101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0080

 

Introduced 1/23/2019, by Sen. Dan McConchie

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 20/50-10  was 15 ILCS 20/38.1
110 ILCS 205/3.5 new
110 ILCS 205/7  from Ch. 144, par. 187
110 ILCS 205/8  from Ch. 144, par. 188
110 ILCS 205/9.39 new

    Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides that, beginning with the fiscal year 2021 budget, the budget submitted by the Governor shall include one or more line items appropriating moneys to a Board of Regents. Provides that all appropriations for public universities shall be made to the Board of Regents. Amends the Board of Higher Education Act. Creates the Board of Regents to allocate funds to public universities based on a funding formula recommended by the Board of Higher Education. Provides for the membership of the Board. Provides that the boards of trustees of public universities shall submit to the Board of Regents no later than the 15th day of November of each year their budget proposals for the operation and capital needs of the institutions under their governance or supervision for the ensuing fiscal year. Provides that the Board of Higher Education may require the elimination of any program of instruction, research, or public service at a public university that exhibits a trend of low performance or low enrollment. Provides that the Board of Higher Education shall prepare a comprehensive statewide plan to increase efficiency and enrollment in public institutions of higher education. Specifies the plan requirements. Prohibits the Board of Regents from providing any funds to a public university that does not adhere to the plan.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Budget Law of the Civil Administrative
5Code of Illinois is amended by changing Section 50-10 as
6follows:
 
7    (15 ILCS 20/50-10)  (was 15 ILCS 20/38.1)
8    Sec. 50-10. Budget contents. The budget shall be submitted
9by the Governor with line item and program data. The budget
10shall also contain performance data presenting an estimate for
11the current fiscal year, projections for the budget year, and
12information for the 3 prior fiscal years comparing department
13objectives with actual accomplishments, formulated according
14to the various functions and activities, and, wherever the
15nature of the work admits, according to the work units, for
16which the respective departments, offices, and institutions of
17the State government (including the elective officers in the
18executive department and including the University of Illinois
19and the judicial department) are responsible.
20    For the fiscal year beginning July 1, 1992 and for each
21fiscal year thereafter, the budget shall include the
22performance measures of each department's accountability
23report.

 

 

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1    For the fiscal year beginning July 1, 1997 and for each
2fiscal year thereafter, the budget shall include one or more
3line items appropriating moneys to the Department of Human
4Services to fund participation in the Home-Based Support
5Services Program for Adults with Mental Disabilities under the
6Developmental Disability and Mental Disability Services Act by
7persons described in Section 2-17 of that Act.
8    For the fiscal year beginning July 1, 2019, and for each
9fiscal year thereafter, the budget shall include a separate
10line item request appropriating moneys to each State agency
11for: (1) estimated costs for each fund under the State Prompt
12Payment Act; and (2) estimated costs for each fund under
13Sections 368a and 370a of the Illinois Insurance Code.
14    The budget shall contain a capital development section in
15which the Governor will present (1) information on the capital
16projects and capital programs for which appropriations are
17requested, (2) the capital spending plans, which shall document
18the first and subsequent years cash requirements by fund for
19the proposed bonded program, and (3) a statement that shall
20identify by year the principal and interest costs until
21retirement of the State's general obligation debt. In addition,
22the principal and interest costs of the budget year program
23shall be presented separately, to indicate the marginal cost of
24principal and interest payments necessary to retire the
25additional bonds needed to finance the budget year's capital
26program. In 2004 only, the capital development section of the

 

 

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1State budget shall be submitted by the Governor not later than
2the fourth Tuesday of March (March 23, 2004).
3    The budget shall contain a section indicating whether there
4is a projected budget surplus or a projected budget deficit for
5general funds in the current fiscal year, or whether the
6current fiscal year's general funds budget is projected to be
7balanced, based on estimates prepared by the Governor's Office
8of Management and Budget using actual figures available on the
9date the budget is submitted. That section shall present this
10information in both a numerical table format and by way of a
11narrative description, and shall include information for the
12proposed upcoming fiscal year, the current fiscal year, and the
132 years prior to the current fiscal year. These estimates must
14specifically and separately identify any non-recurring
15revenues, including, but not limited to, borrowed money, money
16derived by borrowing or transferring from other funds, or any
17non-operating financial source. None of these specifically and
18separately identified non-recurring revenues may include any
19revenue that cannot be realized without a change to law.  The
20table shall show accounts payable at the end of each fiscal
21year in a manner that specifically and separately identifies
22any general funds liabilities accrued during the current and
23prior fiscal years that may be paid from future fiscal years'
24appropriations, including, but not limited to, costs that may
25be paid beyond the end of the lapse period as set forth in
26Section 25 of the State Finance Act and costs incurred by the

