By Neil Doyle
NORMAL – Illinois State University President Larry Dietz is asking vice presidents and other staff to prepare budget scenarios for next year with both 10 percent and 20 percent reductions.
In an e-mail to university leaders on Monday, Dietz said the continued uncertainty of both state support and the impact of COVID-19 on future costs and revenues makes it very difficult to develop a reliable fiscal forecast.
“In creating budget reduction scenarios, all sources of funds and all expenditure types will be on the table for consideration,” said Dietz. “I am asking that vice presidents and cabinet-level fiscal authorities prepare summaries of these scenarios for discussion by June 1.”
The university recently refunded approximately $20 million in housing, dining, parking, and student fees. ISU has also absorbed additional unexpected costs and lost revenues from cancelled events bringing the total financial impact to date close to $26 million, according to Dietz.
Dietz said the university’s largest revenue stream is enrollment of students. However, due to the COVID-19 pandemic, students and families are waiting much longer than usual in making higher education commitments, adding to the uncertainty.
“Meanwhile, although we hope the Illinois General Assembly will approve a fiscal year 2021 budget similar to last year’s spending plan, there are no guarantees, and lawmakers are currently contemplating potential fiscal year 2021 budget reductions,” Dietz said.
Neil Doyle can be reached at [email protected]
