THE BRINK OF CLOSING.
>> PHIL, NONE OF THE STATE'S
PUBLIC UNIVERSITIES HAS RECEIVED
ANY APPROPRIATIONS FROM THE
STATE SINCE THE BUDGET STANDOFF
BEGAN LAST JULY.
THAT MEANS EACH OF ILLINOIS' 12
STATE UNIVERSITIES HAS GONE
WITHOUT TENS OF MILLIONS OF
DOLLARS IN FUNDING.
AND WHILE ALL OF THEM HAVE MADE
CUTS, TAPPING INTO RESERVES,
MOSTLY, CHICAGO STATE UNIVERSITY
ON THE CITY'S SOUTH SIDE HAS
BEEN HIT THE HARDEST.
EARLIER THIS MONTH, CSU SAID IT
WAS IN A FINANCIAL CRISIS WITH
WORD IT COULD BE FORCED TO CLOSE
ITS DOORS IN THE COMING MONTHS.
JOINING US TONIGHT IS PRESIDENT
THOMAS CALHOUN THANK YOU FOR
BEING HERE.
>> THANK YOU.
>> WE SHOULD NOTE AT THE TOP
THAT YOU HAVE ONLY BEEN IN YOUR
POST FOR A MONTH-AND-A-HALF?
>> THAT IS CORRECT.
>> WHAT A WAY TO BEGIN YOUR 10
USE.
>> A WONDERFUL WAY TO BEGIN A
TENURE.
>> TELL US ABOUT YOUR SITUATION.
>> WE ARE IN A DIFFICULT TIME
LIKE YOU MENTIONED WE AS PART OF
THE UNIVERSITY HIGHER EDUCATION
COMMUNITY IN THE STATE OF
ILLINOIS, HAVE NOT RECEIVED AN
APPROPRIATION AND OUR COFFERS
ARE BEGINNING TO WIND DOWN.
AND WE ARE IN A DIFFICULT
FINANCIAL CONDITION RIGHT NOW.
>> HOW MUCH WOULD YOU HAVE
EXPECTED TO RECEIVE FROM THE
STATE?
>> WE WOULD HAVE EXPECTED IN THE
NEIGHBORHOOD OF $38 MILLION AND
THAT IS WHAT THE LEGISLATURE PUT
FORWARD TO THE GOVERNOR IN MAY.
AND WE CERTAINLY WERE
ANTICIPATING THAT AT SOME POINT
OVER THE COURSE OF THE FISCAL
YEAR.
WE ARE EIGHT MONTHS INTO THE
FISCAL YEAR.
WE HAVE OPERATED IN A WAY THAT
HAS ALLOWED US TO CONTINUE AT
FULL SPEED IN THE ABSENCE OF
THAT.
BUT WE ARE NOW TWO-THIRDS INTO A
FISCAL YEAR AND WE ARE ABSENT
ONE-THIRD OF OUR OPERATING
BUDGET.
>> UNLIKE THE OTHER PUBLIC
UNIVERSITIES IN THE STATE, THAT
APPROPRIATIONS FROM THE STATE
FORMS A HUGE PART OF YOUR
BUDGET?
>> A HUGE PART OF OUR BUDGET,
YES.
>> 30%?
>> YES.
>> WE HAVE BEEN HEARING TALK
THAT THE SCHOOL IS READY TO
CLOSE, PERHAPS AS EARLY AS MARCH
FIRST WHICH IS TWO WEEKS FROM
TODAY.
IS THAT POSSIBLE?
>> THAT IS NOT TRUE.
THE UNIVERSITY IS NOT PLANNING
TO CLOSE.
WE HAVE A 150-YEAR HISTORY AND
WE ARE PLANNING FOR OUR
CELEBRATION OF 150 YEARS.
WE ARE PLANNING FOR THE NEXT 150
YEARS.
HAVING SAID THAT, WE OBVIOUSLY
NEED TO TAKE MEASURES AND THUS
THE BOARD'S ACTION TO DECLARE
FISCAL BUT WE NEED TO TAKE
MEASURES TO BE ABLE TO OPERATE.
