University of Illinois
FY 2005 Budget Outlook
and Budget Trends
Dr. Douglas H. Vinzant
Associate Vice President
University Office for Planning and Budgeting
April 23, 2004
FY 2005 IBHE OPERATING BUDGET RECOMMENDATIONS
State general funds appropriations for public universities level from FY04 to FY05
U of I state general funds for FY05 same as FY04 - $696.9M
Assume internal reallocation in FY05 of $27M by universities from administrative/support areas to core mission activities - U of I share is $17.5M
Payments to SURS reduced by $41.3M (payments combined with pension bond sale proceeds meet statutory funding requirement)
No salary program designated
No mention of whether universities are required to continue CMS payment for health insurance ($45M for all universities, $24.9M for the U of I)
University income funds (tuition $) remain for university priorities
FY 2005 GOVERNOR'S OPERATING BUDGET RECOMMENDATIONS
Assumes $26M reduction in administrative costs across all public universities U of I share of reduction is $13.9M
State general funds appropriations for public universities are reduced by $25.2M down 1.9%
U of I state general funds appropriations reduced by $13.9M down 2.0%
NIU receives $476,000 and WIU receive $300,000 as part of economic development program, Opportunity Returns
Payments to SURS reduced by $78M (payments combined with pension bond sale proceeds meet statutory funding requirement)
No salary program designated
Assumes universities will continue CMS payment for health insurance ($45M for all universities, $24.9M for the U of I)
University income funds (tuition $) remain for university priorities
FY 2005 GOVERNOR'S CAPITAL BUDGET RECOMMENDATIONS
New appropriations for capital improvements statewide of $3.24 billion - $2.06 billion for state capital projects and $1.18 billion for local community projects
$550M in new funding for K-12
$50M in new funding for Community Colleges
$39M in new funding for Public Universities
U of I funding for Repair and Renovation $10.7M
($4.2M for UIC, $0.3M for UIS, and $6.2M for UIUC)
U of I funding for Lincoln Hall plan remodeling $5.0M
As part of Opportunity Returns initiative the Governor recommended new funding for a new Electrical and Computer Engineering facility and the modernization of Agri-science and Technology Field Laboratory facilities, both at UIUC
FY 2005 GOVERNOR'S LEVEL
IBHE GRANT REDUCTIONS
(dollars in thousands)
LOST OPPORTUNITIES
FY 2002 and FY 2003 mid-year cash rescissions $38.2M
FY02 FY04 health insurance redirection $24.9M per year for a total loss of $74.7M
FY02 FY04 permanent reduction in state tax appropriations $131.6M
Total LOST OPPORTUNITY $244.5M
State of Illinois
General Fund Appropriations FY 2004
$23.1 Billion
State
By Sector
State Tax Appropriation
Changes by Agency
Human Services
Elem/Sec
Higher Educ
All Other
State Average
55.8%
33.7%
2.2%
-6.3%
36.7%
In Constant 2003 Dollars (CPI)
FY02, FY03, FY04 and FY05 include additional $45 million reduction to Universities for Health Insurance
Higher Education funding for FY05 does not include $134 million in debt service and savings resulting from the Pension Obligation Bonds issued in FY04.
Source: Illinois State Budgets
University of Illinois
Share of State Tax Appropriations
FY02, FY03, FY04 and FY05 include additional $45 million reduction to Universities for Health Insurance
2.7%
$658.1M
$1,093.2M
$435.1M
State of Illinois
General Fund Appropriations FY 2004
$2.4 Billion
Higher Education
By Sector
Cumulative Change in State Tax Appropriation by Higher Education Sector
ISAC
SURS
Community Colleges
Universities
-19.5%
-14.8%
33.4%
55.8%
In Constant 2003 Dollars (CPI)
FY02, FY03, FY04 and FY05 include additional $45 million reduction to Universities for Health Insurance
SURS funding for FY05 does not include $134 million in debt service and savings resulting from the Pension Obligation Bonds issued in FY04.
Source: IBHE (Gov Level Budget)
University of Illinois
Budget by Source of Funds
FY 1980 FY 2004
FY 1980
FY 2004
$612.3 Million
$2,942.0 Million*
Excludes Payments on Behalf of the University
University of Illinois
State Tax Support as a Percent of Budget
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University of Illinois
GRF/EAF Appropriations for FY 1998 Governor's Level FY 2005
(dollars in thousands)
In constant 2003 CPI dollars
University of Illinois
GRF & Income Fund
(Dollars in Millions)
In Constant FY 2003 Dollars (CPI)
FY02-04 GRF Adjusted for Health Insurance and Rescissions.
UNIVERSITY OF ILLINOIS
DIRECT STATE TAX APPROPRIATIONS (GRF/EAF)
FY 1990 FY 2005
(Dollars in millions)
In Constant 2003 CPI Dollars
Original Appropriation
Spending Authority
Spending Authority: FY02 FY05 adjusted for Health Insurance obligation of $24.9 million.
UNIVERSITY OF ILLINOIS
STATE TAX APPROPRIATIONS PER FTE
FY 1990 FY 2005
(Dollars in millions)
FY02 FY05 adjusted for Health Insurance obligation of $24.9 million.
In Constant 2003 CPI Dollars