 "Photo: Isaac Smith ~ Daily Egyptian")
With Illinois’ declining revenues and growing bills, university funding is falling through the cracks and a simple solution can’t seem to be found.
SIU President Glenn Poshard sent a message out to faculty and staff Nov. 10 announcing a freeze on most non-salary expenditures in an effort to try and make payroll in December.
Poshard said the university is owed more than $115 million in state appropriations for the fiscal year and, without some form of payment from the state, December payroll may not be made.
Kelly Kraft, director of communications for the Governor’s Office of Management and Budget, said Gov. Pat Quinn has been working with the General Assembly to increase revenues through income tax and fee increases, but has had little to no success so far.
“With revenues coming in so far below expectations, in particular because unemployment numbers were higher than projected, we have limited options on what we can do,” Kraft said.
According to the Wall Street Journal, Quinn has said he wants to borrow $900 million to pay late bills and fund tuition grants for low-income college students. Quinn has also proposed an income tax increase, but will not put it to a vote until after the Feb. 2 primary elections.
Poshard said the idea of borrowing an additional $900 million could help short-term problems, but would cause more difficulties in the next fiscal year when that money would need to be repaid. He said the only solution for the university and the state would be more revenues.
“The governor has proposed that; he seems to indicate that he wants to take that up in the spring session,” Poshard said. “We’re hopeful and willing to help in that regard, because unless that happens, I don’t know how the state resolves its budgetary problems.”
Kraft said they are working to cut spending and every state department, agency and grant program is going to have to continue with decreases in state funding.
“The governor inherited this fiscal disaster that had been created over several years of mismanagement and he is committed to correcting it,” Kraft said.
Poshard held a town hall meeting Wednesday on the Edwardsville campus, informing faculty and staff of the possibility of SIUE also not being able to make payroll in December. According to the Belleville News-Democrat, Poshard has spoken to the comptroller’s office and Quinn’s office, asking for just enough state funds to make payroll.
Carol Knowles, spokeswoman for Comptroller Dan Hynes, said there are no priority levels for state funding and the money appropriated to the university has not been spent on any other program; the money just isn’t there.
“You can’t spend what you don’t have,” Knowles said.
Knowles said because the state has received money through the federal stimulus program, it is required to make payments to hospitals, doctors and nursing homes within 30 days, a payment cycle the state had not been keeping before.
“That means others who receive funding from the state have to wait longer,” Knowles said. “We are continuing to work with the universities to help meet their needs during this very difficult situation.”
Knowles said the state backlog, as of Tuesday, is $4 billion, which does not include $2.25 billion in short-term loans taken out in May and August that must be paid back beginning in March and completely paid back by early June.
“Revenues coming into the state are lower than anticipated and the state continues to spend more money than it takes in,” Knowles said. “The comptroller has warned about this over and over for many years.”
According to a report by the Pew Center on the States, Illinois is one of 10 states heading for economic disaster. The report outlined the state’s history of persistent gaps between revenues collected and money spent, and stated that Illinois, among others, put off tough budget decisions by borrowing, ultimately worsening the financial situation.
The report also found that, historically, states have their worst years shortly after the end of a national recession. According to the Center on Budget and Policy Priorities, the state is facing an $11.7 billion budget gap for the next fiscal year.
Madeleine Leroux can be reached at 536-3311 ext. 254.