BUT WE DO NOT PLAN TO CLOSE.
MARCH FIRST DATE WAS SOMETHING
THAT WE HAD TO COMMUNICATE BACK
PRIOR TO MY TENURE BUT WE DID
HAVE TO SERVE NOTICE THAT WE AT
THAT TIME OUR FINANCIAL
PROJECTIONS WERE SUCH THAT WE
WOULD PROBABLY BE CLOSE TO NO
OPERATING FUNDS AS OF MARCH
FIRST.
THAT HAS CHANGED.
WE DID TAKE MEASURES TO STRETCH
DOLLARS AND WE DON'T ANTICIPATE
CLOSING AT ALL.
BUT CERTAINLY NOTHING IS GOING
TO HAPPEN ON MARCH FIRST.
>> WHAT MEASURES HAVE YOU TAKEN?
>> OVER THE COURSE OF THE LAST
YEAR, THERE WERE REDUCTIONS IN
PERSONNEL, REDUCTIONS IN
SPENDING FOR THINGS SUCH AS
TRAVEL, NONESSENTIAL SPENDING.
SOME DEFERRED SPENDING THAT WE
HAVE BEEN ABLE TO WORKOUT IN
SOME CASES.
WHERE WE'VE BEEN ABLE TO DEFER
PAYMENTS IN ORDER TO MAIN TAN
SOME --
MAINTAIN CASH.
>> WITHOUT A THIRD OF YOUR
MESSAGE HOW MANY LAYOFFS?
WHAT PROGRAMS HAVE YOU CUT?
>> WE HAVE NOT CUT ANY PROGRAMS.
EVERYTHING I MUST SAY IS IN
REVIEW NOW.
I DO NOT HAVE THE EXACT NUMBER
OF LAYOFFS BUT IT WAS IN THE
DOZENS.
AND I WOULD SAY THAT OBVIOUSLY
WHEN WE ARE AT A POINT OF
EXGENNESEE WE HAVE TO CONSIDER
ALL THINGS AS A MATTER OF
CUTTING FOR COST SAVINGS.
AND I WOULD ALSO SAY THAT YOU
KNOW, WE ARE PREPARED TO WORK
ALONG THE LINES OF MORE
EFFICIENT OPERATIONAL PROCEDURES
AND PROCESSES.
WE AGREE WITH THE GOVERNOR THAT
WE CAN BE MORE EFFICIENT.
WE LIKE THE OTHER PUBLIC
UNIVERSITIES IN THE STATE,
HOWEVER, CANNOT BECOME WE CANNOT
IMPROVE WHEN WE CANNOT OPERATE.
THE CRITICAL THING RIGHT NOW IS
FOR US TO GET AN ALLOCATION FROM
THE STATE SO WE ARE ABLE TO
CONTINUE OPERATION AND CONTINUE
SERVING THE OUTSTANDING STUDENTS
THAT WE SERVE.
>> YOUR DEMOGRAPHIC IS DIFFERENT
THAN MOST OTHER PUBLIC
UNIVERSITIES IN THIS STATE.
BECAUSE IT IS A MOSTLY MINORITY
AND MOSTLY POOR AFRICAN-AMERICAN
LARGELY COMMUNITY.
MANY OF THEM RELY ALSO ON MAP
GRANTS WHICH HAVE NOT BEEN
FORTHCOMING.
THERE IS A BILL ON THE
GOVERNOR'S DESK WHICH THERE IS
LITTLE INDICATION THAT HE IS
GOING TO SIGN.
HOW IS THAT IMPACTING YOUR
STUDENTS?
>> WELL, LET ME SAY FIRST THAT
OUR UNIVERSITY DID COVER MAP
COSTS.
IN OTHER WORDS WE HAVE A NUMBER
OF STUDENTS THAT WERE IT NOT FOR
THE MAP GRANT THEY WOULD NOT BE
ABLE TO ATTEND.
OUR UNIVERSITY COVERED THOSE
COSTS.
