Transcript Setting a Context for FY 2007 Budget Development

Setting a Context for
Fiscal Year 2010 Budget
Development
Illinois Board of Higher Education
August 2008
Overview



Trends in higher education funding
Illinois’ fiscal circumstances
Budget issues the Board may want to consider in
its FY 2010 recommendations
Trends in Higher Ed Funding


FY 2009 state support for higher education is
6.4% higher than it was in FY 1994 after
accounting for inflation. However . . .
The increase in state funding has been
uneven
ISAC and SURS have experienced real gains
 Public Universities, community colleges (less
adult ed), IBHE grants, and agencies have
experienced real losses since fiscal year 1994

Trends in Educational and Related
Revenues

At public universities, students are contributing a
much larger share of educational and related revenues
in FY 2009 than they were in FY 1994


Students contributed 27.5% in FY 1994, 47.5% in FY 2009*
At community colleges, students and property owners
are paying a larger share in FY 2009 than they were in
FY 1994


Student contributed 28.1% in FY 1994, 35.3% in FY 2008*
Property taxes contributed 43.7% in FY 1994 and 45.6% in
FY 2009*
*FY 2009 student and property tax contributions are estimates
Recent Trends in State Funding
FY08 to FY09 FY02 to FY09
Public U’s
$36.5M
-$109.3M
CC’s (less adult ed)
-$2.1M
-$25.8M
ISAC MAP
ISAC All (inc. MAP+)
Grants
$0.0M
$0.0M
-$24.1M
$13.6M
$5.4M
-$89.9M
SURS (inc. State Pension
$81.0M
$168.0M
$92.1M
-$41.5M
Fund)
Total (inc. all other)
Recent Trends in Capital Funding
FY
Request
IBHE Rec
Approp
2004
$1,214.0M
$341.8M
$111.7M
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
?
Illinois in a National Context





Illinois’ experience over the past three years has
been similar to its Midwestern neighbors
Illinois’ experience has been worse than the
nation over the past one, two, five, and eight years
However, higher education funding in Illinois is
better than several states in the current year
State funding per public FTE has fallen since
FY02, but remains above the national average
Illinois is losing ground in affordability, as are
most other states
State Revenues
*Estimate based on March CGFA estimate and FY08 year-end revenues
Challenges








Slow economy, rising unemployment
Pension funds
Medicaid
Other Health Programs
K-12 funding
Transportation
Capital
Uncertainty caused by energy prices
FY 2009 Recap

The Board adopted an investment-level budget that
prioritized the following for FY 2009:

Faculty and staff salaries for competitiveness and
affordability









Personal Services for Universities, utilities for Universities
Base operating and equalization for Community Colleges
Expanded Adult Education and CTE
Affordability through MAP and Veterans Grants
Capital renewal
Data integration
Expansion of nursing programs
Student Success grants and Career and College Readiness
Reducing costs of GED testing for students and testing
entities
Budget Recommendations and
the Public Agenda





Important to align the Board’s budget
recommendations with the Public Agenda
Four Goals of the Public Agenda
Institutional core capacity
Funding focused on attaining specific outcomes
More to follow – please attend the Public
Agenda Task Force meeting this afternoon