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* This money has been piling up unused in special state accounts for months. The House Democrats included the cash in their “Lifeline Budget” in May, which the governor opposed and which went nowhere in the Senate. Appropriations from that fund were included in the bipartisan budget deal that the governor vetoed but Comptroller Mendoza supported, so she took the opportunity to announce the disbursement…
Using over $695 million in existing education funds, Illinois Comptroller Susana A. Mendoza announced today the first release of funds to state colleges and universities in more than seven months.
The recent override of Governor Bruce Rauner’s veto of the state’s first comprehensive budget in over two years provided appropriation authority to utilize existing higher education funds.
State colleges and universities had not received funding since the expiration of the “stopgap” budget on Jan. 1, 2017.
Comptroller Mendoza met with Eastern Illinois University President David Glassman Thursday morning as her office expedited a payment of $5.7 million to the school. EIU, Western Illinois University in Macomb and Chicago State University had been among those hardest hit by the budget impasse.
President Glassman showed Comptroller Mendoza some of the deferred maintenance on campus. Like other Illinois universities suffering through the last two years without a state budget, Eastern had to lay off more than 400 staff, Glassman said.
The release of $327 million for the MAP program will go toward an estimated 110,000 students from all over Illinois who qualified under the need-based award program for the 2016-17 academic year that just ended this Spring. These funds will fulfill the state’s commitment to those students attending public and private universities, colleges and community colleges who had to worry all year long whether the state would honor its commitment.
Comptroller Mendoza had been urging legislators and the Governor to deliver these funds for several months as the budget impasse stretched into its second year.
“The state’s institutions of higher education were devastated by the budget crisis and their mistreatment proved to a be a breaking point for legislators on both sides of the aisle. Delivering this money will provide immediate aid to students, parents, faculty and administrators who have struggled for more than two years to pay their bills.”
“Like the many legislators who supported a bipartisan budget solution last week, my office is committed to helping our colleges and universities recover from the unprecedented – and unnecessary – wreckage,” Comptroller Mendoza said.
Under Governor Rauner, state funding to public colleges and universities over the last two years was cut more than 60 percent. During this time, the credit rating of five major state colleges and universities dropped to junk status.
The funds released today will provide for payments that were owed to universities, colleges and to students eligible under the need based Monetary Award Program (MAP). They will benefit Chicago State University; Eastern Illinois University; Governors State University; Illinois State University; Northeastern Illinois University; Northern Illinois University; Southern Illinois University in Carbondale and Edwardsville; the University of Illinois system and its schools in Chicago, Springfield and Urbana-Champaign; and Western Illinois University; as well as other schools with MAP grant students in attendance. State universities will receive $327 million in funding. The remaining $36 million will be delivered to state community colleges.
Overall, the new bipartisan budget provides about $1.1 billion to higher education for the past fiscal year.
Additionally, the Comptroller has directed her Office to work with the universities and colleges to begin issuing another $160 million to public universities and community colleges for operational support from the state. Payments have already begun to be released as vouchers are submitted to the Office.
Many public institutions had to exhaust their local reserves to the point that it has threatened their ability to even make debt service payments. The release of these payments will ensure that these institutions can open the fall semester on time without disruption to staff and operations.
“Our schools and our students need stability. These desperately needed past-due payments will bring more stability to operations going into the fall semester and provide a reassurance to the accrediting and credit rating agencies that state funds are on the way,” Comptroller Mendoza said.
Our state’s public institutions provide benefits that extend well beyond their campuses. Every $1 invested in Higher Ed generates $4 in economic activity for the state.
