Latest Post | Last 10 Posts | Archives
Previous Post: Mystery solved on Rauner’s whereabouts
Next Post: Not surprisingly, local governments hate permanent property tax freeze idea
Posted in:
* SIU President Randy Dunn on the governor’s proposed budget plan…
Since we haven’t had a real budget going on for 20 months now, remember that it’s become customary to analyze proposals against our last “normal” year of state appropriations … FY15.
If you look at the higher education sector overall for FY18, general funds for institutional grants and other initiatives are down 9.9% from 2015, but that figure doesn’t include the state’s share of pension funding contributed for university and community college employees. (If you count pension funding as part of our state support, the drop looks a little less daunting at 6.7%.)
Each of the public universities would be funded next year at an 85% level from where we were for FY15. For the SIU System, that would mean a loss of roughly $30 million; the $199 million received three years previous would drop to $169.554 million for general operations in 2018. However, each institution would also have the opportunity to earn back a 5% funding performance set-aside, theoretically bringing the appropriation level up to 90% of 2015. The performance funding model would be the same one utilized by the Illinois Board of Higher Education already — which is only at a .5% level currently. While I’m a firm believer in the concept that governors and legislatures should have the prerogative to drive some portion of state support based on performance, I do worry about two things with such plans: 1) “Access” schools — and this institutional value is part of SIU’s DNA — will start curtailing, if not denying admissions to a swath of students who appear even somewhat at-risk of not being able to meet whatever performance metrics are chosen; and 2) Performance funding turns into a redistribution mechanism where those institutions which already may be advantaged in terms of resources available, student profile, geographic service region, and the like receive even more support … while struggling schools attempting to serve higher-need students are penalized. In my view, neither of those unintended consequences is good public policy.
But I digress. Back to the budget details: Two designated appropriations important to SIUE — one for the School of Pharmacy, and the other for debt payment to the City of Edwardsville for the newly constructed fire station on the campus — would be completely zeroed out. By contrast, a separate directed appropriation which was first added for SIUC in 2015 — for the Daily Egyptian student newspaper — is maintained for FY18, to supplement a student fee increase by the campus for that same purpose that year. And while there is some funding re-appropriated for previously approved projects, no new capital funding for HIED is proposed for yet another year.
As I listened to the governor deliver his budget address in the House Gallery last Wednesday, I did find elements that I was heartened to hear. Illinois’ need-based student aid program, the Monetary Award Program, is recommended for a 10% increase in funding which would serve another 12,000 students statewide who are MAP-eligible but have not had access to funds. That’s important to SIU. As well, Governor Rauner acknowledged the need to get serious about making progress on deferred maintenance of state facilities across all public sectors; for the SIU System alone, that total is a staggering $700 million if you count every possible capital renovation, repair, and replacement project currently on our books.
* And here he talks about the Senate’s attempt at a compromise…
Right now those important questions are getting immediate attention in the Illinois Senate to see if an evolving “grand bargain” budget — for FY17 — can yet be achieved. Given we’ve had no predictable revenue or viable long-term funding plan from the state since June 30, 2015, the “urgency here is critical” — to quote Senate Minority Leader Christine Radogno. Senate leaders are saying that a vote needs to be taken by the end of this month … or close to it … if that chamber’s bipartisan plan is going to provide a way forward. You see, the Senate’s omnibus budget deal would make a state income tax increase retroactive to January 1 to meet its revenue goal; but, waiting much longer to pass a 2017 budget would force too high of “backloading” of state tax withholding in the final months of the fiscal year to make it palatable to most voters (i.e., six months of state tax taken out over four months of pay). So time is of the essence.
I am supportive of the Senate plan as it presently exists, even though there are parts of it I don’t like — and figuring out the pension reform piece will be tough. While it pains me greatly to say it, we need to acknowledge that FY16 is now lost — essentially a year when Illinois higher education absorbed a 73% state cut. But we all survived it, even if badly wounded … and reality says that time and politics have moved on. However, the spending plan for SIU now contained in Senate Bill 6, at $93.4 million — taken in conjunction with the stopgap money appropriated last June 30 — would bring us back to a normal year of funding (a/k/a FY15) once again. Besides that, the budget deal would have the symbolic impact (maybe psychological, even) of getting the stalemate broken while offering a working template for moving into FY18. Plus we would be assured of reimbursement for the millions of dollars we’ve already advanced to the State of Illinois this year to cover MAP grants and a multitude of other contracts and services.
The political instincts of more than a few experienced Springfield hands suggest that if we leave this opportunity empty-handed, the last glimmer of hope for a reliable, predictable, viable state budget anytime in the next couple of years leaves with it. Such an outcome would do nothing to help our steadily shrinking state of higher education in Illinois. So it is time for a deal to get done, and if it does, we’ll be the first to champion the cause.
*** UPDATE *** Oy…
The head of the Heartland Community College board of trustees thinks the district needs to consider creating a budget without any money from the state.
