FY 03 Higher Ed Cuts by University
dollars in millions
(compared to FY 02 full appropriations)

Institution Gen Assembly Health Ins Gov Veto Total
CSU
$1.3 million
$1.0 million
$1.2 million
$3.5 million
EIU
$1.8 million
$1.7 million
$1.7 million
$5.2 million
GSU
$0.9 million
$0.7 million
$0.9 million
$2.5 million
ISU
$3.1million
$3.1 million
$3.0 million
$9.2 million
NEIU
$1.6 million
$1.1 million
$1.4 million
$4.1 million
NIU
$4.0 million
$3.5 million
$3.9 million
$11.4 million
WIU
$2.1 million
$1.9 million
$2.0 million
$6.0 million
SIU
$8.1 million
$7.1 million
$8.2 million
$23.4 million
U of I
$25.5 million
$24.9 million
$26.3 million
$76.7 million
   
   
TOTAL
$48.4 million
$45.0 million
$48.6 million
$142.0 million

Legislative report

Governor axes $211 million more from schools
K-12, Higher Ed Lose $100 million more in budget vetoes

By Catherine Shannon, IFT coordinator of legislative activity for higher educationl.
Shannon can be reached in Springfield at 217-544-8562 or 800-752-2175 or

Overall Reductions from FY 02 to FY 03

General State Aid Ñ 4.4%
Categoricals - 3.5%
Bi-Lingual - 4.5%
Public Universities Ñ 9%

June 11, 2002 — Gov. George Ryan stripped another $211 million from education funding for FY 2003 in a veto message delivered Monday, June 10. The Governor proposed a $100 million cut from elementary and secondary education and $111 from higher education.

The new drop in school funding was contained in a veto list of 300 state budget items totaling $500 million that Ryan says is necessary to balance the stateÕs budget.

Gov. Ryan said the new round of cuts are critical as the state faces its worst fiscal crisis in over 50 years. The state is attempting to fill a $1.6 billion budget hole with a combination of funding shifts, new taxes on cigarettes and riverboat casinos, and spending cuts.

The General Assembly is meeting in Special Session this week to consider accepting or overriding the GovernorÕs vetoes. It takes a 3/5 vote to restore budget programs that were eliminated and a simple majority to restore funding that was reduced, but not eliminated. The Senate was scheduled to start considering action on each of the 300 veto items Tuesday morning. The House will only be allowed to consider overrides that are passed by the Senate.

Gov. Ryan has threatened to demand tax increases from the state House and Senate to offset any veto overrides that raise spending.

Higher Education

Gov. Ryan slashed an additional $111 million from the FY 2003 higher education budget that was adopted last week. State funding for public universities will be down $142 million or 9 percent from FY 02 appropriations when all cuts — including General Assembly action, the GovernorÕs Vetoes and the cost-shifting of employee health insurance — are added together.

In testimony before the Senate Appropriations Committee, IBHE Executive Director Daniel LaVista predicted the budget cuts would result in a combination of faculty and staff layoffs, larger class sizes, fewer course offerings and further tuition hikes.

The new round of cuts include:

• $50 million from public universities
• $38 million from student financial aid Ñ including elimination of MAP awards for 5th year students
• $5.3 million in HECA Grants Ñ elimination of Teaching, Learning and Quality and Workforce and Economic Development initiatives
• $14.8 million in community college funding
• $780,000 in financial assistance grants to private institutions.

Elementary & Secondary
Guv Cuts 1% more - Categoricals Funded at 90%

In last weekÕs adopted budget, local schools were set to receive $110 million less in general state aid under the formula because the state held the foundation level at the same figure, $4,560. Rising local property values and subsequent higher property tax income were to offset lower state aid.

With the GovernorÕs veto Monday, an additional $30 million, or 1%, has been cut from state funding support via general state aid (GSA); hold harmless (HH) and average daily attendance block grants (ADA).

Also in last weekÕs budget, categorical funding was held at the same dollar level from this year to next year, or 93.5% of projected costs for FY 03. The vetoes drop categoricals by another 3.5%, or $41 million, which means the categorical mandates will be funded at 90% for next year.

The Governor eliminated a series of programs like Academic Difficulty, the Academic Early Warning List, Scientific Literacy and Reading Improvement Statewide. His vetoes cut funding for nearly two dozen other programs. Bilingual education was reduced by $2.8 million, or 4.5%. Ê