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Stewarding Illinois January, 2010. The Challenge we Face State resources are expected to decline by $50-75 million over the next year Well.

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Presentation on theme: "Stewarding Illinois January, 2010. The Challenge we Face State resources are expected to decline by $50-75 million over the next year Well."— Presentation transcript:

1 Stewarding Excellence @ Illinois January, 2010

2 The Challenge we Face State resources are expected to decline by $50-75 million over the next year Well funded campus compared with most peers, but resources spread too thin Campus and unit reserves limited Incrementally evolved campus organization with much redundancy throughout

3 Timeframes Short-term actions required in response to loss of $50- 75m of the Urbana campus’ state funding in FY11 Longer-term actions to reposition the institution for continued success

4 Putting the Reduction in Perspective

5 Net Shortfall GRF decline and new costs: $80-$95m New revenue: $38-$47m Funding shortfall: $33-$57m

6 Putting it in Perspective FY10 Budget: GRF: $268m Tuition: $410m Allocated ICR: $40m Total: $710m Because of required and optional exclusions, a 1% reduction historically yields $4.4m

7 Required Exclusions A rescission does not reduce these costs: Utilities ($70.6m) Leases ($3.8m) Worker’s Comp, Medicare and Assistant Benefits ($13m) Debt Service ($14m) Financial Aid ($24m) Reserve pass-through (matching funds, start-ups, gen-ed/discovery...) ($15m) Surveys and other special funds ($17m)

8 Optional Exclusions Research compliance & safety Common good (Research Board, cultural assets) Building maintenance Critical student needs (Rehab Services and Office of Financial Aid) Library acquisitions Fellowships, Advancement, others While all need to be examined, some will likely continue

9 Shortfall FY10 Budget: $710 Less required and optional exclusions: $185-$275m Total possible base to cover reductions and new costs: $435-$510m The midpoint of the funding shortfall: $45m = a reduction of 8.8% - 10.3% of total available funds

10 Covering the Shortfall Reduce our footprint in a selective way: eliminate, downsize or reorganize some activities Cut the cost of our operations: purchasing, IT, space, gen ed... Highly differentiated budget reductions based on a number of factors, such as: – Duplicative activity – Strategic need – Source of funds

11 Organizing our Response

12 Meeting the Challenge

13 Stage 1 What We Have Done So Far Communication and Planning – Kickoff meetings with all colleges to outline scope of problem – College planning efforts to address reductions Aggressive cost reduction – First stage of administrative reductions—$1.3m in savings – Accelerated energy conservation efforts—millions in annual savings Increased financial oversight and reduced deficits

14 Stage 1 What We Have Done So Far (cont.) System-wide Administrative Review Committee – Exploring next steps for strategic procurement, IT efficiencies & service centers – Review administrative structure for possible streamlining Formed central teams – Steering Committee—4 deans, 2 VC, 2 faculty – Campus Advisory Group—13 faculty & APs – Implementation Team—9 campus admin. staff


16 Broader communication – Regional presentations to faculty and others regarding challenge – Web presence and regular update to campus Initial review of College plans Develop rules for differentiated reductions by unit Stage 2 Next Steps

17 Stage 2 Identify Opportunities for Review Central administrative and support units—are they organize optimally? Are all of their functions critical? Academic units—are they organize optimally? What course and program redundancies exist? Central initiatives—are they critical to the campus? Can their scale and timing be adjusted? Support services—what are the next steps for IT@Illinois and Service Center initiatives?

18 Stage 3 Forming Review Teams Identify opportunities for expedited reviews—small teams working quickly Identify areas requiring more in depth study Identify areas for which outside assistance would be helpful (e.g. aspects of IT@Illinois)

19 Stage 3 Setting Unit Budget Targets Following principles developed by steering group, reviewed by Council of Deans and approved by Chancellor, specific unit reduction targets set Units modify plans based on specific targets

20 Step 4 Implementing Plans Brief reviews completed with recommendations to Chancellor and Vice Chancellor for Academic Affairs Status report from larger reviews with possible initial recommendations Revised college plans reviewed; implementation begins Completion of bridge plan for period prior to permanent savings

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