Academic Senate: 10% tax on RSO’s through ISU

The Academic Senate met for the first time this October and primarily discussed budgetary matters, including how to address an unexpected shortfall in revenue as a result of lower than predicted enrollment. 

“As I mentioned before, the FY27 enrollment forecast was 22,113 students. Our actual fall enrollment came in at 21,577 students so we had 536 fewer students than what we had anticipated for this fall. That means we will be short of revenue of approximately $5 million,” Vice President for Finance and Planning Glen Nelson said. 

Nelson proposed several solutions, including expanding the number of winter and summer classes and improving spring retention rates. 

“We could approach the revenue side by expanding winter or summer offerings, or hopefully increasing credit hour production during winter. We can improve our fall to spring retention rates. We can expand summer 27 options, among some of the revenue options we have,” Nelson said.

One of the major issues the President’s Cabinet identified was state funding, which on a per-student basis is the lowest in Illinois, according to Nelson. 

“If we simply moved up to the average amount per student in terms of funding, that would essentially double our appropriation, and we would be able to do a number of things from perhaps tuition relief, or funding salaries, but we don’t have that option. 
And to the tune of $80 million a year,” Nelson said.

One point of contention regarding the budget was a fee incurred by registered student organizations for overhead costs. Communications professor Kevin R. Meyer described some concerns he had heard from RSOs, including Redbird Gaming.

“I’ve heard from a couple individuals that are in charge of working RSOs and agency accounts, and they do summer camps, as well as esports. 
And they’re telling me that there’s a 10% tax on any new funds going into these agency accounts…Why would this 10% not be ours to keep?” Meyer said. “What’s the justification for this? You’re taking money away from students of your own.”

President Tarhule clarified that these fees are not new.

“We are beginning to give names to those different aspects and to identify how we are actually paying for them. It’s the kind of clarity that we never had before,” Tarhule said.

Tarhule also explained that these fees go towards administrative costs, such as paying for the police. 

“Somebody is paying the salary of those people working in those areas and so on. This is how we would pay for the police…
That’s what they offer,” Tarhule said. 

Meyer felt that there was a lack of proper input regarding these fees, however, from the Academic Senate. 

“The new budget model wasn’t subject to a vote. There is the illusion of input from going through these town halls, but it doesn’t mean that we can’t still discuss and question decisions. I seriously question, as an alumn, as an employee and as a father of a student going to camp, why some of this money isn’t going directly to those groups?” Meyer said. 

Tarhule explained that the new budget model has not changed how money is collected or allocated. 

“I want to be 100% clear. Before the budget is born, you paid the fees. We paid them exactly the same way. You just didn’t know. The budget model has not changed how money is collected or where it is going,” Tarhule said.