Slide 1

Report
Illinois Higher Education
FY2014 Budget Recommendations
IBHE Board Presentation
February 5, 2013
Dr. Alan Phillips
IBHE Presentation
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FY 2014 Budget Context
(State)
• Pension and Medicaid costs are exceeding the rate of State
revenue growth.
• The State is currently experiencing a debt crisis (Current
liabilities and the backlog of unpaid bills totals $8.5B).
• The State is months behind in its payments to colleges and
Universities.
• Adequate financial aid funding for both MAP and Pell
continues to be of concern.
• Based on GOMB guidance, we anticipate additional funding
reductions in FY 2014. (GOMB Guidance – 4.62%)
• We still do not know the extent of any pension cost transfer.
IBHE Presentation
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FY 2014 Budget Context
(Colleges & Universities)
• State funding for higher education operations has declined steadily
over the last 15 years.
• There has been minimal funding for capital projects, to include
renovation, remodeling, maintenance, and repair.
• Unfunded state mandates and regulatory requirements undermine
efficiency and productivity.
• Illinois’ student financial aid system has been eroded at a time
when low-income families have less ability to pay for college.
• Institutions try to protect instruction, but are often forced to
squeeze cost savings out of instruction and student support
services.
• The burden of financing a college education has increasingly fallen
on students and families.
IBHE Presentation
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FY 2014 Budget Framework
• We will continue to use the Step Level approach for
the FY 2014 budget recommendations.
• The FY 2014 budget recommendations will include a
performance funding component.
• The budget recommendations will support the goals
of the Public Agenda.
• Priority of funding is directed toward maintaining core
capacity, deferred maintenance, MAP, and funding for
grants.
IBHE Presentation
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FY 2014 Budget Priorities
Increase Educational
Attainment
Ensure College
Affordability
Increase Number of
Quality Degrees
(Adult Education, DFI,
Performance Funding)
(MAP, IVG, Student Grants)
(Baccalaureate Completion
Grants, Career & Tech Ed.)
Integrate Educational,
Research, and
Innovation Assets
(Matching Grants, IMSA, Work
Study Grants)
IBHE Presentation
Multiple Goals: Quality,
Affordability,
Attainment
Deferred Maintenance at Public
Universities & CC Base Operating and
Equalization Grants, UCLC
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FY 2014 Budget Recommendation
(Step One)
• Flat or Level Budget - $1.98B total
- At Public Universities 0.5% of the base
($6.15M) is re-allocated based on the
performance funding model.
- At Community Colleges, $1.2M is reallocated
for legislative initiatives, $360K is distributed
based on six performance measures (this
amount remains the same at all subsequent
Steps).
• Note: At Step One and all subsequent Steps, the
recommendations include the SURS certified amount of
$1.5B, an increase of $107.0M (7.6%) over FY 13.
IBHE Presentation
Step One
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FY 2014 Budget Recommendation
(Step Two)
• $49.9M or 2.5% Increase over FY 2013.
- Includes $24.6M (2.0%) increase for public universities;
$12.3M (1.0%) for performance funding, $ 12.3M (1.0%)
for core institutional funding.
- $5.9M for Community Colleges, includes a$1.2M
reallocation for legislative initiatives; $4.3M for Base
Operating Grants; $2.3M for Equalization Grants.
- Includes $11.0M for the Monetary Award Program; an
additional $50,000 is provided for Dependents Grants to
cover increases in tuition; $4.1M for ISAC Administration;
$2.3M for Outreach.
- Includes FY 12 funds restoration for Cooperative Work
Study and u.Select; $250K for GYO; $590K for LDS at this
and all subsequent steps.
IBHE Presentation
Step Two
Step One
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FY 2014 Budget Recommendation
(Step Three)
• $88.9M or 4.5% Increase over FY 2013
- $49.2M(4.0%); for public universities includes $24.6M
(2.0%) for performance funding; $24.6M (2.0%) for core
institutional funding.
- $11.7M for Community Colleges, includes a $1.2M
reallocation for legislative initiatives; $8.1M for Base
Operating Grants; $3.8M for Equalization Grants.
- $18.4M for the Monetary Award Program.
- $100K increase for DFI; $500K for GYO.
Step Three
- Additional funding for UCLC and IMSA meets requested
levels.
Step Two
IBHE Presentation
Step One
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FY 2014 Budget Recommendation
(Step Four)
• $168.9M or 8.5% Increase over FY 2013
- $79.6M for public universities (6.5%); $24.6M (2.0%)for
performance funding; $24.6M (2.0%) for core institutional
funding; $30.4M (2.5%) for deferred maintenance.
- $20.9M for Community Colleges, includes a $1.2M
reallocation for legislative initiatives; $13.0M for Community
College Base Operating Grants; $7.7M for Equalization Grants;
$149.7K operational increase.
- $52.9M for MAP; $4.1M for ISAC Administration; $6.3M for
Outreach.
- Additional funding for DFI, Cooperative Work Study, GYO,
UCLC, IBHE, IMSA, and SUCSS.
Step Four
Step Three
Step Two
Step One
IBHE Presentation
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FY 2014 Capital Improvements
• Capital renewal funding provides critical support to protect the state’s
capital investment.
• Improving campus facilities helps schools attract, recruit, and retain
students. Support for library projects, and science labs, and other campus
facilities address multiple goals of the Illinois Public Agenda.
• Last Year, the Board approved a new capital project list for FY2013 and
indicated support for Illinois Jobs Now! projects.
• However, there was no Capital Bill in FY2013, and the FY2014 project list is
nearly identical to the FY2013 list.
• To date, nearly $900M in Illinois Jobs Now! higher education capital funds
have been released.
• As of Fall 2012, the deferred maintenance backlog was $3.6 B.
IBHE Presentation
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FY 2014 Capital Improvements
• FY2014 capital recommendations total nearly $1.5
Billion and include:
- Support for the Release of Illinois Jobs Now!
Projects.
- $340M for capital renewal.
- $1.2B for capital projects at public universities,
IMSA, and community colleges (31 community
college projects).
- $48M for escalation and emergencies.
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Summary
• The FY 2014 Higher Education Budget Recommendation
focuses funding on the goals of the Illinois Public Agenda.
• The recommendation also allocates a portion of the funding
to colleges and universities based on performance in
accordance with Public Act 97-320 (HB 1503).
• The recommendations feature an investment level (or step)
approach utilized since FY 2009.
• The recommendations offer realistic scenarios that are
sensitive to the state’s uncertain fiscal environment.
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Questions/Comments?
IBHE Presentation
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