Noting there is still no state budget seven months into the fiscal year and “no indication that it’s coming,” Chairman Gregg Chadwick said at Tuesday night’s meeting, “I’m not sure it makes sense to continue to assume we’ll have state money.”
Heartland’s budget for the current fiscal year, which began July 1, calls for about $1.2 million in revenue from the state.
His comments came as the board voted to increase tuition and fees by 2.8 percent, raising the total per-credit-hour cost from $144 to $148.
* Related…
* WIU Student Enrollment Dips Below 10K: There are 9,469 students enrolled at Western Illinois University this spring semester. It’s the first time this century Western’s student body has dropped below 10,000. Dr. Ron Williams, Western’s Interim Vice President of Student Services and the Assistant Vice President of Student Affairs, said spring 2017 enrollment is down about 6.5% compared to last spring. He said that is less than the 10% drop the university projected.
posted by Rich Miller
Wednesday, Feb 22, 17 @ 9:56 am
Sorry, comments are closed at this time.
Previous Post: Mystery solved on Rauner’s whereabouts
Next Post: Not surprisingly, local governments hate permanent property tax freeze idea
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
The Trump/Rauner model: stiff ‘em to gut ‘em.
Comment by Precinct Captain Wednesday, Feb 22, 17 @ 10:04 am
===…we need to acknowledge that FY16 is now lost — essentially a year when Illinois higher education absorbed a 73% state cut.===
Rauner Library
Rauner Dormitory
Dartmouth.
Bruce Rauner cares more about Dartmouth than Illinois’ higher education institutions… well, Rauner cares at a 27% clip.
Governors own. Rauner wants Illinois higher education to fail.
You fund higher education at 27% when you are hoping Eastern Illinois will close.
That’s real.
Comment by Oswego Willy Wednesday, Feb 22, 17 @ 10:15 am
EIU administrators sealed their own fate. $200 million Willy(I), just remember that number.
Comment by Piece of Work Wednesday, Feb 22, 17 @ 10:27 am
- Piece of Work -
Your continued utter ignorance is noted.
You fund items in a budget at levels like 27% when you want them first crippled, then to collapse and disappear.
The mere fact you can’t grasp that speaks volumes about you
Not until Rauner, did a state university have to write a letter that they plan to exist.
No governor since 1858 budgetarily funded higher education at a level of zero until Bruce Rauner.
Rauner wants Illinois’ higher education to fail. Capiche?
Comment by Oswego Willy Wednesday, Feb 22, 17 @ 10:34 am
Wise comments from President Dunn. He is looking to be part of the solution.
Comment by Oh Boy Wednesday, Feb 22, 17 @ 10:56 am
Willy(I), apparently the administrators at EIU going back the last 10 years weren’t very concerned about the school’s existence.
Comment by PoW Wednesday, Feb 22, 17 @ 11:02 am
===apparently the administrators at EIU going back the last 10 years weren’t very concerned about the school’s existence.==•
Again, keep up.
When a governor vetoes every budgetary item except K-12 funding and continues not funding programs, those governors want those programs, agencies gone… and those state universities collapsing so they close.
It’s embarrassing that you are unable to understand that by withholding funding a governor wants the item gone.
Do you even understand budgeting, LOL
Comment by Oswego Willy Wednesday, Feb 22, 17 @ 11:07 am
Randy Dunn has been a consistent voice of reason during this budget crisis. These quotes are from a bi-weekly column that he sends to all SIU faculty and staff. In terms of the budget crisis, he has always been transparent and honest when the university makes tough decisions.
Comment by Saluki Wednesday, Feb 22, 17 @ 11:09 am
==Willy(I)==
The fact that you post stuff like that kind of disqualifies you from being taken seriously.
Comment by Demoralized Wednesday, Feb 22, 17 @ 11:18 am
- Demoralized -,
Thanks. OW
To the Post,
===However, the spending plan for SIU now contained in Senate Bill 6, at $93.4 million — taken in conjunction with the stopgap money appropriated last June 30 — would bring us back to a normal year of funding (a/k/a FY15) once again. Besides that, the budget deal would have the symbolic impact (maybe psychological, even) of getting the stalemate broken while offering a working template for moving into FY18.===
This is so good. Pragmatic. Looking to move on from the decimation of SIU and trying to look ahead to a future.
Great stuff.
Comment by Oswego Willy Wednesday, Feb 22, 17 @ 11:32 am
It only took one Rauner term to change me from a Republican employee to a Democrat voter. Not a Democrat because I do not believe Rauner is a Republican. Rather he bought a title and state party because thats what bored filthy rich men do. I do approve of how he has given us many examples of how we need tax reform. “Progressive” that is!
Comment by Whoelse Wednesday, Feb 22, 17 @ 11:36 am
To the Update,
The Community Colleges only need to see how Rauner feels about 4-year institutions to that Rauner feels any higher education that can withstand no funding are the ones Rauner will “deal” with… once others close.
Comment by Oswego Willy Wednesday, Feb 22, 17 @ 11:42 am
I don’t know whether President Dunn is leading SIU in the right direction (in part because SIU seems largely to be in a holding pattern, just trying to survive until the State budget crisis is resolved), but he certainly makes good sense in this column.
