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Outgoing U of I Pres Still Speaking Out on State Budget Crisis
The outgoing president of the University of Illinois continues to call attention to the fiscal crisis across the state.

Interim President Stanley O. Ikenberry says the current financial trouble threatens not only the U. of I. but the entire state, economic future, civil society, social institutions and the credibility and legitimacy of government. Ikenberry made his comments at a function hosted by the Commercial Club of Chicago.

Already the U. of I. has taken steps to save its dwindling cash reserves including cutting faculty and staff pay by roughly 5 percent and reducing administrator pay by 10 percent.

The U. of I. is still owed roughly $400 million by the state, and that number could grow to $700 million by the end of the calendar year, Ikenberry says. On the borrowing plan that the state has offered colleges and universities, Ikenberry says it would put the university in greater debt.

"This is a stop-gap measure …not a solution," Ikenberry said.

He says the university is now talking with Moody's Investor's Service see if the university is eligible for a line of credit and if so, what that would do to the university's credit rating.

Ikenberry adds that he has talked with the governor and other state lawmakers who say the university will get paid in time, but Ikenberry says any meaningful solution will require additional spending cuts and additional revenue.

(Illinois Radio Network)
06 15 10 by Newsroom
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