Here is the text of an email sent Thursday morning from University of Illinois President Michael Hogan to all employees and staff at the UI:

Dear Colleagues,

As the academic year winds down, I'd like to share my appreciation with
you and update you on the important work we're doing together. As our
commencements conclude, it's a time of celebration and hope, yet a
bittersweet moment as we watch our graduates leave us for wonderful
careers and great futures all over the world. Our graduates are among
those most sought by employers and among those who give the most back to
their communities. I'm proud of each of them and of the dedicated faculty
and staff who have prepared them for their lives ahead.

We have many other successes to celebrate, too. Our campuses, faculty,
staff, and students continue to garner national and international acclaim
for their accomplishments. Our Foundation is completing its
successful "Brilliant Futures" campaign, which pledges more than $2.3
billion in new support to our University. Our research portfolio is
growing. And more students than ever are applying for admission,
demonstrating again the high regard for the University of Illinois. We
should never lose sight of the tremendous accomplishments of our faculty,
staff, and students - the innovative discoveries and many contributions
they make to a better future for people all over the world. We are strong
and resilient, the economic crisis we face today will pass, and we will
emerge better than ever.

Yet, we do need to recognize the challenges still ahead. When I visit
with faculty and staff, I hear concerns about pension and benefits. I
continue to communicate with leadership in the General Assembly and to
our legislators how important it is for the state to fulfill its
commitment to our employees on the pension front. We've also been in
direct contact with the director of the Illinois Department of Healthcare
and Family Services on attempts to eliminate Health Alliance as a
healthcare option for our current employees and retirees. See
<http://www.uillinois.edu/go/healthcare>. We've communicated that
thousands of University employees and retirees would be negatively
affected by such an action, and there's good reason to believe that costs
would actually increase for the state. Our legislators are listening and
we're gaining more support for our position with every passing day.

Another area is procurement, where we've taken a lead role in preparing a
document explaining the extensive costs of new regulatory requirements to
universities and the state in terms of lost contracts, declining
competitiveness, and the loss of precious time and effort. We recognize
the importance of fair, legal, and ethical procurement practices. But
many of the new regulatory burdens cost the state millions in lost
opportunities for the best possible value and service and are undermining
participation by vendors, especially small businesses and minority-owned
firms. We've presented compelling evidence, and our legislators are
interested in working with us on solutions.

Another concern involves "position exemption authority" from the State
Universities Civil Service System, under which the University determines
if a position is classified as civil service or academic professional,
within criteria set forth by state statute. We've made some mistakes,
which we're resolved to correct and avoid in the future. A bill
introduced in the Senate (SB 1150), however, would remove this authority
and undermine our ability to make appointments in response to rapidly
arising academic and research needs. The bill is now in the House and we
are working closely with representatives to communicate the unique
employment situation at the University and the importance of retaining
our position-exemption authority.

There are other issues we're weighing in on, including the "concealed
carry" legislation (HB 148). We've helped draft amendments that can
exempt parts of our campuses from the carrying of concealed weapons,
should this legislation pass. Another is the Illinois DREAM Act (SB
2185). This bill will provide greater support to our undocumented
students. As we know, students admitted to the University of Illinois,
whether documented or undocumented, are among the nation's brightest. And
like all of our graduates, they go on to stellar careers and become tax-
paying citizens and contributors to our economy and society. It's
important for us, as a nation of immigrants, to ensure that the most
precious resources our state has - bright minds - are not closed off from
reaching their potential.

I've had many opportunities to speak directly with Governor Pat Quinn,
House Speaker Michael Madigan, and Senate President John Cullerton on
these and other issues. I'm grateful that they take our views seriously
and keep us apprised of developments in Springfield. Several legislators
have been very supportive as well, and we're grateful for their help. We
also appreciate the efforts of the Alumni Association's Illinois
Connection, which organized an impressive "lobby day" at the state
Capitol to apprise legislators of the University's needs. They've also
supported us by encouraging their members to write legislators and
members of our Congressional delegation to support the University. We're
fortunate to have such loyal and committed partners. Additionally, our
Governmental Relations team is also hard at work on these issues with
legislators in their offices and in the halls of the state Capitol.
They're working around the clock for us and deserve our thanks for their
efforts.