THAT IS AN EXAMPLE HOW THE
ABSENCE OF STATE FUNDS CUT
DEEPLY INTO OUR OTHER --
>> HOW ARE YOU ABLE TO AFFORD
THAT?
>> THE MONEY CAME FROM OUR OTHER
REVENUES, TUITION, WE HAVE OTHER
AUXILIARY RESOURCES THAT WE CAN
DRAW ON AND THE UNIVERSITY HAD
BEGUN TO PUT SOME MONEY AWAY AS
WE ANTICIPATED A MORE PROTRACTED
STALEMATE IN THE STATE
LEGISLATURE BETWEEN THE
LEGISLATURE AND THE GOVERNOR.
SO THE COMBINATION OF THOSE
RESOURCES ALLOWED US TO STRETCH
FORWARD.
BUT MY POINT IS THAT WE WOULD
NOT HAVE BEEN ABLE TO ENROLL A
LARGE NUMBER OF STUDENTS HAD WE
NOT BEEN ABLE TO PROVIDE THE MAP
GRANT FOR THEM.
AND SO, YES, WE HAVE STUDENTS
THAT ARE DEPENDENT ON OUR STATE
TO ALLOCATE RESOURCES AS THE
STATE IS EXPECTED TO DO.
>> HAVE YOU BEEN LOSING ANY
STUDENTS?
>> SURE.
>> THE UNIVERSITY HAS HAD A
DECLINING ENROLLMENT.
HAS THIS EXACERBATED THE
PROBLEM?
>> WE DON'T HAVE EVIDENCE THAT
IT'S EXACERBATED THE PROBLEM.
WE HAD A PROJECTION MOVING INTO
THE SECOND SEMESTER AND WE
EXCEEDED THAT ENROLL MANY.
WHICH IS A STATEMENT NOT ONLY TO
THE QUALITY OF THE UNIVERSITY
BUT TO THE BELIEF BY OUR
STUDENTS THAT WHAT THEY ARE
GETTING IS WORTH THEIR EFFORT TO
BE THERE INSPITE OF FINANCIAL
DURESS.
SO THAT IS A TREMENDOUS, A
TREMENDOUS STATISTIC THAT WE
HANG OUR HATS ON.
WHILE WE ARE AT RISK WE STILL
HAVE STRONG CONFIDENCE AMONG THE
COMMUNITY, OUR STUDENTS, OUR
ALUMNI AND FACULTY AND STAFF.
>> YOU HAVE BEEN ON THE JOB FOR
SEVEN WEEKS, AND YOUR TWO
PRESENTEDDERS ISERS HAD ROCKY
TENURES.
YOUR PREDECESSOR HAD ETHICAL
ISSUES AN I LAWSUIT FILED
AGAINST THE UNIVERSITY WHICH
COST THE UNIVERSITY $3 MILLION.
I'M NOT SURE THAT'S BEEN PAID
OUT YET.
HIS PREDECESSOR WAS ACCUSED OF
UNJUSTIFIED SPENDING AND THAT
LED TO HER RESIGNATION.
HAVE THE FISCAL WOES IMPACTED
THE SCHOOL?
>> WELL, OF COURSE ANYTIME YOU
HAVE NEGATIVE ACTION OR NEGATIVE
PUBLICITY OR ANY SUCH THINGS
THAT YOU'VE DESCRIBED OF COURSE
THEY HAVE IMPACTED THE SCHOOL.
BUT WE ARE NOT FOCUSED ON THE
PAST --
>> BUT THE FISCAL SITUATION NOT
SO MUCH THE REPUTATION?
>> I WOULD NOT BE PREPARED TO
SAY OUR FISCAL SITUATION TODAY
IS A DIRECT RESULT OF ANY PAST
IMPROPRIETY OR ALLEGED
IMPROPRIETY THAT IS CERTAINLY
NOT ANYTHING THAT WE ADDRESS IN
OUR LEADERSHIP.
WHATSOEVER.
