Bill Text: IL SB3965 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Adequate and Equitable Public University Funding Act. Provides that, after the effective date of the Act, all general operating expenses for public universities shall be distributed by the Board of Higher Education through a funding formula for eligible public institutions and shall be administered by the Board. Defines "eligible public institution". Sets forth provisions concerning the adequacy targets and resource profiles of eligible public institutions. Provides for the distribution of State appropriations and the calculation of the base funding minimum for each eligible public institution. Provides that the Board shall oversee an accountability and transparency framework for assessing the distribution and use of all funds appropriated by the funding formula and evaluating the funds' effects on institutional outcomes pertaining to student affordability, enrollment, persistence, and outcome metrics. Provides for reporting and the establishment of an Accountability and Transparency Committee. Provides that the Board shall establish a Funding Formula Review Panel tasked with studying and reviewing topics pertaining to the implementation and impact of the funding formula. Contains provisions concerning the Board's annual budget request and the collection of data. Amends the Board of Higher Education Act. Requires the Illinois Community College Board to annually submit its budget request for the next fiscal year by November 15 of the preceding calendar year. Removes certain provisions concerning budget proposals. Effective immediately.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2024-11-21 - Added as Co-Sponsor Sen. Rachel Ventura [SB3965 Detail]

Download: Illinois-2023-SB3965-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3965 Introduced 10/11/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
New Act
110 ILCS 205/8 from Ch. 144, par. 188
Creates the Adequate and Equitable Public University Funding Act. Provides that, after the effective date of the Act, all general operating expenses for public universities shall be distributed by the Board of Higher Education through a funding formula for eligible public institutions and shall be administered by the Board. Defines "eligible public institution". Sets forth provisions concerning the adequacy targets and resource profiles of eligible public institutions. Provides for the distribution of State appropriations and the calculation of the base funding minimum for each eligible public institution. Provides that the Board shall oversee an accountability and transparency framework for assessing the distribution and use of all funds appropriated by the funding formula and evaluating the funds' effects on institutional outcomes pertaining to student affordability, enrollment, persistence, and outcome metrics. Provides for reporting and the establishment of an Accountability and Transparency Committee. Provides that the Board shall establish a Funding Formula Review Panel tasked with studying and reviewing topics pertaining to the implementation and impact of the funding formula. Contains provisions concerning the Board's annual budget request and the collection of data. Amends the Board of Higher Education Act. Requires the Illinois Community College Board to annually submit its budget request for the next fiscal year by November 15 of the preceding calendar year. Removes certain provisions concerning budget proposals. Effective immediately.
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A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Adequate and Equitable Public University Funding Act.
Section 5. Findings. The General Assembly makes all of the
following findings:
(1) A thriving postsecondary education system enriches
the State and its residents.
(2) Illinois requires an adequate, equitable, and
stable approach to funding public universities.
(3) Historic inequities in university funding underlie
current gaps in access, retention, and attainment among
different groups of students in this State.
(4) The State must seek to reduce on behalf of
underserved students the significant disparities in public
university access, affordability, and measures of
retention, progress, and degree completion, by, among
other things, addressing the influence of disparities in
resources by race, income, age of entry, and location.
(5) High-quality, evidence-based student support has
been shown to improve enrollment and outcomes for
students.

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(6) Illinois' public universities have a variety of
missions and characteristics.
(7) Through "A Thriving Illinois: Higher Education
Paths to Equity, Sustainability, and Growth", the State
has set systemwide goals for equity, sustainability, and
growth, and the General Assembly must strategically fund
public universities to achieve these goals.
(8) As State funding has decreased, Illinois' public
universities have become increasingly reliant on tuition
and fees, increasing the debt students take on to fund
their education.
(9) Public universities should be funded to
sufficiently achieve student, institutional, and State
goals.
(10) Public higher education should be affordable for
all students.
(11) Increasing public funding for public universities
should be paired with increased transparency and
accountability.
Section 10. Purpose. It is the purpose of this Act to
establish an adequate and equitable funding formula for public
universities that shall do all of the following:
(1) ensure that the State provides adequate,
equitable, and stable funding for public universities that
is particularly directed to serving students from groups