* Related…
* Chicago Tonight: Comptroller Susana Mendoza on State Budget
* What does $15 billion in overdue bills mean for doctors and hospitals in Illinois?: Having a budget doesn’t put everyone at ease. Dr. Timothy Wall’s pediatric practice is one of the largest private providers of Medicaid managed care in DuPage County, and insurers owe it more than $1 million. He’s put off vaccinating children after their first birthdays because the insurers stopped paying for the expensive shots, and he’s stopped taking patients covered by Family Health Network, one of the biggest Medicaid insurers in the state. He might do so soon for patients covered by Meridian, another large carrier.
posted by Rich Miller
Thursday, Jul 13, 17 @ 11:55 am
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===The recent override of Governor Bruce Rauner’s veto of the state’s first comprehensive budget in over two years provided appropriation authority to utilize existing higher education funds===
Not one Dime… not one Penny… of the $695 million is linked to Rauner helping Higher Ed
Rauner vetoed these monies.
Rauner, again, refused to fully fund Higher Ed.
Worth noting.
Comment by Oswego Willy Thursday, Jul 13, 17 @ 12:04 pm
Oh, it’s been noted, OW . . . it’s been noted
Comment by Flapdoodle Thursday, Jul 13, 17 @ 12:06 pm
Doctors not giving medical treatment due to lack of payment by Medicaid? A relative on Teachers Retirement System of Illinois insurance (with pricey monthly premiums, by the way), has been
turned away by some doctors and has had to seek out someone who will accept her insurance. Other doctors have requested her payment for treatment up front.
It’s not just Medicaid.
Comment by Anonymous Thursday, Jul 13, 17 @ 12:07 pm
The dental INS is running 2 yrs behind.
Comment by scott aster Thursday, Jul 13, 17 @ 12:25 pm
This is it. This is why it was necessary for GOP legislators to vote for the bills and overrides. Reinforce to your constituents that Rauner’s intransigence damaged their interests.
Comment by Norseman Thursday, Jul 13, 17 @ 1:10 pm
The layoffs and downsizing will continue at NEIU according to the president’s announcement today.
Comment by Thomas Griffin Thursday, Jul 13, 17 @ 2:47 pm
It’s too late, the damage is done. Rauner won the fight on higher education: he’s destroyed it in Illinois.
Comment by Ryan Thursday, Jul 13, 17 @ 3:44 pm
- Anonymous - Thursday, Jul 13, 17 @ 12:07 pm: “A relative on Teachers Retirement System of Illinois insurance (with pricey monthly premiums, by the way), has been turned away by some doctors and has had to seek out someone who will accept her insurance. Other doctors have requested her payment for treatment up front.”=
It will only get worse if Rauner wins another 4 year term. Tell your relative to vote for the other party in the 2018 election.
Comment by Mama Thursday, Jul 13, 17 @ 4:15 pm
re: NEIU. According to statements made today, admin is worried that there might not be a state budget in FY19, so a large share of funds from the newly-passed FY18 budget must go to reserves.
Comment by Ed Higher Thursday, Jul 13, 17 @ 5:39 pm
I don’t like Mendoza. Her style is way to partisan. She is a comptroller, but she comes across as a crass Rauner basher.
Comment by BP Thursday, Jul 13, 17 @ 9:41 pm
Several sources say that for every $1.00 invested there is a $25.00 return. Where does the 1:4 ratio come from?
Comment by Jessica Thursday, Jul 13, 17 @ 10:56 pm
University Presidents reported of the $7 billion spent by public universities that it generates $28 billion in economic activity statewide.
Comment by Just Sayin ...uni Friday, Jul 14, 17 @ 12:39 am
I’m sure the economic “rate of return” varies by institution. The bottom line though - whether it’s 1:4 or 1:25 - is that state expenditures on public higher education generate economic activity in our local and regional economies, represent an investment in the state’s most valuable natural resources - human capital - , and support the production of trained workers and educated and skilled professionals that help retain and attract business and industry to the state. A lot of damage has been done, but Illinois public universities and community colleges, with adequate and consistent support, can and will bounce back. Hats off to the Comptroller for prioritizing payments to higher Ed and student need-based aid.
Comment by IL2CO Friday, Jul 14, 17 @ 10:43 am