ANNUAL REPORT ON PUBLIC UNIVERSITY REVENUES AND EXPENDITURES: FISCAL YEAR 2008

Transcription

1 ANNUAL REPORT ON PUBLIC UNIVERSITY REVENUES AND EXPENDITURES: FISCAL YEAR 2008 Submitted by The Illinois Board of Higher Education To Governor Rod R. Blagojevich and The Illinois General Assembly November 12, 2008

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3 Table of Contents Highlights of the Annual Report on Public University Revenues and Expenditures: Fiscal Year 2008 Summary Tables Table 1: Total Revenue by Source, Public Universities Total, Fiscal Years 2007 and 2008 Table 2: Total Expenditures by Fund and Object, Public Universities Total, Fiscal Year 2008 Table 3: Total Expenditures by Object, Public Universities Total, Fiscal Years 2007 and 2008 Table 4: Total Expenditures by Function, Public Universities Total, Fiscal Years 2007 and 2008 Table 5: Total Revenue by Source, Adjusted for Inflation, Public Universities Total, Fiscal Years Table 6: Total Expenditures by Object, Adjusted for Inflation, Public Universities Total, Fiscal Years Table 7: Total Expenditures by Function, Adjusted for Inflation, Public Universities Total, Fiscal Years Figures Figure 1: Illinois Public Universities, Comparison of Sources of Revenues, Fiscal Years 2007 and 2008 Figure 2: Illinois Public Universities, Fiscal Year 2008 Sources of Revenue Figure 3: Illinois Public Universities, State Appropriated and Tuition Expenditures by Object, Fiscal Year 2008 Figure 4: Illinois Public Universities, Non-State Funds Expenditures by Object, Fiscal Year 2008 Figure 5: Fiscal Year 2008 Public Universities Expenditures by Revenue Source Figure 6: Illinois Public Universities Total Revenue, Fiscal Years

4 Figure 7: Illinois Public Universities, Comparison of Sources of Revenue, Adjusted for Inflation, Fiscal Years Figure 8: Illinois Public Universities, Comparison of Total Expenditures by Source of Funds, Adjusted for Inflation, Fiscal Years Figure 9: Illinois Public Universities, Comparison of Total Expenditures by Object, Adjusted for Inflation, Fiscal Years Figure 10: Illinois Public Universities, Comparison of Expenditures by Function, Adjusted for Inflation, Fiscal Years Figure 11: Illinois Public Universities, Comparison of Total Revenue and Expenditures, Adjusted for Inflation, Fiscal Years Detailed Appendices Appendix A: Total Revenues by Source in Fiscal Years 2007 and 2008, Illinois Public Universities Appendix B: Total Expenditures by Fund, Object, and Specific Fund Source in Fiscal Year 2008, Illinois Public Universities Appendix C: Total Expenditures by Object in Fiscal Years 2007 and 2008, Illinois Public Universities Appendix D: Total Expenditures by Function in Fiscal Years 2007 and 2008, Illinois Public Universities Appendix E: Definitions of Revenue and Expenditure Categories Used in the Resource Allocation and Management Program (RAMP) Information System

5 Highlights of Annual Report on Public University Revenues and Expenditures Fiscal Year 2008 Introduction Public Act requires that, within 120 days after the conclusion of each fiscal year, each State-supported institution of higher learning must provide, through the Illinois Board of Higher Education, a financial report to the Governor and General Assembly documenting the institution s revenues and expenditures of funds for that fiscal year ending June 30 for all funds. This report includes revenue and expenditure information for fiscal year 2008 (July 1, 2007 June 30, 2008). The report includes a brief narrative with several detailed data tables on public university revenues and expenditures attached as appendices. Source of Information for Report The primary source of information for this report is the Illinois Board of Higher Education s (IBHE) Resource Allocation and Management Program (RAMP) information system. Illinois public universities have reported a variety of expenditure, staffing, and student enrollment data to the IBHE through RAMP since the mid-1970s. Various refinements and enhancements to RAMP have been implemented over time, including the expansion of data collection to include public university revenues by source of funds beginning in fiscal year 2003 to respond fully to the reporting requirements of P.A Definitions of the revenue and expenditure categories used in RAMP are included in Appendix E at the end of this report. Summary of Findings In total, Illinois public universities reported revenues of $5.76 billion and expenditures of $5.63 billion for fiscal year Summary data on Illinois public university operating revenues and expenditures during fiscal year 2008 (with comparisons to fiscal year 2007 data) are presented in Tables 1 4: Table 1 provides data on total public university operating revenues by source of funds. 1 State appropriated funds represent the largest overall source of revenue for public universities at 23.6 percent, followed by university income funds (i.e., tuition revenue) at 20.1 percent (also see Figure 1). Overall, 49.7 percent of public university revenues are designated as unrestricted as to use (i.e., there is no stipulation as to how the funds must be spent also see Figure 2). State appropriations are the largest source of unrestricted revenue (47.6 percent), while governmental grants and contracts are the largest source of restricted revenue (28.6 percent). Table 2 provides data on total public university operating expenditures by object of expenditure and by specific source of funds. The largest overall object of expenditure-- $3.03 billion, or 53.8 percent of total expenditures--is for personal services. The largest percentage of expenditures--$2.52 billion, or 44.7 percent of total expenditures comes 1 Table 1 reflects operating revenue received by public universities during fiscal years 2007 and The data do not include beginning year fund balances that may also be available for expenditure during the fiscal year.