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for whom there is evidence of meaningful gaps in
enrollment, retention, and completion compared to their
peers;
(2) determine, for each eligible public institution, a
funding level based on the unique needs and of the
eligible public institution's student body and the
eligible public institution's mission and mix of programs;
(3) encourage greater access and success for students
who are, based on evidence, less likely to enroll,
persist, progress, and complete their selected programs of
study; and
(4) provide a funding increase to each eligible public
institution when new funds are invested;
(5) support the diverse missions of each eligible
public institution;
(6) foster economic activity and innovation;
(7) ensure that each eligible public institution has
the flexibility to invest in ways that best serve the
eligible public institution's students;
(8) allow for ongoing monitoring and continuous
improvement of the adequate and equitable funding formula
for eligible public institutions;
(9) incentivize each eligible public institution to
reduce reliance on student tuition and fees with increased
State investment;
(10) distribute new funding through an equitable

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allocation that drives resources to eligible public
institution that are furthest from adequate funding; and
(11) ensure that each eligible public institution is
held harmless in the transition to a new funding model.
Section 15. Definitions. In this Act:
"Academic and nonacademic support" means a per-student
funding amount required to cover costs related to providing
high-impact support for student retention and completion.
"Academic and nonacademic support" includes, among other
things, academic support for curriculum design, academic
advising, career services, and tutoring, as well as
nonacademic support for single stop centers, emergency aid,
student mental health support, and services related to
housing, transportation, and child care.
"Access adjustment" means an adjustment to access support
for the increased costs of closing enrollment gaps for
underserved students.
"Access support" means a per-student funding amount
required to cover costs related to outreach, recruitment, and
enrollment of students, including admissions and financial aid
offices.
"Adequacy components" means the components of an adequate
education, including the components necessary to provide
instruction and student services, to advance the eligible
public institution's research and public service mission, and

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to cover its operations and maintenance needs.
"Adequacy gap" means the funding gap between the adequacy
target of an eligible public institution and the resource
profile of that eligible public institution.
"Adequacy gap formula" means a formula for distributing
funds among eligible public institutions based on an eligible
public institution's adequacy gap, as calculated on a
percentage basis.
"Adequacy target" means the amount of funding a particular
eligible public institution needs to cover the expenses of
instruction and student services, the eligible public
institution's research and public service mission, and
operations and maintenance associated with the student
population the eligible public institution serves and the
eligible public institution's institutional characteristics,
as well as to support closing gaps in enrollment, retention,
or completion for underserved students.
"Adult student" means a student who is 25 years old or
older.
"Affordability" means the total expense of attendance that
a student can reasonably be expected to pay given the
student's means.
"Annual formula funding" means the sum of the following
State appropriations for the fiscal year: the base funding
minimum appropriated for each eligible public institution for
the fiscal year, plus all new State formula funding

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appropriated for the fiscal year.
"Base funding minimum" means the minimum funding amount
each year per eligible public institution to which new State
formula funding is added, as calculated in subsection (b) of
Section 35.
"Board" means the Board of Higher Education.
"Carnegie Classification system" means the 2021 version of
the basic classification system developed and maintained by
the American Council on Education, which classifies higher
education institutions based on their level of degrees awarded
and level of research activity.
"Concentration factor adjustment" means an adjustment to
academic and nonacademic support based on the percentage of
all undergraduate students who meet the requirements for a
high and intensive holistic support equity adjustment.
"Core funding" means a per-student funding amount
determined to be necessary to provide the following types of
support before any adjustments are made:
(1) access support;
(2) academic and nonacademic support;
(3) core instructional program support;
(4) research support;
(5) public service and artistry support;
(6) institutional support; and
(7) physical plant support.
"Core instructional program adjustment" means an

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adjustment to core instructional program support to cover the
increased costs of high-cost programs, health professional
programs, and medical programs.
"Core instructional program support" means a per-student
funding amount required to cover costs related to delivering
instructional programs.
"Cumulative statewide adequacy gap percentage" means the
sum of all eligible public institution adequacy gap
percentages.
"Distribution formula" means the formula for calculating
funding amounts to be allocated across eligible public
institutions, as set forth in Section 35.
"Diversity programs adjustment" means an adjustment to
core instructional program support for underrepresented
students enrolled in high-cost programs, health professional
programs, and medical programs, including undergraduate,
graduate, or professional studies.
"Dollar gap formula" means a formula for distributing
funds among eligible public institutions based on an eligible
public institution's adequacy gap in absolute dollars.
"Eligible public institution" means each of the following
public institutions of higher education: Chicago State
University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Southern Illinois
University at Carbondale, Southern Illinois School of