Our budget remains a concern. Earlier, I reported on my testimony before
the appropriations committees, which went well. It's clear from these and
other conversations that legislators recognize the tremendous value of
University of Illinois to the state. They're proud of the U of I and
impressed by our efforts to streamline the University's business
functions, seek new revenues, improve services, increase efficiencies,
and generate millions in cost-savings, while protecting our academic
core. Efforts such as the Administrative Review & Restructuring (ARR)
programs are helping us achieve this goal, while also making a favorable
impression on our legislators. With assistance from Springfield and
careful planning on our part, we've avoided furloughs this year and hope
to offer a salary program for all eligible faculty and staff in the
coming fiscal year.

The Board of Trustees has directed us to continue the ARR efforts and
accelerate them in this continued challenging fiscal environment. The ARR
Steering Committee - which includes the University Senates Conference
Chair, the Chancellors, and the CFO - will continue its work to move
these efforts forward. I appreciate the involvement of many of you in
this work and the support you're expressing for those leading these
efforts.

I know the campuses are engaging in their own reviews and assessments and
many of you are participating in those efforts. Please know how grateful
I am for your hard work. The decisions we make about implementing ARR and
campus initiatives are informed by the insights that you bring to these
discussions. Yet, it's important to clarify some misconceptions about the
changes we've made. For instance, one colleague shared concerns with me
that our consolidation of some of our Human Resources functions removed
oversight of faculty recruitment, promotion, and tenure from the
campuses. This is not the case - faculty review procedures remain within
the purview of the campus.

Others have expressed alarm upon hearing, incorrectly, that changes in
administering campus information technology (IT) infrastructure mean that
IT budgets and operations at all levels of the campuses would be
eliminated. In fact, the majority of IT delivery occurs at the college
and department levels and that will continue to be the case. Further,
campus chief information officers (CIOs) are retaining their portfolios
and are in regular communication with administrators on the campuses. The
major change for campus CIOs is that they will play a bigger role in
University-wide decisions through their reporting line to the
University's Executive CIO. The administrative changes we're making at
the infrastructure level will support and improve services, just as they
will support our academic and research policies rather than determine
those policies.

Change can be difficult, but as one of the world's great centers of
research and innovation, we live with and explore change every day. As
many of you have shared with me, change is embedded in our research,
teaching, and service as we seek ongoing improvement in everything we do
and the world in which we live. I appreciate your forward-looking vision
and willingness to work on the changes we're currently making and those
still ahead. These changes will allow us to save millions to protect and
enhance our core academic priorities during these challenging times and
to invest in our students, faculty, and staff. I look forward to
continuing to work with you as we seek improvements and find solutions to
the challenges we face.

I'm grateful that many of you have accepted invitations to serve on
advisory groups as we develop governance plans to improve in areas like
HR and IT. For example, Michael Hites continues to consult with campus
and collegiate IT leaders and a faculty advisory group recommended by the
University Senates Conference. He's working closely with them and with
provosts and chancellors to establish IT governance plans. Likewise,
Maureen Parks continues to consult with campus HR leaders and Larry
Schook has formed a faculty advisory committee for the Office of the Vice
President for Research. We'll continue this pattern of consultation, just
as we have been doing since the ARR efforts were first undertaken last
spring.

We have a very promising future ahead. As I've said before, the
University of Illinois is a world-class institution, with world-class
individuals. I believe our best days are ahead. My belief is based on
what I see in all of you - exceptional, hardworking faculty, staff, and
students who love the University as much as I do. I wish you all a
wonderful summer.

Sincerely,

Mike
Michael J. Hogan
President, University of Illinois