6 from state appropriated and university income funds. 2 Personal services costs account for approximately three-fourths of expenditures from state appropriated and university income funds, or $1.87 billion. Table 3 provides data on total public university operating expenditures by object of expenditure from state appropriated/university income funds (also see Figure 3) and other non-appropriated funds (also see Figure 4). Total expenditures from all fund sources grew from $5.37 billion to $5.63 billion between fiscal years 2007 and 2008, or 4.8 percent. Public university expenditures from state appropriated and university income funds increased by 5.6 percent between these two years, while expenditures from other non-appropriated funds grew by 4.2 percent. Table 4 provides data on total operating expenditures by functional category at Illinois public universities (also see Figure 5). The largest overall expenditure by function is for instructional programs, which represented 27.2 percent of expenditures from all fund sources in fiscal year 2008 (a slightly higher proportion than in fiscal year 2007) and 47.8 percent of expenditures from state appropriated and university income funds (a slightly lower proportion than in fiscal year 2007). Inflation-adjusted comparison data on Illinois public university operating revenues and expenditures between fiscal years 2003 and 2008 (also see figure 11) are presented in Tables 1 7: Table 5 provides inflation-adjusted data that compares operating revenues by source of funds for all Illinois public universities. While total revenue has grown 23.7 percent in real-dollars, when adjusted for inflation, total revenue growth is 6.9 percent (also see Figure 6). When adjusted for inflation, between fiscal years 2003 and 2008, state appropriated funds have declined $278.3 million, or 17.0 percent, and university income funds have increased $359.3 million, or 45.1 percent (also see Figure 7). Table 6 provides inflation-adjusted data comparing total public university operating expenditures by object of expenditure from fiscal year 2003 to fiscal year Between fiscal years 2003 and 2008 state appropriated and income fund expenditures have remained relatively stable with an increase of 3.0 percent after adjusting for inflation. Over that same time period, non-appropriated funds increased 12.0 percent (also see Figure 9). The largest overall object of expenditure from state appropriated and income funds is personal services, which increased 2.0 percent, after adjusting for inflation, from fiscal years 2003 to fiscal year When non-appropriated funds are included, personal services expenditures increased 6.6 percent. Aside from expenditures classified as other, the highest percentage increase in state and income fund expenditures is commodities, which increased 78.6 percent between fiscal years 2003 and 2008 after adjusting for inflation (also see Figure 9). Table 7 provides inflation-adjusted data on total operating expenditures by functional category at Illinois public universities between fiscal years 2003 and The largest overall expenditure by function is for instructional programs. When adjusted for 2 State appropriated and university income funds (i.e., tuition revenues) are combined for expenditure reporting purposes given that both fund sources are used to support the same types of expenditures at public universities.

7 inflation, total spending on instructional programs has increased $144.2 million, or 10.4 percent, since fiscal year 2003 (also see Figure 10). Between fiscal years 2003 and 2008, organized research, refunds/lapse, and CMS group insurance are the only functional areas that have seen a decline in total spending. During this same time period, O & M Physical Plant saw the largest increase in spending of $152.7 million, or 28.2 percent, after adjusting for inflation. Detailed operating revenue and expenditure data for all public universities (fiscal years 2007 and 2008) are included in Appendices A D.

8 Table 1 Total Revenue* by Source, Fiscal Years 2007 and 2008 TOTAL, PUBLIC UNIVERSITIES FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 1,335, % $ 1,360, % $ - % $ 1,360, % University Income Funds 1,058, ,156, ,156, Other Non-Appropriated Funds Governmental Gifts and Contracts 815, , , Private Gifts, Grants, and Contracts 281, , , Endowment Income 13, , , , Sales/Service Revenue - Auxiliary Enterprises 500, , , , Sales/Service Revenue - Educational Depts. 359, , , , Sales/Service Revenue - Hospitals 582, , , Indirect Cost Recovery Funds 175, , , , Other Miscellaneous Revenue 151, , , , Total $ 5,274, % $ 2,858, % $ 2,897, % $ 5,755, % 49.7 % 50.3 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

