1. FY 2019 IBHE Budget Recommendations: By the Numbers
Nyle Robinson
Deputy Director for Fiscal Affairs & Budgeting

2. Impact of the Past: Budget Impasse and Since FY 2002
We strongly urge everyone to review the individual stories of universities coping with the budget impasse

3. HE $ Not What It Used to Be: 52.9%, 49.0%, 54.7%
Funding for operations has declined since FY 2002
Inflation eroded the buying power of state funding, unfunded mandates cut into real, available funding even more
FY 2018 appropriations are equal to only 52.9% of FY $
49% for public universities
54.7% For community colleges
Does not account for the FY 2016 partial budget

4. No Clear Enrollment Winners During the Budget Impasse
Only UIUC & UIC saw enrollment gains during the impasse
ISU essentially flat
All other public universities collectively drop 13.2%
Community colleges drop 7.5%
Not-for-profit & for- profit privates experienced declines
Funding stability needed to rebuild confidence in all sectors
Illinois Fall Undergraduate Enrollment by Sector
Number & % Change
Fall Enrollment
Enrollment
15-17 %
2015
2016
2017
15-17 Change
Change
All Public Univ. Enrollment
143,614
139,470
136,209
(7,405)
-5.2%
UIUC & UIC
50,943
51,854
53,403
2,460
4.8%
Illinois State
18,427
18,643
18,330
(97)
-0.5%
All Other Public Univ.
74,244
68,973
64,476
(9,768)
-13.2%
Community Colleges
317,192
303,896
293,533
(23,659)
-7.5%
Private Not-for-Profit
131,886
131,232
129,407
(2,479)
-1.9%
Private For-Profit
49,744
47,315
46,844
(2,900)
-5.8%

5. Bond Ratings: 9-0 Record to 2-7
Prior to impasse all public universities had investment grade bond ratings
During the impasse all universities saw ratings fall
Only the U of I & ISU have investment grade ratings now
Since the budget passed there have been some tentative rebounds
Standard & Poor's University Credit Ratings
Points in Time During Budget Impasse
October 27, 2015
August 5, 2016
July 24, 2017
Syst. Rev.
Outlook
Rating
Chicago State NR
Eastern Illinois A-
Negative BB B+
Stable
Governors State
BB+
Illinois State A+ A
Northeastern Illinois
Northern Illinois
Southern Illinois
BBB+
University of Illinois
AA-
Western Illinois A1
BBB-
BB-
Positive
Moody's Rating
Baa1
Baa3
Ba2

6. Less than Half a Loaf in FY 16: -$1.2 B, -$852 M, -$201 M
FY 16 funding was generally less than 30% of FY 15 funding
Overall that was a $1.2 B cut in higher education operations funding
Public universities lost $852 M
Community colleges lost $201 M
Institutions could not cut that much & definitely not that quickly
Most of the reductions had to be pulled out of cash balances, which like any business are needed to maintain health of the organization & educate students.

7. FY 2019 Higher Education Budget Recommendations

8. Additional General Revenue Requested
Request Summary: $254.4 M
Additional General Revenue Requested
Item/Purpose
$ ,432,475
Maintain Buying Power
$ ,352,000
Monetary Award Program
$ ,000,000
Illinois Veterans Grants
$ ,921,300
Illinois National Guard Grants
$ ,343,700
SURS Pensions
$ ,558,000
Comm. College Health Insurance
$ ,475
ISAC FFELP Replacement
$ ,000,000
Emergency Capital Funding
$ ,000,000

9. Maintaining Buying Power: $31.4 M *
In addition to direct reductions in funding since FY 2002, including a 10% cut for FY 2018, higher education buying power has been eroded by inflation
Unfunded mandates have further reduced buying power
Institutions have increased tuition to try to maintain services & quality
Increasing price competition issues were worsened by the bad news about the budget impasse
Public universities in particular cannot realistically raise tuition & fees to make up for continued dwindling state funding
Buying power stability is critical if public universities and community colleges are to recover their reputation & gain back Illinois students
* Distributed between public universities, community colleges, IBHE, IMSA, & SUCSS

