Illinois State University's Board of Trustees on Friday approved a new $600.4 million operating budget — the first since a major overhaul to ISU's budget framework — that includes a surplus.
President Aondover Tarhule and members of the board credited that new budget model as part of the reason for the surplus. The new formula more closely aligned budget allocations with projected revenue funds.
“It obligates us to live within our means and our resources,” said board chair Kathryn Bohn. “It means the university will commit to expenses only if we are confident that we have the resources to pay for them.”
“While this may entail difficult choices and trade-offs, I ask President Tarhule and the administration to strictly adhere to the principle of this new budget model,” she added.
ISU's revenue is set to outpace expenses by around $3.2 million, known as the operating positive margin, or surplus.
The university expects $595.8 million in revenue from enrollment, tuition fees, state funding and other revenue sources. Another $7.9 million was expected from the university’s general revenue reserves to cover startup costs for the College of Engineering, bringing total revenue to $603.6 million.
Enrollment cliff
University administration is prepared to feel the effects from the looming enrollment cliff. The enrollment rates that helped ISU set a new record for four consecutive school years are expected to taper off.
Bohn said cohort analysis showed the number of students graduating from high schools in Illinois — where ISU gets about 19 of every 20 undergraduate students — is expected to decline by more than 15,000 over the next five years.
“I ask administration continually to closely and diligently monitor enrollment data and trends, and do everything possible to keep Illinois State's enrollment strong,” said Bohn. “To all other university constituents, I ask that you monitor these trends and adjust your expectations accordingly.”
Current enrollment deposit trends suggest the upcoming school year’s enrollment will be slightly less than the year prior. Tarhule said it was still well within the range of enrollment expected by the university.
“This is encouraging, and it reflects the steady disciplined work happening across the university,” said Tarhule.
Nonunion raises
Meanwhile, Tarhule on Friday announced merit-based salary increases of up to 3% for all university workers not represented by a union. The increase will impact approximately 1,550 workers when it takes effect Oct. 1.
“I pledge to continue working tirelessly towards a goal where our compensation remains competitive and attractive within our financial realities,” said Tarhule. "This balancing act ... is incredibly challenging and may not produce perfect results. Yet I remain committed to working together where possible to support our dedicated team in these tough times.”
The raise will not impact wages of workers represented by unions, whose wages are determined through collective bargaining.
“We want to make sure that everybody, regardless of whether they're in a bargaining group or not, that we recognize their contributions and reward it accordingly,” said Tarhule.
“It is a statement of gratitude. It is an acknowledgement of the people who make Illinois State University what it is. It is a commitment to support those who give so much of themselves to our university and our mission,” said Tarhule.
ISU's employee compensation was very much in the spotlight this spring during a record-breaking strike from its buildings, dining and food service workers. In addition to retroactive pay and an immediate 3.5% raise, AFSCME Local 1110 workers received annual increases of 3% for the next four years to bring the strike to an end.
An additional guarantee made in that deal — that the university will also match any raise given to non-union personnel — does not take effect until July 2028.
Tarhule also announced an additional administrative closure, Nov. 25, to the academic calendar. It is the day before Thanksgiving Day. Thanksgiving vacation lasts from Saturday, Nov. 20, to the following Sunday, Nov. 29. An administrative closure therefore does not affect students, but gives an additional day off to faculty and staff.
Storm damage
The board on Friday approved funding for two separate needs related to storm repairs.
Excessive rainfall June 11 caused damage to the Center for Visual Arts, State Farm Hall of Business and Old Union buildings on ISU’s campus. Around $3.2 million in funding was authorized for contracts with CORE Construction and Servpro for repair of those facilities.
“We do experience water on campus, and we're prepared to clean when water enters buildings,” said Jon Gibb, associate vice president of facility services. “But this was beyond our capabilities, and so we reached out to outside services to help with that.”
The storm caused property damage and power outages throughout the McLean County area. Wind gusts were reportedly 70 mph, and rain was heavy. Data from the National Oceanic & Atmospheric Administration [NOAA] showed Normal saw as much as 3.13 inches of rain on June 11.
“We are trying to get to the bottom of what happened, but it really comes down to too much water all at once, not only overwhelming our system on campus, but overwhelming the Town of Normal system,” said Gibb.
At the State Farm Hall of Business and Old Union buildings, Gibb said the task has been fixing drywall, paint and carpets. The Center for Visual Arts in particular had technology affected by loss of power that needed restoring.
“The contractor is restoring the last component today [Friday], and we will continue to test computers, other technology throughout the building to assess that loss,” said Gibb.
Other items
In a separate agenda item, the significant rain events of the spring necessitated repairs at 302 School St., a residential apartment-style building owned by ISU. The board approved funding, not to exceed $1.1 million, to make repairs including replacing windows, siding and sheathing, as well as some interior drywall work necessitated by the damage done when old windows are replaced.
Before moving to the regular items of the agenda, trustee Kathryn Bohn was re-elected as chair of the board of trustees. Trustee Robert Navarro was appointed as secretary.
Union representative Ben Matthews also spoke during public comment in favor of more pay for ISU lab school workers. Matthews graduated from ISU’s lab schools and the university.
