Illinois Higher Education, Managing Through Difficult Times 2016 SHEEO Policy Conference Illinois Board of Higher Education

Illinois’ Higher Education System & Timeline of Discussion Context: Illinois’ Higher Education System & Timeline of Fiscal Year 2016

IBHE Oversight Degree Granting 12 public universities 48 public community colleges 132 private colleges/universities 100 not-for-profit ~75 Grandfathered fully or partially exempt 32 proprietary 47 out-of-state colleges/universities operating in Illinois Non-Degree 225-250 private business and vocational schools Institutions may fall into multiple categories.

Illinois’ Public Higher Education Institutions Public Universities Community Colleges

Illinois’ Private Higher Education Institutions Not-for-Profit For-Profit

Fiscal Year 2016 Timeline July Begins without a budget, expected by end of summer ... IBHE Ops continue with court order for salary payments Competing funding proposals range from 6.5% to 31% in reductions for public universities State capital projects halted without reappropriations

Fiscal Year 2016 Timeline July Aug – Oct 461,000 students enroll in public universities and colleges Public and private institutions cover accounts for 128,000 students with need-based grant assistance IL’s $360 million Monetary Award Program (MAP)

Fiscal Year 2016 Timeline July Aug – Oct Nov – Jan Student flight fears tempers public calls for crisis as locally held “reserve” funds are used to offset lack of state funds Despite uncertainty, MAP students covered for spring semester Budget development for FY 17 is difficult due to unknowns and growing uncertainties in FY 16 Credit rating agencies cite concern of historical pension underfunding, cash flow limitations, and budget impasse

Fiscal Year 2016 Timeline July Aug – Oct Nov – Jan Feb – April An Illinois 4-year institution declares financial exigency and warns of 100% layoffs if no state funds are provided by April 30th HLC conducts statewide survey on institutional financial stability Various layoffs, furloughs, program cuts are implemented On April 25th, a bipartisan agreement provides $601 million in “stop gap” funding for public universities (30%), colleges (27%), and for MAP fall semester awards (50%)

Fiscal Year 2016 Timeline July Aug – Oct Nov – Jan Feb – April May -June $1 Billion Stop Gap II funding is enacted on June 30, MAP funding until end of FY 16 IBHE agency operations are included with $20 million set-aside for “emergency funding” for public institutions in FY 17

Stop Gap II Funding for Higher Education FY 16 FY 17 Appropriations to be paid into FY17 allowing for payment of FY16 costs Meant to provide cash flow until December

? State Funding Summary for Higher Education FY 16 FY 17 FY 16 - Public universities (83%), colleges (70%) & MAP claims (100%) FY 17 - Net effect … expenses not “budgeted” Gov’s budget office leads discussion for reforms and additional state funding ?

Moderator Dr. Jim Purcell, Commissioner of Postsecondary Education for Rhode Island Executive Director Dr. Jim Applegate Deputy Directors Dr. Daniel Cullen, Academic Affairs Mr. Kevin Schoeben, Fiscal & Budget Dr. Eric Litchenberger, Research & Data