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Medicine; Southern Illinois University at Edwardsville, the
University of Illinois at Chicago, the University of Illinois
at Chicago School of Medicine, the University of Illinois at
Springfield, the University of Illinois at Urbana-Champaign,
the University of Illinois at Urbana-Champaign School of
Medicine, Western Illinois University, or any other public
college or university now or hereafter established or
authorized by the General Assembly and deemed to be eligible
for funding through the Adequate and Equitable Funding Formula
by the Board of Higher Education, except a community college.
"Eligible public institution adequacy gap percentage"
means the ratio of an eligible public institution's adequacy
gap and its adequacy target.
"Equitable student share" means the amount an eligible
public institution should be expected to contribute toward its
adequacy target that can be reasonably generated by student
tuition and fees, based on the characteristics of its student
body, as determined under Section 30. The equitable student
share of an eligible public institution is a hypothetical
calculation made for the express purpose of differentiating
which portion of a particular eligible public institution's
adequacy target costs should be covered by State
appropriations rather than student tuition and fee payments.
The use of the equitable student share calculation after the
effective date of this Act shall shift responsibility to cover
more of the cost of funding the adequacy target of a particular

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eligible public institution to be borne by State
appropriations, rather than student tuition and fee payments,
making higher education attendance more affordable for all
students who attend the eligible public institution.
"Funding formula" means the adequate and equitable funding
formula for public universities created under this Act.
"Funding Formula Review Panel" means the panel established
under Section 45.
"Head count" means the rolling 3-year average of the
unduplicated number of degree-seeking students enrolled in an
eligible public institution.
"Health professional program adjustment" means an
adjustment to core instructional program support calculated by
the Board, based on cost modeling research, to cover the
increased costs of offering master's and doctoral degree
programs in the following disciplines: veterinary medicine,
dentistry, pharmacy, physical therapy, and audiology and
speech pathology.
"High-cost program adjustment" means an adjustment to core
instructional program support calculated by the Board, based
on cost modeling research, to cover the higher costs of
offering certain programs, including, but not limited to,
engineering, fine arts, and registered nursing. These programs
shall be identified based on consistently higher than average
costs relative to other programs at the same level across
multiple institutions, time periods, and states.

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"Holistic support equity adjustment" means an adjustment
to academic and nonacademic support for the increased costs of
closing retention gaps for underserved students.
"Institutional support" means a per-student funding amount
required to cover costs related to the basic administration of
an eligible public institution, such as central
administration, business office, and human resource costs.
"Laboratory space adjustment" means an adjustment to
physical plant support based on the cost of maintaining
laboratory space.
"Medical program adjustment" means an adjustment to core
instructional program support calculated by the Board, based
on cost modeling research, to cover the increased costs of
offering medical degree programs.
"New State formula funding" means, for a given fiscal
year, all State funds appropriated for the adequate and
equitable funding formula for public universities in excess of
the amount provided in the previous fiscal year.
"Other resources" means a percentage of an eligible public
institution's endowment that it may be expected to spend
without depleting its endowment. "Other resources" does not
include grants and contracts.
"Percentage gap" means the size of an eligible public
institution's adequacy gap measured by dividing its resource
profile by its adequacy target.
"Physical plant support" means a per-student funding

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amount required to cover costs related to the operation and
maintenance of a physical campus of an eligible public
institution, including, but not limited to, custodial
services, snow removal, painting, and repairs.
"Public service and artistry support" means a per-student
funding amount required to cover costs related to public
service and artistry.
"Public university" means the University of Illinois,
Southern Illinois University, Chicago State University,
Eastern Illinois University, Governors State University,
Illinois State University, Northeastern Illinois University,
Northern Illinois University, Western Illinois University, or
any other public college or university now or hereafter
established or authorized by the General Assembly, except a
community college.
"Research support" means a per-student funding amount
required to cover costs related to research.
"Resource profile" means the resources available to a
public university to cover the costs of the adequacy target.
"Scaled institutional ratio cut" means the calculation
used to apply the reduction ratio to the amount of the funding
reduction in a given fiscal year. To calculate the scaled
institutional ratio cut, each eligible public institution's
percentage reduction ratio shall be proportionally scaled up
or down based on the total amount of reduced appropriations.
"School size adjustment" means an adjustment to

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institutional support for an eligible public institution with
a head count of less than 20,000 students.
"Statewide adequacy gap" means the difference between (i)
the cumulative total of each eligible public institution's
adequacy targets and (ii) the cumulative total of each
eligible public institution's resource profile.
"Statewide gap" means the statewide funding gap determined
by dividing the adequacy target of all eligible public
institutions by the resource profile of all eligible public
institutions, measured as a percentage.
"Underserved students" means students or student groups
that have gaps in enrollment, retention, or completion between
their population and a relevant comparison group based on data
available to the State. The Board shall determine which
students or student groups meet this term through a
data-informed determination of "underserved students" that
shall be updated every 3 years. The Board shall consider data
about postsecondary enrollment patterns, student demographics,
student and family income levels, student outcomes, and
geographic distribution when developing its determination.
Section 20. Adequate and equitable funding formula for
public universities.
(a) After the effective date of this Act, all general
operating expenses for public universities shall be
distributed by the Board through the funding formula created

