Setting a Context for Fiscal Year 2012 Budget Development Illinois Board of Higher Education October 2010

Overview Trends in higher education funding Illinois’ fiscal circumstances Budget issues the Board may want to consider in its FY 2012 recommendations

Trends in Higher Ed Funding FY 2011 state support for higher education is 10.6% higher than it was in FY 1996 after accounting for inflation. However . . . The increase in state funding has been uneven SURS has experienced real gains Public universities, community colleges (less adult ed), IBHE grants, ISAC grants, and higher ed agencies have experienced REAL LOSSES since fiscal year 1996

Trends in Educational and Related Revenues At public universities, students are contributing a much larger share of educational and related revenues in FY 2011 than they were in FY 1996 Students contributed 27.3% in FY 1996, 52.9% in FY 2011* At community colleges, students are paying a larger share in FY 2011 than they were in FY 1996. Students contributed 27.9% in FY 1996, 40.0% in FY 2011* *FY 2011 student contributions are estimates

Recent Trends in State Funding FY10 to FY11 FY06 to FY11 Public U’s -$85.3M $2.2M CC’s (less adult ed) -$13.0M $6.9M ISAC MAP $5.4M $50.0M ISAC All -$9.0M $25.7M Grants $3.1M -$31.7M Total (inc. other, no SURS) -$104.2M $9.3M SURS (all state sources) $145.6M $762.2M

Recent Trends in Capital Funding FY Request IBHE Rec Approp 2006 $1,573.3M $349.9M $130.0M 2007 $1,630.5M $481.5M $2.0M 2008 $1,782.4M $607.7M $0 2009 $1,972.7M $805.8M 2010 $2,302.5M $890.7M $1,638.5M 2011 $1,941.1M + + In FY11, IBHE recommended authorization & release of funds appropriated in FY10

State Revenues Include Fed. Stimulus *Estimate based on March CGFA estimate and FY10 year-end revenues

Challenges Spending Pressures Pension funding Medicaid Other healthcare K-12 funding Unmet needs – e.g., MAP applicants, enrollment Backlog of unpaid bills

Budget Recommendations and the Illinois Public Agenda Align the Board’s budget recommendations with the goals of the Illinois Public Agenda Increase ed attainment and close the achievement gap Improve affordability Increase degrees and connect to economy Integrate innovation assets Institutional core capacity Funding focused on attaining specific outcomes: More quality degrees and certificates More successful transfer More research spending More STEM and Healthcare degrees More returning adults completing a credential Awaiting final report and recommendations from the Higher Education Finance Study Commission