URBANA — The University of Illinois will have to lean more and more on private giving even after the economy improves, Chancellor Phyllis Wise said Tuesday.

Counting on state support to return to the levels of the 20th century is just "wishful thinking," Wise said at a town-hall meeting at the Krannert Center for the Performing Arts.

On her 66th day as chancellor, Wise provided an update about her "listening and learning" tour of the campus. Among the common themes she heard in her meetings with students, faculty and staff was "a real concern about the future of the university and state funding."

The state is in a fiscal bind, the federal government may cap or reduce support for research contracts as it deals with a deficit, and tuition has already risen dramatically over the last 10 years, she said.

"In the next 20 to 50 years, we will be counting on our friends more than ever before," Wise said, and not just for scholarships or buildings. "The whole ecosystem of the university needs money."

She also said the university has to be willing to close down programs or courses that are no longer valuable to its mission, even if they were in the past.

"It is painful, but I think it is critically important," she said.

Wise said she has talked to many academic departments and other groups of faculty, students, staff and community leaders since taking the job. She said she researched the campus before taking the job, but "I did not have any idea of the depth and breadth of the excellence here. It is a place where there is deep tradition, a long history and great potential for the future."

In her conversations, she has asked two broad questions:

— What brought people here, and why have they stayed?

— What role do they see for public research universities 25 to 50 years from now, and how can the UI position itself for the future?

What has she learned? Many come for a year and stay for a career because of the "incredibly collegial, incredibly generous" colleagues they work with, she said. Her discussions affirmed the importance of attracting the best faculty and students, she said.

"It is everything. It is absolutely everything," she said.

Other themes that emerged:

— The importance of diversity, an area where people feel the campus should "redouble" its efforts, and financial aid as it has become less affordable.

The UI launched a $100 million scholarship drive in July, and once that goal is reached, it will likely start a new one for $300 million to $400 million because the need is so great, Wise said.

— As much as faculty hate discussing it, the campus has to work harder to "brand and market ourselves," she said. The UI's reputation as a top university is critical to its future, she said.

— The importance of interdisciplinary research. Many universities talk about it, but "this is a place where I really believe we walk the walk."

— A commitment to outreach and collaborations with business.

For the second day in a row, Wise fielded questions about increasing centralization of the university's administrative functions.

Former UI Vice Chancellor Ned Goldwasser, a retired UI physicist, said the 2009 admissions scandal was a "terrible thing for the university," but those who initiated the problems were removed from office. It didn't justify sweeping changes in the university's administrative structure, he said.

"A big factor in the university's success is the independence this campus has had" for 100 years, and that can't be jeopardized, he said.

Goldwasser said former UI President David Dodds Henry presided over the transition from a campus to a system with the creation of the Chicago Circle campus, but "he had in mind a very strong University of Illinois at Urbana-Champaign."

"We have to keep that strength here in the administration of this campus. We have to be clear this university is the flagship of the state and the system and keep it that way," Goldwasser said, drawing applause from the audience.

Wise said centralization in some areas is beneficial — to cut costs, for example.

"The balance between centralization and decentralization is something we're all going to be talking about," she said.

Wise said when she was interviewed for the job, she told the search committee and UI President Michael Hogan that "my major responsibility as a chancellor and vice president was to be the strongest advocate for the campus and a citizen of a great university. They are not mutually exclusive," Wise said, adding she's eager to work with the other UI campuses. "As we rise, all boats will rise."

UI senior Kevin Klemm asked whether efforts to improve diversity by accepting more international students, for example, was keeping out qualified state residents who would be more apt to stay and support the UI in the future.

Wise said 70 percent of UI graduates do stay in-state. The campus always turns down qualified students, accepting about 7,000 of 27,000 applicants, but tries to bring in "the best and the brightest" as well as a diverse group, she said.