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 2011 recommendations

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FY 2010 state support for higher education is 3.8% higher than it was in FY 1995 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 1995

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At public universities, students are contributing a much larger share of educational and related revenues in FY 2010 than they were in FY 1995• Students contributed 27.2% in FY 1995, 49.0% in FY

2010*

At community colleges, students and property owners are paying a larger share in FY 2009 than they were in FY 1994• Students contributed 27.4% in FY 1995, 36.0% in FY

2010*• Property taxes contributed 44.2% in FY 1995 and

45.7% in FY 2010**FY 2010 student and property tax contributions are estimates 4

FY09 to FY10 FY02 to FY10

Public U’s $34.8M* -$109.1M

CC’s (less adult ed) $6.8M* -$26.3M

ISAC MAP -$187.0M -$173.4M

ISAC All -$209.2M -$203.7M

Grants -$3.1M -$90.5M

Total (inc. other, no SURS)

-$167.0M -$416.5M

SURS (all state sources) $280.5M $448.4M

*Change from FY09 after reserve, no change from FY09 approp. 5

FYFY RequestRequest IBHE RecIBHE Rec AppropApprop

20020055

$1,380.0M$1,380.0M $341.6M$341.6M $0$0

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$1,638.5M6

*Estimate based on March CGFA estimate and FY09 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

Lurking Problems• Pay back short-term borrowing in FY10• Pay down backlog of bills• Lose federal stimulus funds• Make pension payments from GRF ($3.5 billion borrowed

in FY10 – SB 1292)• Group health shortfall

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Important to align the Board’s budget recommendations with the Public Agenda

Tie funding recommendations to the goals of the Public Agenda• Affordability• Degree Attainment

Institutional core capacity Funding focused on attaining specific

outcomes

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