Latest Post | Last 10 Posts | Archives
Previous Post: What Pritzker and Trump Have in Common
Next Post: Simon Poll: Pritzker job approval +2, Trump -20, Durbin +10, Cullerton -11, Madigan -51
Posted in:
* Buried in the governor’s budget proposal was this little nugget…
UNIVERSITY OF ILLINOIS - DISCOVERY PARTNERS INSTITUTE
The proposed fiscal year 2020 budget includes a reappropriation of $500 million in spending authority to provide a state match for private donations from individuals, corporations and other entities. The state matching funds will only be released if the corresponding private donations are secured.
* Greg Hinz…
The future of a huge research center in the South Loop once again is in grave doubt after the Gov. J.B. Pritzker’s administration added what appears to be onerous new conditions to state funding for the University of Illinois’ Discovery Partners Institute.
The new governor in January told Crain’s he wanted the research facility to fly even though it originally was proposed by the man he unseated, Bruce Rauner. Pritzker said the university would have to line up private funds rather than merely depending on the $500 million in state cash that Rauner allotted, but suggested that was doable. […]
[Pritzker’s] budget reappropriates the $500 million that was budgeted last year, but describes it not as a grant but a state match for private donations from individuals, corporations or other entities. The budget language adds that “state matching funds will only be released if the corresponding private donations are secured.” […]
But other administration officials go farther, saying that $500 million in private capital will have to be secured before the state considers releasing any its funds. Said one insider, “After the $500 million in private funds have been raised, there would be structured draws against the state’s $500 million, tied to important project milestones and ongoing planning.”
Thoughts?
posted by Rich Miller
Wednesday, Mar 20, 19 @ 10:18 am
Sorry, comments are closed at this time.
Previous Post: What Pritzker and Trump Have in Common
Next Post: Simon Poll: Pritzker job approval +2, Trump -20, Durbin +10, Cullerton -11, Madigan -51
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
They should focus on their core functions rather than shiny new objects.
Another good Pritzker move. Down with 1.4% pet projects.
Comment by Anonymous Wednesday, Mar 20, 19 @ 10:24 am
Hopefully UIUC and UC can get back to focusing on Hyde Park projects.
Comment by njt Wednesday, Mar 20, 19 @ 10:29 am
I always thought Rauner’s fake $500 million was part of Rahm’s ploy to lure Amazon. Does anyone really think the 79 will even break ground in the next decade? This was never a well conceived idea, so Pritzker’s move is the prudent one. If, and it’s a gigantic IF, private money magically appears, the spend the state money. Until then, forget it.
Discovery Partners died when Amazon chose DC/NYC. Bury it now before the corpse starts to stink.
Comment by 47th Ward Wednesday, Mar 20, 19 @ 10:32 am
Good move, JB.
Comment by Big Joe Wednesday, Mar 20, 19 @ 10:33 am
78. Close.
Comment by 47th Ward Wednesday, Mar 20, 19 @ 10:33 am
–The future of a huge research center in the South Loop once again is in grave doubt …–
What “huge research center in the South Loop?” This thing hasn’t progressed beyond the laptop pretty-picture phase.
Private capital is critical. Otherwise, what’s the point?
There are supposedly plans for new research facilities at Urbana, UIC, Springfield and NIU. Are those moving along, at all?
https://dpi.uillinois.edu/about/planned_iin_facilities
Comment by wordslinger Wednesday, Mar 20, 19 @ 10:34 am
Always felt…
This was a “look at this” campaign thingy that only had legs if Rauner won.
Calling the bluff, for lack of a better term, for the investment money upfront, that’s how you slowly take it down… from the concept phase it sits.
Comment by Oswego Willy Wednesday, Mar 20, 19 @ 10:40 am
Is JB going to make calls to raise money? Since he gave $5 million to support Diana Rauner ‘s charity, maybe Bruce could chip in here.
Comment by Last Bull Moose Wednesday, Mar 20, 19 @ 10:47 am
UIUC has always been considered a world class research institute as is the University of Chicago and Northwestern. The cooperation between these institutions almost seemed too good to be true. But the possibilities and the prospects of elevating this state to an even higher level was exciting.
Private investment was always a part of the plan, but now it seems to be a condition of any state funding. Didn’t Rauner tell us that he had the private investors lined up?
Hopefully, this is only a delay in implementing and starting a cooperative program that would have promoted this state to even greater prominence in scientific research.
