The University of Illinois Board of Trustees approved a $6.74 billion budget for fiscal year 2021.
In a news release, officials said the budget for the fiscal year that runs through June 2021 was down $232.9 million from last year’s budget of $6.97 billion. “The U of I System will draw on an additional $121.3 million in reserve funds to help meet expenses anticipated to combat COVID-19.”
Officials also stated they project the U of I System will “incur more than $270 million on negative impacts during the fiscal year due to the pandemic.”
Trustees also approved a request for an 8.3 percent increase in state funding for the next fiscal year. “If appropriated and signed into law, [it] would move the state appropriation to $673.4 million.”
With the additional funding, the U of I System and its universities in Urbana-Champaign, Chicago and Springfield would be able to continue building on educational and affordability initiatives that help maintain academic excellence and drive the state’s economy. These efforts have grown enrollment across the system to a record of more than 90,000 students this fall.
Officials said the budget was built on funding projections in four categories. Those include the following:
- The budget includes $2.4 billion in general operating funds, which they said is a 1% increase. “General operating funds primarily include tuition revenue and state funding, and cover most educational activities and day-to-day operations.”
- The budget projects an increase of 2.7% in the Hospital Fund Budget. It would be $861 million. Officials said these funds are restricted and used for operations at the university hospital in Chicago.
- Also, the budget projects an increase of 1.6% in other restricted-fund revenue. That would be up to $2.1 billion. Those funds include research grants, private donations, medical service revenue and auxiliary operations, according to the U of I System. The money would have to be spent in accordance with restrictions from donors and contracts.
- The budget includes $1.4 billion in estimated payments from the state of Illinois for employee healthcare/pension benefits. It would be down 18% from the 2020 fiscal year.
Additionally, officials said the budget includes $628.6 million in state appropriations.
Tuition revenue increased to $1.3 billion. This makes up 57% of the general operating fund, according to the U of I System. “Despite the pandemic and related economic pressure, enrollment across the university system grew to an eighth-straight record high this fall, increasing 1.2 percent to 90,343 students.”
Also, private donations and income from endowments was $188.9 million, a 5.2% increase.
“The budget will provide $402.6 million for scholarships and financial aid, an increase of 20.4 percent and a demonstration of the system’s ongoing commitment to greater affordability and accessibility.”
When it comes to pandemic-related financial repercussions, the U of I System said the estimated $270 million includes $135.5 million in additional costs for COVID-19 testing for students/staff; quarantine and isolation for students who test positive and other supplies as well as the transition to partial remote learning. “The figure also includes an estimated $134.2 million in lost revenue generated by housing and dining services, conferences and events, concessions and merchandise sales and fees for on-campus services.”
For their fiscal year 2022 budget request, the U of I System said they would dedicate $15 million of the requested increase to scholarships and $10 million to additional faculty recruitment. Another $23.9 million would be used to give “competition compensation for faculty and staff.”
They said across the system, enrollment has increased 17.5 percent over the last decade. “That growth includes a 10.7 percent increase in undergraduates from Illinois since 2015. Enrollment growth was boosted by efforts to hold tuition costs down and provide more financial aid.”