NIU President John G. Peters issued this letter to the campus community Thursday, Feb. 16, to report on the upcoming state budget.

Feb. 16, 2006

Dear Colleagues,

Yesterday I traveled to Springfield to testify at our annual Senate Appropriations Committee hearing and receive details on the governor's proposed budget. As is my practice, I am taking this opportunity to share what I know about next year ‘s budget and what those details might mean for NIU.

You may have heard or read that Illinois higher education is slated to receive an additional $40 million in funding in the governor's budget. Of that amount, $7 million would go to community colleges, $18 million to universities, $8 million to the state's primary student financial aid program (MAP), and the remaining $7 million to a proposed tuition tax credit program. NIU's share of the increased funding for universities would be just over $1.2 million in FY '07.

The good news represented by the governor's budget proposal is the turnaround this budget represents after five years of flat and/or decreasing budgets. For the first time since FY '01, if the governor's budget is adopted by the General Assembly, NIU would receive an increase in state funding. Illinois public universities suffered budget cuts in fiscal years '02, '03, and '04, finally receiving a flat, no increase/no decrease budget for both FY '05 and our current fiscal year, FY '06.

Last year our lawmakers put the breaks on the funding decline; this year they have the opportunity to reinvest in public higher education, and I am urging them to do so. State revenues are back up and Illinois has clearly turned the corner into greater economic security. It was heartening yesterday to hear so many of the governor's proposals include support for education at all levels. That is a testament to the job you are doing in service to our students and our region, and I assure you that any increases NIU receives will be directed toward improving faculty and staff salaries and adding critical faculty positions in highly impacted areas. This has been my No. 1 priority since arriving at NIU, and will remain so as long as I am president.

The governor's budget plan contains several provisions of interest to NIU and the rest of public higher education. First, the governor announced plans to sell off a portion of the secondary loan business currently managed by ISAC, or the Illinois Student Assistance Commission. The money generated by that sale would be reinvested in higher education; two specific examples offered in the governor ‘s plan include additional funding for need-based scholarships, and tuition tax credits for Illinois students and their families when the student maintains a “B” average.

Illinois' public university presidents expressed support for the governor's overall higher education budget in a letter signed by all nine of us. In that letter, we also express interest in the provisions I just described. We asked, for instance, that language be added to the bill which clearly protects both MAP funding and the financial viability of ISAC following sale of a portion of its student loan portfolio. These are significant concerns for NIU, where approximately 75 percent of our students rely upon financial assistance from programs such as these to help fund their education.

We also urged the governor to make public a capital budget that mirrors the reinvestment stance we saw him take on the general revenue side of the budget. Parts of our physical plants have languished in recent years, while much-needed program growth in key areas is slowed by delays in new-construction funding. In short, expect to see a very determined effort by Illinois colleges and universities to get a capital budget out of Springfield this session.

Even as we continue our efforts in support of a strong capital budget, we're also taking steps to deal with our most pressing facility needs. Today I am announcing the establishment of a dedicated fund for critical maintenance and “quick-response” repairs in NIU's academic buildings. We cannot wait for the outcome of political negotiations to address roof leaks, HVAC problems and safety issues, as well as key maintenance required in support of our academic programs in our most heavily-used classroom buildings. If the legislature passes a capital budget during this session, we may be able to add to this fund; in the meantime, however, we will proceed with the building triage plan I just described.

Another issue on which you can expect to hear NIU voices this spring is pension funding. We remain deeply involved in discussions about long-term funding of the SURS, and continue to press lawmakers to put this issue at the top of their education funding priority lists. I am grateful to Sen. Brad Burzynski for hosting a hearing on pensions earlier this week on our campus. Nearly 200 of you turned out to hear the senator and ask questions about the pension issue, and I urge you to stay involved in this dialogue.

Next month we will return to Springfield for a second round of appropriation hearings, this time with committees of the House. The legislature plans to adjourn in early April, so action on all of these budgetary issues will take place in a fairly compressed time period. In the meantime, thank you for your interest and participation in the life of your university community. Our students and the citizens of our region are well-served by your efforts, and I am personally grateful to you for making Northern Illinois University an engaged, sustainable, responsive, accountable and global institution. Thank you.

Sincerely,

John G. Peters
President

2-20-06