Budget Management at UIC

Frank GoldbergVice Provost for Resource Planning and Management

Todd Van Neck

Director of Budget and Program Analysis

AP Advisory Committee Budget ForumDecember 2, 2010

State Tax AppropriationChanges by Agency

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%Human Services

Elem/Sec

Higher Educ

All Other

State Avg

66.6%

39.8%

-24.9%

-4.0%

61.1%

In Constant 2009 Dollars (CPI)

FY02 to FY10 exclude $45 million in payments to CMS from Universities for Health Insurance

Health Insurance moved from CMS (included in all other) to Human Services in FY06 and adjusted back to FY04

Source: Illinois State Budgets.

-40%

0%

40%

80%

120%

160%

200%

240%

280%

320%

360%

ISAC

SURS

Community Colleges

Universities -23.1%

-19.5%

25.0%

334.3%

In Constant 2009 Dollars (CPI)

Due to the changes in SURS funding from General Funds to State Pension Fund (SPF) in FY05, SURS funding includes the SPF in FY05-FY09 and Pension Obligation Bonds in FY10. FY02 to FY10 exclude $45 million payment to CMS from Universities for Health Insurance. FY10 ISAC includes supplemental appropriation.

Source: IBHE FY10 Budget as signed by the Governor. Inflation assumptions 2.5% for FY10.

Cumulative Change in State Tax Appropriation by Higher Education

Sector

State Support Per Tuition DollarFY 1970 to FY 2011

$0

$2

$4

$6

$8

$10

$12

$14

1970 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011

12.8 to 1

8.6 to 1

4.5 to 1

2.9 to 1

1.5 to 1

FY02-11 excludes health insurance re-direction to DHFS.FY09 and FY11 exclude survey transfer.

1.4 to 1 1.3 to 1 1.2 to 1 1.1 to 1 0.8 to 11 to 1

Page 5

FY 2002

Revenue

FY 2010

Revenue

UIC Unrestricted Funds Budget

$498.4M

Income Fund $93.9M

Royalties $3.5M

ICR $47.9M

Admin Allowance $9.4M

GRF $343.7M

$611.8M

ICR $60.4M

Admin Allowance $20.1M

Royalties $6.5M

Income Fund $235.8M

GRF $285.7M

FY 2002

Revenue

FY 2010

Revenue

UIC Unrestricted Funds Budget(Constant Dollars)

Adjusted for inflation, UIC’s unrestricted budget decreased as compared to FY2002

$498.4M

Income Fund $93.9M

Royalties $3.5M

ICR $47.9M

Admin Allowance $9.4M

GRF $343.7M

$461.8M

ICR $45.6M

Admin Allowance $15.2MRoyalties $4.9M

Income Fund $177.9M

GRF $215.6M

Administration & Academic Support Medicine

$159M $422M

Eastside Colleges$220M

Other Health Colleges$213M

Auxiliaries, Athletics & Financial Aid

$1,648M

$128M

$506M

Hospital

- Grants/Contracts, Gifts & Institutional ($370M)

Source: FY 2010 Budget Summary for Operations, excluding Campus General, Utilities, VC Health Afrs and Division of Spec Care for Children.

- Self-Supporting ($842M)

- State Appropriation ($197M)

- Income Fund ($239M)

UIC's Budget

Patient Care & MD Training

Basic & Clinical Research

Practice & Self-Supporting Funds

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In nominal dollars, funding for colleges has increased, while funding for support units has decreased

Adjusted for inflation, college and support unit budgets remain below their FY 2002 levels

State Appropriation RevenueUnrestricted Funds

Billings and Collections through November 30, 2010

CollectedBilledAppropriation Rescission FY 2010

In Millions

$130

$395

$724

$18.6$743

$366

$697.5

$45.5$743

2009 2010

FY09 appropriation includes $18.6 million rescission. FY08-FY10 through Nov 30 th.FY10 appropriation includes $45.5 million of federal stimulus funding.

2008

$171

$376

$722

2011

$697

$722

$697

$205 $265 $379.4

$376.9$359

$7 $6.6

Stimulus

$4.1

The State’s FY 2011 Budget Hole(in Millions of Dollars)

Source Amount

Loss of one-time revenues used for FY 2010 $5,254

Pension note proceeds $3,466

Federal stimulus $1,436

Fund sweeps $352

1st year repay of pension notes $800

Estimated pension increase $531

Carry-forward of FY 2010 budget gap $5,670

TOTAL $12,255

Source: Commission on Government Forecasting & Accountability

Potential Solutions to the State Budget Hole(in Millions of Dollars)

Proposals Impact

Various budget cuts (on $29.6B base; roll back spending to FY 2007 levels)

$2,100

Increase employee contribution to retirement and health insurance plans

$400

Increase personal income tax rates (from 3% to 5%) $5,700

Increase corporate income tax rates (from 4.8% to 6.4%) $300

Tax retirement income (repeal exemption) $1,600

Various other tax adjustments (rate increases, repeal credits & exemptions)

$500

Defer to FY 2012/borrow/hope for economic recovery or additional Federal stimulus/additional drastic budget cuts

$2,100

Source: Civic Federation report, “A Fiscal Rehabilitation Plan for the State of Illinois”