9 Table 2 Total Expenditures by Fund and Object, Fiscal Year 2008 TOTAL, PUBLIC UNIVERSITIES State Approp. Govt. Private Gifts Other and Univ. Grants & Grants & Endowment Sales/Service* Miscellaneous Object Income Fund Contracts Contracts Income Activities Revenue Total Personal Services $ 1,872,526.0 $ 319,541.5 $ 109,307.5 $ 2,471.5 $ 650,882.0 $ 74,949.2 $ 3,029, Contractual Services 276, , , , , , ,170, Travel 13, , , , , , Commodities 60, , , , , , Equipment 71, , , , , , Awards and Grants 65, , , , , , , Telecommunications Services 15, , , , , , Operation of Automotive Equipment 3, , , , , Electronic Data Processing Refunds (41.9) , Unexpended - Lapsed Funds Medicare 27, , , , , Permanent Improvements 26, , , , , , Contribution to CMS Health Insurance 42, , , , All Other ** 40, , , , , , Total $ 2,515,061.5 $ 820,519.5 $ 272,544.0 $ 16,133.3 $ 1,681,088.2 $ 327,358.7 $ 5,632, % 14.6 % 4.8 % 0.3 % 29.8 % 5.8 % % * Includes Auxiliary Enterprises, Educational Departments and Hospitals. y p p p ** Includes expenditures for fireprotection, workers compensation, hospital medical services, student loan matching funds, county board matching programs, debt retirement, extension service and home economics, Illinois Fire Science Institute, Collegiate Common Market, Materials Technical Center, and Rural Health.

10 Table 3 Total Expenditures by Object, Fiscal Year 2007 and 2008 TOTAL, PUBLIC UNIVERSITIES State Appropriated and University Income Funds Other Non-Appropriated Funds Total Funds Percent Percent Percent Object FY2007 FY2008 Change FY2007 FY2008 Change FY2007 FY2008 Change Personal Services $ 1,793,159.2 $ 1,872, % $ 1,101,621.4 $ 1,157, % $ 2,894,780.6 $ 3,029, % Contractual Services 267, , , , ,103, ,170, Travel 13, , , , , , Commodities 37, , , , , , Equipment 67, , , ,613.9 (10.9) 192, ,138.6 (5.0) Awards and Grants 59, , , , , , Telecommunications Services 16, ,811.2 (4.4) 30, , , , Operation of Automotive Equipment 3, ,301.7 (0.0) 5, , , , Electronic Data Processing , Refunds/Lapsed Funds (78.4) 1, , , ,520.6 (21.2) Medicare 25, , , ,547.9 (0.3) 38, , Permanent Improvements 17, , , ,429.7 (38.5) 57, ,389.2 (10.4) Other* 37, ,810.2 (57.5) 293, ,858.4 (27.5) 330, ,668.6 (30.9) Contribution to CMS Health Insurance 42, ,576.8 (0.1) 7, ,263.6 (14.0) 49, ,840.4 (2.1) Debt Retirement - 24, , , Total $ 2,381,855.5 $ 2,515, % $ 2,991,588.2 $ 3,117, % $ 5,373, ,632, % * Includes expenditures for fire protection, workers compensation, hospital medical services, student loan matching funds, county board matching programs, extension service and home economics, Illinois Fire Science Institute, Collegiate Common Market, Materials Technical Center, Rural Health.

11 Table 4 Total Expenditures by Function, Fiscal Years 2007 and 2008 PUBLIC UNIVERSITIES TOTAL State Appropriated and University Income Funds. Other Non-Appropriated Funds Total Funds Percent Percent Percent SubFunction/Function FY2007 FY2008 Change FY2007 FY2008 Change FY2007 FY2008 Change Instruction (Degree-Related)* $ 791,125.0 $ 815, % $ 198,180.9 $ 227, % $ 989,305.8 $ 1,042, % Requisite/Prepatory/Remedial Instruction (Non Degree) 4, , (33.1) 5, ,211.9 (1.4) Departmental Research 134, , , , , , Admissions, Registration and Records 39, , , , , , Support for Instructional Programs 200, , , , , , INSTRUCTIONAL PROGRAMS 1,170, ,201, , , ,450, ,530, ORGANIZED RESEARCH 110, , , , , , Direct Patient Care 17, ,754.9 (3.8) 62, , , , Community Education 10, , , ,084.9 (8.3) 68, ,579.7 (0.8) Support for Public Service Programs 5, , , , , , Other Public Service** 53, , , , , , PUBLIC SERVICE 86, , , , , , Academic Administration 89, , , ,142.3 (1.8) 114, , Library Services 96, , , ,543.0 (37.8) 114, , Museums and Galleries 3, , , , Hospital and Patient Services 61, ,319.8 (0.5) 468, , , , Academic Support Not Elsewhere Classified 13, , , ,182.7 (4.5) 36, , ACADEMIC SUPPORT 263, , , , , , Financial Aid Administration 13, ,737.0 (4.6) 4, ,363.5 (6.6) 18, ,100.6 (5.1) Financial Assistance 56, , , , , , Intercollegiate Athletics 6, , , , , , Student Services Administration 15, , , , , , Other Student Services*** 29, ,874.7 (0.0) 99, , , , STUDENT SERVICES 121, , , , , , Executive Management 46, , , , , , Financial Management and Operations 31, , , , , , General Administrative and Logistical Services 111, , , ,868.6 (1.6) 135, , Faculty and Staff Auxiliary Services (28.5) Public Relations / Development 38, , , , , , INSTITUTIONAL SUPPORT 228, , , , , , Superintendence 13, ,523.2 (0.6) 5, , , , Custodial and Grounds Maintenance 57, , , , , , Repairs / Maintenance 55, ,093.3 (2.5) 51, , , , Utility Support 25, , , ,165.6 (36.3) 46, , Permanent Improvements 27, , , , , , Other O&M Activities**** 153, , , ,580.1 (14.5) 252, ,200.4 (0.5) O & M OF PHYSICAL PLANT 333, , , , , ,

