Illinois Public Media News

WILL - Illinois Public Media News - November 22, 2010

Rep. Johnson Calls for Troop Pullout from Afghanistan

The war in Afghanistan is nearing its 10-year anniversary, and Republican Congressman Tim Johnson of Urbana has signed a letter with three House Republicans and 57 House Democrats calling for an end to U.S. military operations in the country. The letter follows statements by the Obama administration setting 2014 as the key date when Afghan security forces should be ready to take control of defense operations.

At this weekend's NATO summit in Portugal, President Obama said he's confident the U.S. will be able to go ahead with its troop pullout plan from Afghanistan beginning in July 2011. Johnson told Illinois Public Media's Sean Powers that the war in unwinnable and dragging down the nation's debt.

(Photo courtesy of The U.S. Army/flickr)

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Categories: Economics, Government, Politics

WILL - Illinois Public Media News - November 18, 2010

U of I Board of Trustees Approves Restructuring Plan

The University of Illinois' Board of Trustees unanimously approved changes to the U of I's administrative structure during its Thursday meeting in Chicago.

The Board of Trustees gave the university the green light to hire a new vice president who will oversee the health science departments at the Chicago and Urbana campuses as well as at training clinics in Chicago, Urbana, Rockford, and Peoria.

The board also voted to expand the role of the vice president for technology and economic development to include a $716 million research portfolio that includes research on the three campuses. The office will streamline research-related policies and processes, which according to the university will eliminate redundancies.

The third proposal that the board approved was a measure that adds the title of vice president to each of the campus chancellors, and specifies that the president of the university will be known as the president of each campus.

University spokesman Tom Hardy said the administrative changes will help the U of I cut costs by allowing University President Michael Hogan to "establish clear lines of authority to begin to consolidate operations."

"You need leadership at the top to drive that process," Hogan said. "Without it, reform doesn't get done or doesn't get done effectively."

Hogan added that a strong administration will ensure the three campuses work together, and advance research opportunities while maintaining distinctive qualities that make each campus unique.

The changes come more than two weeks after the Urbana Faculty Senate rejected the restructuring plan, citing the cost of hiring an additional vice president as one area of concern.

Joyce Tolliver, who chairs the senate's Executive Committee, said the faculty senate is still concerned about some of the administrative changes, but she said she is encouraged that before each meeting, the Board of Trustees will start holding conference calls with chairs of different faculty committees on each campus. This is a move that she said will create more transparency between the Board of Trustees and the rest of the U of I community.

"It's not that there's anything that we asked about before that we're not concerned about now," Tolliver said. "All the questions are still there, but what I am confident about is that they will be answered going forward."

The Board of Trustees targeted a 2012 goal of reducing the university's administrative costs by five-to-ten percent.

Some of the recommendations for consolidating 'back-office' administrative functions throughout the University were outlined in a June report by the Administrative Review and Restructuring (ARR) working group, which made 43 recommendations for potentially $58 million in cost savings.

Categories: Economics, Education, Health

WILL - Illinois Public Media News - November 17, 2010

Police Training Institute Expected to Close By End of Year

The University of Illinois plans to close its Police Training Institute by the end of 2011.

The decision to eliminate the training facility comes after a budget review panel raised concerns about the institute's long term economic stability.

The latest in a series of Urbana campus reviews looking at cost-saving measures at the U of I said there is no justification for the university to provide $900,000 a year to train police officers.

"We believe this decision to be necessary because we cannot justify using resources to fund PTI that derive from student tuition and the shrinking state funding available for our core education and research missions," according to the 'Next Steps' letter released by Interim Chancellor and Provost Robert Easter and Interim Vice Chancellor for Academic Affairs as part of a recent 'Stewarding Excellence' report. "Fundamentally, our primary mission of educating lllinois' undergraduate, graduate and professional students must remain a priority."

U of I spokeswoman Robin Kaler said the university can no longer rely on tuition dollars to keep the program going.

"The university has a very proud history of supporting law enforcement training," Kaler said. "Funding for this purpose hasn't kept pace with the increase in costs, and so we had to review where this kind of training falls within the missions and the priorities of the campus as a whole."

