September 17, 2001
URBANA-CHAMPAIGN SENATE Senate Committee on the Budget
(Final;Information) BG.01.02 2000-01 Annual Report The Senate Committee on the Budget studies the University and campus budgets, the criteria used to determine allocation of resources at our campus, and the educational policy implications of budgetary decision-making. The Committee makes recommendations on proposed budgetary increases, as well as other matters that fall within its purview. Tuition Surcharge. In January, the Board of Trustees approved a special tuition surcharge for new UI students. Those entering the UIUC and UIC campuses for the first time in Fall 2001 will pay an additional $500 in tuition; a second increase of $500 will be added in Fall 2002. The Budget Committee met with the Provost in February to discuss the impact this increase will have on the campus's budget, as well as implications for the campus's applicant pool. Provost Herman presented the tuition proposal and rationale, saying that at full implementation (FY06) the surcharge will yield about $29.4M. After deductions for Student Aid and the enterprise resource planning (ERP) initiative, the surcharge will provide net funding of approximately $15.5M. He distributed a summary of the proposal that specified funding needs and the plan for an inclusive decision-making process for determining strategic priorities. Dr. Herman indicated that, in addition to consultation with the CBOC, Council of Deans and student groups, he will seek input from the Senate Budget Committee and other bodies as appropriate. He commented on the Committee's concern about the impact the surcharge will have on the campus's minority applicant pool-that it is important to ensure a diverse student population. The campus must be mindful of addressing the socio-economic status of tuition assistance in the media. Provost Herman gave an overview of the tuition proposal and rationale at the March 19 Senate meeting. Meeting with Provost Herman. In addition to discussing the tuition surcharge, Provost Herman reported to the Budget Committee on FY02 funding and allocations and the campus's budgeting system, and he addressed King Alexander's report on faculty total compensation (see BG.00.04). Recommendations on the FY03 Operating Budget. The Committee responded to the Provost's request for recommendations on the next fiscal year's budget (FY03), focusing on both immediate and longer-term budgetary needs and issues: . Recruiting and retention of outstanding faculty to maintain and improve the quality of both faculty and the University's ranking among its institutional peer group. The Committee recommended that new avenues for additional funding be developed over the long term by increasing the budget through tuition in the following ways: general increases in tuition; planned increases in out-of-state enrollments; and modest increases in overall student enrollment numbers that reflect growth of the State's population and student demand. · Faculty salaries. We examined Professor King Alexander's evidence regarding the growing gap between total compensation at public and private universities, and also discovered a disturbing, related condition: in some departments, not only is there salary compression but salary inversion, including across ranks in a few cases. This situation is not tolerable and we recommended that remedies be instituted promptly. · Competition for graduate students. This University must attract sufficient numbers of top graduate students in order to remain a top research university. Graduate initiatives to increase stipend, fellowship, and scholarship levels are critically needed. We encouraged continuation and expansion of the Provost's Fellowship Matching Program. · Capital items. We concluded that the general infrastructure of the University needs immediate improvement, particularly deferred maintenance, classroom and laboratory modernization, and the campus network infrastructure (including recurring funding for this item). · Library. Continued funding of this vital component of the campus on a yearly consideration basis is not optimum. We recommended a long term needs assessment be made, upon which a multi-year plan covering some five to ten years, be developed for addressing technology issues of changeover to electronic-based holdings, storage, etc. The Committee feels that until such a plan is developed, it is not in a position to make meaningful and specific recommendations for funding the Library. · Undergraduate programs and initiatives. The Budget Committee recognizes the need for new programs and initiatives, and believes the new tuition surcharge provides a means for funding these items and that recommendations from student constituencies will provide appropriate direction to the Provost. This year, the Budget Committee welcomed Associate Provost Bill Adams, who replaced longtime ex officio member Walt Tousey, to the Committee's meetings. Bill's understanding of University and campus budgeting processes, and his input and advice have made him a valuable resource.
Respectfully submitted on behalf of the Senate Committee on the Budget,
Barclay G. Jones, 2000-01 Acting Chair
Chair, 2001-02 Budget Committee