1. Setting a Context for Fiscal Year 2012 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 2012 recommendations

3. 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

4. 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

5. 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

6. Recent Trends in Capital FundingFY
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

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

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

9. 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