With the closure of the 55-year-old training program, Champaign County Sheriff Dan Walsh predicts that police training will be moved to the Illinois State Police Training Academy in Springfield. Walsh, who was trained at the PTI and now teaches there, said it is unfortunate that the program will leave the university.

"I think it is advantageous to have it part of the University of Illinois because the police officers then at least socially during the 12 weeks there here can interact with students from literally around the world," Walsh said. "I think it's a good thing for diversity training."

The PTI has cut its expenses by 45 percent in the last three years, and the report said the institute could improve its cost structure by trimming $666,251 from its budget. Still, the commission said the chances that the institute will latch onto additional funding or new partnerships are slim. The PTI is considered Illinois' flagship training facility.

(Photo courtesy of the Police Training Institute)


WILL - Illinois Public Media News - November 16, 2010

Citizens Utility Board Urges Consumers, Companies to Cut Cell Phone Rates

Following Verizon Wireless' announcement in October that it would refund customers $53 million in unnecessary charges, the Citizens Utility Board (CUB) has come out with a report assessing Illinois' wireless industry.

The study found that cell phone users could save around $360 a year by identifying billing errors, cutting down on the number of available minutes, and not paying extra for cell phone insurance or roadside assistance.

Bryan McDaniel, a senior policy analyst with CUB, said high wireless rates are costing Champaign residents more than $13 million a year. Across the state he said it is much higher at just under a billion dollars. McDaniel said trimming cell phone bills could help the state's sluggish economy, as businesses struggle to stay afloat.

"If we didn't give that $13 million to the cell phone companies, and instead to local businesses and mom and pop shops, that'd be a good thing for our economy," McDaniel said. "Unfortunately every month, we're throwing away money to these cell phone companies when we don't need to be."

According to the report, the wireless industry should start providing more flexible plans, so that people are not deadlocked into paying extra for features that they do not want.

"Allow people to have 150 minute plans," McDaniel said. "I can't tell you the number of seniors I've talked to who just want a simple 100 minute plan that they can't get anymore."

McDaniel added that consumers also have a responsibility to trim their cell phone rates. He explained that they can visit Cellphone Saver, a free online service that allows users to upload an online copy of their wireless bills - AT&T, Verizon, Sprint, T-Mobile, and U.S. Cellular. Within a few seconds, the website spits out an analysis showing consumers how to cut their costs. The study used the web service to track data from August 2009 though July 2010.

(Photo courtesy of Major Clanger/flickr)

Categories: Business, Economics, Technology

AP - Illinois Public Media News - November 16, 2010

Tuscola Among Six Communities Looking to Land FutureGen Storage Facility

Months after a federal government U-turn in the long-running FutureGen clean-coal project, six Illinois locations have expressed interest in hosting a carbon dioxide storage site that could mean more than 1,000 short-term jobs and a few dozen permanent ones.

The bidders behind one of those locations, though, said Tuesday that their interest is laced with a heavy dose of skepticism after watching what appeared to be politics almost derail the project and then make radical changes in it.

The six locations that submitted bids before Monday's deadline are the city of Quincy; Christian County; the city of Tuscola along with Douglas County; Morgan County; Pike County; and the city of Vandalia along with Fayette County, FutureGen Alliance spokesman Lawrence Pacheco told the Associated Press on Tuesday. The alliance is made up of coal companies and other firms working with the federal government on the project.

"Our team of scientific and engineering experts has already begun review of those proposals, and we look forward to making an announcement on the final site in early 2011,'' FutureGen CEO Ken Humphreys said.

Until earlier this year the plan called for building a new power plant in Mattoon, Ill. and storing the carbon dioxide it produced just outside town. But the Department of Energy decided instead to use $1.2 billion in federal stimulus funding to refit an existing coal-burning Ameren plant in Meredosia, Ill., with different technology and pipe the carbon dioxide, a major greenhouse gas, to another location for underground storage. That site would also become home to an education center to train people to build carbon dioxide pipelines.

The department said that, with delays in the FutureGen project, other projects had already bypassed the technology it had hoped to use in Mattoon.