 

 

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1Department on Aging. The section shall also include an estimate
2of individual and corporate income tax overpayments that will
3not be refunded before the close of the fiscal year.
4    For the budget year, the current year, and 3 prior fiscal
5years, the Governor shall also include in the budget estimates
6of or actual values for the assets and liabilities for General
7Assembly Retirement System, State Employees' Retirement System
8of Illinois, State Universities Retirement System, Teachers'
9Retirement System of the State of Illinois, and Judges
10Retirement System of Illinois.
11    The budget submitted by the Governor shall contain, in
12addition, in a separate book, a tabulation of all position and
13employment titles in each such department, office, and
14institution, the number of each, and the salaries for each,
15formulated according to divisions, bureaus, sections, offices,
16departments, boards, and similar subdivisions, which shall
17correspond as nearly as practicable to the functions and
18activities for which the department, office, or institution is
19responsible.
20    Together with the budget, the Governor shall transmit the
21estimates of receipts and expenditures, as received by the
22Director of the Governor's Office of Management and Budget, of
23the elective officers in the executive and judicial departments
24and of the University of Illinois.
25    An applicable appropriations committee of each chamber of
26the General Assembly, for fiscal year 2012 and thereafter, must

 

 

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1review individual line item appropriations and the total budget
2for each State agency, as defined in the Illinois State
3Auditing Act.
4    Beginning with the fiscal year 2021 budget, the budget
5submitted by the Governor shall include one or more line items
6appropriating moneys to the Board of Regents, in accordance
7with the recommendations provided to the Governor by the Board
8of Higher Education under Section 8 of the Board of Higher
9Education Act. Beginning with fiscal year 2021, no
10appropriation for higher education or higher education-related
11purposes may be made to any public university. All
12appropriations for public universities shall be made to the
13Board of Regents beginning with fiscal year 2021.
14(Source: P.A. 99-143, eff. 7-27-15; 100-1064, eff. 8-24-18.)
 
15    Section 10. The Board of Higher Education Act is amended by
16changing Sections 7 and 8 and by adding Sections 3.5 and 9.39
17as follows:
 
18    (110 ILCS 205/3.5 new)
19    Sec. 3.5. Board of Regents. There is created a Board of
20Regents to allocate funds to public universities from
21appropriations made to the Board of Regents, based on a funding
22formula recommended by the Board under subsection (a) of
23Section 9.39 of this Act. The Board of Regents shall consist of
247 members of the public appointed by the Governor, with the

 

 

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1advice and consent of the Senate. No more than 4 members may be
2affiliated with the same political party. Members of the Board
3of Regents shall serve at the pleasure of the Governor and
4without compensation, but shall be reimbursed for their
5reasonable and necessary expenses from funds appropriated for
6that purpose. The Board shall provide administrative and other
7support to the Board of Regents. The Board of Regents shall
8meet initially at the call of the Governor, and 4 members shall
9constitute a quorum.
 
10    (110 ILCS 205/7)  (from Ch. 144, par. 187)
11    Sec. 7. The Board of Trustees of the University of
12Illinois, the Board of Trustees of Southern Illinois
13University, the Board of Trustees of Chicago State University,
14the Board of Trustees of Eastern Illinois University, the Board
15of Trustees of Governors State University, the Board of
16Trustees of Illinois State University, the Board of Trustees of
17Northeastern Illinois University, the Board of Trustees of
18Northern Illinois University, the Board of Trustees of Western
19Illinois University, the Illinois Community College Board and
20the campuses under their governance or supervision shall not
21hereafter undertake the establishment of any new unit of
22instruction, research, or public service without the approval
23of the Board. The term "new unit of instruction, research, or
24public service" includes the establishment of a college,
25school, division, institute, department, or other unit in any

 

 

