Illinois’ Significant Disinvestment in Higher Education 70 East Lake Street Suite 1700 Chicago, IL 60601 www.ctbaonline.org Illinois’ Significant Disinvestment in Higher Education Monday, April 3, 2017; 5:00 pm University of Illinois Champaign-Urbana Lincoln Hall – Room 1022 702 South Wright Street Urbana, IL 61802 © 2017, Center for Tax and Budget Accountability April 3, 2017

Unemployment Rate by Educational Attainment, 2014 Chicago Area Illinois Midwest National Less than H.S. 10.1% 11.3% 9.6% 7.9% H.S. Diploma 7.2% 7.5% 5.7% Some College/Associate's 6.3% 6.0% 5.2% 4.8% Bachelor's + 3.8% 3.4% 2.8% 3.1% Source: CTBA Analysis of Bureau of Labor Statistics Data © 2017, Center for Tax and Budget Accountability April 3, 2017

Worth the Investment? UH —YEAH According to BLS, unemployment rate for dropouts is 2.86 times those with a 4 year degree From 1979-2012, states with greatest number of college grads had greatest increase in productivity States with best high school and college completion rates had highest per capita incomes. © 2017, Center for Tax and Budget Accountability April 3, 2017

Education Wage Gaps Over Time 1979 1995 2007 2011 Percentage Point Change College/high school 23.5% 42.5% 46.4% 46.9% 23.4% Advanced degree/high school 32.4% 62.3% 66.6% 69.6% 37.2% Source: The State of Working in America © 2017, Center for Tax and Budget Accountability April 3, 2017

Enacted Appropriations IBHE General Fund IBHE General Fund Budget Recommendations versus Enacted General Fund Appropriations FY2008-FY2017 ($ Millions) Fiscal Year IBHE Recommendations Enacted Appropriations $ Difference 2008 $2,534 $2,216 -$319 2009 $2,391 $2,211 -$179 2010 $2,233 $2,220 -$13 2011 $2,207 $2,124 -$83 2012 $2,125 $2,108 -$17 2013 $1,980 -$128 2014 $2,149 $1,991 -$157 2015 $2,117 $1,948 -$169 2016 $2,048 $755 -$1,293 2017 $2,050 $843 -$1,207 Source: Illinois Board of Higher Education. Fiscal Year 2017 Higher Education Budget Recommendations © 2017, Center for Tax and Budget Accountability April 3, 2017

FY2015 General Fund Appropriations FY2015 General Fund Appropriations Compared to FY2000, in Nominal Dollars and Adjusted for Inflation and Population Growth Category FY2000 Enacted Approps (Nominal $) FY2015 Enacted Approps (Nominal $) FY2000 (Adj. for Inflation and Pop to FY2015) $ Difference % Difference Healthcare (including Medicaid $5.04 $7.45 $9.54 ($2.09) -22% PreK-12 Education* $4.84 $6.60 $7.61 ($1.01) -13% Higher Education $2.15 $1.99 $3.38 ($1.39) -41% Human Services $4.66 $4.81 $7.32 ($2.51) -34% Public Safety $1.39 $1.62 $2.18 ($0.56) -26% Source: CTBA analysis, COGFA. *FY2015 appropriation for K-12 Education excludes $200 million from the Fund for Advancement of Education that is appropriated for General State Aid. The Illinois State Board of Education includes that $200 million in its FY2015 General Fund budget report. © 2017, Center for Tax and Budget Accountability April 3, 2017

FY2016 General Fund Spending FY2016 Maximum Authorized General Fund Spending Compared to FY2015 Enacted Budget ($ Millions) Category FY2015 Enacted Budget FY2016 Maximum Authorized Spending Year-to-Year Difference ($) Year-to-Year Difference % Early Childhood Education $293 $315 $22 7.5% K-12 Education $6,262 $6,193 ($69) -1.1% Higher Education $1,950 $627 ($1,323) -67.8% Source: General Fund appropriations for FY2015 are from CTBA analysis of GOMB “FY2017 Operating Budget Detail.” © 2017, Center for Tax and Budget Accountability April 3, 2017

Illinois is a National Outlier 37 States increased Higher Ed funding FY2015-FY2016 Illinois is one of 4 states to cut Higher Ed funding in both FY2015 and FY2016 Illinois is one of 9 states to cut Higher Ed by 30% or more since the Great Recession © 2017, Center for Tax and Budget Accountability April 3, 2017

