Skip to content
ADVERTISEMENT
Sign In
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Events
    • Virtual Events
    • Chronicle On-The-Road
    • Professional Development
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
  • More
  • Sections
    • News
    • Advice
    • The Review
  • Topics
    • Data
    • Diversity, Equity, & Inclusion
    • Finance & Operations
    • International
    • Leadership & Governance
    • Teaching & Learning
    • Scholarship & Research
    • Student Success
    • Technology
    • Transitions
    • The Workplace
  • Magazine
    • Current Issue
    • Special Issues
    • Podcast: College Matters from The Chronicle
  • Newsletters
  • Events
    • Virtual Events
    • Chronicle On-The-Road
    • Professional Development
  • Ask Chron
  • Store
    • Featured Products
    • Reports
    • Data
    • Collections
    • Back Issues
  • Jobs
    • Find a Job
    • Post a Job
    • Professional Development
    • Career Resources
    • Virtual Career Fair
    Upcoming Events:
    College Advising
    Serving Higher Ed
    Chronicle Festival 2025
Sign In
Finance

How Does a State College Survive, and Thrive, on Emergency Funding?

By Fernanda Zamudio-Suarez July 1, 2016
Foellinger Auditorium at the U. of Illinois at Urbana-Champaign.
Foellinger Auditorium at the U. of Illinois at Urbana-Champaign. iStock

After Gov. Bruce V. Rauner of Illinois signed into law a temporary budget, on Thursday, to keep state institutions afloat for another six months, public colleges and universities may have exhaled a sigh of relief. But, before long, they’re likely to be holding their breath again.

To continue reading for FREE, please sign in.

Sign In

Or subscribe now to read with unlimited access for as low as $10/month.

Don’t have an account? Sign up now.

A free account provides you access to a limited number of free articles each month, plus newsletters, job postings, salary data, and exclusive store discounts.

Sign Up

Foellinger Auditorium at the U. of Illinois at Urbana-Champaign.
Foellinger Auditorium at the U. of Illinois at Urbana-Champaign. iStock

After Gov. Bruce V. Rauner of Illinois signed into law a temporary budget, on Thursday, to keep state institutions afloat for another six months, public colleges and universities may have exhaled a sigh of relief. But, before long, they’re likely to be holding their breath again.

Illinois’ public institutions have gone without permanent state funding for almost a year, a result of a legislative deadlock. And though the second wave of temporary money — legislators approved $600 million in emergency funds in April — will help carry the colleges through the next academic year, the fact that the cash comes in another stopgap spending bill doesn’t exactly bode well for the future.

Thomas L. Harnisch, director of state relations and policy analysis at the American Association of State Colleges and Universities, said the continued short-term funding makes it difficult for a college to set any long-term plans. Goals like performing maintenance, recruiting star researchers, and increasing enrollment are put on hold until colleges can figure out how to pay their bills, he said.

“The roller-coaster state budgets for higher education and Band-Aid fixes create an atmosphere of uncertainty,” Mr. Harnisch said. “Long-term planning requires a long-term commitment from the state.”

In those kinds of environments, colleges are forced to freeze salaries, leave open positions unfilled, and plug budget holes with reserve funds, he said.

To offset the cuts Chicago State University told its 900 employees in February that they might not have jobs unless they were individually “recalled.” Western Illinois University laid off 110 staff members and 40 faculty members, none of whom had tenure.

The Uncertainty Factor

Budget battles like this one also don’t bode well for parents and students shopping for colleges, said Matt Hamill, senior vice president for advocacy and issue analysis at the National Association of College and University Business Officers.

Students are bound to look at the situation at the State Capitol and wonder what will happen to tuition, Mr. Hamill said.

“That uncertainty has to be a factor in at least some number of families’ decisions about where their children will go to college,” he said.

ADVERTISEMENT

And when students do enroll in a college or university in the midst of a budget stalemate, the institution still must provide financial aid, with or without state funding.

During the past academic year, Illinois’ four-year public colleges fronted the money for financial aid with hopes the state would reimburse them after a budget compromise was reached. But that is a realistic solution for only a few semesters, if a university can even afford that, Mr. Harnisch said. Colleges could raise tuition, but even that step has its limits.

“Universities might be able to float students money for financial aid in the short term, but they can’t do that in the long term,” he said. “Financial aid is an integral part of college affordability that requires state funding.”

Regional public colleges and universities are often on the short end of most fights over state budgets, and their financial aid is hit the hardest, Mr. Harnisch said. Those institutions don’t have many out-of-state students who pay higher tuition. They also lack large endowments and research funds to draw money from, and they serve more first-generation and low-income students, who need the most financial support.

