John Peters

Budget news worsens, Peters tells campus

The latest in a series of all-campus e-mails from NIU President John Peters outlines a worsening budget picture for state universities.

Peters is in Chicago today testifying before the Illinois Board of Higher Education on the effects of a $8.6 million rescission in the current (FY03) budget. That proposed cut - coming three-quarters of the way through the current fiscal year - is looking more likely, and does not bode well for FY04, Peters said.

The following is text from the president's email update:

March 17, 2003

Dear Colleagues,

I want to update you once again on the status of our difficult budget situation.

As you know, our state is facing an unprecedented financial crisis, and higher education is being asked to play its part in finding a solution. Given some of the very difficult scenarios currently under discussion, I think it is important for us to remember the larger context of a $5 billion statewide deficit.

That said, I want to assure you that we are doing all we can to express our concern about specific proposals that have been introduced in Springfield since my last email update. Last week we responded strongly to a request that would put 8 percent of our entire FY03 budget on reserve now, in the last three months of the fiscal year. Because the fiscal year is three-quarters over at this point, losing 8 percent of the entire fiscal year's budget now means losing more than half of the funds that remain to pay our bills in this final quarter. In the past two weeks, I have testified before both House and Senate appropriations committees, and today am speaking before the Illinois Board of Higher Education on the devastating impact of such a move.

What I have told and continue to tell our legislators and other government officials is that NIU is a very lean, well-run university with faculty and staff who are deeply committed to providing high quality educational services for our students. I have explained how most of our budget is committed to personnel, and that it is difficult to imagine how we could sustain the level of rescission under discussion without affecting students.

That said, it is clear to me that we will likely sustain additional cuts. As the process goes forward, we are being asked to speak with greater specificity about where those reductions might be applied, and you will no doubt read or hear a variety of options in coming weeks. One of the cost-cutting moves being discussed at nearly all of the state universities is some curtailment of summer school offerings. While this might become necessary at NIU, be assured that we are evaluating this option with great caution, and with full knowledge of the importance that summer session plays in the academic plans of many students.

You will also be hearing and reading about various scenarios involving a range of potential personnel actions. Thus far, we have avoided layoffs, and we will continue to do all we can to find other solutions, but given current realities, that will not likely be possible. I ask you to remember the basic standards we set forth at the beginning of this crisis nearly a year-and-a-half ago: First, we will do all we can to maintain the integrity of our academic program. Second, we will do all we can to avoid layoffs, furloughs and other devastating personnel actions. And third, we will not compromise the safety and well-being of our students, faculty and staff. These standards have served us well thus far, and we will continue to be guided by them in the difficult weeks and months that lie ahead.

In about three weeks, our governor will deliver his budget to the legislature. At that point, lawmakers will engage in what we believe will be a very difficult and lengthy budget-making process that could easily extend into June or July. We will not have complete or definitive answers to our many questions for some time. It will be more important than ever, in the weeks and months ahead, to remain united as a strong campus community. We will survive this challenge. Thank you for your continuing good faith, wise counsel, and commitment to the students we all serve.

Sincerely,

John Peters
President