fiscal year 2009 budget recommendations

FISCAL YEAR 2009 BUDGET RECOMMENDATIONSPresented to the Illinois Board

of Higher Education

February 5, 2008

FY09 Investment Budget

FY09 operations and grants budget recommendations consist of a set of five investment levels

Different investment levels demonstrate how the State can achieve its higher education goals at different levels of state funding

Investment budget recognizes revenue uncertainty and other State priorities

2

FY09 Budget Priorities3

FY09 Operations & Grants4

FY09 Operations & Grants5

FY09 Operations & Grants6

FY09 Operations & Grants7

FY09 Step One

Funds higher education at the current base investment level of $2.19 billion

State is also contributing $618.3 million in FY08 for pensions and group insurance

8

FY09 Step Two

1.0 % increase -- $22.4 m Faculty and Staff Salaries Base Operating & Equalization College and Career Readiness Adult Ed MAP Nursing CAS, Data

9

FY09 Step Three

2.7% Increase -- $59.7 m Faculty and Staff Salaries Base Operating &

Equalization College and Career Readiness Adult Ed MAP Nursing Matching Grants CAS, Data

10

FY09 Step Four

6.4% Increase -- $139.3 m Faculty and Staff Salaries Utility Costs Nursing Programs Base Operating & Equalization Student Success Grants College and Career Readiness Adult Ed MAP Veteran Grants, ING Grants Nursing Matching Grants DFI CAS, Data, P-20 Council Baccalaureate Completion Grants Campus Security Initiatives IMSA Deferred Maintenance

11

FY09 Step Five12

9.2% Increase -- $201. m Faculty and Staff Salaries Utility Costs Nursing Programs Base Operating &

Equalization Student Success Grants College and Career

Readiness Adult Ed MAP Veteran Grants, ING Grants Nursing Matching Grants DFI CAS, Data, P-20 Council Baccalaureate Completion

Grants Campus Security Initiatives IMSA Deferred Maintenance

FY09 Capital Improvements Overview

13

$805.8 Million Recommended Requests Total $2.0 billion

Capital Renewal: $60.0 million Highest priority

Regular Capital: $523.0 million 33 projects; 30 have appeared in previous IBHE

recommendations

$222.9 million Opportunity Returns projects 6 projects with some funding already released

Continued Support for CC Enhanced Construction

FY09 Recommendations Summary

14

Focus on the highest priorities articulated by the Board and higher education community

Investment levels Sensitive to uncertain state fiscal

environment