Slide 1

Report
Illinois Higher Education
FY2013 Budget Recommendations
IBHE Board Presentation
February 7, 2012
Dr. Alan Phillips
IBHE Presentation
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FY 2013 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.
• The State is facing potential decreases in financial aid funding
for both MAP and Pell.
• The Governor plans to maintain level funding for education for
the next three years.
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FY 2013 Budget Context
(Colleges & Universities)
• State funding for higher education 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 often squeeze cost savings out of instruction and
student support services.
• The burden of financing a college education has increasingly fallen
on students and families.
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FY 2013 Budget Framework
• We will continue to use the Step Level approach for
the FY 2013 budget recommendations.
• The FY 2013 budget recommendations will include a
performance funding component.
• The budget recommendations will support the goals
of the Public Agenda.
• Maintaining core capacity, deferred maintenance,
MAP, and funding for grants will remain a priority.
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FY 2013 Budget Priorities
Increase Educational
Attainment
Ensure College
Affordability
Increase Number of
Quality Degrees
(Adult Education, DFI,
Performance Funding)
(MAP, IVG, Student to Student
(Baccalaureate Completion
Grants, Career & Tech Ed.)
Integrate Educational,
Research, and
Innovation Assets
(Matching Grants, IMSA, Work
Study Grants)
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Grants)
Multiple Goals: Quality,
Affordability,
Attainment
Deferred Maintenance at Public
Universities & CC Base Operating and
Equalization Grants, UCLC
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FY 2013 Budget Recommendation
(Step One)
• Flat or Level Budget - $2.1B total
- At Public Universities 0.5% of the base ($6.5M)
is re-allocated based on the performance
funding model.
- At Community Colleges, $720K is re-allocated
based on six performance measures.
• Note: At Step One and all subsequent Steps, the
recommendations include SURS funding at the certified
amount ($1.4B). An increase of $422.3M.
Step One
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FY 2013 Budget Recommendation
(Step Two)
• Restoration Budget – Increase Funding to
FY11 Levels - $34.1M or 1.6% Increase over
Step 1.
- Includes $15.0M (1.2%) restoration for public
universities; 100% to be allocated based on
performance funding.
- Includes $17.2M for the Monetary Award
Program and $1.0M for Student to Student grants
(ISAC).
- Includes restoration funding for the University
Center of Lake County, Quad Cities Graduate
Study Center, administration for ICCB, IBHE, and
SUCSS, and funding for DFI program grants.
Step Two
Step One
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FY 2013 Budget Recommendation
(Step Three)
• Increase $82.1M or 3.9% (2.3% Increase over Step 2)
- $33.7M for public universities; includes $19.4M for
performance funding, $12.9M for deferred maintenance,
and $1.3M for centralized administration.
- $7.8M for Community Colleges; including $3.0M for
performance funding and $4.8M for Community College
Base Operating Grants & Equalization Grants.
- $1.3M for Adult education and CTE.
- $33.5M for the Monetary Award Program.
- $360K increase for DFI; $120K for Cooperative Work Study.
- $1.0M for State Matching Grants and $250K for
Baccalaureate Completion Grants.
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Step Three
Step Two
Step One
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FY 2013 Budget Recommendation
(Step Four)
• Increase $125.6M or 6.0% (2.1% Increase over Step 3)
- $54.5M for public universities; 50% or $25.9M for
performance funding.
- $12.5M for Community Colleges; includes $4.0 million for
performance funding, $8.5M for Community College Base
Operating Grants and Equalization Grants.
- $50.0M for MAP and $2.0 million for Illinois Veterans Grants.
- Additional funding for DFI, Work Study grants, IMSA, and
Baccalaureate Completion grants.
Step Four
Step Three
Step Two
Step One
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FY 2013 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 FY2012 and
indicated support for Illinois Jobs Now! projects.
• However, there was no Capital Bill in FY2012, and the FY2013 project list is
nearly identical to the FY2012 list.
• To date, nearly $800M in Illinois Jobs Now! higher education capital funds
have been released.
• We expect $75M in private capital grant funds to soon be released.
• As of Fall 2011, the deferred maintenance backlog was $3.6 B.
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FY 2013 Capital Improvements
• FY2013 capital recommendations total nearly $1.6
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 2013 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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