Overview of Governor's Budget FY 2006

              431 East Adams Street, Second Floor · Springfield, Illinois 62701-1418 Phone: (217) 782-2551 · Fax: (217) 782-8548 · TTY: (888) 261-2881
Printed on Recycled Paper
Illinois Board of Higher Education
James L. Kaplan, Chairman · Thomas R. Lamont, Executive Director
OVERVIEW OF GOVERNOR’S BUDGET
FEBRUARY 16, 2005
Governor Blagojevich’s proposed fiscal year 2006 state budget from all funds totals $43.56 billion, an increase
of $331.7 million, or 0.8 percent over fiscal year 2005 appropriations. State general funds included in his fiscal
year 2006 budget total $24.53 billion, an increase of $839.4 million, or 3.5 percent over fiscal year 2005
appropriations. Key priorities reflected in his budget recommendations for fiscal year 2006 continue to be the
broad areas of K-12 education, health care, and public safety. The Governor’s budget proposes structural
reform in a number of fixed cost items, including pension liability, debt service, Medicaid, and employee health
insurance benefits.
State revenue enhancements proposed in the Governor’s fiscal year 2006 budget include closing
corporate/business tax loopholes; increasing the state cigarette tax and the cigar tax to fund debt service for new
capital spending; and fund transfers. The Governor’s budget limits spending increases, with the exception of
those tied to the enactment of an additional revenue source, to the growth in base revenues, plus savings from
reform of the state’s five pension systems, Medicaid, employee group health insurance, and streamlining
government operations. General fund revenues from state sources are projected to increase in fiscal year 2006
by $474 million, or 2.2 percent over fiscal year 2005.
Proposed Fiscal Year 2006 General Funds Budget for Higher Education Operations and Grants
The Governor’s fiscal year 2006 budget includes $2.2 billion in state general funds support for higher education
operations and grants, an increase of $52.3 million, or 2.4 percent over fiscal year 2005 levels. When excluding
the State Universities Retirement System, the Governor’s budget decreases general funds support for higher
education by $4.9 million, or 0.2 percent. In most all other respects, the Governor’s recommended budget for
higher education simply mirrors last year’s budget. Tables 1 and 2 summarize these recommendations by
sector and university, and Table 3 provides a comparison between the Board of Higher Education’s fiscal year
2006 general funds budget recommendations and the Governor’s fiscal year 2006 general funds budget for
higher education operations and grants. Highlights from the Governor’s budget include the following:
§ Public Universities: The Governor’s budget eliminates IBHE recommended funding for salary and
Medicare increases and holds universities at the fiscal year 2005 appropriations level. A total of
$1,000,000 is added for the continuation of the Complete Help and Assistance Necessary for a College
Education Project (Project CHANCE) at the University of Illinois at Chicago, first funded in fiscal year
2005.
§ Community Colleges: Funding for most existing community college grant programs remains at fiscal
year 2005 levels in the Governor’s fiscal year 2006 budget. New funds to support the Disadvantaged
Student Success Grant Program, requested by the Illinois Community College Board (ICCB) and
included in the IBHE budget recommendations, are not included in the Governor’s budget, nor are
increases for adult education and postsecondary career and technical education programs administered
by the ICCB. These programs remain at fiscal year 2005 appropriated levels.
§ Illinois Student Assistance Commission: The Governor’s fiscal year 2006 budget reduces the general
funds appropriations for the Illinois Student Assistance Commission (ISAC) by $4.55 million below
fiscal year 2005. This reduction is the result of a shift of 100 percent of ISAC’s administrative costs
from state general funds to federal student loan funds. The shift is $2.55 million more than