URBANA – The University of Illinois is trying to fend off faculty flight by boosting merit raises for professors who earn promotions – and by making faculty pay the focus of its 2011-12 state funding request.

Schools across the country "have recognized that Illinois has problems" and are trying to lure away the university's distinguished faculty, said Richard Wheeler, interim vice chancellor for academic affairs.

Despite massive state budget problems, the university is honoring pay commitments to faculty members promoted to the rank of associate or full professor, officials said Monday.

Interim Chancellor Robert Easter said the campus will provide $5,000 to those who are promoted from assistant to associate professor, and $10,000 for those promoted from associate to full professor. That's up from $3,500 and $6,000, respectively. The money is on top of whatever the professors' departments award.

Easter said the campus doesn't have money for a general salary program this year, but wanted to provide raises for those who had earned tenure promotions.

"You don't get very many opportunities to reward people who've had important achievements," Wheeler said.

Easter said some faculty aren't eager to move but may get a call from another campus and agree to an interview. The UI is trying to avoid putting them in a position where they might say "yes," he said.

"We're honoring promotions, union-negotiated agreements and other special actions," said Randy Kangas, UI associate vice president for planning and budgeting. "We want to remain competitive."

The money comes from funds reallocated by the campus and individual departments, as well as tuition income, Kangas said. He wasn't sure how much the raises will cost because annual reports on faculty promotions aren't complete. Campus officials also don't have numbers on how many professors have received outside offers, but they're gathering that data.

The UI's state funding for 2010-11 is down $46 million over the fiscal year that ended June 30, a 6.2 percent cut, Kangas said.

UI officials have begun work on the 2011-12 state funding request, and they've proposed a $54 million increase to boost faculty pay, including 3 percent general merit raises. At a meeting of the UI Board of Trustees Audit and Finance Committee on Monday, officials said the rest of the money would be used to recruit or retain top faculty.

In past years the UI has sought funding increases as high as $130 million, but Ikenberry suggested a "time out," Kangas said later.

"The state isn't in a position to help us. Let's recognize our top need, which is salaries," Kangas said.

Trustee Ed McMillan agreed, saying "academic quality is number one."

The budget request, which is still preliminary, also includes $7 million to meet utility and other cost increases, and $5 million to pay interest on any short-term borrowing by the UI to cover $279 million its owed by the state. The total increase of nearly $66 million would bring the UI's general revenue funding to about $760 million in fiscal 2012.

"It doesn't mean we don't need money for academic program improvements or any of the other things we have traditionally asked for. The state simply can't do it this year. There is so much uncertainty in the system," Kangas said.

"We do need to recognize that at some point we're going to need a salary program to keep the best and the brightest."

A new state law allows universities to borrow up to 75 percent of its unpaid bills from the state, or about $208 million for the UI. Schools have until the end of August to decide.

The UI hasn't "pulled the plug" but is talking with banks about a line of credit, Kangas said. He's hopeful the university can get a low rate, something under 3 percent.