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under this Act for public universities and shall be
administered by the Board.
(b) The adequate and equitable funding formula for public
universities shall include all of the following:
(1) an adequacy target for each eligible public
institution, as calculated in Section 25;
(2) a resource profile for each eligible public
institution, as calculated in Section 30; and
(3) an adequacy gap for each eligible public
institution, which is the difference between the adequacy
target and the resource profile.
(c) The funding formula shall operate as follows:
(1) The General Assembly shall appropriate new funding
to reduce the statewide adequacy gap.
(A) The Board shall use the formula in Section 25
to calculate the adequacy target for each eligible
public institution.
(B) The Board shall use the formula in Section 30
to calculate the resource profile for each eligible
public institution.
(C) After calculating the adequacy target and
resource profile for each eligible public institution,
the Board shall subtract the resource profile from the
adequacy target to determine the adequacy gap for each
eligible public institution.
(2) The Board shall use the distribution formula set

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forth in Section 35 to calculate the amount of the new
funding to allocate for each eligible public institution.
(A) Unless the Board determines an eligible public
institution to be ineligible for new funding after
considering recommendations of the Accountability and
Transparency Committee, each eligible public
institution is eligible for new funding.
(B) The Board shall outline what conditions, if
any, come with the new funding.
(3) The Board shall distribute new funding to each
public university through the distribution formula set
forth in Section 35.
Section 25. Adequacy target.
(a) As used in this Section, "underrepresented students"
means student groups whose share of the head count of the
relevant core instructional program across all eligible public
institutions is less than the share of that same student group
across every eligible public institution's undergraduate head
count.
(b) The adequacy target for each eligible public
institution is the sum of the eligible public institution's
cost of providing an equitable and adequate education based on
the specific characteristics of the eligible public
institution and the eligible public institution's student body
as calculated in accordance with this Section each fiscal

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year. Each eligible public institution's adequacy target shall
be made up of the following adequacy components:
(1) an instruction and student services component,
which shall cover the expenses of providing access
support, academic and nonacademic support, and core
instructional program support;
(2) a research and public service mission component,
which shall cover the expenses of providing mission
support and public service and artistry support; and
(3) an operations and maintenance component, which
shall cover the expenses of institutional support and
physical plant support.
(c) The adequacy components shall be predicated on a base,
per-student, core funding amount and, if necessary,
accompanying adjustments, each of which has been identified as
evidence-based or as needed to enhance, based on the available
data, the enrollment and graduation of underserved students,
and shall be evaluated and adjusted under subsection (g) of
Section 45. In Fiscal Year 2026 and in each fiscal year
thereafter, the dollar value of each of the core funding
elements and any adjustment represented by a dollar value
identified in this Section shall be increased annually, on a
cumulative basis, predicated on the Employment Cost Index
(Midwest Economy) published by the Bureau of Labor Statistics
of the United States Department of Labor for the 4-quarter
period ending on December 31 of the immediately preceding

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fiscal year. The adequacy target of an eligible public
institution in a fiscal year shall be the sum of its adequacy
components for the fiscal year, adjusted for inflation as
provided in this subsection (c).
(d) The instruction and student services adequacy
component shall be determined as follows:
(1) The Board shall include in each eligible public
institution's adequacy target the costs required to
provide students with access support as follows:
(A) The Board shall include access support in the
amount of $1,136 per student in each eligible public
institution's adequacy target.
(B) The access adjustments to the access support
shall be determined as follows:
(i) the Board shall include in each eligible
public institution's adequacy target an additional
$500 for each undergraduate student included in
the eligible public institution's head count who
meets the requirements for a low-access adjustment
as defined in subsection (g); and
(ii) the Board shall include in each eligible
public institution's adequacy target an additional
$1,000 for each undergraduate student included in
the eligible public institution's head count who
meets the requirements for a medium-access
adjustment as defined in subsection (g).

