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Setting a Context for Fiscal Year 2010 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.

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Setting a Context for Fiscal Year 2010 Budget Development

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  1. Setting a Context for Fiscal Year 2010 Budget Development Illinois Board of Higher Education August 2008

  2. Overview • Trends in higher education funding • Illinois’ fiscal circumstances • Budget issues the Board may want to consider in its FY 2010 recommendations

  3. 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

  4. 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

  5. Recent Trends in State Funding

  6. Recent Trends in Capital Funding

  7. 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

  8. State Revenues *Estimate based on March CGFA estimate and FY08 year-end revenues

  9. Challenges • Slow economy, rising unemployment • Pension funds • Medicaid • Other Health Programs • K-12 funding • Transportation • Capital • Uncertainty caused by energy prices

  10. 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

  11. 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

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