With the state’s current $13 billion budget deficit possibly on the rise, the Illinois Board of Higher Education’s Finance Study Commission met Monday to finalize their recommendations to the legislature to improve higher education budgeting practices for Illinois public universities.

In the spring of 2010, the Illinois General Assembly approved Senate Joint Resolution 88, directing the Commission to evaluate current higher education budgeting practices in Illinois and to develop recommendations to improve the Illinois public education budgeting process.

One of these considerations is to utilize performance-based funding. President William Perry has been pushing for the FSC to highly recommend this standard. In early October, Perry wrote a letter to the commission to carefully consider this proposal and spoke to the commission at its Oct. 5 meeting.

“I ask that the Higher Education Finance Study Commission further investigate existing funding disparities and how outcomes based funding would improve efforts to fund institutions that are operating effectively and efficiently.” Perry said. “Our state budget worsens, we must construct a new funding model for Illinois that does not simply reward business as usual.”

Based on 2007 and 2008 data, average Full-Time Equivalent student funding at Eastern was $4,289. The data concluded Eastern has had the lowest FTE student funding of all Illinois public universities.

With this, Perry suggests that the outcomes based funding model would allow the state to bridge funding disparities that have existed for some time.

“By linking general revenue appropriations to institutional performance, we can demonstrate to the public that our universities are committed to continued improvement and high standards of service to students, Perry said.

Journalism professor Les Hyder, Eastern’s Faculty Advisory Committee representative, agrees with Perry’s recommendations for performance-based funding.

“I think that the (recommendation) is very beneficial to Eastern because the university has demonstrated a track record of meeting and exceeding those performance standards,” Hyder said. “We have done more with less funds than other universities with bigger budgets. Imagine what the university could accomplish if it had more (funding).”

Senate Joint Resolution 88, sponsored by Sen. Ed Maloney and Rep. Fred Crespo, brought upon the Commission.

When considering performance-based funding, the committee has outlined that it must be developed through a consultative process; be tailored to each sector of higher education and encourage at-risk students to complete a certificate or degree.

“The Commission has responded to the request of the General Assembly to look for fresh ideas and examine new approaches to identify ways that Illinois can better fund higher education,” Carrie J. Hightman, Chairwoman of the Illinois Board of Higher Education, told the Times Courier.

The commission’s intent was to examine the history and means of higher education funding in Illinois State, comparing funding with other states and peer institutions; comparing the productivity of Illinois higher education to other state systems and the productivity; analyzing best practices implemented in other states and reviewing tuition and financial aid policies, according to SJR 88.

The next step for the FSC is to submit their proposals to the General Assembly and other legislature. IBHE will next meet on Dec. 7 at Kent College of Law in Chicago.

Shelley Holmgren can be reached at 581-2812 or [email protected].