Overvie
The University of
Illinois: World-class
University, statewide
impact.
Higher education in the United States is uniquely positioned to help the nation face
some of its most pressing issues. Through its various economic, social and
intellectual outcomes, higher education is the key to a vibrant economy and society.
President Obama has acknowledged higher education’s role in the country’s future
by setting a goal of having the world’s largest share of college graduates by 2020.
Great public universities across the United States with their vast enrollments,
research discoveries, health and outreach services and other functions have never
been more important to the nation’s future. The University of Illinois is one such
institution that will continue to have a significant impact in the state, nation and
across the globe.
The greatest challenge faced by the University of Illinois is one of maintaining the highest standards of quality while at the same time keeping access affordable. This same challenge can be found at public institutions in states across the country. In many states, the challenge has been exacerbated by a weakened economy and
mounting pressures on state budgets. This document represents a budget plan for FY 2013 that will help the University of Illinois address this challenge and ensure that we continue to achieve our most important goals.
The University of Illinois is a uniquely diverse institution with a traditional flagship campus, an urban university with the nation’s largest medical school and complex medical center and a small liberal arts campus in the state’s capital, serves
constituents throughout the state. The Urbana-Champaign, Chicago and Springfield campuses all perform their traditional teaching and learning missions well. Each campus also has distinctive research strengths: Urbana with its science, agriculture, cutting-edge technology, engineering and interdisciplinary projects; Chicago with its medical, health professions and urban research projects; and Springfield with its public policy, political and media strengths.
The U of I has remained exceptionally productive in the face of its challenges,
enrolling nearly 77,000 students and producing 19,000 graduates in 600 degree
programs annually. More than 7,500 students annually earn U of I advanced
Page 1
INTRODUCTION
degrees—master’s degrees, MBAs, law degrees, health discipline degrees,
veterinary medicine degrees and doctorates—from the three campuses.
In addition to enrolling students from all over the state, the University of Illinois also makes a statewide impact through its Cooperative Extension and health care
services. Cooperative Extension, based at the Urbana campus’s College of
Agriculture, Consumer and Environmental Sciences (ACES), offers educational
programs in every county in the state. Programs fit into five broad areas: healthy
society; food security and safety; environmental stewardship; sustainable and
profitable food production and marketing systems; and enhancing youth, family and
community well-being.
The University also provides health services to a large number of Illinois citizens.
In 2010, the UIC College of Medicine facilities provided 442,200 clinical visits,
The University of many of these to low-income patients in Chicago, Peoria, Rockford and Urbana.
Illinois is making a Each of the UIC College of Medicine’s campuses educates physicians and is deeply
difference every day embedded in the state’s overall health care effort. The College of Medicine at
in every one of Peoria is part of a public-private partnership building a new cancer research center.
Illinois’ counties. The College of Medicine at Urbana offers advanced research M.D./Ph.D. programs.
Rockford boasts a National Center for Rural Health Professions, dedicated to the
study, understanding and dissemination of information on the special health and
wellness needs of rural citizens. Additionally, the College of Pharmacy is
establishing a regional campus in Rockford, allowing pharmacy students with rural
backgrounds to collaborate with medical students to address the health care needs of
rural Illinois communities. This complements the Chicago campus’s urban
emphasis.
In 2010, the University’s research efforts brought $900 million into the state and
produced 326 technology disclosures, 93 patents and 61 licenses and options to
commercialize new technologies. Some of these innovations will become the
products, industries and job-creating companies of the future. In the last five years,
44 start-up companies commercializing university-generated technologies got up
and running. The business incubation facilities at the Urbana-Champaign and
Chicago campuses house more than 90 start-up and established companies,
including John Deere, Caterpillar, Archer Daniels Midland, State Farm and Yahoo!.
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INTRODUCTION
Appropriately for a university located in a state capital, the University of Illinois at
Springfield brings a living-laboratory approach to the public policy and politics that
dominate the city. Many of UIS’s faculty and staff have long ties to state
government and media and function as policy experts and media contacts throughout
the state and beyond. The U of I also houses the Institute of Government and Public
Affairs (IGPA) with policy and political experts on all three campuses.
