Editor’s Note: The date in this story was updated from Jan. 26 to Jan. 27.

A Funding Formula Town Hall was held on Jan. 27 in the Doudna Fine Arts Center’s Lecture Hall for the campus and community to learn about a new plan to fund higher education in Illinois. 

The meeting comes as state funding has decreased in recent years, EIU’s President of University Professionals of Illinois Billy Hung said, leading to more universities asking for increasingly large figures of funding. 

During the presentation, it was stated that the state allocated funds in 2023 was $43,503 as compared to 2015’s funding year figure of $57,759. 

“We all feel this lower and lower investment in higher education,” Hung said. 

Hung was one of three speakers at the Town Hall alongside University President Jay Gatrell and Eastern’s Director of Government Relations Katie Anselment. 

Hung explained that the current model for the formula would use an equation to calculate an institution’s adequacy gap, or the amount of funding required to reach a fully funded status. 

In addition, the adequacy gap would be used to prioritize which institutions receive new funds. 

The Funding Formula’s equation is broken into three detailed steps. 

Step One: Finding the adequacy target 

The first step is to calculate an institution’s adequacy target, or the amount needed to fund students. 

After calculating the cost needed to fund students, equity adjustments are added on top of the cost needed to fund students. 

Using a sample calculation presented at the Town Hall, Eastern’s adequacy target is $160.4 million. 

Step Two: Calculating the resource profile 

The second step is to calculate an institution’s resource profile, or current resources, by adding state funds set aside to offset tuition and fees, the cost of incoming college students and other revenue together. 

The sample calculation sets Eastern’s current resources at $97.9 million. 

Step Three: Find the adequacy gap 

The third step is to calculate an institution’s adequacy gap, or how fully funded an institution is. 

This is calculated by subtracting the institution’s current resource from its adequacy target. Eastern’s adequacy gap is set at $62.5 million or 61% fully funded. 

The Funding Formula’s development started back in 2021, Anselment said, with the formation of the Illinois Commission on Equitable Public University Funding. 

The formula has been in development ever since, with drafts still being made for various uncertainties with the plan, like the question of whether endowment should be included in the resource profile. 

While there are still negotiations within the commission regarding the formula before it’s taken to Springfield to be voted on, there are benefits to be had from implementing this new plan. 

These benefits primarily revolve around easing the financial burden on students, as the state would be required to pay for more. 

Another benefit is all institutions will reduce their adequacy gap each year, as no institution will receive less funding than they did before the formula was implemented, according to Hung. 

“The rising tide lifts all ships,” Anselment said. 

However, the plan isn’t without its flaws. 

One of these issues is transparency and accountability from the state, as brought up by an audience member who expressed concern for how this would be recorded and decided during a live Q&A. 

Gatrell responded by acknowledging the issue but not providing further explanation as a possible solution. 

“If we’re gonna make an investment in public higher education, I think it’s fair to hold account and that is refreshing peace,” said Gatrell. 

Negotiations are ongoing, but Gatrell, Hung and Anselment all feel confident about the formula, with Anselment saying the formula could be passed possibly this spring by May 31. 

Hung added that money from the new formula could start pouring in within two years. 

Luke Brewer can be reached at 581-2812 or at lsbrewer@eiu.edu