12 Table 4 Total Expenditures by Function, Fiscal Years 2007 and 2008 PUBLIC UNIVERSITIES TOTAL State Appropriated and University Income Funds. Other Non-Appropriated Funds Total Funds Percent Percent Percent SubFunction/Function FY2007 FY2008 Change FY2007 FY2008 Change FY2007 FY2008 Change Housing Services , ,251.3 (5.1) 131, ,251.3 (5.1) Food Services , , , , Other Independent Operations***** (3.5) 196, , , , INDEPENDENT OPERATIONS (5.8) 387, ,044.3 (0.4) 387, ,476.2 (0.4) Refunds/Lapsed Funds (78.4) 1, , , ,520.6 (21.2) CMS Group Health Insurance 42, ,576.8 (0.1) 7, ,263.6 (13.9) 49, ,840.4 (2.1) Medicare 25, , , ,547.9 (0.3) 38, , TOTAL $ 2,381,855.4 $ 2,515, % $ 2,991,588.1 $ 3,117, % $ 5,373,443.5 $ 5,632, % * General Academic and Vocational/Technical Instruction. ** Includes Public Broadcast Services, Community Service, and Cooperative Extension Services. *** Includes Social and Cultural Development, Student Health & Medical Services, and Counseling and Career Services. **** Includes Security, Fire Protection, Transportation, Rental of Space, and Support for Auxiliary Enterprises. ***** Includes Retail Services/Concessions, Student Unions and Centers, and Specialized Services.

13 Table 5 Total Revenue* by source, Fiscal Years 2003 through 2008 Adjusted for Inflation (2008 Dollars) TOTAL, PUBLIC UNIVERSITIES FY FY2008 FY2003 Revenues FY2004 Revenues FY2005 Revenues FY2006 Revenues FY2007 Revenues FY2008 Revenues $ Change % Change State Appropriated $ 1,639,151.5 $ 1,479,939.8 $ 1,437,489.1 $ 1,387,236.3 $ 1,379,610.9 $ 1,360,835.4 $ (278,316.1) (17.0) % University Income Funds 797, , , ,027, ,092, ,156, , Other Non-Appropriated Funds Governmental Gifts and Contracts 1,086, , , , , ,090.1 (257,336.3) (23.7) Private Gifts, Grants, and Contracts 274, , , , , , , Endowment Income 10, , , , , , , Sales/Service Revenue - Auxiliary Enterprises 636, , , , , , , Sales/Service Revenue - Educational Depts. 309, , , , , , , Sales/Service Revenue - Hospitals 491, , , , , , , Indirect Cost Recovery Funds 141, , , , , , , Other Miscellaneous Revenue - 194, , , , , , Total $ 5,385,794.5 $ 5,297,364.8 $ 5,424,251.0 $ 5,459,934.0 $ 5,446,764.5 $ 5,755,759.1 $ 369, % * Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

14 Table 6 Total Expenditures by Object, Adjusted for Inflation (2008 Dollars) Public Universities Total Fiscal Years 2003 through 2008 State Appropriated and University Income Funds Percent Object FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Change Personal Services $ 1,835,072.8 $ 1,780,728.3 $ 1,793,978.0 $ 1,810,477.2 $ 1,851,863.3 $ 1,872, % Contractual Services 242, , , , , , Travel 11, , , , , , Commodities 33, , , , , , Equipment 88, , , , , , Awards and Grants 40, , , , , , Telecommunications 17, , , , , , Operation of Auto 3, , , , , , Electronic Data Processing Refunds/Lapsed Funds 62, , Medicare 21, , , , , , Permanent Improvements 15, , , , , , CMS Health Insurance 50, , , , , , Other* 18, , , , , , Total $ 2,442,203.8 $ 2,361,222.3 $ 2,380,386.3 $ 2,412,315.9 $ 2,459,832.2 $ 2,515, % * Includes expenditures for debt retirement, fire protection, workers compensation, hospital medical services, student loan matching funds, county board matching programs, extension service and home economics, Illinois Fire Services Institute, Collegiate Common Market Materials Technical Center, Rural Health, and Abraham Lincoln Presidential Library. Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