Higher Ed Appropriations Enacted General Fund Appropriations and Court Ordered Funding for Higher Education in FY2000 Compared to FY2017, Nominal Dollars ($ Millions) Category FY 2000 (Nominal) FY2017 (Nominal) FY2000 (Adj. for Inflation) to FY2017 $ Difference % Difference Higher Education $2.15 $0.726 $3.38 ($2.65) -78.5% Source: CTBA analysis, COGFA © 2017, Center for Tax and Budget Accountability April 3, 2017

Change in Per-Student Funding (%) Change in Per-Student Funding of Higher Education in the 15 Largest States 2008-2015 States Change in Per-Student Funding (%) California -3% Indiana -6% New York Ohio -15% Texas -17% North Carolina -20% Georgia Washington Michigan -21% Virginia -22% New Jersey -23% Florida Pennsylvania -33% Illinois -54% Arizona -56% Source: Michael Mitchell, Michael Leachman, and Kathleen Masterson, “Funding Down, Tuition Up State Cuts to Higher Education Threaten Quality and Affordability at Public Colleges,” Center on Budget and Policy Priorities. © 2017, Center for Tax and Budget Accountability April 3, 2017

Illinois General Fund Structural Deficit Source: Growth rate for state revenue sources is approximately 2.8 percent. For the revenue growth rate for federal revenue CTBA used the Congressional Budget Office’s Nominal Wage Growth for Workers Covered by Social Security (Percent) from its 2015 Long-Term Budget, which are the same projections used for spending on current services. © 2017, Center for Tax and Budget Accountability April 3, 2017

FY2016 Democrats’ Proposed General Fund Deficit Walk-Down ($ Billions) Source: CTBA, Illinois on Autopilot, the Reality of 2016 (Chicago, February 2016). © 2017, Center for Tax and Budget Accountability April 3, 2017

Enacted General Fund Appropriations for Public Universities in FY2017 Compared to FY2015, Nominal Dollars Public Universities FY2015 Enacted PA 99-524 (SB2047) Enacted and Stop Gap Budget FY2017 Nominal Difference ($) Nominal Difference (%) Chicago State University $36,330,500 $12,590,000 -$23,740,500 -65.3% Illinois State University $72,226,700 $38,291,000 -$33,935,700 -47.0% Eastern Illinois University $42,975,700 $26,222,000 -$16,753,700 -39.0% Governors State University $24,062,100 $12,757,000 -$11,305,100 Northeastern Illinois University $36,898,800 $19,562,000 -$17,336,800 Northern Illinois University $92,946,900 $48,293,000 -$44,653,900 -48.0% University of Illinois $647,186,400 $349,204,700 -$297,981,700 -46.0% Southern Illinois University $199,558,500 $106,156,000 -$93,402,500 Western Illinois University $51,445,200 $31,389,000 -$20,056,200 TOTAL $1,203,630,800 $644,464,700 -$559,166,100 -46.5% Source: CTBA analysis, IBHE data and PA99-524. © 2017, Center for Tax and Budget Accountability April 3, 2017

Disinvestment to Higher Education Impacts Institution’s Capacity Illinois State University cut its budget by $1.021 million between FY2015 and FY2016. Chicago State University laid off 400 non-faculty positions (40 percent of their workforce). Western Illinois University laid off 145 non-faculty positions. University of Illinois eliminated 484 non-instructional staff positons. Eastern Illinois University laid off 177 civil service employees. © 2017, Center for Tax and Budget Accountability April 3, 2017

2014 Profile of University Dependence on State Funding % of Budget from State Funding % of Outstanding State Funding % Out-of-State or International Students Size of Endowment per Student Governors State University 26% 15% 0% $410 Northeastern Illinois University 25% 18% 1% $1,035 Chicago State University 32% 16% $1,151 Northern Illinois University 20% 14% 5% $4,086 Western Illinois University 22% 6% $4,127 Illinois State University 13% 4% $4,650 Eastern Illinois University 24% 17% 8% $4,993 Southern Illinois University 19% $7,506 University of Illinois 11% $26,025 The downward spiral: the impact of Illinois’ year without a budget. Adler University Institute on Social Exclusion. June 2016. Web 10 October 2016. http://www.illinoispartners.org/wp-content/uploads/2016/07/ISE_IllinoisReport_v01.pdf. © 2017, Center for Tax and Budget Accountability April 3, 2017

