The fiscal year 2006 budget recommendations for public universities include a general
funds increase of $14.7 million, or 1.1 percent, over fiscal year 2005 general funds
appropriations. All funds recommendations (appropriated and non-appropriated) are $4.97
billion, a $147.0 million, or 3.0 percent, increase over fiscal year 2005 levels. Information
concerning the budget recommendations for public universities is provided on Tables 5 through
11. Detailed tables presenting fiscal year 2006 public university budget recommendations by
specific line-item object of expenditure and source of funds are included in Appendix A, with
specific program recommendations for each institution included in Appendix B.
The budget recommendations provide funds to support a 1.5 percent average increase in
faculty and staff personal services costs (on a 95 percent base), as well as associated Medicare
costs. Of note in these recommendations is recognition of institutional efforts to minimize
operating costs and tuition increases in recent years in determining the state general funds
required for the recommended personal services increase. In developing personal services cost
increase recommendations for public universities, the Board has typically required public
universities to bear some portion of the total incremental cost through institutional income funds
(i.e., tuition revenues), with the balance being made up by state general funds. All other things
being equal, a lower assessment on institutional income fund resources results in a
proportionately higher rate of state general funds subsidy to cover the total personal services cost
increase. As part of the fiscal year 2006 budget recommendations, public universities with a
lower average annual change in total state general fund and income fund support per student
between fiscal years 2002 through 2005 are assessed at a lower rate on their income funds (0.5
percent or 1.0 percent, as opposed to the full 1.5 percent), resulting in proportionately more state
general funds being directed to those institutions for the recommended personal services increase.
Fiscal accountability is enhanced through the presentation of public universities budget
information by line item object of expenditure for all funds in keeping with the intent of Public
Act 93-0229, enacted in 2003 (see Appendix A for detail).
The fiscal year 2006 recommendations for community colleges include a general funds
increase of $8.6 million, or 2.9 percent, over fiscal year 2005 general funds appropriations. All
funds recommendations (appropriated and non-appropriated) are $2.11 billion, a $95.3 million, or
4.7 percent, increase over fiscal year 2005 levels. Fiscal year 2006 recommendations for
community colleges are presented on Table 12. Total grants to community college districts are
presented on Table 13.
Equalization Formula Changes. In November 2004, the Illinois Community College
Board (ICCB) adopted recommendations proposed by the system’s Finance Advisory Committee
to implement changes to the Equalization funding formula. These recommendations were
designed to address the negative impact of the Property Tax Extension Limitation (PTEL) Law on
equalization districts. A summary of the five recommendations developed by the Finance
Advisory Committee is listed below:
The current Equalization formula should not be changed.
The concept of equalization should be enhanced by adding a new funding
component in fiscal year 2006 (Property Tax Extension, or PTE). A college
Click tabs to swap between content that is broken into logical sections.