Responsible Budget Coalition

 

 

 

IMPACT OF HB174 FOR HIGHER EDUCATION

 

The Problem

The state fiscal crisis has already had a severe effect on higher education funding in Illinois. Even as enrollments are increasing at the state’s universities and community colleges, state support is being reduced—compared to FY 2007, state support for all forms of higher education was cut more than 10% in FY 2010. Lack of funds has forced tuition increases, layoffs and furloughs, eliminated classes, threatened student aid programs and even left some schools wondering how they’ll make payroll. And given the magnitude of the current budget deficit, this will get even worse in the coming budget year.

 

 

The Solution

The Responsible Budget Coalition supports a comprehensive tax-reform package following the framework of HB 174, legislation approved by the Illinois State Senate and pending in the Illinois House of Representatives. HB 174 would provide additional funding for education, health care, human services and public safety—raising at least $5 billion in new, recurring tax revenues—while making taxes fairer by expanding credits for homeowners and low-income families.

 

 

HB174 Will Mean New Funds for Higher Education

HB174 specifies that one-sixth (16.7%) of all new revenue generated by the bill will go to state support for higher education. In the coming budget year, this would raise $840 million to $880 million for higher education.

  • HB174 would increase state funds for higher education by 40% over FY10 levels.
  • Put another way, HB174 would provide the equivalent of $1000 in new state funding for every Illinois student in community colleges, public and independent universities.
  • Funding from HB174 will allow the state to restore funds cut from universities and community colleges, increase support to meet increased enrollment needs, fully fund the Monetary Assistance Program (MAP) and increase student aid at a time when needs are growing due to economic downturn.   

 

 

HB174 Will Address Other Higher Education Needs

HB174 will provide significant new funds to the meet the other needs of the higher education community.  HB174 will allow for adequate funding of the state’s liability to the State University Retirement System and as well as generating sufficient revenue to pay for the health insurance coverage of university and college employees.

 

 

We can all do better.