Fiscal Year 2009 Budget Recommendations Presented to the Illinois Board of Higher Education February 5, 2008

FY09 Investment Budget FY09 operations and grants budget recommendations consist of a set of five investment levels Different investment levels demonstrate how the State can achieve its higher education goals at different levels of state funding Investment budget recognizes revenue uncertainty and other State priorities

FY09 Budget Priorities Improving College Affordability Enhancing Faculty and Staff Salary Support Addressing Student Pipeline Issues: Access, Success, and Diversity Addressing State Workforce Priorities: Nursing Protecting the State’s Investment in College and University Facilities

Improving College Affordability FY09 Operations & Grants Improving College Affordability Public Universities Faculty and Staff Salaries Utilities Veteran Grants Community Colleges Base Operating Grants Equalization Grants Illinois Student Assistance Commission Monetary Award Program Dependent Grants

Enhancing Faculty and Staff Salary Support FY09 Operations & Grants Enhancing Faculty and Staff Salary Support Public Universities Faculty and Staff Salaries Community Colleges Base Operating Grants Equalization Grants Illinois Mathematics and Science Academy Faculty Salary Initiative

Access, Success, and Diversity FY09 Operations & Grants Access, Success, and Diversity Community Colleges College and Career Readiness Student Success Grants Adult Education Adult Ed GED Testing Career and Tech Ed Institutional Grants/Initiatives Course Applicability System Diversifying Faculty in Illinois Baccalaureate Completion Grants University Center of Lake County P-20 Initiatives Joint Data System Joint P-20 Council IMSA E2K Expansion

State Workforce Needs/ Other FY09 Operations & Grants State Workforce Needs/ Other Public Universities Nursing Programs Community Colleges/Adult Education Postsecondary Career and Technical Education Institutional Grants/Initiatives Nursing School Grants Nurse Educator Fellowships State Matching Grants Campus Security Grants

FY09 Step One Funds higher education at the current base investment level of $2.19 billion State is also contributing $618.3 million in FY08 for pensions and group insurance Step One

FY09 Step Two Step Two Step One 1.0 % increase -- $22.4 m Faculty and Staff Salaries Base Operating & Equalization College and Career Readiness Adult Ed MAP Nursing CAS, Data Step Two Step One

FY09 Step Three 2.7% Increase -- $59.7 m Step Three Step Two Step One Faculty and Staff Salaries Base Operating & Equalization College and Career Readiness Adult Ed MAP Nursing Matching Grants CAS, Data Step Three Step Two Step One

FY09 Step Four Step Four Step Three Step Two Step One 6.4% Increase -- $139.3 m Faculty and Staff Salaries Utility Costs Nursing Programs Base Operating & Equalization Student Success Grants College and Career Readiness Adult Ed MAP Veteran Grants, ING Grants Nursing Matching Grants DFI CAS, Data, P-20 Council Baccalaureate Completion Grants Campus Security Initiatives IMSA Deferred Maintenance Step Four Step Three Step Two Step One

FY09 Step Five Step Five Step Four Step Three Step Two Step One 9.2% Increase -- $201. m Faculty and Staff Salaries Utility Costs Nursing Programs Base Operating & Equalization Student Success Grants College and Career Readiness Adult Ed MAP Veteran Grants, ING Grants Nursing Matching Grants DFI CAS, Data, P-20 Council Baccalaureate Completion Grants Campus Security Initiatives IMSA Deferred Maintenance Step Five Step Four Step Three Step Two Step One

FY09 Capital Improvements Overview $805.8 Million Recommended Requests Total $2.0 billion Capital Renewal: $60.0 million Highest priority Regular Capital: $523.0 million 33 projects; 30 have appeared in previous IBHE recommendations $222.9 million Opportunity Returns projects 6 projects with some funding already released Continued Support for CC Enhanced Construction

FY09 Recommendations Summary Focus on the highest priorities articulated by the Board and higher education community Investment levels Sensitive to uncertain state fiscal environment