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1field of instruction, research, or public service not
2theretofore included in the program of the institution, and
3includes the establishment of any new branch or campus. The
4term does not include reasonable and moderate extensions of
5existing curricula, research, or public service programs which
6have a direct relationship to existing programs; and the Board
7may, under its rulemaking rule making power, define the
8character of such reasonable and moderate extensions.
9    Such governing boards shall submit to the Board all
10proposals for a new unit of instruction, research, or public
11service. The Board may approve or disapprove the proposal in
12whole or in part or approve modifications thereof whenever in
13its judgment such action is consistent with the objectives of
14an existing or proposed master plan of higher education.
15    The Board of Higher Education is authorized to review
16periodically all existing programs of instruction, research,
17and public service at the State universities and colleges and
18to advise the appropriate board of control if the contribution
19of each program is not educationally and economically
20justified. Each State university shall report annually to the
21Board on programs of instruction, research, or public service
22that have been terminated, dissolved, reduced, or consolidated
23by the university. Each State university shall also report to
24the Board all programs of instruction, research, and public
25service that exhibit a trend of low performance in enrollments,
26degree completions, and high expense per degree. The Board may

 

 

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1require the elimination of any program of instruction,
2research, or public service at a State university that exhibits
3a trend of low performance or low enrollment. The Board shall
4compile an annual report that shall contain information on new
5programs created, existing programs that have been closed,
6eliminated, or consolidated, and programs that exhibit low
7performance or productivity. The report must be submitted to
8the General Assembly. The Board shall have the authority to
9define relevant terms and timelines by rule with respect to
10this reporting.
11(Source: P.A. 97-610, eff. 1-1-12; revised 10-9-18.)
 
12    (110 ILCS 205/8)  (from Ch. 144, par. 188)
13    Sec. 8. The Board of Trustees of the University of
14Illinois, the Board of Trustees of Southern Illinois
15University, the Board of Trustees of Chicago State University,
16the Board of Trustees of Eastern Illinois University, the Board
17of Trustees of Governors State University, the Board of
18Trustees of Illinois State University, the Board of Trustees of
19Northeastern Illinois University, the Board of Trustees of
20Northern Illinois University, the Board of Trustees of Western
21Illinois University, and the Illinois Community College Board
22shall submit to the Board not later than the 15th day of
23November of each year its budget proposals for the operation
24and capital needs of the institutions under its governance or
25supervision for the ensuing fiscal year. Each budget proposal

 

 

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1shall conform to the procedures developed by the Board in the
2design of an information system for State universities and
3colleges.
4    In order to maintain a cohesive system of higher education,
5the Board and its staff shall communicate on a regular basis
6with all public university presidents. They shall meet at least
7semiannually to achieve economies of scale where possible and
8provide the most innovative and efficient programs and
9services.
10    The Board, in the analysis of formulating the annual budget
11request, shall consider rates of tuition and fees and
12undergraduate tuition and fee waiver programs at the State
13universities and colleges. The Board shall also consider the
14current and projected utilization of the total physical plant
15of each campus of a university or college in approving the
16capital budget for any new building or facility.
17    The Board of Higher Education shall submit to the Governor,
18to the General Assembly, and to the appropriate budget agencies
19of the Governor and General Assembly its analysis and
20recommendations on such budget proposals.
21    The Board is directed to form a broad-based group of
22individuals representing the Office of the Governor, the
23General Assembly, public institutions of higher education,
24State agencies, business and industry, statewide organizations
25representing faculty and staff, and others as the Board shall
26deem appropriate to devise a system for allocating State

 

 

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1resources to public institutions of higher education based upon
2performance in achieving State goals related to student success
3and certificate and degree completion.
4    Beginning in Fiscal Year 2013, the Board of Higher
5Education budget recommendations to the Governor and the
6General Assembly shall include allocations to public
7institutions of higher education based upon performance
8metrics designed to promote and measure student success in
9degree and certificate completion. Public university metrics
10must be adopted by the Board by rule, and public community
11college metrics must be adopted by the Illinois Community
12College Board by rule. These metrics must be developed and
13promulgated in accordance with the following principles:
14        (1) The metrics must be developed in consultation with
15    public institutions of higher education, as well as other
16    State educational agencies and other higher education
17    organizations, associations, interests, and stakeholders
18    as deemed appropriate by the Board.
19        (2) The metrics shall include provisions for
20    recognizing the demands on and rewarding the performance of
21    institutions in advancing the success of students who are
22    academically or financially at risk, including
23    first-generation students, low-income students, and
24    students traditionally underrepresented in higher
25    education, as specified in Section 9.16 of this Act.
26        (3) The metrics shall recognize and account for the

 

 

