Why Budget Problems at the U of I Are Good for Taxpayers

The University of Illinois has had special protection for decade.

Because I used to be Manager of Employee Benefits for the Department of Central Management Services, I know that the General Assembly exempted its campus housing from paying even a dime for health coverage for those who worked there.

A hidden subsidy for students staying in student housing, pure and simple.

Then there was the bill to allow any child of a U of I employee to get free tuition.

Remember all the moaning about legislative scholarships?

Why is not one word about the tuition waivers that well-paid university professors kids receive?

But the “flagship” of the state university system says it’s having budget problems.

And, then a AP story says that university officials plan to institute centralized purchasing.

Bulk buying, some would call it.

Can anyone name a large successful corporation that hasn’t done that for decades?

The sky was falling on the University of Illinois, according to this January 6, 2010, Chicago Tribune front page story by Jodi Cohen and Monique Garcia..

The Department of Central Management Services has a section to which I was once attached where I purchased natural gas in bulk, saving $1 million a year.  Good purchase for all sorts of other goods and services have been available to the University of Illinois for decades.

And, just in the most recent budget crunch, administrators have figured out that centralized purchasing saves money.

“Instead of colleges and departments ordering independently and submitting receipts for reimbursement, they can order from a central procurement portal that automatically subtracts the cost from their account.  The portal system allows the university to buy supplies in bulk.”

Associate Press reporter Karen Hawkins lets the U of I get by with obvious past waste without even a mild criticism.

The story is one that demonstrates past mismanagement oh so starkly.


Comments

Why Budget Problems at the U of I Are Good for Taxpayers — 7 Comments

  1. I’m sure that’s the tip of the iceberg. Let me guess. An analysis of their purchases will reveal a large percentage of items were not competitively bid, and even if they were, often the low bid was not accepted.

    Couldn’t an auditor have made some recommendations years ago?

  2. Obviously their accounting department, supposedly one of the best in the nation, was also participating in decentralized purchasing.

    Also it’s not just U of I Professor’s children who receive free tuition. Many tuition waivers are granted to State and Community College employees.

    Let’s look at one example at MCC.

    TUITION WAIVER: Part-time Classified employees who work 20 hours per week or more are eligible for a waiver of tuition and fees for a maximum of six credit hours per semester taken at MCC with prior approval of the Office of Human Resources. The credit hours may be taken by the employee and/or by his/her spouse and dependent children. The employee will receive a tuition waiver and the employee’s spouse and dependant children will receive tuition reimbursement in accordance with section 4.8 of the MCC Staff Council Contract.
    http://www.insidemcc.mchenry.edu/HumanResources/Benefits/BenefitProgramPTClassified.pdf

  3. Now let’s look at Part-time “Professional” employees – I am assuming all or most are “certified” meaning they have some sort of certification such as teaching.

    BENEFIT PROGRAM — PART-TIME PROFESSIONALS

    The following is a summary of the benefit program for part-time Professionals who work 10 hours a week or more.

    TUITION REIMBURSEMENT: One hundred percent tuition reimbursement is available to part-time employee’s dependents (spouse and dependent children) for course work taken at MCC for up to 6 credit hours per semester. Reimbursement for tuition, fees and book costs is available to the employee, to a maximum of $850 per year, for approved course work taken elsewhere. All course work must be successfully completed to qualify for reimbursement.

  4. Let’s see, MCC also employs administrators.

    BENEFIT PROGRAM FULL-TIME ADMINISTRATIVE STAFF

    TUITION REIMBURSEMENT: One hundred percent tuition reimbursement is available to full-time employees’ dependents (spouse and dependent children) for course work taken at MCC. Reimbursement for tuition, fees and book costs is available to the employee, to a maximum of $2,200.00 per fiscal year, for approved course work taken elsewhere. All course work must be successfully completed to qualify for reimbursement.
    http://www.insidemcc.mchenry.edu/HumanResources/Benefits/BenefitProgramFTAdm.pdf

  5. Here’s the part-time professors (Adjunct Faculty) who are not tenured at McHenry County College.

    TUITION WAIVER/REIMBURSEMENT: Adjunct Faculty are eligible to receive tuition waiver toward one three-credit hour McHenry County College course for every two semesters* of teaching credit classes at the College. These hours may be used by the adjunct faculty member or by his/her spouse or dependent children. The employee will receive a tuition waiver and spouse and dependent children will be eligible for tuition reimbursement upon successfully completing the course.
    http://www.insidemcc.mchenry.edu/HumanResources/Benefits/BenefitProgramAdjunctFaculty.pdf

  6. BENEFIT PROGRAM FULL-TIME PROFESSIONALS

    TUITION REIMBURSEMENT: One hundred percent tuition reimbursement is available to full-time employee’s dependents (spouse and dependent children) for course work taken at MCC. Reimbursement for tuition, fees and book costs is available to the employee, to a maximum of $2,000 per fiscal year, for approved course work taken elsewhere. All course work must be successfully completed to qualify for reimbursement.
    http://www.insidemcc.mchenry.edu/HumanResources/Benefits/BenefitProgramFTProfessionals.pdf

    Wonder why tuition is skyrocketing? You are paying for the Teachers kids to attend college!

    We are just scratching the surface. There’s plenty of other juicy benefits.

  7. Here’s a technique to limit the number of temporary faculty.

    -Some contracts limit the numbers of temporary faculty to ensure expanded numbers of full-time faculty members. These provisions, as expected, are more often found in combined units. The McHenry County College (Illinois, combined) contract provides an “adjunct faculty to full-time faculty ratio of approximately two to one shall continue to serve as its guide to the extent that financial resources permit.” –
    http://www.nea.org/assets/img/PubAlmanac/ALM_05_07.pdf

    The NEA is the National Education Association, the largest labor union in the USA. Their Illinois affiliate is the IEA – Illinois Education Association – Region 23 out of Elgin which represents many K-12 schools in McHenry County.

    The MCC affiliates are the McHenry County College Faculty Association and the McHenry County College Adjunct Faculty Association.

    That’s the names of the unions who have these perks in their collective bargaining agreements.

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