15 Table 6 Total Expenditures by Object, Adjusted for Inflation (2008 Dollars) Public Universities Total Fiscal Years 2003 through 2008 Other Non-Appropriated Funds Percent Object FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Change Personal Services $ 1,007,459.5 $ 1,089,863.5 $ 1,107,454.6 $ 1,122,650.3 $ 1,137,686.0 $ 1,157, % Contractual Services 915, , , , , , Travel 47, , , , , , Commodities 235, , , , , , Equipment 188, , , , , , Awards and Grants 226, , , , , , Telecommunications 32, , , , , , Operation of Auto 5, , , , , , Electronic Data Processing Refunds/Lapsed Funds 3, , , , , Medicare 12, , , , , , Permanent Improvements 30, , , , , , CMS Health Insurance 4, , , , , , Other* 75, , , , , , Total $ 2,784,450.4 $ 2,869,509.8 $ 2,969,102.6 $ 3,004, ,079, ,117, % * Includes expenditures for debt retirement, fire protection, workers compensation, hospital medical services, student loan matching funds, county board matching programs, extension service and home economics, Illinois Fire Services Institute, Collegiate Common Market Materials Technical Center, Rural Health, and Abraham Lincoln Presidential Library. Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

16 Table 6 Total Expenditures by Object, Adjusted for Inflation (2008 Dollars) Public Universities Total Fiscal Years 2003 through 2008 Total Funds Percent Object FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Change Personal Services $ 2,842,532.3 $ 2,870,591.8 $ 2,901,432.6 $ 2,933,127.5 $ 2,989,549.3 $ 3,029, % Contractual Services 1,158, ,065, ,114, ,112, ,139, ,170, Travel 58, , , , , , Commodities 268, , , , , , Equipment 276, , , , , , Awards and Grants 266, , , , , , Telecommunications 50, , , , , , Operation of Auto 9, , , , , , Electronic Data Processing , , Refunds/Lapsed Funds 66, , , , , Medicare 34, , , , , , Permanent Improvements 45, , , , , , CMS Health Insurance 54, , , , , , Other* 94, , , , , , Total $ 5,226,654.2 $ 5,230,732.1 $ 5,349,488.9 $ 5,416,636.6 $ 5,539,504.0 $ 5,632,705.6 $ 7.8 % * Includes expenditures for debt retirement, fire protection, workers compensation, hospital medical services, student loan matching funds, county board matching programs, extension service and home economics, Illinois Fire Services Institute, Collegiate Common Market Materials Technical Center, Rural Health, and Abraham Lincoln Presidential Library. Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

17 Table 7 Total Expenditures by Function, Adjusted for Inflation (2008 Dollars) Fiscal Years 2003 Through 2008 PUBLIC UNIVERSITIES TOTAL State Appropriated and University Income Funds Only Inflation by Sector - Dollars ADJUSTED FOR INFLATION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Instructional Programs $ 1,150,361 $ 1,144,829 $ 1,182,259 $ 1,184,218 $ 1,208,469 $ 1,201,062 Organized Research 110, , , , , ,682 Public Service 91,598 77,443 77,944 87,104 89,206 92,692 Academic Support 293, , , , , ,952 Student Services 105, , , , , ,796 Institutional Support 214, , , , , ,060 O&M Physical Plant 340, , , , , ,579 Independent Operations 1, Refunds/Lapse 62,581 26, CMS Group Health 50,272 48,468 46,909 45,138 44,004 42,577 Medicare 21,588 22,796 23,281 24,423 25,870 27,117 Total 2,442,203 2,361,221 2,379,767 2,412,318 2,459,831 2,515,062 Dollar Change from 2003 ADJUSTED FOR INFLATION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Instructional Programs $ - $ (5,532) $ 31,898 $ 33,857 $ 58,108 $ 50,701 Organized Research - (994) 3,898 3,780 3,453 3,333 Public Service - (14,155) (13,654) (4,494) (2,392) 1,094 Academic Support (3,077) (30,204) (21,455) (12,217) Student Services - (1,685) ,800 19,979 23,816 Institutional Support - (14,474) (14,219) 1,058 20,784 29,075 O&M Physical Plant - (7,583) (3,309) 17,491 3,855 42,409 Independent Operations - (652) (656) (701) (677) (718) Refunds/Lapse - (35,749) (62,520) (62,173) (62,041) (62,468) CMS Group Health - (1,804) (3,363) (5,134) (6,268) (7,695) Medicare - 1,208 1,693 2,835 4,282 5,529 Total - (80,982) (62,436) (29,885) 17,628 72,859 Percent Changes from FY2003 ADJUSTED FOR INFLATION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Instructional Programs - % (0.5) % 2.8 % 2.9 % 5.1 % % 4.4 % Organized Research - (0.9) Public Service - (15.5) (14.9) (4.9) (2.6) 1.2 Academic Support (1.0) (10.3) (7.3) (4.2) Student Services - (1.6) Institutional Support - (6.7) (6.6) O&M Physical Plant - (2.2) (1.0) Independent Operations - (56.7) (57.0) (61.0) (58.9) (62.4) Refunds/Lapse - (57.1) (99.9) (99.3) (99.1) (99.8) CMS Group Health - (3.6) (6.7) (10.2) (12.5) (15.3) Medicare Total - (3.3) (2.6) (1.2) e: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

