From AP - News Headlines -

State Backlog Owed to U of I Expected to Reach $500 Million Soon

A University of Illinois administrator said he hopes state leaders can give the University of Illinois some advance notice on how much money it will be able to use in its operating budget.

Members of a U of I Board of Trustees committee learned Monday that the state will likely owe the university more than $500-million by the end of the calendar year, combining the prior fiscal year with the current one. Senior Vice President for Business and Finance Doug Beckman said fiscal 2012 looks worse, partly because the state will not be able to rely on any federal stimulus funds. Beckman said it would help if the U of I knew sooner how much it could expect.

"We'd love to have more lead time, but we understand it's a very, very difficult political issue," said Beckman. "There's got to be a combination of cuts and revenue, it would appear, to balance this budget. That is a difficult process. There's hard decisions to be made. I think we would trade a 10-percent cut for certainty right now, at least I would."

Beckman stated that the U of I has to operate under the assumption that some state funds will be cut, and he said the university will adjust to a pension reform plan signed by Governor Pat Quinn in April. Beckman said it is a step in the right direction in that it reduces the state's costs. The plan reduces benefits for those hired after January 1st of next year, raises the retirement age to 67, and caps maximum benefits at just under $107-thousand.