FISCAL YEAR 2009 BUDGET RECOMMENDATIONS FOR HIGHER EDUCATION Illinois Board of Higher Education February 22, 2008

FY09 Investment Budget  FY09 operations and grants budget recommendations consist of a set of five investment levels  Different investment levels demonstrate how the State can achieve its higher education goals at different levels of state funding  Investment budget recognizes revenue uncertainty and other State priorities 2

FY09 Budget Priorities Improving College Affordability Enhancing Faculty and Staff Salary Support Addressing Student Pipeline Issues: Access, Success, and Diversity Addressing State Workforce Priorities: Nursing Protecting the State’s Investment in College and University Facilities 3

FY09 Operations & Grants 4 Improving College Affordability Public Universities Faculty and Staff Salaries Utilities Veteran Grants Community Colleges Base Operating Grants Equalization Grants Veteran Grants Illinois Student Assistance Commission Monetary Award Program Dependent Grants

FY09 Operations & Grants 5 Enhancing Faculty and Staff Salary Support Public Universities Faculty and Staff Salaries Community Colleges Base Operating Grants Equalization Grants Illinois Mathematics and Science Academy Faculty Salary Initiative

FY09 Operations & Grants 6 Access, Success, and Diversity Community Colleges College and Career Readiness Student Success Grants Adult Education Adult Ed GED Testing Career and Tech Ed Institutional Grants/Initiatives Course Applicability System Diversifying Faculty in Illinois Baccalaureate Completion Grants University Center of Lake County P-20 Initiatives Joint Data System Joint P-20 Council IMSA E2K Expansion

FY09 Operations & Grants 7 State Workforce Needs/ Other Public Universities Nursing Programs Community Colleges/Adult Education Postsecondary Career and Technical Education Institutional Grants/Initiatives Nursing School Grants Nurse Educator Fellowships State Matching Grants Campus Security Grants

FY09 Base  Funds higher education at the current base investment level of $2.19 billion  Base level excludes one-time add-ons  State is also contributing $618.3 million in FY08 for pensions and group insurance Base 8

FY09 Step Two  1.0 % increase -- $22.4 m  Faculty and Staff Salaries  Base Operating & Equalization  College and Career Readiness  Adult Ed  MAP  Nursing  CAS, Data 9 Step Two Base

FY09 Step Three  2.7% Increase -- $59.7 m  Faculty and Staff Salaries  Base Operating & Equalization  College and Career Readiness  Adult Ed  MAP  Nursing  Matching Grants  CAS, Data Step Three Step Two Base 10

FY09 Step Four  6.4% Increase -- $139.3 m  Faculty and Staff Salaries  Utility Costs  Nursing Programs  Base Operating & Equalization  Student Success Grants  College and Career Readiness  Adult Ed  MAP  Veteran Grants, ING Grants  Nursing  Matching Grants  DFI  CAS, Data, P-20 Council  Baccalaureate Completion Grants  Campus Security Initiatives  IMSA Deferred Maintenance 11 Step Four Step Three Step Two Base

FY09 Step Five 12 Step Five Step Four Step Three Step Two Base  9.2% Increase -- $201. m  Faculty and Staff Salaries  Utility Costs  Nursing Programs  Base Operating & Equalization  Student Success Grants  College and Career Readiness  Adult Ed  MAP  Veteran Grants, ING Grants  Nursing  Matching Grants  DFI  CAS, Data, P-20 Council  Baccalaureate Completion Grants  Campus Security Initiatives  IMSA Deferred Maintenance

FY09 Capital Improvements Overview 13  $805.8 Million Recommended  Requests Total $2.0 billion  Capital Renewal: $60.0 million  Highest priority  Regular Capital: $523.0 million  33 projects; 30 have appeared in previous IBHE recommendations  $222.9 million Opportunity Returns projects  6 projects with some funding already released  Continued Support for CC Enhanced Construction

FY09 Recommendations Summary 14  Focus on the highest priorities articulated by the Board and higher education community  Investment levels  Sensitive to uncertain state fiscal environment