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Stewarding Excellence @ Illinois

Stewarding Excellence @ Illinois. January, 2010. The Challenge we Face. State resources are expected to decline by $50-75 million over the next year Well funded campus compared with most peers, but resources spread too thin Campus and unit reserves limited

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Stewarding Excellence @ Illinois

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  1. Stewarding Excellence@ Illinois January, 2010

  2. The Challenge we Face • State resources are expected to decline by $50-75 million over the next year • Well funded campus compared with most peers, but resources spread too thin • Campus and unit reserves limited • Incrementally evolved campus organization with much redundancy throughout

  3. Timeframes • Short-term actions required in response to loss of $50-75m of the Urbana campus’ state funding in FY11 • Longer-term actions to reposition the institution for continued success

  4. Putting the Reduction in Perspective

  5. Net Shortfall • GRF decline and new costs: $80-$95m • New revenue: $38-$47m Funding shortfall: $33-$57m

  6. Putting it in Perspective FY10 Budget: • GRF: $268m • Tuition: $410m • Allocated ICR: $40m Total: $710m Because of required and optional exclusions, a 1% reduction historically yields $4.4m

  7. Required Exclusions A rescission does not reduce these costs: Utilities ($70.6m) • Leases ($3.8m) • Worker’s Comp, Medicare and Assistant Benefits ($13m) • Debt Service ($14m) • Financial Aid ($24m) • Reserve pass-through (matching funds, start-ups, gen-ed/discovery. . .) ($15m) • Surveys and other special funds ($17m)

  8. Optional Exclusions • Research compliance & safety • Common good (Research Board, cultural assets) • Building maintenance • Critical student needs (Rehab Services and Office of Financial Aid) • Library acquisitions • Fellowships, Advancement, others While all need to be examined, some will likely continue

  9. Shortfall FY10 Budget: $710 Less required and optional exclusions: $185-$275m Total possible base to cover reductions and new costs: $435-$510m The midpoint of the funding shortfall: $45m = a reduction of 8.8% - 10.3% of total available funds

  10. Covering the Shortfall • Reduce our footprint in a selective way: eliminate, downsize or reorganize some activities • Cut the cost of our operations: purchasing, IT, space, gen ed. . . • Highly differentiated budget reductions based on a number of factors, such as: • Duplicative activity • Strategic need • Source of funds

  11. Organizing our Response

  12. Meeting the Challenge

  13. Stage 1What We Have Done So Far • Communication and Planning • Kickoff meetings with all colleges to outline scope of problem • College planning efforts to address reductions • Aggressive cost reduction • First stage of administrative reductions—$1.3m in savings • Accelerated energy conservation efforts—millions in annual savings • Increased financial oversight and reduced deficits

  14. Stage 1What We Have Done So Far (cont.) • System-wide Administrative Review Committee • Exploring next steps for strategic procurement, IT efficiencies & service centers • Review administrative structure for possible streamlining • Formed central teams • Steering Committee—4 deans, 2 VC, 2 faculty • Campus Advisory Group—13 faculty & APs • Implementation Team—9 campus admin. staff

  15. Stage 2Next Steps • Broader communication • Regional presentations to faculty and others regarding challenge • Web presence and regular update to campus • Initial review of College plans • Develop rules for differentiated reductions by unit

  16. Stage 2Identify Opportunities for Review • Central administrative and support units—are they organize optimally? Are all of their functions critical? • Academic units—are they organize optimally? What course and program redundancies exist? • Central initiatives—are they critical to the campus? Can their scale and timing be adjusted? • Support services—what are the next steps for IT@Illinois and Service Center initiatives?

  17. Stage 3Forming Review Teams • Identify opportunities for expedited reviews—small teams working quickly • Identify areas requiring more in depth study • Identify areas for which outside assistance would be helpful (e.g. aspects of IT@Illinois)

  18. Stage 3Setting Unit Budget Targets • Following principles developed by steering group, reviewed by Council of Deans and approved by Chancellor, specific unit reduction targets set • Units modify plans based on specific targets

  19. Step 4Implementing Plans • Brief reviews completed with recommendations to Chancellor and Vice Chancellor for Academic Affairs • Status report from larger reviews with possible initial recommendations • Revised college plans reviewed; implementation begins • Completion of bridge plan for period prior to permanent savings

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