The project had already been shelved once by the administration of President George W. Bush, only to be revived under President Barack Obama.

Many people in Mattoon tired of what they saw as politics holding up and changing the project, and the town withdrew.

Tuscola was among the four finalists, along with Mattoon, for the original project, and already had in hand much of the environmental and geological testing needed to bid to store the project's carbon dioxide, said Brian Moody, executive director of Tuscola Economic Development Inc. The area is interested, he said, but needs to know more from the Department of Energy about its plans.

"There's definitely a level of cynicism that we all have,'' he said. "It's obvious with the project, once it's gotten out of the site selection process and has been in the political realm, that's where it's had some problems."

"While we're generally supportive of the concept, we still need to know a lot more,'' Moody said. "In order to do that, we need to keep our name in the game."

Looking at the potential jobs, officials in Vandalia aren't nearly as skeptical, Mayor Rick Gottman said.

Unemployment in the area was 10.2 percent in September, the most recent month for which the Illinois Department of Employment Security has data.

Over the past few years, one major employer, Orgill Inc., moved a distribution center and about 140 jobs out of state, Gottman said. Another, Graham Packaging, has reduced its work force from about 800 to roughly 200.

"We're in a high unemployment area right now,'' he said. "We're looking at ways to create jobs.


WILL - Illinois Public Media News - November 15, 2010

Revolving Loans Offered to Struggling Nonprofits

Nonprofit groups in Central Illinois can start applying for low-interest loans of up to $15,000.

The loans are being distributed by the Community Foundation of East Central Illinois, which received a $100,000 grant from the Marajen Stevick Foundation to run the program.

Joan Dixon, executive director of the Community Foundation, said the state's economic woes have had a ripple effect on many businesses, resulting in staff cuts and program reductions. Dixon said after reviewing more than 120 nonprofit groups, she found that the most pressing concern among struggling organizations was the state's five to six billion dollar backlog of unpaid bills. She said the loan is not meant to be a temporary solution.

"This would be a way - we hope - for a not-for-profit to bridge the gap between their situations right now, and when they get their state promised checks," she said. "If the situation is very dire, and $15,000 is just going to buy you another month, that might not be the right approach to take, but we would help them try to figure those kinds of things out."

Groups that apply for the loan would be charged a $25 dollar registration fee and required to show detailed financial records. The loans, which would carry a one to two percent interest rate, would have to be repaid within 12 months.

Dixon said she hopes the program can continue revolving in this way, so that many nonprofit groups can benefit from the loan.


WILL - Illinois Public Media News - November 12, 2010

Energy Company Raises Concerns About Vermilion Power Station

Officials from Dynergy Inc. have raised concerns about the Vermilion Power Station's long-term stability.

The Houston-based company owns four power plants in Illinois, in addition to the Vermilion plant located near Oakwood. Dynergy spokesman David Byford said because of challenging market conditions coupled with the cost of transporting coal that is trucked to the plant, his company is looking at 'options' for the 54-year-old power station.

"For the short term, it's business as usual for the plant," Byford said.

Byford would not go into detail about what options the company's pursuing.

Dynegy may soon merge with the Blackstone Group for about $4.7 billion, which would include the assumption of Dynegy's debt. Dynegy Shareholders are scheduled to vote on the merger next week in Houston.


AP - Illinois Public Media News - November 09, 2010

U of I Administrators Vow to Set 2011-12 Tuition Early Next Year

University of Illinois President Michael Hogan said it is hard to say how much tuition will go up in the 2011-2012 school year, but he said students and parents 'won't stomach' another one of 9 to 10 percent.

Administrators plan to recommend the amount of that increase by January. The uncertainty over state funding the past couple of years has prompted the U of I to wait as late as June to approve the next fall's tuition.However, Hogan said administrators cannot continue to keep parents and students waiting.

"That doesn't work very well for us for planning purposes, and recruiting students," he said. "Because it doesn't allow us to tell students (about tuition), half of them get some form of financial assistance. So students that are applying here need to know sooner rather than later if they're getting in, and what their financial aid package will be. Or they go somewhere else."

