1. Illinois Higher Education, Managing Through Difficult Times
2016 SHEEO Policy Conference
Illinois Board of Higher Education

2. Illinois’ Higher Education System & Timeline of
Discussion Context:
Illinois’ Higher Education System & Timeline of
Fiscal Year 2016

3. IBHE Oversight Degree Granting 12 public universities
48 public community colleges
132 private colleges/universities
100 not-for-profit
~75 Grandfathered fully or partially exempt
32 proprietary
47 out-of-state colleges/universities operating in Illinois
Non-Degree
private business and vocational schools
Institutions may fall into multiple categories.

4. Illinois’ Public Higher Education Institutions
Public Universities
Community Colleges

5. Illinois’ Private Higher Education Institutions
Not-for-Profit
For-Profit

6. Fiscal Year 2016 Timeline
July
Begins without a budget, expected by end of summer ...
IBHE Ops continue with court order for salary payments
Competing funding proposals range from 6.5% to 31% in reductions for public universities
State capital projects halted without reappropriations

7. Fiscal Year 2016 Timeline
July
Aug – Oct
461,000 students enroll in public universities and colleges
Public and private institutions cover accounts for 128,000 students with need-based grant assistance
IL’s $360 million Monetary Award Program (MAP)

8. Fiscal Year 2016 Timeline
July
Aug – Oct
Nov – Jan
Student flight fears tempers public calls for crisis as locally held “reserve” funds are used to offset lack of state funds
Despite uncertainty, MAP students covered for spring semester
Budget development for FY 17 is difficult due to unknowns and growing uncertainties in FY 16
Credit rating agencies cite concern of historical pension underfunding, cash flow limitations, and budget impasse

10. Fiscal Year 2016 Timeline
July
Aug – Oct
Nov – Jan
Feb – April
An Illinois 4-year institution declares financial exigency and warns of 100% layoffs if no state funds are provided by April 30th
HLC conducts statewide survey on institutional financial stability
Various layoffs, furloughs, program cuts are implemented
On April 25th, a bipartisan agreement provides $601 million in “stop gap” funding for public universities (30%), colleges (27%), and for MAP fall semester awards (50%)

11. Fiscal Year 2016 Timeline
July
Aug – Oct
Nov – Jan
Feb – April
May -June
$1 Billion Stop Gap II funding is enacted on June 30, MAP funding until end of FY 16
IBHE agency operations are included with $20 million set-aside for “emergency funding” for public institutions in FY 17

12. Stop Gap II Funding for Higher Education
FY 16
FY 17
Appropriations to be paid into FY17 allowing for payment of FY16 costs
Meant to provide cash flow until December

13. ? State Funding Summary for Higher Education
FY 16
FY 17
FY 16 - Public universities (83%), colleges (70%) & MAP claims (100%)
FY 17 - Net effect … expenses not “budgeted”
Gov’s budget office leads discussion for reforms and additional state funding ?

14. Moderator
Dr. Jim Purcell, Commissioner of Postsecondary Education for Rhode Island
Executive Director
Dr. Jim Applegate
Deputy Directors
Dr. Daniel Cullen, Academic Affairs
Mr. Kevin Schoeben, Fiscal & Budget
Dr. Eric Litchenberger, Research & Data