obsolete in the near term future.

    And seriously, asking for a list of names? That’s your response to the point I was making?


Sorry, comments for this post are now closed.


* Open thread
* Isabel’s morning briefing
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller