Report questions university response to budget crisis
Gregory Royal Pratt
Issue date: 2/8/10 Section: News
An outside report analyzing the financial condition of the University of Illinois is making the rounds around campus.
The report, titled "Analysis of the Financial Condition of the University of Illinois System," was written at the request of the American Association of University Professors and the American Federation of Teachers for the United Faculty Organizing Committee at UIC.
Its author is Howard Bunsis, Professor of Accounting at Eastern Michigan University.
In the report, Dr. Bunsis analyzes the University of Illinois system's finances based on public financial statements. It mostly looks at the audited financial statements of the University of Illinois' combined campuses, but it does some analysis of UIC's campus, too.
Bunsis argues that the university's financial system "is strong" based on the fact that its revenues are greater than its expenses, it has low levels of debts, and has strong cash reserves.
The report is 20 pages long and is too long to reproduce in print. You can read the report here:
Budget Analysis Part 1
Budget Analysis Part 2
Bunsis' essential argument is that the university is overreacting to its budget situation by implementing furlough days. In the report, Bunsis concludes that "the need for furloughs is simply not apparent from the financial information of the UI system and from the UIC budget."
He adds: "The concept of furloughs for academic employees in the UI system should not be accepted by the academic employees of this system."
Instead, Bunsis argues, the university should use its existing reserves or borrow money to cover the shortfall while we wait for the state to pay us. If the university insists on furlough days, he argues, then they should pay their faculty and staff back with interest when they do receive their appropriation.
The report is not without its biases. It was made for an academic union and in its conclusion Bunsis states that "the issue of furloughs is further evidence of the need for collective bargaining."
One UIC professor expressed skepticism to the Flame about the viability of loans. The problem with the university taking out loans, this professor argues, is that the university isn't sure how much the university is going to eventually get from the state.
Still, this report -- along with our other main story this week, "Furloughs a matter of life and death on west campus" -- raises questions about whether or not furlough days are doing more harm than good for the university, not just in terms of the dwindling morale on campus but with regard to whether or not it is sound fiscal policy. It is also unclear if furloughs are fair to faculty.
An outside report analyzing the financial condition of the University of Illinois is making the rounds around campus.
The report, titled "Analysis of the Financial Condition of the University of Illinois System," was written at the request of the American Association of University Professors and the American Federation of Teachers for the United Faculty Organizing Committee at UIC.
Its author is Howard Bunsis, Professor of Accounting at Eastern Michigan University.
In the report, Dr. Bunsis analyzes the University of Illinois system's finances based on public financial statements. It mostly looks at the audited financial statements of the University of Illinois' combined campuses, but it does some analysis of UIC's campus, too.
Bunsis argues that the university's financial system "is strong" based on the fact that its revenues are greater than its expenses, it has low levels of debts, and has strong cash reserves.
The report is 20 pages long and is too long to reproduce in print. You can read the report here:
Budget Analysis Part 1
Budget Analysis Part 2
Bunsis' essential argument is that the university is overreacting to its budget situation by implementing furlough days. In the report, Bunsis concludes that "the need for furloughs is simply not apparent from the financial information of the UI system and from the UIC budget."
He adds: "The concept of furloughs for academic employees in the UI system should not be accepted by the academic employees of this system."
Instead, Bunsis argues, the university should use its existing reserves or borrow money to cover the shortfall while we wait for the state to pay us. If the university insists on furlough days, he argues, then they should pay their faculty and staff back with interest when they do receive their appropriation.
The report is not without its biases. It was made for an academic union and in its conclusion Bunsis states that "the issue of furloughs is further evidence of the need for collective bargaining."
One UIC professor expressed skepticism to the Flame about the viability of loans. The problem with the university taking out loans, this professor argues, is that the university isn't sure how much the university is going to eventually get from the state.
Still, this report -- along with our other main story this week, "Furloughs a matter of life and death on west campus" -- raises questions about whether or not furlough days are doing more harm than good for the university, not just in terms of the dwindling morale on campus but with regard to whether or not it is sound fiscal policy. It is also unclear if furloughs are fair to faculty.
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