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1
Fiscal Year 2005 IBHE Budget Recommendations
House Appropriations – Higher Education Committee
February 5, 2004
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Context for FY2005 Budget Development
Ongoing economic/fiscal uncertainty FY 2005 deficit estimated at $1.5 to $2.0 billion All areas of state government are impacted
Recognition of the need for careful and realistic planning within the higher education system Highest priority activities and initiatives must be
protected
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FY2005 Operations and Grants Overview
Emphasis placed on: Good stewardship of existing resources and
enhanced accountability Re-directing limited financial aid resources to the
most needy students Access and economic development
Funding cut or eliminated for many important grant programs and initiatives to protect funding for the highest priority activities
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FY2005 Operations and Grants Overview (Continued)
State General Funds $2.34 billion in total Decrease of $79.8 million, or 3.3% Decrease of $38.5 million, or 1.8% without SURS
All Funds (appropriated and non-appropriated) $7.95 billion in total Increase of $159.1 million, or 2.0%
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Public Universities Recommendations: $1.30 billion
Decrease of $41,500 Assumes internal reallocation of remaining
administrative cost reductions to core mission activities ($27 million)
Related Issues 25% administrative cost reduction over three
years ($100.6 million) Enhanced fiscal accountability and transparency
(e.g., line item budgeting)
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Use of Funds From Administrative Reductions
Funds Reallocated to
Non-Personal Services Items
36%
Funds Reallocated to Personal
Services Items16%
Funds Cut as Part of Reduction in
State GRF Support48%
Total Reductions Reported to Date: $73,995,300
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Community Colleges/Adult and Career Education
Community Colleges: $283.4 million Decrease of $8.0 million, or 2.8% Includes grant line reductions and reallocations
to Formula Implementation Grants Recommended transfer of funding source for
Deferred Maintenance Grants to Capital Development Fund
Adult and Career Education: $45.3 million No change from FY2004
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Illinois Student Assistance Commission
Recommendations: $389 million Decrease of $9.4 million, or 2.4% Includes level funding for MAP Elimination of Merit Recognition Scholarship, College
Savings Bond Bonus Incentive Grants funding
Related Issues MAP formula changes to maximize program
resources for most needy students Partial shift of ISAC administrative costs to Student
Loan Fund
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Grant Programs and Statewide Initiatives
Access and Diversity: $10.1 million $967,000 increase, or 10.6% Funds included to open and operate new
University Center of Lake County facilities coming on-line in FY2005
All other programs level-funded Recommended transfer of HECA funds to
ISAC for Golden Apple program ($300,000)
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Grant Programs and Statewide Initiatives (Continued)
Workforce & Economic Development: $14.3 million Decrease of $23.5 million, or 62.1% Includes $776,000 for Opportunity Returns
initiatives Includes:
Elimination of funding for 7 programs and initiatives
Reduction of funding for Health Services Education Grants and State Matching Grants
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Higher Education Agencies IMSA: $15.8 million
Increase of $1.5 million, or 10.3% Restoration of funding cut in FY2003
State Universities Civil Service System: $1.3 million No change from FY2004
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Higher Education Agencies (Continued)
IBHE: $2.9 million No change from FY2004
SURS/Health Insurance: $272.6 million Decrease of $41.4 million or 13.2% Decreased requirement due to pension
bond proceeds received in FY2004
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FY2005 Capital Improvements Overview
Total Recommendation: $341.6 million Total requests: $1.38 billion
Regular Capital: $301.6 million Supports 30 projects All but four projects were on the Board’s
FY2004 priority list
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FY2005 Capital Improvements Overview (Continued)
Capital Renewal: $40 million Increases funding by $10 million, or 33% Provides funding to address deferred
maintenance and other minor infrastructure needs
Reflects Board’s priority on addressing deferred maintenance needs across the system.
Recommended