Transcript Setting a Context for FY 2007 Budget Development

Illinois Board of Higher Education
October 2010
1
 Trends
in higher education funding
 Illinois’ fiscal circumstances
 Budget issues the Board may want to
consider in its FY 2011 recommendations
2
 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
3

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
4
FY09 to FY10
FY02 to FY10
$34.8M*
-$109.1M
$6.8M*
-$26.3M
ISAC MAP
-$187.0M
-$173.4M
ISAC All
-$209.2M
-$203.7M
-$3.1M
-$90.5M
-$167.0M
-$416.5M
$280.5M
$448.4M
Public U’s
CC’s (less adult ed)
Grants
Total (inc. other, no SURS)
SURS (all state sources)
*Change from FY09 after reserve, no change from FY09 approp.
5
FY
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
$0
2009
$1,972.7M
$805.8M
$0
2010
$2,302.5M
$890.7M
$1,638.5M
6
Include Fed. Stimulus
*Estimate based on March CGFA estimate and FY09 year-end revenues
7

Spending Pressures
•
•
•
•
•

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
•
•
•
•
8
 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
9