Slide 1

Illinois Higher Education
FY2014 Budget Recommendations
IBHE Board Presentation
February 5, 2013
Dr. Alan Phillips
IBHE Presentation
FY 2014 Budget Context
• 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
• 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
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
• The burden of financing a college education has increasingly fallen
on students and families.
IBHE Presentation
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
IBHE Presentation
FY 2014 Budget Priorities
Increase Educational
Ensure College
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,
Deferred Maintenance at Public
Universities & CC Base Operating and
Equalization Grants, UCLC
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
• 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
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
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
Step Two
IBHE Presentation
Step One
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
- Additional funding for DFI, Cooperative Work Study, GYO,
Step Four
Step Three
Step Two
Step One
IBHE Presentation
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
FY 2014 Capital Improvements
• FY2014 capital recommendations total nearly $1.5
Billion and include:
- Support for the Release of Illinois Jobs Now!
- $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.
IBHE Presentation
• 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.
IBHE Presentation
IBHE Presentation

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