You will need to check back for his next message to see what SIU (and no doubt other Illinois universities like SIU) are going to have to do if the Grand Bargain falls apart. Without some steady and substantial state funding, the results for higher ed will be very ugly. Whether Oswego Willy is correct about Rauner’s intentions or not, Rauner will have ’succeeded’ in maiming if not destroying public higher education in Illinois.
Most (not all) of the IL universities will presumably survive, but as shadows of their former selves. SIUC used to be a major research university, with many nationally known programs; those programs are on life support today, and without steady state funding, SIUC will be lucky to survive as a decent regional university. This would be very bad news for Southern Illinois, and impoverish our state as a whole. Urbana-Champaign may survive as a pretty good research university (if falling in the standings thanks to Rauner), but Illinois should have more than one good research university, and neither SIUC nor UIC is going to be able to fulfill that role much longer the way things are going.
Comment by Doc Anonymous Wednesday, Feb 22, 17 @ 12:28 pm
SIUE reports record signups for their “Preview Days” to be held later this month. As I understand it, these sessions are for students admitted to SIUE and other campuses and who haven’t made a final decision.
Speaking of which, the omission of funds for the SIUE Fire Station payment to the City of Edwardsville is essentially debt service and should be included with the other payments in this category.
Comment by Arthur Andersen Wednesday, Feb 22, 17 @ 12:32 pm
If we’re not careful we could run short of anthropologists, social “scientists” and political science (there’s that word again!) workers.
Comment by Puddintaine Wednesday, Feb 22, 17 @ 12:42 pm
===If you look at the higher education sector overall for FY18, general funds for institutional grants and other initiatives are down 9.9% from 2015, but that figure doesn’t include the state’s share of pension funding contributed for university and community college employees. (If you count pension funding as part of our state support, the drop looks a little less daunting at 6.7%.)===
The state already paid SURS, there was no change in that, so counting it in one budget year and not the other is smoke and mirrors. It makes the cuts “look” less daunting, but they really are the same.
Comment by DuPage Wednesday, Feb 22, 17 @ 12:57 pm
Like Heartland, a number of CC’s in the collar counties are planning a FY `18 budget w/o any state dollars.
Comment by G'Kar Wednesday, Feb 22, 17 @ 1:40 pm
CCs are partly funded by local taxes, so the lack of state funding is not as dire as for state unis.
Not saying this is good; just that it’s different.
Comment by Anonymous Wednesday, Feb 22, 17 @ 1:50 pm
-Anonymous-
You’re right about local taxes (property taxes!) but CC’s charge much less in tuition, so are worse off in that respect.
Comment by Doc Anonymous Wednesday, Feb 22, 17 @ 2:04 pm
Black Hawk College (the CC for the Quad cities area) is looking at cutting 5-10% of its full-time faculty positions (it has already done this once). Cutting faculty and programs starts a downward spiral that is difficult to stop (see EIU, CSU, & WIU). Why the Gov. wants to kill higher ed in Illinois is a mystery to me. The net annual loss of over 16,000 students (customers!!! future work force!!!) seems like it would get someone’s attention.
Comment by Pot calling kettle Wednesday, Feb 22, 17 @ 2:06 pm
–Since we haven’t had a real budget going on for 20 months now, –
Give that simple, indisputable clause a hard think.
If you were the governor of this state, would you allow that to be a fact, if you didn’t want it to happen? More than two years in?
The governor “justifies” his deliberate, destructive actions with screwball, faux “economics”
He’s “building a new economy” with billions in unpaid bills, willful neglect of infrastructure and bleeding to death state universities and community colleges.
Strip away all his Uncle Fuzzy rhetoric; how are his actions not malicious?
Comment by wordslinger Wednesday, Feb 22, 17 @ 2:06 pm
One quote pretty much sums up Rauner…for me anyway:
In his budget address he said term limits “get job creators excited.”
Trump isn’t the only one with credibility issues.
Comment by Southern Dawg Wednesday, Feb 22, 17 @ 2:26 pm
== SIU’s Dunn: “We need to acknowledge that FY16 is now lost” ==
Today, it would take a Saint to be optimistic about anything IL.
So: “We need to acknowledge that ILLINOIS is now lost”
Sadly - Fixed.
Comment by sal-says Wednesday, Feb 22, 17 @ 3:03 pm
Puddintaine,
If we’re not careful we will run out of young people who work for existing businesses and start new ones. They’ll all have gone to school in Iowa and Wisconsin and decided to stay in a state with come quality of life.
Fixed it for you
Comment by HistProf Wednesday, Feb 22, 17 @ 3:17 pm
“some quality of life.”
Comment by HistProf Wednesday, Feb 22, 17 @ 3:18 pm
I have found the local CC’s as the worst culprit in spiraling property taxes.they, morebthan higher ed, need to be reigned in.
Comment by Blue dog dem Wednesday, Feb 22, 17 @ 10:01 pm