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Fy 2016 Budget Request FY 2016 BUDGET REQUEST FOR OPERATING AND CAPITAL FUNDS PREPARED FOR THE BOARD OF TRUSTEES SEPTEMBER 11, 2014 FY 2016 BUDGET REQUEST FOR OPERATING AND CAPITAL FUNDS PREPARED FOR THE BOARD OF TRUSTEES SEPTEMBER 11, 2014 TABLE OF CONTENTS Introduction Introduction ............................................................................................................... 1 Economic Environment ...................................................................................... 4 The Budget Framework ...................................................................................... 6 FY 2015 Budget Outcomes ................................................................................ 9 Budget Trends in Perspective: Reallocation .................................................... 14 Budget Trends in Perspective: Tuition ............................................................ 17 University Strategic Initiatives ......................................................................... 18 Summary of the FY 2016 Budget Request ....................................................... 18 Operating Strengthen Academic Quality Budget Salary Improvements .................................................................................................. 22 Request for Faculty Salaries ................................................................................................. 24 FY 2016 Faculty Salaries by Discipline .......................................................................... 26 Total Compensation .......................................................................................... 28 Staff Salaries ..................................................................................................... 30 State Universities Retirement System............................................................... 31 Recruitment, Retention & Compression ..................................................................... 33 Address Facility Operations Needs Operation and Maintenance New Areas...................................................................... 40 Urbana-Champaign Projects ............................................................................. 41 Facility Renovation Support ....................................................................................... 42 The Need ........................................................................................................... 42 Space Realignment, Renewal and Replacement (SR3) ..................................... 44 FY 2016 Operating Budget Request for Facility Renovation ........................... 46 Utility Infrastructure Support ...................................................................................... 49 Meet Inflationary and Other Cost Increases Payroll Cost Increases ................................................................................................. 52 Medicare and Social Security Contributions .................................................... 52 Workers’ Compensation ................................................................................... 53 Legal Liability .................................................................................................. 55 September 2014 Page iii TABLE OF CONTENTS Healthy Illinois–Medicaid Support Healthy Illinois–Medicaid Support ............................................................................. 57 Addenda Retirement ................................................................................................................... 59 Pension Reform (PA98-0599) .......................................................................... 63 Ensuring Access–Financial Aid .................................................................................. 67 Guiding Principles for Financial Aid - 2008 .................................................... 69 Institutional Supplemental Financial Aid Policy - 2008 ................................... 70 Capital Capital Budget Request for FY 2016 Budget Background and Context ............................................................................................... 1 Request for Summary of FY 2016 Priorities .................................................................................... 4 FY 2016 Capital Requests Priorities ........................................................................................................................ 8 Repair and Renovation ....................................................................................... 8 Natural History Building .................................................................................... 9 Pharmacy Renovation and Addition ................................................................. 10 Altgeld/Illini Hall Renovation .......................................................................... 10 Main/Undergrad Library Redevelopment ......................................................... 11 Medical Sciences Building Modernization Phase I .......................................... 13 Stevenson Hall Classroom Building Modernization ........................................ 13 Utility and Mechanical System Upgrades ........................................................ 13 Cultural Center Building................................................................................... 14 Disability Research, Resources and Educational Services Building ................ 15 Repair and Renovation Project Descriptions .............................................................. 16 Urbana-Champaign Projects ............................................................................. 16 Chicago Projects ............................................................................................... 18 Springfield Projects .......................................................................................... 18 September 2014 Page iv LIST OF FIGURES Introduction Introduction Figure 1: U of I Flash Index ........................................................................... 4 Figure 2: Change in Real Gross Domestic Product by State .......................... 5 Figure 3: University of Illinois Direct State Tax Support .............................. 7 Table 1: State of Illinois General Tax Appropriations ................................ 11 Figure 4: University of Illinois Share of State Tax Appropriations ............. 11 Figure 5: State Tax Appropriations Changes by Agency ............................. 12 Figure 6: Cumulative Change in State Tax Appropriations by Selected Higher Education Sector ............................................................... 13 Figure 7: Cumulative Change in State Tax Appropriation for State Universities Retirement System (SURS) ...................................... 13 Figure 8: Uses of Reallocated Funds FY 2000 to FY 2015 .......................... 15 Figure 9: Reallocation for Academic Programs FY 2000 to FY 2015 ......... 16 Figure 10: Direct State Support Per Tuition Dollar FY 1970 to FY 2015 ...... 17 Table 2: FY 2016 Operating Budget Request ............................................. 21 Operating Strengthen Academic Quality Budget Salary Improvements Request for Figure 11: FY 2014 Competitive Standing among IBHE Peers FY 2016 UIUC, UIC and UIS ...................................................................... 25 Table 3: Faculty Salary Study by Discipline FY 1987 to FY 2014 UIUC and UIC .............................................................................. 27 Figure 12: FY 2014 Faculty Average Total Compensation U of I Campuses and IBHE Peer Groups ...................................... 29 Recruitment, Retention & Compression Figure 13: Distance from IBHE Peer Group Median UIUC, UIC and UIS ... 34 Table 4: Full-Time Instructional Faculty Average Salaries FY 1987 to FY 2014 All Ranks, IBHE Peer Groups .................... 35 Figure 14: FY 2013 and FY 2014 Professors’ Average Salaries UIUC and IBHE Peers .................................................................. 37 Figure 15: Salary Gap between UIUC, UIC and Private Research I Institutions Full-time Instructional Faculty Average Salaries ....... 38 Figure 16: Annual Change in Faculty Average Salaries UIUC and Research I Institutions ................................................. 39 September 2014 Page v LIST OF FIGURES Address Facility Operations Needs Operation and Maintenance New Areas Table 5: FY 2016 Operation and Maintenance Requirements to Support New Areas ................................................................... 40 Facility Renovation Support Figure 17: Capital Appropriations, FY 2000 to FY 2015 ............................... 46 Meet Inflationary and Other Cost Increases Payroll Cost Increases Table 6: Appropriations and Expenditures for Medicare and Social Security Costs..................................................................... 53 Table 7: Appropriations and Expenditures for Workers’ Compensation .... 54 Figure 18: Legal Liability ............................................................................... 56 Addenda Retirement Table 8: PA 96-0889 – Applicable to SURS Participants ........................... 62 Ensuring Access–Financial Aid Table 9: Federal Pell Grants and Illinois Monetary Award Program Maximum Award Levels............................................................... 67 Figure 20: Supplemental Financial Aid Expenditures FY 2006 to FY 2015 ..................................................................... 68 Figure 21: Undergraduate PELL, MAP, SEOG, and
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