FY'11 Budget Update [7/7/10]
July 7, 2010
Dear WIU Campus Community:
Before I discuss the FY'11 budget and the continuing cash flow issues of FY'10, I want to emphasize that our priorities are to provide quality academic programs and to support all current employees. The University is not planning furloughs, nor is there any Board of Trustees discussion regarding furloughs. Please also know that I appreciate all of the support and hard decisions that are being made during these extremely difficult and uncertain times.
On July 1, Gov. Pat Quinn announced the higher education budget will be reduced by $100 million. Western's appropriated budget will therefore be reduced by approximately 6.2 percent to $56.2 million. This reduction is due to the fact that the federal stimulus funding was available for FY'10 only. In addition to the FY'11 budget reduction, there are provisions in the Governor's Executive Order that could impact Western and other state universities.
There is still much uncertainty at this point as to when the funds for FY'11 will be released, as well as what components of the Governor's Executive Order will impact our University. The uncertainty is compounded by the fact that we still have not been reimbursed by the state of Illinois for more than $17 million of our FY'10 expenditures. Given the continuing delays in state reimbursements for FY' 10, we, like many other Illinois public universities, may have to borrow to meet our payroll and instructional obligations sometime in the coming fiscal year.
Given this lack of clarity, at this time only 25 percent of departments' FY'11 budgets will be released for travel, commodities, equipment and other contractual departmental obligations. As the FY'11 budget picture becomes clearer, we will make decisions regarding the release of additional funds.
All spending shall be limited to immediate operational needs only. All purchases over $500 must first be submitted for vice presidential approval. Any request beyond the 25 percent must be approved by the appropriate vice president. As in the past year, the vice president and president must approve all new hiring. We must continue to conserve personnel funds due to the cash flow situation.
Since we recognize that there are unavoidable costs, telecommunications, postage, copier expenses and assigned vehicle expenses will be encumbered at FY'10 levels for all departments, with amounts determined by Business Services for each department/division.
For a complete listing of the University's expense prioritization procedures – including information regarding travel and other areas of expenditures – and a list of Frequently Asked Questions regarding the FY'10 cash flow situation and the FY'11 budget, visit wiu.edu/budget/news (or click on Budget link at the bottom of wiu.edu).
The University will continue to monitor the cash flow and budget situation, and will update the campus community when we receive more information. Again, please know that I appreciate all of the support and hard work during these difficult times.