May 9, 2018 Meeting
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Last Updated: Jan 23, 2024, 01:17 PM
Meeting summaries
Meeting Summary: July 25, 2018
Two main topics were discussed during the meeting: FY19 budget development and planning and tuition and fees.
FY19 Budget Development and Planning - Preparation of the FY19 budget was described by Judy Marshall, chair. The relationship between state support and the university’s tuition rate was discussed. The Illinois Board of Higher Education (IBHE) has developed a document that outlines the shift in state appropriated funding, which accounted for 72% of all Illinois public university revenue in FY02 and 49% by FY10. FY02 was the high point of appropriated funding. SIU Carbondale received 67% of its state budget from appropriations that year and 33% from tuition revenue. The IBHE report notes that “tuition and fees at Illinois public universities have increased as state revenues have decreased for operations.”
A summary of SIU Carbondale tuition revenue and state appropriations was distributed and discussed. In FY02, undergraduate tuition was $103.40 per credit hour, compared to $321.25 in FY19. The relationship between tuition revenue and state appropriation revenue was examined.
The FY19 state budget includes a 2% increase for higher education. This would result in an additional $1.8 million for the Carbondale campus. Final numbers have not yet been received from the SIU System office.
The Illinois Board of Higher Education has formed a working group to examine the funding formula for universities. The chancellor will represent SIU Carbondale, and the first meeting is scheduled for mid-August. The work of the group is to be completed by December for inclusion in IBHE’s FY20 budget recommendation. Performance funding will also be reviewed by the working group. Performance funding metrics are currently applied to one-half of one percent of the appropriation. The original goal was to expand that over time to five percent of the appropriation.
Two variables to keep in mind for future budget development are the potential reallocation between Illinois publics and the potential reallocation between the SIU campuses. Both allocations have been made on a historical basis for many years.
The impact of expected enrollment has been factored in to the development of the FY19 budget.
For the first time since FY10, no permanent budget cuts are anticipated in state budgets. Campus units are currently entering OTS budgets. The FY19 budget lines will be included on July 31 fiscal officer reports. Local budgets have already been submitted by departments. Units primarily supported by student fees are showing the impact of lower enrollment and using cash reserves to support FY19 expenses.
The unrestricted cash balance for the campus is improved. As long as School of Medicine cash is included SIU Carbondale will not have the need to borrow.
The budget will be taken to the Board of Trustees for approval at the September 13 meeting.
A Board of Trustees meeting is expected to be scheduled for August 14. Either at that meeting or the September meeting, SIU Carbondale will request a 1% general salary increase for non-represented employees. The increase will be retroactive to July 1, 2018.
The central salary pool that was started in FY18 will continue in FY19 with a few changes. A pool has been created for the provost to manage faculty and academic administration hiring. Those positions will no longer require chancellor approval. Also, positions that are funded 100% from local funds may be approved at the vice chancellor level.
Any budget impact of academic reorganization will be handled as the changes occur. The beginning budgets for FY19 follow the existing organizational structure and will be changed going forward as needed.
Tuition and fees – Tuition and fee proposals for the next academic year are typically presented to the Board of Trustees in December. At this time, it is expected there will be no tuition increase requested for FY20. A comparison of SIU Carbondale’s tuition and fees with the other four Carnegie “highest” and “higher” research institutions in the state of Illinois was distributed). It was noted that there are 115 institutions with “highest” research activity and 107 institutions with “higher” activity in the United States, making SIU Carbondale one of only 222 institutions with these rankings. Regional institutions such as SEMO, Murray State, and SIUE are not the group SIUC uses for comparison as their cost structures are significantly different. Compared to the other Illinois research institutions, SIUC tuition is near the bottom but fees are the highest. It was noted by the committee that SIU Carbondale’s fees harm competiveness in the recruitment of graduate students and the payment of fees consumes a large portion of graduate assistantship funding. A list of the current fee amounts was distributed.
The possibility of expanding differential tuition beyond the College of Business was discussed. An article about differential tuition at the University of Illinois was distributed. Differential tuition across the campus would likely result in higher tuition for some programs and lower tuition for others. It would potentially replace over 600 individual course fees that are current assessed. It is a topic for additional consideration but won’t be implemented for next year.
Other items – Capital budgeting was briefly discussed; Brad Dillard provided an update on the status of the Communications building and greenhouse projects. It is expected that the state will release some capital funding in fall 2018 which may allow these projects to move forward.
The next meeting will be held in September.