Illinois Public Media News
The University of Illinois plans to send out emails to its Urbana campus employees on Tuesday, providing details about its voluntary separation incentive program. The U of I is offering incentives for faculty and staff who retire or resign --- but only if the conditions are right.
The cash-strapped U of I is looking to save money by shedding some of its faculty and staff --- and it will pay a half-year's salary up to 75 thousand dollars for faculty and staff who resign or retire. But university spokeswoman Robin Kaler says campus units will only offer the incentives in cases where the employee's departure would provide a real savings --- because that person would not be replaced, or would be replaced at a lower cost.
"So for example, if you had someone who made $70,000 a year and you determined maybe that you could not replace that person if they went, spending $35,000 to recoup another $35,000 could be a savings for the university," Kaler said.
The incentive programs target civil service and academic professional staff who agree to resign or retire before next fall semester --- and faculty eligible for retirement who agree to retire before fall semester 2011. A two-month application window begins on Wednesday. The incentive program only covers the U of I Urbana campus, not the Chicago or Springfield campuses, or university administration.
University of Illinois employees planning to retire this academic year don't have to worry about unpaid furlough days affecting their retirement benefits --- if they act in the next few days.
The university says that employees who sign a retirement agreement by Tuesday, February 2nd, don't have to take furlough days --- or a voluntary pay reduction.
U of I spokesperson Robin Kaler says the furlough waivers are being offered to employees considering retirement, who may be concerned by how furlough days will affect their final year's salary --- and consequently their pension levels.
"We did not want that furlough program to doubly hit people, just because of that window within which they those to retire", says Kaler.
The furlough waiver offer is for employees on all three U of I campuses who plan to retire by the start of the next fall semester. Employees on the Urbana campus may still be eligible for cash benefits to be offered in a voluntary separation and retirement program to be unveiled next week.
The University of Illinois will unveil incentive programs next week for faculty and staff on the Urbana campus considering resignation or retirement.
The programs have been in the works for several weeks. Deans, directors and department heads on the Urbana campus were given advance notice of the incentive programs Thursday in an email from Associate Provost for Human Resources Elyne Cole.
The programs offer a lump sum cash incentive for voluntary retirements and resignations --- equal to 50 percent of current annual salary, or 75-thousand dollars, whichever is less.
Civil service and academic professional employees working on the Urbana campus for at least four years in a row may apply for incentives covering resignations and retirements. Another incentive program covering retirements only is open to faculty and academic staff who are already eligible for retirement under SURS, the State University Retirement System. A two-month window for applications begins Wednesday.
In her email, Cole stresses that the incentive programs are voluntary, and that no one should be encouraged to participate, or discouraged from doing so. She describes the incentives as one way to address "challenging financial times" at the U of I.
Illinois' growing budget deficit means one near-certainty for the winner of this year's gubernatorial election - they'll be making cuts in state spending. The two Democrats and five Republicans all say they'll reduce spending to some degree, while looking at ways to bring in new revenue. The questions are how much and where. AM 580's Jim Meadows reports.
Before his removal from office, former Governor Rod Blagojevich made it a priority to extend health care to more lower-income Illinoisans. Today more children, their parents and others are covered under state-supervised programs with names like AllKids, Family Care and Illinois Cares RX. But massive budget pressures may make this year's candidates for governor rethink those expansions. AM 580's Tom Rogers looks into what those programs do - and where health care stands in the minds of potential officeholders.
NPR's David Schaper reports on how Governor Pat Quinn and other politicians are addressing the budget crisis in Illinois. First aired on All Things Considered, 1/13/10.
Furlough days could be just the beginning of the changes ahead at the University of Illinois. Two top university leaders say the next few years could see a host of changes, as the U of I adjusts to diminishing state funding.
Interim Urbana campus chancellor Robert Easter says the state's budget crisis has forced U of I administrators to start looking at how they can maintain the integrity of the institution in the long-term, considering the financial problems they're facing. He says university officials are starting to hold conversations they haven't had for some time.
"Those conversations are around what are we really about, what are our key programs that we want to have as a part of our future. What do we want to look like in 20 years?" Easter said. "And how do we decide those things that we no longer do? They may have been important at some time in the past, they may still be important. But what are our priorities?"
Easter says he'll be meeting with deans and vice-chancellors on the Urbana campus this Friday to start work on designing the framework for those conversations. While their outcome is unknown, U of I interim president Stanley Ikenberry says he envisions a U of I five years from now with the same number of faculty or more, but with fewer non-teaching and administrative staff.
Ikenberry and Easter made their comments Monday night during a live interview on WILL Radio and TV.
About 11-thousand University of Illinois employees will have to take four unpaid days off work between now and the middle of May.
U of I administrators say furlough days have become unavoidable as the university faces a 440 million dollar shortfall in state funding. Administrators say the state has given the U of I only seven percent of the support it expected from this year's budget.
Interim president Stanley Ikenberry says no layoffs have been ordered, but departments are being asked to consider them because of a grim immediate future.
"Next year is not any more comforting," Ikenberry said. "So I think until we see the state leadership -- the governor, the leaders and members of the General Assembly, and frankly the citizens of the state -- rallying around a long term solution, I think we're going to be dealing with a mounting financial crisis."
Ikenberry believes the state will need to cut state spending and increase taxes to dig itself out of its budget deficit.
Chief financial officer Walter Knorr says the U of I has borrowed millions of dollars from its own funds - he says money from tuition, federal support and private giving have also kept the university going. "And indeed it's these other areas of the university that are giving us the liquidity that we require to be able to cope with the shortfall in funding from the state," Knorr said.
The four-day furloughs announced today do not affect civil service employees, but Knorr says their bargaining groups will be asked to put similar actions into their contracts. About 100 top administrators will take ten furlough days over the next five months.
December was another month of slow economic improvement for Illinois --- according to the University of Illinois Flash Index.
The Flash Index increased by a fifth of a point, to 91.2 in December, from November's 90.0. U of I Economist Fred Giertz says the Index has been gradually going up since hitting a low of 90 in September.
"There has been now three months of small increases", says Giertz. "So it's good news in a very limited sense --- good news in the sense that things aren't getting worse, but it doesn't necessarily mean there's a lot of improvement."
Giertz says he thinks slow economic growth will continue in Illinois, provided there are no unforeseen reversals, but says it will take a couple of years for the Flash Index to reach 100, which would indicate the start of actual economic growth.
"I think the evidence suggests that we are on the path to recovery", says Giertz. "But the recovery's going to be pretty slow. But there's not guarantee about that. There could be some unforeseen circumstance or some reversal. We've certainly seen that in the last couple of years."
Giertz says the best-case scenario would be a healthier financial sector combining with renewed public confidence in the economy to create a snowball effect. But he thinks gradual sluggish improvements are more likely.
The Flash Index is based on corporate, personal income and sales tax receipts in Illinois. Despite the recent improvement, all three categories are down from a year ago.
A spokeswoman for the Chicago-based agency that helps run the waterways into Lake Michigan says it's unfortunate that Michigan's attorney general is going to the U.S. Supreme Court over Asian carp.
Michigan Attorney General Mike Cox today sued the Metropolitan Water Reclamation District of Greater Chicago, the state of Illinois and the U.S. Army Corps of Engineers.
The lawsuit seeks closure of shipping locks near Chicago to prevent Asian carp from invading the Great Lakes and endangering the $7 billion fishing industry.
Water district spokeswoman Jill Horist calls the lawsuit unfortunate and says it won't bring a solution any sooner.
A spokeswoman says Illinois Attorney General Lisa Madigan's office is reviewing the lawsuit and has no comment for now.
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