Wednesday, Nov. 11, 2009

State's nonpayment to universities leaves SIU system $115 million in the hole

EDWARDSVILLE -- The state's troubles are leading to cutbacks at Southern Illinois University Edwardsville.

The state has failed to make its monthly payments to the SIU system since July, according to a statement issued by university administrators.

As of Nov. 1, those payments total $115 million for all the campuses in the SIU system. SIUE's portion of that is approximately $30 million.

"While we had hoped the payments would materialize over the last four months, the funding shortfall has only grown," wrote Chancellor Vaughn Vandegrift. "Until payments are restored, it is necessary to protect the salaries of our employees."

Vandegrift ordered an immediate halt or "slow down" to most expenditures not related to salaries, and only as authorized by the vice chancellors.

Spokesman Greg Conroy said nonessential purchases and services will be cut or limited. "They have asked every unit to take a hard look at projects that have been planned," he said. "We're not going to stop doing what we do, but we're going to look at our planning for future projects."

Conroy said impacted budgets will likely include travel, equipment, computers and other items as yet unidentified. The chancellor's statement said further details would come later from the vice chancellors.

The cutbacks could affect the science building project, Conroy said, as bonds have not yet been sold. However, specifics as to which projects and plans will be altered have not yet been decided, as each department will have to look at their own budgets, he said.

"We're just trying to slow down any processes that are not salary-related," Conroy said. "It sounds insignificant, but add them together and it adds up to real money."

Donald Sevener, deputy director of external relations for the Illinois Board of Higher Education, said only the governor's budget office or comptroller can decide when and how to make up payments to the university systems.

"The situation facing SIU is the same at other universities as well -- the University of Illinois system... has a backlog in excess of $300 million," Sevener said. "It's not only affecting higher education, but vendors and contractors as well."