1. Setting a Context for Fiscal Year 2011 Budget Development
Illinois Board of Higher Education
October 2010

2. Overview Trends in higher education funding
Illinois’ fiscal circumstances
Budget issues the Board may want to consider in its FY 2011 recommendations

3. Trends in Higher Ed Funding
FY 2010 state support for higher education is 3.8% higher than it was in FY 1995 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 1995

4. Trends in Educational and Related Revenues
At public universities, students are contributing a much larger share of educational and related revenues in FY 2010 than they were in FY 1995
Students contributed 27.2% in FY 1995, 49.0% in FY 2010*
At community colleges, students and property owners are paying a larger share in FY 2009 than they were in FY 1994
Students contributed 27.4% in FY 1995, 36.0% in FY 2010*
Property taxes contributed 44.2% in FY 1995 and 45.7% in FY 2010*
*FY 2010 student and property tax contributions are estimates

5. Recent Trends in State Funding
FY09 to FY10
FY02 to FY10
Public U’s
$34.8M*
-$109.1M
CC’s (less adult ed)
$6.8M*
-$26.3M
ISAC MAP
-$187.0M
-$173.4M
ISAC All
-$209.2M
-$203.7M
Grants
-$3.1M
-$90.5M
Total (inc. other, no SURS)
-$167.0M
-$416.5M
SURS (all state sources)
$280.5M
$448.4M
*Change from FY09 after reserve, no change from FY09 approp.

6. Recent Trends in Capital FundingFY
Request
IBHE Rec
Approp
2005
$1,380.0M
$341.6M $0
2006
$1,573.3M
$349.9M
$130.0M
2007
$1,630.5M
$481.5M
$2.0M
2008
$1,782.4M
$607.7M
2009
$1,972.7M
$805.8M
2010
$2,302.5M
$890.7M
$1,638.5M

7. State Revenues Include Fed. Stimulus
*Estimate based on March CGFA estimate and FY09 year-end revenues

8. Challenges Spending Pressures Lurking Problems Pension funding
Medicaid
Other healthcare
K-12 funding
Unmet needs – e.g., MAP applicants, enrollment
Lurking Problems
Pay back short-term borrowing in FY10
Pay down backlog of bills
Lose federal stimulus funds
Make pension payments from GRF ($3.5 billion borrowed in FY10 – SB 1292)
Group health shortfall

9. Budget Recommendations and the Public Agenda
Important to align the Board’s budget recommendations with the Public Agenda
Tie funding recommendations to the goals of the Public Agenda
Affordability
Degree Attainment
Institutional core capacity
Funding focused on attaining specific outcomes