18 Table 7 Total Expenditures by Function, Adjusted for Inflation (2008 Dollars) Fiscal Years 2003 Through 2008 PUBLIC UNIVERSITIES TOTAL Total Funds (includes Non-Appropriated Funds) Inflation by Sector - Dollars ADJUSTED FOR INFLATION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Instructional Programs $ 1,386,495 $ 1,378,060 $ 1,442,415 $ 1,454,245 $ 1,498,134 $ 1,530,647 Organized Research 791, , , , , ,687 Public Service 506, , , , , ,428 Academic Support 733, , , , , ,387 Student Services 498, , , , , ,578 Institutional Support 273, , , , , ,615 O&M Physical Plant 541, , , , , ,862 Independent Operations 356, , , , , ,476 Refunds/Lapse 66,209 27, ,418 1,992 1,521 CMS Group Health 54,543 52,388 52,117 51,737 51,521 48,840 Medicare 31,211 34,138 35,647 37,769 39,905 40,665 Total 5,239,264 5,253,217 5,370,505 5,435,104 5,549,357 5,632,706 Dollar Change from FY 2003 ADJUSTED FOR INFLATION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Instructional Programs $ - $ (8,435) $ 55,920 $ 67,750 $ 111,639 $ 144,152 Organized Research - (7,420) 4,327 (44,135) (57,572) (69,043) Public Service - (59,424) (36,319) (7,487) (5,009) 6,794 Academic Support - 52,470 91,297 91,432 92, ,008 Student Services - (9,628) (1,996) 11,164 47,200 66,052 Institutional Support - (11,544) 10,286 (1,020) 14,222 21,287 O&M Physical Plant - (10,191) (1,944) 92, , ,688 Independent Operations - 105,685 73,033 44,604 44,573 30,441 Refunds/Lapse - (38,332) (65,373) (62,791) (64,217) (64,688) CMS Group Health - (2,155) (2,426) (2,806) (3,022) (5,703) Medicare - 2,927 4,436 6,558 8,694 9,454 Total - 13, , , , ,442 Percent Changes from FY2003 ADJUSTED FOR INFLATION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Instructional Programs - % (0.6) % 4.0 % 4.9 % 8.1 % 10.4 % Organized Research - (0.9) 0.5 (5.6) (7.3) (8.7) Public Service - (11.7) (7.2) (1.5) (1.0) 1.3 Academic Support Student Services - (1.9) (0.4) Institutional Support - (4.2) 3.8 (0.4) O&M Physical Plant - (1.9) (0.4) Independent Operations Refunds/Lapse - (57.9) (98.7) (94.8) (97.0) (97.7) CMS Group Health - (4.0) (4.4) (5.1) (5.5) (10.5) Medicare Total e: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

19 FIGURE 1 ILLINOIS PUBLIC UNIVERSITIES COMPARISON OF SOURCES OF REVENUES, FY2007 AND FY2008 $1,600.0 $1, % 23.6% $1, % 20.1% Note: Percentage above columns indicates percentage of total revenues for that fiscal year. Percentage of total revenue for a given source may have declined even though total dollars increased. $1,000.0 $ in Million ns $800.0 $ % 14.4% 9.5% 12.5% 11.0% 11.4% $ % 5.3% 6.8% 6.8% 6.2% 5.9% $200.0 $0.0 FY2007 FY2008 *Includes Indirect Cost Recovery Funds

20 FIGURE 2 ILLINOIS PUBLIC UNIVERSITIES FY2008 SOURCES OF REVENUE $3,500.0 $2,858.4 (49.7%) $2,897.3(50.3%) $3,000.0 $2,500.0 Other $228.9** Other $108.6** $ in Millions $2,000.0 $1,500.0 Sales/Service* $103.5 Private Gifts/ Grants & Endowments $8.6 Sales/Service* $1,662.4 $1,000.0 State & Tuition $2,517.4 Private Gifts/ Grants & Endowments $297.2 $500.0 $0.0 Unrestricted Revenues Restricted Revenues Govt. Gifts/ Grants $829.1 * Auxiliary Enterprises, Educational Departments, and Hospital Services **Includes Indirect Cost Recovery Funds

21 Travel & Commodities 3% Awards & Grants 2.5% Equipment 3% Telecommunications 0.5% Permanent Improvements 1% All Other 3% FIGURE 3: ILLINOIS PUBLIC UNIVERSITIES, STATE APPROPRIATED AND TUITION EXPENDITURES BY OBJECT, FY2008 $2,515,100 Contractual Services 11% Personal Services/Medicare 76%

22 Telecommunications 1% Permanent Improvements 1% All Other 10% FIGURE 4: ILLINOIS PUBLIC UNIVERSITIES, NON-STATE FUNDS EXPENDITURES BY OBJECT, FY2008 $3,111,600 Travel & Commodities 9.5% Personal Services/Medicare 37.5% Awards & Grants 8.5% Equipment 3.5% Contractual Services 29%