Comment by illini Wednesday, Mar 20, 19 @ 10:51 am
Seems fiscally responsible, but also casts the whole project in doubt. This will probably make it harder to get private donations. I’m pretty ambivalent about it.
Comment by Perrid Wednesday, Mar 20, 19 @ 10:54 am
===to provide a state match for private donations from individuals, corporations and other entities===
I think the key word here is donations. It doesn’t say investment. Investments you hopefully get a return on. Donations you are only supposed to expect a thank you. I think there should be private money going in before the state lays out a half a billion and support the concept but I think making it donations kills it.
Comment by Been There Wednesday, Mar 20, 19 @ 11:16 am
The U of I endowment is $3.6 billion. Seems well within their ability to raise $500 million if they really wanted this to work in Chicago. Glad for now state money won’t be dedicated to this project.
Comment by Cool Papa Bell Wednesday, Mar 20, 19 @ 11:24 am
Good. It was a half thought out proposal that neither Rauner officials or UIUC staff could adequately explain. Let’s get the basics of higher ed in Illinois fixed, then move on to the grand ideas.
Comment by Rural Stuff Wednesday, Mar 20, 19 @ 11:29 am
From Greg’s article linked back to another article from last year…
Prior to the election and ouster of Rauner, UIC was planning to use 5 million of this money for construction outside of the DPI Loop area. IMO that shouldn’t even have been a thought by UIC to use DPI monies to leverage work done outside of the planned DPI area. Pritzker’s plan to tie the donations and state money together should help eliminate these types of shenanigans.
“…new five-story “drug discovery and innovation pavilion,” with 110,000 square feet of space, and another five-story new “computing design, research and learning center,” with about 145,000 square feet, to cost about $200 million, with less than half of that cost covered by the money allocated to DPI. Best case scenario, the new buildings would be completed by the summer of 2020, he said. The buildings will be located on the existing UIC campus and not on the South Loop site that’s currently envisioned for the DPI.”
https://www.chicagobusiness.com/education/uic-will-tap-states-500m-discovery-partners-fund-expansion
Comment by Anon221 Wednesday, Mar 20, 19 @ 11:33 am
A quick google search showed that Illinois has 17 Billionaires, who as a group are worth almost $54 Billion.
Would it not be great for some of them to have their names on a building or a research lab?
Comment by illini Wednesday, Mar 20, 19 @ 11:34 am
$500 million in donations for a major university, where you have a match commitment already, is actually not that much.
A $1 billion brand new campus in a hot tech city where a ton of your alumni live? Where the state is committed to matching every contribution you make?
That’s an easy fundraising job.
And if the need is only $500 million total, then it is a $250 million fundraising job.
For reference, the University of Chicago’s last big fundraising campaign raised $5 BILLION.
Comment by Ok Wednesday, Mar 20, 19 @ 11:59 am
Right move on this by JB. There was no “there there” from the get-go, just the thinnest of planning. Killeen dived in headfirst with Rauner for this (or vice versa maybe) and U of I kidded themselves on how the politics of this would play out once Bruce lost the election. (Or even worse, they naively figured he had a chance to win.) This is being handled the better way now. If the $500m specifically for project investment can be gotten then I can make an argument that it makes sense for the U and the state. In the meantime, there are plenty of areas To spend money on right now in higher education that are a better investment with a quicker payback.
Comment by Our Joe Wednesday, Mar 20, 19 @ 12:47 pm
Wordslinger - https://www.uis.edu/campussenate/docs/
Comment by Anonymous Wednesday, Mar 20, 19 @ 12:52 pm
Meanwhile, EIU’s Life Science building has been on a deferred maintenance list for more than 20 years. Share the joy.
Comment by Morningstar Wednesday, Mar 20, 19 @ 12:56 pm
Does this provide a $500 million cushion in the budget?
Comment by Last Bull Moose Wednesday, Mar 20, 19 @ 1:12 pm
This $500 million requirement is not excessive or unusual. The new Carle School of Medicine in Urbana has already raised $1.5 billion, and thinks it can raise another $1 billion.
What is unclear to me is how much the UIUC faculty will want to participate in a a research program 120 miles away. That’s a long commute for them and their graduate students.
Comment by Old Illini Wednesday, Mar 20, 19 @ 2:28 pm
Illinois can’t afford any new nice things, so probably a good call.
Comment by Anonymous Wednesday, Mar 20, 19 @ 11:36 pm