10. MAP: $100 M ($501 M Total Request)
MAP covers much less than it once did
MAP covered 100% of public university weighted T & F in FY 2002
MAP 32% of public university T & F in FY 2018, 66% for community colleges & 13% for private C & U
ISAC projects MAP will only cover 43.7% of eligible applicants in FY 2018
College is more expensive & students are more likely to be low income and need additional financial aid
Increased MAP is critical to luring Illinois students back to Illinois colleges & universities

11. Illinois National Guard Grants: $11. 3 M Illinois Veterans Grants: $19
Illinois National Guard Grants: $11.3 M Illinois Veterans Grants: $19.9 M
Public universities & community colleges are required to waive tuition & fees for Illinois National Guard members & qualified veterans
ISAC once was allocated money to reimburse them but since FY 2012 it has been an unfunded mandate
The burden on schools has grown as state funding has declined
ICCB has funding to help some colleges for whom this presents the greatest burden
The burden falls most heavily on schools hit by enrollment declines
Many veterans can also access a federal post-9/11 benefit
Returning to ISAC funding would help both schools & veterans & would be a tool to help draw students back to state schools

12. ISAC Operations: $4 M
ISAC has long funded state operations from the proceeds of its federal loan servicing business
In 2010 the program changed to direct loans & ISAC only services existing loans, which have been declining sharply, thus so have revenues
An important fee also was cut by 60%
The federal government could take their remaining loans back at any time
Revenues will fall by more than half between FY 2017 & FY 2019
ISAC needs funding to continue their state mandated responsibilities
ISAC also has requested funding to cover their Outreach programs ($4 M)

13. Emergency Capital: $20 M
With no capital funding in most years since FY 2004 & declining state support, the deferred maintenance backlog has ballooned
Schools now struggle to even address emergencies
Special funding is needed to help address health & safety emergencies & to avoid the need to interrupt services
$20 M will not fully address the identified areas of concern

14. State University Retirement System: $67.8 M
SURS spending is dictated by state law for both pension fund contributions (+$67.6 M) & community college health insurance (+$257,475)
FY 2018 pension fund contributions will be higher than the appropriation by state law because the certified amount for FY 2018 is higher *
74.9% of pension contributions go for unfunded past liabilities & increase in that area for FY 2018 exceed the total increase for the year
Contributions for current employees (normal costs) actually are declining
Distribution of State Certified SURS Pension Contributions
$ in Thousands
Normal Costs
State Total
Net
% Past FY
Total
Employee
State
Expenses
Certified
Past Liability
Liability
2017
$ ,138
$ ,520
$ 419,618
$ ,087
$ 1,651,426
$ ,215,721
73.6%
2018
$ ,456
$ ,632
$ 403,824
$ ,690
$ 1,629,308 *
$ ,208,794
74.2%
2019
$ ,719
$ ,992
$ 397,727
$ ,316
$ 1,655,543
$ ,240,500
74.9%

15. Capital Request: $1.5 B FY 19 Capital Facility Replacement Cost
Chicago State
$ ,890,847
Eastern Illinois
$ ,221,241
Governors State
$ ,091,804
Illinois State
$ ,653,080,712
Northeastern Illinois
$ ,425,062
Northern Illinois
$ ,320,958,145
Southern - Carbondale
$ ,077,485,749
Southern - Edwardsville
$ ,036,630,331
Southern - Medical School
$ ,195,734
U of I - Chicago
$ ,628,108,992
U of I - Springfield
$ ,884,069
U of I - Urbana-Champaign
$ ,750,801,501
Western Illinois
$ ,144,909
Public University Total
$ ,078,919,096
Illinois Math & Science Acad.
$ ,413,200
Univ. Center of Lake Co.
$ ,553,678
Grand Total
$ 26,302,885,974
Given the long drought in capital funding, a $1.5 B request would be a modest investment in maintaining the states $26.3 B public higher education infrastructure
$1.5 B will only partially address the $5.5 B in deferred maintenance
Includes $475 M for capital renewal
Community Colleges - $132 M
Public Universities - $334 M
IMSA - $8 M
Includes $1,034 M for regular capital
Public University - $979 M
IMSA - $7 M
Escalations & Emergencies - $48 M
Does not include Community Colleges