23 FIGURE 5 FY2008 PUBLIC UNIVERSITY EXPENDITURES BY REVENUE SOURCE $1,800.0 $1,600.0 $1,400.0 $329.6 Non- State State and Tuition $1,200.0 $ in millions $1,000.0 $800.0 $600.0 $1,201.1 $554.4 $311.3 $400.0 $200.0 $0.0 $609.0 $420.7 $113.7 $92.7 Instruction Research Public Service $281.0 Academic Support $434.8 $129.8 Student Services $50.6 $244.1 Institutional Support $382.6 O&M $386.0 Independent Ops. $21.2 $69.8 Other

24 Figure 6 Illinois Public Universities Total Revenue, Fiscal Years $6,500,000.0 $6,000,000.0 $5,500,000.0 Constant (FY08) Dollars $5,000,000.0 usands $ in Tho $4,500,000.0 $4,000,000.0 $3,500,000.0 $3,000,000.0 Current Dollars $2,500,000.0 $2,000,000.0 $1,500,000.0 $1,000,000.0 $500,000.0 $ Fiscal Year Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

25 $6,500,000.0 Figure 7 Illinois Public Universities Comparison by Source of Revenues, FY FY2008 (Adjusted for Inflation) $6,000,000.0 $ in Tho ousands $5,500,000.0 $5,000,000.0 $4,500,000.0 $4,000,000.0 $3,500,000.0 $3,000,000.0 $2,500,000.0 $2,000,000.0 Other* Sales/Service - Hospitals Sales/Service - Educational Depts. Sales/Service - Auxiliary Private Gifts, Grants, Endowment Govt. Gifts/Contracts $1,500,000.0 Tuition $1,000,000.0 $500,000.0 State $0.0 * Includes Indirect Cost Recovery Funds Fiscal Year Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

26 $6,000,000.0 Figure 8 Illinois Public Universities, Comparison of Total Expenditures by Source of Funds, FY FY2008 (Adjusted for Inflation) $5,500,000.0 $5,000,000.0 $4,500,000.0 $4,000,000.0 Non-Appropriated Funds $ in Thous sands $3,500,000.0 $3,000,000.0 $2,500,000.0 $2,000,000.0 $1,500,000.0 $1,000,000.0 State Appropriated & Income Funds $500,000.0 $ Fiscal Year Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

27 $6,000,000.0 Figure 9 Illinois Public Universities, Comparison of Total Expenditures by Object, FY (Adjusted for Inflation) $5,500,000.0 $ in Thousa ands $5,000,000.0 $4,500,000.0 $4,000,000.0 $3,500,000.0 $3,000,000.0 $2,500,000.0 $2,000,000.0 $1,500,000.0 $1,000,000.0 All Other Permanent Improvements Telecommunications Awards & Grants Equipment Travel & Commodities Contractual Services Personal Services/Medicare $500,000.0 $ Fiscal Year * Includes CMS Group Insurance, Electronic Data Processing, Operation of Auto, Refunds/Lapsed Funds, etc. Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

28 $1,800,000.0 Figure 10 Illinois Public Universities, Comparison of Expenditures by Function, FY FY2008 (Adjusted for Inflation) $1,600,000.0 Instruction Research $1,400,000.0 $1,200,000.0 Public Service Academic Support $ in Thou usands $1,000,000.0 $800,000.0 Student Services Institutional Support O & M $600,000.0 Independent Ops. Other $400,000.0 $200,000.0 $ Fiscal Year Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

29 sands $ in Thou $6,000,000.0 $5,700,000.0 $5,400,000.0 $5,100,000.0 $4,800,000.0 $4,500,000.0 $4,200,000.0 $3,900,000.0 $3,600,000.0 $3,300,000.0 $3,000,000.0 $2,700,000.0 $2,400,000.0 $2,100,000.0 $1,800,000.0 $1,500,000.0 $1,200,000.0 $900,000.0 $600,000.0 $300,000.0 $0.0 Figure 11 Illinois Public Universities, Comparison of Total Revenue & Expenditures, FY FY2008 (Adjusted for Inflation) Total Revenue Total Expenditures Fiscal Year Source: CPI - Commonfund Institute 2008 HEPI Report. This CPI is computed July 1 through June 30 for comparability; annual BLS CPI publication is calendar year.