THAT HAVING BEEN SAID, OF
COURSE, WE WANT TO MOVE THE
SCHOOL IN A POSITIVE DIRECTION.
WE ARE THINKING ABOUT HOW WE
HAVE A CELEBRATION OF 150 YEARS
AND PREPARE OURSELVES INSPITE OF
THIS VERY DIFFICULTIES CAL
SITUATION AND INSPITE OF WHAT
MIGHT HAVE BEEN PUBLIC
PERCEPTION OF IRRESPONSIBLE
ADMINISTRATIVE PRACTICE INSPITE
OF THAT, WE ARE PREPARING TO
MOVE INTO A BRIGHT FUTURE.
>> HOW LONG CAN THE UNIVERSITY
STAY OPEN IF THERE IS NOT ANY
APPROPRIATIONS COMING FROM THE
STATE ANYTIME SOON AND WHATEVER
RESERVES YOU HAVE ARE TAPPED
OUT?
>> OUR UNIVERSITY IS PREPARED TO
BE OPEN FOR THE REST OF THIS
SEMESTER.
WE HAVE COMMITTED TO BE OPEN FOR
THE REMAINDER OF THIS SEMESTER
AND IT WILL END IN THE FIRST OF
RIGHT AROUND THE FIRST WEEK OF
MAY.
NOW, LET IN ME SAY THAT WE ARE
NOT PINPOINTING ANY DOOMSDAY.
WE --
IT IS A DYNAMIC SITUATION AND WE
CONTINUE TO TRY TO NEGOTIATE
WAYS IN WHICH WE CAN SAVE FUNDS.
AND WE DO PROJECTIONS ON A DAILY
BASIS.
AND SO WE ARE NOT PREPARED TO
SAY THIS IS THE DAY THAT THE AXE
IS GOING TO FALL.
>> A COUPLE MORE MONTHS?
>> WE BELIEVE THAT.
>> YOU ARE GOING TO SPRINGFIELD
TO HEAR THE GOVERNOR'S STATE
BUDGET ADDRESS.
>> YES.
>> DO YOU EXPECT HIM TO SAY
ANYTHING ABOUT THE FUNDING?
>> I WOULD HOPE THAT HE WOULD.
HE IS MAKING A BUDGET ADDRESS SO
FAR AS I CAN UNDERSTAND AND
THERE IS A LARGE BUDGETARY ISSUE
IN HIGHER EDUCATION AND I CANNOT
IMAGINE THAT AS A RESPONSIBLE
LEADER IN OUR STATE THAT HE
WOULD OMIT SOME STATEMENT ABOUT
HIGHER EDUCATION WHEN EVERYONE
WHO IS PAYING ATTENTION AT ALL,
TO HIGHER EDUCATION PUBLIC
HIGHER EDUCATION AND FOR THAT
MATTER PRIVATE HIGHER EDUCATION.
THE MAP GRANT IMPACTS STUDENTS
ACROSS THE STATE.
SO IT'S NOT JUST THE PUBLIC
UNIVERSITIES.
IT'S ALL HIGHER EDUCATION IN OUR
STATE.
>> IF YOU ARE FORCED TO CLOSE,
WILL YOU BE ABLE TO REBOUND?
>> OF COURSE.
>> CAN YOU REOPEN YOUR DOORS?
>> OF COURSE.
FIRST WE WON'T CLOSE.
WE MIGHT BE FORCED TO REINVENT
THE WAY WE LOOK.
THAT WOULD BE UNFORTUNATE.
BUT THERE IS A SILVER LINING AND
THAT IS THAT WE COULD EMERGE
FROM THIS A STRONGER UNIVERSITY
BECAUSE WE HAVE A HIGH QUALITY
FACULTY.
WE HAVE A VERY HIGH QUALITY
LEADERSHIP STRUCTURE.
AND WE HAVE A DEDICATED CORE OF
ALUMNI WHO ARE GOING TO CONTINUE
TO SUPPORT THIS UNIVERSITY.
>> PRESIDENT THOMAS CALHOUN WE
HAVE TO LEAVE IT THERE BUT I'M