From AP - News Headlines -

New UI President Cautions about Future Cutbacks

The new University of Illinois president says he has experience dealing with state governments that are struggling with meager budgets, and more struggling will take place in the next year.

Michael Hogan says he wants to correlate the yearly increases in tuition with state funding reductions that are forcing universities to pass the cost on to students and parents. Hogan sat down for an interview with Illinois Public Media's David Inge, telling him that the U of I has to concentrate just as much on controlling costs, and future staff reductions are possible. He wouldn't specify where layoffs could happen, but he says a committee report has focused on certain services that could be restructured.

"We're going to begin right away when it comes to IT, human resources, strategic purchasing and a variety of other back-office operations, administrative operations. We can begin implementing the recommendations coming out of that committee and begin realizing the savings quickly."

Hogan expects a steering committee to help implement the first of the cost-cutting measures soon. In the meantime, he foresees opening a line of credit to keep up with bills, admitting that doing so makes him uneasy.

Meanwhile, Hogan says some steps to help ease the budget crunch can also be of academic benefit. He admits that students from outside Illinois pay much higher tuition rates - but he also says they're needed to bring a diverse perspective.

"We're trying to create a learning environment on campus that's more cosmopolitan and prepares people for life in the world they're going to face when they get their degrees," Hogan said. "So the best argument for more nonresidents, or more diversity or more international students, is not really a financial argument. It's an intellectual and academic argument, an educational argument." But when asked, Hogan would not give a target number of out-of-state students the U of I wants. The report recommended keeping in-state enrollment level.

Hogan says he won't get defensive about the $620,000 salary that trustees approved for him before he took over as president earlier this month. But he says he plans to forgo pay raises or deal with furlough days if the university calls on other employees to do so.