Setting a Context for Fiscal Year 2012 Budget Development

Illinois Board of Higher Education

October 2010

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Trends in higher education funding Illinois’ fiscal circumstances Budget issues the Board may want to

consider in its FY 2012 recommendations

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FY 2011 state support for higher education is 10.6% higher than it was in FY 1996 after accounting for inflation. However . . .

The increase in state funding has been uneven• SURS has experienced real gains• Public universities, community colleges

(less adult ed), IBHE grants, ISAC grants, and higher ed agencies have experienced REAL LOSSES since fiscal year 1996

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At public universities, students are contributing a much larger share of educational and related revenues in FY 2011 than they were in FY 1996• Students contributed 27.3% in FY 1996,

52.9% in FY 2011*

At community colleges, students are paying a larger share in FY 2011 than they were in FY 1996. • Students contributed 27.9% in FY 1996,

40.0% in FY 2011*

*FY 2011 student contributions are estimates4

FY10 to FY11

FY06 to FY11

Public U’s -$85.3M $2.2M

CC’s (less adult ed) -$13.0M $6.9M

ISAC MAP $5.4M $50.0M

ISAC All -$9.0M $25.7M

Grants $3.1M -$31.7M

Total (inc. other, no SURS)

-$104.2M $9.3M

SURS (all state sources) $145.6M $762.2M

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FYFY RequestRequest IBHE RecIBHE Rec AppropApprop

20020066

$1,573.3M$1,573.3M $349.9M$349.9M $130.0M$130.0M

20020077

$1,630.5M$1,630.5M $481.5M$481.5M $2.0M$2.0M

20020088

$1,782.4M$1,782.4M $607.7M$607.7M $0$0

20020099

$1,972.7M$1,972.7M $805.8M$805.8M $0$0

20120100

$2,302.5M$2,302.5M $890.7M$890.7M $1,638.5M$1,638.5M

20120111

$1,941.1M$1,941.1M ++ $0$06

+ In FY11, IBHE recommended authorization & release of funds appropriated in FY10

*Estimate based on March CGFA estimate and FY10 year-end revenues

Include Fed. Stimulus

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Spending Pressures• Pension funding• Medicaid• Other healthcare• K-12 funding• Unmet needs – e.g., MAP applicants,

enrollment • Backlog of unpaid bills

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Align the Board’s budget recommendations with the goals of the Illinois Public Agenda• Increase ed attainment and close the achievement

gap• Improve affordability• Increase degrees and connect to economy• Integrate innovation assets

Institutional core capacity Funding focused on attaining specific outcomes:

• More quality degrees and certificates• More successful transfer• More research spending• More STEM and Healthcare degrees• More returning adults completing a credential

Awaiting final report and recommendations from the Higher Education Finance Study Commission

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