Tuition Growth at National Universities 1990-2015 Source: Travis Mitchell, See 20 Years of Tuition Growth at National Universities, U.S. News, July 29, 2015, http://www.usnews.com/education/best-colleges/paying-for-college/articles/2015/07/29/chart-see-20-years-of-tuition-growth-at-national-universities. © 2017, Center for Tax and Budget Accountability April 3, 2017

Illinois Public University Tuition 2016-2017 In State-Tuition Out of State Tuition Chicago State University $9,994 $10,358 Eastern Illinois University $22,706 $24,866 Southern Illinois University-Carbondale $25,953 $39,602 Western Illinois University $12,217 $16,533 Northern Illinois University $25,965 $35,430 Northeastern Illinois University $8,868 $16,164 U of Illinois at Urbana $31,046 $46,668 Governors State University $4,214 $7,478 Southern Illinois University-Edwardsville $20,138 $31,631 University of Illinois at Chicago $29,652 $42,508 University of Illinois at Springfield $11,413 $20,938 Illinois State University $28,295 $39,402 Source: Collegedata.org © 2017, Center for Tax and Budget Accountability April 3, 2017

Student Loan Debt Share of Families with Student Loan Debt for those ages 25-55, 1989-2013, by Race White African American Hispanic 1989 10.5% 17.9% 12.7% 1992 14.3% 13.8% 9.1% 1995 16.4% 17.0% 13.6% 1998 15.7% 10.3% 2001 14.6% 18.9% 13.1% 2004 18.3% 21.1% 10.9% 2007 19.5% 29.5% 14.9% 2010 27.8% 32.2% 15.4% 2013 28.1% 41.8% 16.2% Source: Source: Urban Institute calculations from Survey of Consumer Finances 1989–2013 © 2017, Center for Tax and Budget Accountability April 3, 2017

Illinois Public University Enrollment 2016-2017 Undergraduate and Graduate (based on FTE) Difference % Difference Chicago State University 3,618 2,734 -884 -24% Eastern Illinois University 7,282 6,234 -1,048 -14% Southern Illinois University-Carbondale 14,995 13,880 -1,115 -7% Western Illinois University 9,561 8,934 -627 Northern Illinois University 16,502 15,712 -790 -5% Northeastern Illinois University 6,366 6,101 -265 -4% U of Illinois at Urbana 47,644 48,765 1,121 -2% Governors State University 3,921 3,985 64 2% Southern Illinois University-Edwardsville 11,985 11,870 -115 -1% University of Illinois at Chicago 28,687 28,935 248 1% University of Illinois at Springfield Illinois State University 18,183 18,533 350 Total 172,644 169,569 -3,095 Source: IBHE Fall 2016 Enrollment Snapshots for Public Universities. © 2017, Center for Tax and Budget Accountability April 3, 2017

Nominal Difference ($) Nominal Difference (%) Monetary Award Program General Fund Appropriations for Higher Education (excluding Universities) in FY2016 Compared to FY2015, Nominal Dollars ($ Thousands)   FY2015 Enacted FY2016 Enacted & Autopilot Nominal Difference ($) Nominal Difference (%) Monetary Award Program $364.856 $320,799 -$44,058 -12% Source: Illinois Board of Higher Education. (2016). Fiscal Year 2017 Higher Education Budget Recommendations © 2017, Center for Tax and Budget Accountability April 3, 2017

2015 Unemployment Rate by Race and Education Level   Black White No High School Diploma 16.6% 6.9% High School Diploma 9.6% 4.6% Some college experience 7.4% 4.0% Bachelor's degree and higher 4.1% 2.4% Source: Elise Gould and Tanyell Cooke, Unemployment for Young Black Grads is Still Worse than it was for Young White Grads in the Aftermath of the Recession, Economic Policy Institute. © 2017, Center for Tax and Budget Accountability April 3, 2017

For More Information Ralph M. Martire Danielle Stanley Executive Director Research Associate (312) 1049 (312) 332-1285 martire@ctbaonline.org dstanley@ctbaonline.org CTBA's principal goal is to ensure major policy systems work to promote social and economic justice. You can help strengthen our efforts by making a tax-deductible donation at www.ctbaonline.org/donate © 2017, Center for Tax and Budget Accountability April 3, 2017