The Illinois Fire Service Institute on the Urbana campus offers on-campus and
online instruction and certifications for the state’s 42,000 fire fighters in 1,200
departments. Courses offering college credits range from fire-fighting basics to
rescue techniques to homeland security and weapons of mass destruction response.
In 2010, the Illinois Fire Service Institute provided training to more than 52,000
firefighters. This specialized training translates into lives saved and property
The University of
Illinois is a treasure
for our State and its
people.
The University of
Illinois is dynamic
treasure because of
the transforming
power of education
in people’s lives.
damage minimized throughout the state.
The U of I employs more than 25,000 FTE and provides an annual direct and
indirect economic impact of $13 billion. This economic impact is associated with 150,000 jobs. The university spends $4.7 billion on payroll, supplies and services; and for every dollar the State of Illinois contributes to the U of I, an additional $17 is infused into the state’s economy.
The University of Illinois is a treasure for our state and its people. But it is a
dynamic treasure, not a static treasure. It is dynamic because of the transforming
power of education in people’s lives. Ultimately the greatest impact of the
University of Illinois is on the lives of students. They learn in our classrooms,
interact with faculty, study in our libraries and laboratories and graduate to make
their own contributions to society. In the face of new technologies and the forces of
globalization, a high quality education is more important today than ever before,
enabling people to achieve their dreams and change their economic conditions.
University of Illinois students help build our society, shape our culture and fuel our
economy. They are the engaged and informed citizens on whom our democracy
depends. The University of Illinois is also a dynamic treasure because of the
original knowledge that it produces and disseminates. This knowledge is the
foundation of the new economy. It is responsible for new industries that put people
to work.
September 2011
INTRODUCTION
As evidenced by its broad scope of impacts, the University of Illinois makes a
difference in the prosperity and quality of life of thousands of Illinoisans every day. Many of these constituents care deeply about the state of the university and its
future. Stewardship requires that the University’s stakeholders-from trustees,
administrators and faculty to students, alumni and taxpayers-share an unshakable
commitment to the value and the values of public higher education and particularly to the University of Illinois.
ECONOMIC ENVIRONMENT
The context in which the University of Illinois is requesting funding is important.
This decade has been a challenging one for the State. The nation and Illinois,
experienced a significant economic downturn in the early 2000s. As measured by
the Institute of Government and Public Affairs’ ―Flash Index‖ in Figure 1, the
Illinois economy had an extended period of contraction (as shown by the shaded
area) from May 2001 to May 2004. This was followed by more than four years of
significant growth for the Illinois economy and the state’s tax revenues. However,
in 2008 the nation and state began an economic downturn that has been termed the
―Great Recession,‖ the deepest and most prolonged economic downturn since World War II.
INTRODUCTION
However, even before the ―Great Recession,‖ Illinois’s economic growth rate was
lower than national averages. State employment has lagged national averages;
manufacturing employment is 25% below 1998 levels with overall employment still
below the 2000 peak. As shown in Figure 2, trends for the last decade show that
Illinois’s Gross Domestic Product has significantly underperformed compared to the
national average. Illinois was even further behind the top five states. While it is
possible that this trend will reverse, there is little evidence of it happening.
In addition to weak economic growth, the State faces another major fiscal challenge
in the form of unfunded pension obligations. The State’s five public pension
systems had unfunded liabilities of over $85.0 billion at the end of FY 2010 and
were estimated to have an asset-to-liability ratio of under 47%. Unfunded liabilities
have accumulated primarily as a result of under-funding from the state for several
decades and the more recent drop in financial markets. In March 2010, the General
Assembly passed major pension reform legislation that significantly reduced
benefits for new state employees. Even with these changes, state payments to the
retirement systems are estimated to increase from $3.5 billion in FY 2011 to over
$4.8 billion by FY 2014, or approximately $400 million per year and it is projected
that funding levels will drop to 37% system wide for the next decade. Further
pension reforms were debated in the legislature again this year; and although no new
INTRODUCTION
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