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FY'11 Cash Flow Update/FAQs [3/7/11]
March 7, 2011
March 7, 2011
FY'11 Cash Flow Update/FAQs
Dear Campus Community:
Thank you for your continued support as Western Illinois University, along with other public universities and not-for-profit agencies, continue to face dire budgetary challenges.
Currently, Western is waiting on FY'11 reimbursements from the State of Illinois of approximately $50.6 million. The University has received approximately $13.5 million from the state for Fiscal Year 2011 operating funds.
The University will meet its March payroll. As in recent years, we continue to limit our spending. Vacant positions are still reviewed carefully, and we continue to hold as many open as feasible to conserve funds. The University is not currently considering furloughs or a workforce reduction as cost-saving measures. Our primary goal is to support current employees to the fullest extent possible and to provide the services our students need and deserve.
To answer many of the questions that have been raised regarding the budget, pensions and other cash-flow related issues, below you will find a series of frequently asked questions and answers.
Thank you for your commitment to Western Illinois University. I will continue to update the campus community as we receive reimbursements and information from the State of Illinois.
Cash Flow/Budget FAQs
Q: How much is Western Illinois University still owed by the State of Illinois for the FY'11 budget?
A: The State of Illinois currently owes WIU approximately $50.6 million.
Q: When do we expect to receive payment for the remaining FY'11 budget that is owed by the State?
A: At this point it remains uncertain when payments to the University will be made. Payments are trickling in rather than flowing. The revenues from the recent tax increase are coming in slowly and are being used to pay a variety of the state's unpaid bills. We continue to work with the Comptroller's office and legislators.
Q: Does WIU plan to borrow money if needed to operate?
A: WIU was given statutory authority to borrow last fiscal year. Fortunately, we weren't required to borrow to meet our obligations. While we have expressed a potential need to borrow again this fiscal year in order to meet our obligations to students and employees, thus far no statutory authority to do so has been given to the University.
Q: Why is spending being so drastically reduced?
A: Continued budget constraints will help protect the University against further delays in state payments this year and next; help prevent potential reductions in our state appropriation or other adjustments to our budget; and help avoid furloughs.
Q: What's happening with pension/benefit legislation?
A: Various bills concerning state employee pensions and benefits have been introduced in the legislature. The bills have differing levels of support and/or opposition. While it seems clear that there is some momentum to pass some version of legislation affecting employee benefits, it is unclear what that legislation might ultimately include. We are working with other universities, community colleges, SURS and others to address this issue.
Posted By: WIU News, University Relations
Phone: (309) 298-1993 * Fax: (309) 298-1606