NORMAL - Illinois State University leaders say it's no surprise, but still disappointing, that Gov. Rod Blagojevich has taken back a $2.1 million increase planned for its fiscal 2009 budget.

ISU President Al Bowman said his administration somewhat expected the decision, as economic woes plague both the nation and state.

"We built this year's (ISU) budget with a very conservative spending plan, given the state's weak revenue outlook," he said. "We've been extremely cautious."

During Thanksgiving break, Blagojevich announced the state's public universities should cut 2.5 percent of their state appropriations-related spending. The state funds about 25 percent of ISU's budget. So, Illinois State is losing about $2.1 million of $85 million, basically returning to the fiscal 2008 state funding level.

"We've got a $2 billion budget deficit for the state," said Marcelyn Love, a spokeswoman for the governor's budget office. That means looking at a number of options for belt tightening, she said.

Bowman sent an e-mail Monday to ISU employees outlining how Blagojevich's decision will affect the Normal campus. The information also has been posted on ISU's Web site at www.illinoisstate.edu.

"Obviously, losing $2.1 million hurts. But based on what President Bowman sent out, we're going to be able to get by," said Dan Holland, a physics professor who leads ISU's Academic Senate.

ISU will slow spending, in particular, delaying implementation of an automated payroll system, said Bowman. A non-teaching hiring freeze will continue. But the president intends to stick with a mid-year salary increase plan.

Competitive compensation is tied to the college's success in avoiding a talent drain, he said.

Bowman said the setback is another example of the state's steady decline of support to higher education. Prior to 2001, ISU had $92 million in state funding; it eventually dipped to $80 million before starting to climb up, reaching $85 million. The newly announced cuts swing back the pendulum.

"We've lost some of the gains we'd made," he said.