Pursuant to Public Act 97-320, the Illinois Board of Higher Education’s annual budget recommendations for public universities must allocate some funding
based on performance factors. The law includes factors that should be included. When the Board approved the existing funding formula it was agreed it
should be revisited in five years. Therefore, a process has been initiated to review the formula in preparation for the Board’s FY 2020 budget
recommendations.
In addition, during the most recent legislative session it was noted that community colleges have an equalization grant process and a revised funding
formula process was recently passed for elementary and secondary education. Questions were raised about the distribution of funds between public
universities. There was some redistribution of funds to attempt to equalize student subsidies across the system through FY 2002 but never a systematic
funding formula. There has been no systematic redistribution of funds since FY 2002. The Board pledged that it would include consideration of an
overarching funding formula as part of its review of the performance funding formula review.
A workgroup has been organized to review the current funding formula and make recommendations related to performance as well as for an overall performance
formula. The tentative schedule for this workgroup is attached. In addition, the Board is soliciting public input. Written input can be submitted
until 5:00PM, September 17, 2018 at fiscalreports@ibhe.org. In addition, we offer the option to present
oral testimony on September 4 from 9:00AM to 1:00PM at the Offices of the Illinois Board of Higher Education, 1 N. Old State Capitol Plaza, Suite 333,
Springfield and on September 11 from 9:00AM to 1:00PM at Northeastern Illinois University, Alumni Hall, Student Union Building, 5500 N. St. Louis Avenue,
Chicago (Request to Speak at Hearing Form). Individuals and groups must register to testify
no later than 5:00PM August 22, 2018 on the attached form. Public testimony sessions will be canceled if nobody registers to provide oral testimony.
Written testimony will still be accepted through September 17.
Please submit comments and questions on this process to IBHE at fiscalreports@ibhe.org.
• Charge to the Group (pdf)
• Performance Funding Overview Presentation (pdf)
• Funding Model Example Handout (pdf)
• Performance Funding Formula Breakdown (pdf)
• University Funding Formula Consideration (pdf)
• Preliminary Review of Other State Formulas (pdf)
• Literature Review & Impressions (pdf)
• Funding Formula Presentation (pdf)
• IBHE Univ Funding Formula Development Update (pdf)
• Outcomes Based Review (pdf)
• University Performance Funding Law - Public Act 097 (pdf)
• Initial Review of State Funding Report (pdf)
• SRI Report: States' Methods of Funding Higher Education (pdf)
Request to Speak at Hearing Form
• Hearings are cancelled – Due to no requests to speak, the September 4 hearing is cancelled and September 11 will be a workgroup meeting at Northeastern Illinois University.