A message from Vice President Nelson, April 24, 2026

I'm providing a lengthy update on several topics and want to help our faculty and staff access helpful information within this message.

While these topics may seem distinct, they are connected by a common theme: the importance of transparency and accountability in how we operate, communicate, and make decisions that affect the present and future financial health of our institution.

Budget Update Over the past two years, the University has strengthened financial accountability by adopting a revenue-based budgeting model. This approach closely aligns spending with the resources that support it-ensuring that decisions are transparent, sustainable, and tied to our core priorities. This shift is a proactive response and a commitment to responsible stewardship as higher education institutions nationwide face mounting financial pressures from multiple sources, including enrollment declines, eroding federal support, flat state appropriations, fewer international students who traditionally subsidize domestic students, inflation, and other factors. In the near future, we will launch a new video series that outlines the adopted budget model in greater detail. We believe this will enhance transparency and give our community a clearer understanding of how resources are allocated and managed. Legislative Engagement Yesterday, university leadership testified before the Illinois House Higher Education Appropriations Committee. The president's testimony underscored the University's impact and the challenges we face moving forward. The University's request is for a $20 million increase in state appropriations to help support accessibility and affordability through financial aid, expand disciplines that support workforce development, and replace more than $12 million in foregone tuition revenue due to unfunded state mandates. Illinois State currently receives $4,110 in state appropriations per student, the lowest among all public universities and well below the statewide average of $7,800. As a result, when state funding falls short, students and families absorb a larger share of operating costs. If we were to see a 3% annual increase in wages and a 2% annual increase in inflationary costs, Illinois State University annual expenses will increase by $45 million over five years. This would require a 6% annual increase in tuition or an 8%-10% annual increase in state appropriation to pay for the increased costs. A combination of tuition increases and state appropriation would lower the rate of increases needed to fund the expense is insufficient to eliminate this deficit. These are the stark and difficult choices the University confronts, reinforcing the need for sustained advocacy. We invite all university constituents to join hands to advocate for more resources to support the University. Labor Relations Update The realities outlined above underline the University's approach to labor negotiations. The University remains committed to its values, including respect and integrity, and to operating in accordance with the laws and policies that govern our actions. In all negotiations, the University begins by developing salary and compensation benchmarks against peer institutions or the appropriate market comparators, adjusted for differences in cost of living. To ensure we treat all staff consistently, we also evaluate the impact of settlement demands on other staff, whether or not they are in bargaining units. Finally, we assess the impact of the settlement demands on the University's budgets now and in the near future (three to five years). This is the negotiation template we adopted for ASCME1110. However, the negotiating parties have not been able to reach an agreement on three key points. AFSCME is publicly demanding greater compensation increases. The University has offered AFSCME five years of guaranteed annual increases, as follows: Effective Date of Increase Increase Amount Upon Ratification 3.50% July 1, 2026 3.00% July 1, 2027 3.00% July 1, 2028 3.00% July 1, 2029 3.00% These increases ensure the vast majority of AFSCME 1110-represented ISU employees remain at or above the median wage rate for comparable positions in Bloomington/Normal. AFSCME is publicly demanding a clause in the contract that would guarantee both annual contractual increases and, in the event the annual increase for the non-bargaining employees under the campus wage program exceeds the negotiated contractual increases, the difference between the negotiated increase and the campus wage program. The Union is essentially demanding to get the same or greater increase as the University's non-Union employees. This is not fair to our non-Union employees, and it ignores that the Union has the opportunity to negotiate future guaranteed wage increases that the University is obligated to honor regardless of future revenues. AFSCME is publicly demanding full retroactive pay from July 1, 2025, forward. Illinois State University avoided a $9 million budget deficit two years ago by undergoing a series of efficiency and cost-cutting measures. We have since renewed our commitment to balancing desired educational outcomes with rising personnel and operating costs in a fiscally responsible manner. Because of this, we began discussions with AFSCME in the summer of 2024 about no longer offering retroactive pay in future contracts. The parties then began negotiations three months prior to contract expiration, which is normally more than enough time to reach an agreement and avoid disputes over retroactive pay. The University's approach must be holistic, in which the impact of any decision is carefully balanced against the system. We do not believe it is good planning or fiscal stewardship to commit to agreements that adversely impact other aspects of university operations.

As these negotiations progress, we will continue to provide relevant updates on our Status of Negotiations website. Thank you for your continued dedication during this time. We recognize the complexity of these issues and appreciate your focus on supporting our students and advancing the University's mission.