30 APPENDIX A TOTAL REVENUES BY SOURCE IN FISCAL YEARS 2007 AND 2008 ILLINOIS PUBLIC UNIVERSITIES

31 Table A-1 Total Revenue* by Source, Fiscal Years 2007 and 2008 TOTAL, PUBLIC UNIVERSITIES FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 1,335, % $ 1,360, % $ - % $ 1,360, % University Income Funds 1,058, ,156, ,156, Other Non-Appropriated Funds Governmental Gifts and Contracts 815, , , Private Gifts, Grants, and Contracts 281, , , Endowment Income 13, , , , Sales/Service Revenue - Auxiliary Enterprises 500, , , , Sales/Service Revenue - Educational Depts. 359, , , , Sales/Service Revenue - Hospitals 582, , , Indirect Cost Recovery Funds 175, , , , Other Miscellaneous Revenue 151, , , , Total $ 5,274, % $ 2,858, % $ 2,897, % $ 5,755, % 49.7 % 50.3 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

32 Table A-2 Total Revenue* by Source, Fiscal Years 2007 and 2008 CHICAGO STATE UNIVERSITY FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 41, % $ 42, % $ - % $ 42, % University Income Funds 22, , , Other Non-Appropriated Funds Governmental Gifts and Contracts 33, , , Private Gifts, Grants, and Contracts Endowment Income Sales/Service Revenue - Auxiliary Enterprises 6, , , Sales/Service Revenue - Educational Depts. 2, , , Sales/Service Revenue - Hospitals Indirect Cost Recovery Funds Other Miscellaneous Revenue 3, , , Total $ 110, % $ 80, % $ 27, % $ 108, % 74.5 % 25.5 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

33 Table A-3 Total Revenue* by Source, Fiscal Years 2007 and 2008 EASTERN ILLINOIS UNIVERSITY FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 48, % $ 49, % $ - % $ 49, % University Income Funds 48, , , Other Non-Appropriated Funds Governmental Gifts and Contracts 15, , , Private Gifts, Grants, and Contracts 2, , , Endowment Income Sales/Service Revenue - Auxiliary Enterprises 45, , , Sales/Service Revenue - Educational Depts. 3, , , Sales/Service Revenue - Hospitals Indirect Cost Recovery Funds Other Miscellaneous Revenue 17, , , Total $ 181, % $ 100, % $ 82, % $ 183, % 54.8 % 45.2 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

34 Table A-4 Total Revenue* by Source, Fiscal Years 2007 and 2008 GOVERNORS STATE UNIVERSITY FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 27, % $ 27, % $ - % $ 27, % University Income Funds 17, , , Other Non-Appropriated Funds Governmental Gifts and Contracts 27, , , Private Gifts, Grants, and Contracts , , Endowment Income Sales/Service Revenue - Auxiliary Enterprises 3, , , Sales/Service Revenue - Educational Depts. 10, , , Sales/Service Revenue - Hospitals Indirect Cost Recovery Funds 1, , , Other Miscellaneous Revenue Total $ 88, % $ 63, % $ 29, % $ 93, % 68.2 % 31.8 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

35 Table A-5 Total Revenue* by Source, Fiscal Years 2007 and 2008 ILLINOIS STATE UNIVERSITY FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 81, % $ 82, % $ - % $ 82, % University Income Funds 83, , , Other Non-Appropriated Funds Governmental Gifts and Contracts 33, , , Private Gifts, Grants, and Contracts 3, , , Endowment Income Sales/Service Revenue - Auxiliary Enterprises 72, , , Sales/Service Revenue - Educational Depts Sales/Service Revenue - Hospitals Indirect Cost Recovery Funds 2, , , Other Miscellaneous Revenue 41, , , Total $ 317, % $ 175, % $ 156, % $ 332, % 52.8 % 47.2 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

36 Table A-6 Total Revenue* by Source, Fiscal Years 2007 and 2008 NORTHEASTERN ILLINOIS UNIVERSITY FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 40, % $ 40, % $ - % $ 40, % University Income Funds 35, , , Other Non-Appropriated Funds Governmental Gifts and Contracts 28, , , Private Gifts, Grants, and Contracts 1, , , Endowment Income Sales/Service Revenue - Auxiliary Enterprises 4, , , Sales/Service Revenue - Educational Depts. 14, , , Sales/Service Revenue - Hospitals Indirect Cost Recovery Funds 1, , , Other Miscellaneous Revenue Total $ 125, % $ 97, % $ 29, % $ 126, % 76.9 % 23.1 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.

37 Table A-7 Total Revenue* by Source, Fiscal Years 2007 and 2008 NORTHERN ILLINOIS UNIVERSITY FY2007 Revenues FY2008 Revenues Total Funds Unrestricted Sources Restricted Sources Total Funds Percent Percent Percent Percent Revenue of Total Revenue of Total Revenue of Total Revenue of Total State Appropriated $ 103, % $ 105, % $ - % $ 105, % University Income Funds 112, , , Other Non-Appropriated Funds Governmental Gifts and Contracts 38, , , Private Gifts, Grants, and Contracts 6, , , Endowment Income Sales/Service Revenue - Auxiliary Enterprises 72, , , Sales/Service Revenue - Educational Depts. 33, , , Sales/Service Revenue - Hospitals Indirect Cost Recovery Funds 3, , , Other Miscellaneous Revenue 20, , , Total $ 392, % $ 227, % $ 178, % $ 405, % 56.0 % 44.0 % % * Reflects revenue received in fiscal years 2007 and Does not include beginning year fund balances which may also be available for expenditure during the fiscal year.