Harper dips into reserves to balance budget

Harper College, citing aging buildings and a string of state cuts, will have to dip into reserves in order to balance next year's budget.

Trustees on Thursday approved a preliminary fiscal year 2008-09 budget totaling $182.4 million, a 2 percent increase from this year's.

Harper President Robert Breuder said it's a challenge maintaining campus facilities, nearly half of which date back more than 30 years.

"The state has not passed a bill for capital renewal since George Ryan was governor, and we don't see anything coming out of Springfield for the foreseeable future," Breuder said in a statement.

While the day-to-day education fund is tentatively balanced at $78.5 million, Harper plans to take $10.2 million in reserve funds to support the school's $26.1 million operations and maintenance fund.

In addition to paying for campus repairs and increased energy costs, the money taken out of reserves will match a state capital projects grant to renovate the engineering and technology center. The project has yet to be funded, but it's No. 13 on a statewide priority list of capital requests by community colleges and four-year universities.

"State cuts year after year have forced us to dip into our reserves to maintain our campus, and now the well is about dry," Breuder said.

Harper used to get $10 million in state aid every year, according to Judy Thorson, vice president of administrative services.

"Now we're only getting six and a half," said Thorson. "It's been ratcheting down every year."

Since 2003, Harper has lost an estimated $4.5 million in state revenue and $9.2 million in refunds from successful commercial property tax appeals.

"It is critical that the college find new revenue streams to replace state and local revenue cuts while continuing to make sure we're running as efficiently as possible," said Breuder.

One possible source of future revenue may be a product of the new PATH program, or Providing Advice for Tomorrow's Harper. A 12-person team made up of community leaders is seeking input on the campus master plan following a facilities audit identifying $240 million in needs over the next decade. Based on the group's recommendation, Harper may kick off a fundraising campaign, issue bonds or even appeal to taxpayers through a referendum.

A public hearing on the preliminary budget will take place at the board's Sept. 18 meeting.