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