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1    differentiated missions of institutions and sectors of
2    higher education.
3        (4) The metrics shall focus on the fundamental goal of
4    increasing completion of college courses, certificates,
5    and degrees. Performance metrics shall recognize the
6    unique and broad mission of public community colleges
7    through consideration of additional factors including, but
8    not limited to, enrollment, progress through key academic
9    milestones, transfer to a baccalaureate institution, and
10    degree completion.
11        (5) The metrics must be designed to maintain the
12    quality of degrees, certificates, courses, and programs.
13In devising performance metrics, the Board may be guided by the
14report of the Higher Education Finance Study Commission.
15    Beginning with budget proposals for Fiscal Year 2021, the
16Board of Trustees of the University of Illinois, the Board of
17Trustees of Southern Illinois University, the Board of Trustees
18of Chicago State University, the Board of Trustees of Eastern
19Illinois University, the Board of Trustees of Governors State
20University, the Board of Trustees of Illinois State University,
21the Board of Trustees of Northeastern Illinois University, the
22Board of Trustees of Northern Illinois University, and the
23Board of Trustees of Western Illinois University shall submit
24to the Board of Regents no later than the 15th day of November
25of each year their budget proposals for the operation and
26capital needs of the institutions under their governance or

 

 

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1supervision for the ensuing fiscal year. Each budget proposal
2shall conform to the requirements of this Section.
3    Budget proposals and recommendations for Fiscal Year 2021
4and thereafter shall conform to a funding formula recommended
5by the Board under subsection (a) of Section 9.39 of this Act.
6    Each State university must submit its plan for capital
7improvements of non-instructional facilities to the Board for
8approval before final commitments are made if the total cost of
9the project as approved by the institution's board of control
10is in excess of $2 million. Non-instructional uses shall
11include but not be limited to dormitories, union buildings,
12field houses, stadium, other recreational facilities and
13parking lots. The Board shall determine whether or not any
14project submitted for approval is consistent with the master
15plan for higher education and with instructional buildings that
16are provided for therein. If the project is found by a majority
17of the Board not to be consistent, such capital improvement
18shall not be constructed.
19(Source: P.A. 99-655, eff. 7-28-16.)
 
20    (110 ILCS 205/9.39 new)
21    Sec. 9.39. State efficiency and enrollment plan.
22    (a) The Board shall prepare a comprehensive statewide plan
23to increase efficiency and enrollment in public institutions of
24higher education. The plan shall include, but is not limited
25to:

 

 

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1        (1) support for students in grade 12 who wish to file a
2    Free Application for Federal Student Aid;
3        (2) an opportunity for a student to participate in
4    early enrollment at a public institution of higher
5    education;
6        (3) establishing an awareness program in an effort to
7    market public institutions of higher education to
8    non-traditional students;
9        (4) creating a single application for admission, with a
10    one-time application fee, to be distributed by every public
11    university;
12        (5) identifying programs that exhibit a trend of low
13    performance or enrollment under Section 7 of this Act;
14        (6) ensuring public universities work collectively as
15    partners and with other entities, including those in the
16    private sector, to share resources and deliver programs to
17    enhance learning opportunities for State residents;
18        (7) ensuring that academic credits for equivalent
19    courses are appropriately recognized by every public
20    institution of higher education;
21        (8) enhancing and expanding partnerships with public
22    universities and high schools in this State to offer dual
23    credit and dual enrollment opportunities;
24        (9) ensuring academic credits for equivalent courses
25    earned at community colleges are recognized at every public
26    university;

 

 

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1        (10) developing merit-based financial aid programs to
2    help retain students at public institutions of higher
3    education;
4        (11) recommending a funding formula to the Board of
5    Regents for public universities based upon policy goals
6    that include degree completion and placement;
7        (12) collaborating with government and community
8    organizations to identify pressing and emerging societal
9    needs that can be addressed by public institutions of
10    higher education and devising effective ways to address
11    those needs; and
12        (13) exploring loan forgiveness programs for graduates
13    who work in high-need public sectors.
14    (b) The Board shall submit the plan under this Section to
15the Board of Regents, which shall approve the plan and may make
16any necessary changes. After approval by the Board of Regents,
17the Board shall submit the plan to every public institution of
18higher education and may audit public institutions of higher
19education for compliance with this plan.
20    (c) Notwithstanding the funding formula recommended by the
21Board under subsection (a) of this Section, the Board of
22Regents shall not allocate any funds to a public university
23that does not adhere to the plan under this Section.