Hogan made his comments following a presentation on tuition and affordability at the U of I Board of Trustees' Audit and Budget committee meeting. He said the drop of state support in the past decade has been 'staggering.'

Associate Vice President for Planning and Budget Randy Kangas said the U of I's appropriation is below what it was for the 1999 Fiscal Year, before adjusting for inflation. The university is currently owed about $320-million in state appropriations.

Hogan emphasized that last year's increase of 9.5 percent was one of the lowest tuition hikes in the country.

"So we've got to change the rhetoric of what we're looking at," Hogan said. "Rather than the one big bump (9.5%) to get a realistic understanding of what students are actually going to pay year in and year out as they go through a 4-year degree program.


AP - Illinois Public Media News - November 08, 2010

Task Force Looks at Home Stats to Close Champaign County’s Economic Gap

A Champaign County housing task force is studying the number of available homes in the area to identify housing needs and economic gaps that can be filled within the community.

The Regional Housing Task Force is made up of officials in Champaign County, Champaign, Urbana, the Housing Authority of Champaign County and the village of Rantoul.

In a preliminary report, the task force identified the city of Champaign as not having enough rental housing units in low-income and minority areas, specifically in sections of the city that border Urbana. According to the study, a five-year need exists for 127 additional rental units that are affordable to households earning less than $20,000.

The city's Neighborhood Programs Manager Kerri Spear said she hopes the report helps shed light on what can be done to curb homelessness in the whole county. Spear, who is part of the task force, said more rental housing units should be spread out across Champaign County to prevent the further concentration of poverty.

"Homelessness does not just impact one city," she said. "There's a need to create more affordable rental units."

The study also suggested that adding market rate homes to high poverty areas could help boost the economy.

The report also indicated that there is a surplus of owner occupied homes in Champaign. Between January 2000 and September 2010, a total of 4,129 new homes were built in Champaign County. Just in Champaign, many developers overbuilt "high end" single-family homes that are valued between less than $140,000 and more than $400,000, which has left about a three to four-year supply of extra lots within the city.

"So, there may be a surplus of housing units in one community," Spear said. "But yet if the people that need those units are in another community, do they have the transportation options available, or are there jobs in that area?"

Households with incomes of less than $20,000 were found to have a five-year surplus of housing units in Urbana and Rantoul.

The Champaign City Council will hear details about the report at its regular meeting Tuesday at 7:30pm at the Illinois Terminal Building. The task force then plans to present its findings during a public open house on Tuesday, November 16 from 5-6:30 pm at the City Building at 102 N. Neil St., Champaign.

Categories: Economics, Government, Politics

AP - Illinois Public Media News - November 02, 2010

UI Urbana Faculty Senate Rejects Proposed Administrative Restructure

The University of Illinois' Urbana Faculty Senate has unanimously rejected administrative changes proposed by President Michael Hogan.

In a written three page statement, the Senate reported that plans to add a vice president, new duties for some administrators, and change titles for others simply have too many unanswered questions. However, Senate Executive Committee Chair Joyce Tolliver said U of I Trustees have been encouraged to refine the proposals, and discuss them further with campus Senators. Tolliver said one key area of concern is money, especially when the U of I's fiscal situation is dire.

"We are told that this is an investment we should make," Tolliver said. "That is probably true. I think some of us accept that logic, but many of us on the campus are very worried about where the money is going to come from in order to create new positions, and in order to do searches for re-defined existing positions."

Tolliver said the entire process for whatever changes occur needs to be slowed down.

"We were given an extraordinary tight time frame to respond to the proposed changes to the University administration," she said. "There are still entire areas in which we have asked for more information, and haven't been addressed."

A capacity crowd rejected President Hogan's plan at the Senate's regular meeting on Monday. The Senate's executive committee will send a much longer version of its statement to the Senates Conference, which is made up of elected officials from all three U of I campus Senates. That group will forward that document, along with its own advice on the proposed changes, onto the U of I Board of Trustees. Tolliver said the Senate is not afraid of change, but would like to seek out new ways to accomplish these goals.

Categories: Economics, Education

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