1. 1 Fiscal Year 2008 Budget Recommendations Presented to the Illinois Board of Higher Education February 22, 2007

2. 2 FY08 Budget Priorities Improving College Affordability Improving College Affordability Enhancing Faculty and Staff Salary Support Enhancing Faculty and Staff Salary Support Addressing State Workforce Priorities with Clear Performance Expectations Addressing State Workforce Priorities with Clear Performance Expectations Addressing Student Pipeline Issues: STEM Diversity and Data Integration Addressing Student Pipeline Issues: STEM Diversity and Data Integration Protecting the State’s Investment in College and University Facilities Protecting the State’s Investment in College and University Facilities

3. 3 FY08 Operations & Grants Overview General Funds Recommendation General Funds Recommendation –$2.19 billion (excluding SURS) –$45.2 million, 2.1% increase (FY07 base net of nonrecurring appropriations) All Funds Recommendation All Funds Recommendation –$9.03 billion –$390.1 million, 4.5% increase (FY07 base net of nonrecurring appropriations)

4. 4 FY08 Budget Recommendations Improving College Affordability Improving College Affordability –$7.3 million increase for MAP –$200,000 increase for the Silas Purnell Illinois Incentive for Access Program –$50,000 increase for Dependent Grants –$3.25 million for Nurse Educator Loan Repayment –Operating support to public universities and community colleges

5. 5 FY08 Budget Recommendations Enhancing Faculty and Staff Support and Addressing General Costs Enhancing Faculty and Staff Support and Addressing General Costs –$19.8 million (1.5%) increase over adjusted FY07 base for universities for general operating costs –$5.0 million (1.7%) increase over adjusted FY07 base for grants to community colleges, including Base Operating Grants, Small College Grants, Equalization Grants

6. 6 FY08 Budget Recommendations Enhancing Faculty and Staff Support and Addressing General Costs Enhancing Faculty and Staff Support and Addressing General Costs –$1.0 million (2.0%) increase for Adult Ed and Postsecondary Career and Technical Ed includes additional $313,000 for GED testing includes additional $313,000 for GED testing –1.5% increases for other entities: IMSA, UCLC, ICCB, SUCSS, IBHE IMSA, UCLC, ICCB, SUCSS, IBHE

7. 7 FY08 Budget Recommendations Addressing State Workforce Priorities with Clear Performance Expectations Addressing State Workforce Priorities with Clear Performance Expectations –$6.6 million for public universities for enhanced teacher training and training for additional healthcare professionals –$990,000 for community colleges for enhanced teacher training and training for additional healthcare professionals –Performance expectations attached to $

8. 8 FY08 Budget Recommendations Addressing Student Pipeline Issues Addressing Student Pipeline Issues –$1.0 million for Science, Technology, Engineering, and Mathematics (STEM) Diversity $900,000 for CAHMCP (currently HECA funded) $900,000 for CAHMCP (currently HECA funded) Additional $100,000 for IMSA E2K+ Additional $100,000 for IMSA E2K+ –$600,000 for integrated student information systems Course Applicability System (CAS) Course Applicability System (CAS) Teacher Data Warehouse, High School Feedback, Shared Enrollment and Graduation Data Consortium Teacher Data Warehouse, High School Feedback, Shared Enrollment and Graduation Data Consortium

9. 9 FY08 Capital Improvements Overview $607.7 Million Recommended $607.7 Million Recommended –Requests Total $1.8 billion Capital Renewal: $50 million Capital Renewal: $50 million –Highest priority Regular Capital: $364.5 million Regular Capital: $364.5 million –32 projects; 25 have appeared in multiple IBHE recommendations – 7 are new $193.3 million Opportunity Returns projects $193.3 million Opportunity Returns projects –6 projects with some funding already released Continued Support for CC Enhanced Construction Continued Support for CC Enhanced Construction

10. 10 FY08 Recommendations Summary Focus on the highest priorities articulated by the Board and higher education community Focus on the highest priorities articulated by the Board and higher education community Connected to state priorities in healthcare and P-20 Connected to state priorities in healthcare and P-20 Sensitive to uncertain state fiscal environment Sensitive to uncertain state fiscal environment