Universities might be able to float students money for financial aid in the short term, but they can’t do that in the long term.

Even when public colleges finally get public funding, the effects of a budget impasse still linger, Mr. Harnisch said. The state government becomes used to the reduced higher-education funding, he said, and negative public perceptions loom, making recruiting top-tier faculty members and researchers more of a challenge.

ADVERTISEMENT

However, it doesn’t look as if budget standoffs as dire as the one in Illinois will crop up anytime soon in other states, Mr. Hamill said. Trends show that most states have enough tax revenue to maintain higher-education needs, he said.

Mr. Harnisch said he is a bit more wary of such predictions, citing increased polarization in state governments. “They need sufficient and sustained and predictable state support,” he said.

Fernanda Zamudio-Suaréz is a web writer. Follow her on Twitter @FernandaZamudio, or email her at fzamudiosuarez@chronicle.com.

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Tags
Finance & Operations
Share
  • Twitter
  • LinkedIn
  • Facebook
  • Email
Fernanda-Zamudio_Suarez-staff-Photo.png
About the Author
Fernanda Zamudio-Suarez
Fernanda is the engagement editor at The Chronicle. She is the voice behind Chronicle newsletters like the Weekly Briefing, Five Weeks to a Better Semester, and more. She also writes about what Chronicle readers are thinking. Send her an email at fernanda@chronicle.com.
ADVERTISEMENT
ADVERTISEMENT

Related Content

Illinois Still Hasn’t Passed a Budget. Here’s What That Means for Its Public Universities.
At Chicago State, ‘Utter Insecurity’ Prevails After Hundreds Are Laid Off
Why the Budget Stalemate in Illinois Is Hitting One University Especially Hard
A University Softens a Plan to Cut Tenured Faculty, but Professors Remain Wary
For Illinois’s Public Colleges, No State Money Means Plenty of Pain

More News

Protesters attend a demonstration in support of Palestinian activist Mahmoud Khalil, March 10, 2025, in New York.
First-Amendment Rights
Noncitizen Professors Testify About Chilling Effect of Others’ Detentions
Photo-based illustration of a rock preciously suspended by a rope over three beakers.
Broken Promise
U.S. Policy Made America’s Research Engine the Envy of the World. One President Could End That.
lab-costs-promo.jpg
Research Expenses
What Does It Cost to Run a Lab?
Research illustration Microscope
Dreams Deferred
How Trump’s Cuts to Science Funding Are Derailing Young Scholars’ Careers

From The Review

University of Virginia President Jim Ryan keeps his emotions in check during a news conference, Monday, Nov. 14, 2022 in Charlottesville. Va. Authorities say three people have been killed and two others were wounded in a shooting at the University of Virginia and a student is in custody. (AP Photo/Steve Helber)
The Review | Opinion
Jim Ryan’s Resignation Is a Warning
By Robert Zaretsky
Photo-based illustration depicting a close-up image of a mouth of a young woman with the letter A over the lips and grades in the background
The Review | Opinion
When Students Want You to Change Their Grades
By James K. Beggan
Photo-based illustration of a student and a professor, each occupying a red circle in a landscape of scribbles.
The Review | Opinion
Meet Students Where They Are? Maybe Not.
By Mark Horowitz

Upcoming Events

Chronfest25_Virtual-Events_Page_862x574.png
Chronicle Festival: Innovation Amid Uncertainty
07-16-Advising-InsideTrack - forum assets v1_Plain.png
The Evolving Work of College Advising
Lead With Insight
  • Explore Content
    • Latest News
    • Newsletters
    • Letters
    • Free Reports and Guides
    • Professional Development
    • Events
    • Chronicle Store
    • Chronicle Intelligence
    • Jobs in Higher Education
    • Post a Job
  • Know The Chronicle
    • About Us
    • Vision, Mission, Values
    • DEI at The Chronicle
    • Write for Us
    • Work at The Chronicle
    • Our Reporting Process
    • Advertise With Us
    • Brand Studio
    • Accessibility Statement
  • Account and Access
    • Manage Your Account
    • Manage Newsletters
    • Individual Subscriptions
    • Group and Institutional Access
    • Subscription & Account FAQ
  • Get Support
    • Contact Us
    • Reprints & Permissions
    • User Agreement
    • Terms and Conditions
    • Privacy Policy
    • California Privacy Policy
    • Do Not Sell My Personal Information
1255 23rd Street, N.W. Washington, D.C. 20037
© 2025 The Chronicle of Higher Education
The Chronicle of Higher Education is academe’s most trusted resource for independent journalism, career development, and forward-looking intelligence. Our readers lead, teach, learn, and innovate with insights from The Chronicle.
Follow Us
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin