SIC prepares to make budget cuts

Like primary and secondary schools around the region, Southeastern Illinois College is finding itself in a state-inflicted budget crisis with no immediate solution and no relief in sight.

The college's Board of Trustees met Tuesday and announced a tuition increase of $6 per hour and some budget reductions next year. However, according to a press release from SIC, the board does not foresee eliminating any programs.

The board expects, at best, only half of SIC's state disbursements this year and only half next year. That amounts to $2.4 million each year, for nearly $5 million total through the end of next fiscal year, according to the news release. The college's annual operating budget is $12 million.

About 50 percent of the college's revenue comes from the state, while in comparison, about 15 percent comes in the form of local tax dollars.

"The college is taking steps as an institution to cut costs, raise revenues, and by doing so, effectively 'make up for' the third state payment," chief financial officer Tim Walker said.

"Still, that leaves us feeling the total impact of a 25 percent cut in state reimbursement, along with the need to borrow to account for the final payment we should have received."

The small reserve the college has been able to manage over the years will be wiped out by the fiscal crunch, according to the news release.

"We're lean as it is," said Walker.

Interim President Jonah Rice said the college, on the whole, has worked together as a team to confront economic challenges placed upon it and other community colleges by the state's fiscal crisis.

"I am very proud of the calm, logical working relationship we've seen from the campus community," Rice said. "We face financial challenges like we've never seen, and all of us understand that it will be a number of tight years for us as our legislature engages the financial crisis in the state."

College officials said they learned from a recent meeting with local legislators that the state will most likely not address financial recovery plans until after November, according to the news release. The estimated time for recovery by the state is at least four years.

Rice said no one wants to raise tuition or cut budgets.

"We wouldn't do either one under normal circumstances, but we're in this situation along with other fellow community colleges in the state."

The news release stated reductions have been based on the colleges' core values, including fairness. Cost-effectiveness and maintaining service to students were also criteria used to guide reductions.

"We're all living by the mantra, 'Is it nice, or is it necessary?'" Rice said.

SIC has instituted reductions in travel, equipment, supplies, energy, extra-curricular activities, hiring chills, job consolidation and other such standard measures, according to the news release. The financial austerity will continue through next year.

"Pretty much all colleges, especially in this part of the state, will face borrowing even with increased tuition and dramatic reductions in expenses," Rice said. "We all rely so much on state funding.