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(2) The Board shall include in each eligible public
institution's adequacy target the funding required to
provide students with academic and nonacademic support as
follows:
(A) The Board shall include academic and
nonacademic support in the amount of $2,196 per
student in each eligible public institution's adequacy
target.
(B) The holistic support equity adjustment to the
academic and nonacademic support shall be determined
as follows:
(i) The Board shall include in each eligible
public institution's adequacy target an additional
$2,000 for each student included in the eligible
public institution's head count who meets the
requirements for a low holistic support equity
adjustment as defined in subsection (h).
(ii) The Board shall include in each eligible
public institution's adequacy target an additional
$4,000 for each student included in the eligible
public institution's head count who meets the
requirements for a medium holistic support equity
adjustment as defined in subsection (h).
(iii) The Board shall include in each eligible
public institution's adequacy target an additional
$6,000 for each student included in the eligible

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public institution's head count who meets the
requirements for a high holistic support equity
adjustment as defined in subsection (h).
(iv) The Board shall include in each eligible
public institution's adequacy target an additional
$8,000 for each student included in the eligible
public institution's head count who meets the
requirements for an intensive holistic support
equity adjustment as defined in subsection (h).
(C) The concentration factor adjustment to
academic and nonacademic support shall be determined
as follows:
(i) If 75% or more of the undergraduate
students included in an eligible public
institution's head count meet the requirements for
a high holistic support equity adjustment or an
intensive holistic support equity adjustment, then
each of the holistic support equity adjustment
amounts described in subparagraph (B) of paragraph
(2) of this subsection (d) shall be increased by a
concentration factor of 50%.
(ii) If 60% or more but less than 75% of the
undergraduate students included in an eligible
public institution's head count meet the
requirements for a high holistic support equity
adjustment or an intensive holistic support equity

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adjustment, then each of the holistic support
equity adjustment amounts described in
subparagraph (B) of paragraph (2) of this
subsection (d) shall be increased by a
concentration factor of 30%.
(iii) If 50% or more but less than 60% of the
undergraduate students included in an eligible
public institution's head count meet the
requirements for a high holistic support equity
adjustment or an intensive holistic support equity
adjustment, then each of the holistic support
equity adjustment amounts described in
subparagraph (B) of paragraph (2) of this
subsection (d) shall be increased by a
concentration factor of 10%.
(iv) If less than 50% of the undergraduate
students included in an eligible public
institution's head count meet the requirements for
a high holistic support equity adjustment or an
intensive holistic support equity adjustment, then
no concentration factor may be applied to the
eligible public institution's holistic support
equity adjustments.
(3) The Board shall include in each eligible public
institution's adequacy target the funding required to
provide students with core instructional program support

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as follows:
(A) The Board shall include core instructional
program support in the amount of $9,797 per student in
each eligible public institution's adequacy target.
(B) For Fiscal Year 2026 and Fiscal Year 2027, the
high-cost and high-priority programs to be included in
the adjustment are as follows:
(i) Engineering (all Classification of
Instructional Programs (CIP) codes 14.XXXX).
(ii) Fine arts (all CIP codes 50.XXXX).
(iii) Registered nursing (CIP code 51.38XX).
(iv) Other health professional programs (CIP
codes 01.8001, 51.0201, 51.0202, 51.0204, 51.0401,
51.2001, 51.2308, and 51.3818).
(C) The core instructional program adjustment to
core instructional program support shall be determined
as follows:
(i) For students participating in a high-cost
program at the eligible public institution, the
dollar amount of the core instructional program
support shall be increased by 20%.
(ii) For students participating in a health
professional program at the eligible public
institution, the dollar amount of core
instructional program support shall be increased
by 100%.

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(iii) For students participating in a medical
program at the eligible public institution, the
dollar amount of core instructional program
support shall be increased by 1,100%.
(D) The diversity programs adjustment shall be
calculated using each eligible public institution's
head count of underrepresented students in core
instructional programs. The diversity programs
adjustments shall be determined as follows:
(i) For each underrepresented student enrolled
in a high-cost program at the eligible public
institution, the high-cost program adjustment
shall be increased by 45%.
(ii) For each underrepresented student
enrolled in a health professional program at the
eligible public institution, the health
professional program adjustment shall be increased
by 69%.
(iii) For each underrepresented student
enrolled in a medical program at the eligible
public institution the medical program adjustment
shall be increased by 18%.
(e) The research and public service mission adequacy
component shall be determined as follows:
(1) The Board shall include in each eligible public
institution's adequacy target the funding required to

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conduct research as follows:
(A) The Board shall include research support in
the amount of $600 per student in each eligible public
institution's adequacy target.
(B) For the head count of an eligible public
institution, a research support adjustment shall be
applied to the research support provided for each
student. The research support adjustment shall be
determined as follows:
(i) the Board shall include in an eligible
public institution's adequacy target an additional
$500 for each enrolled student if the eligible
public institution is under the category of D/PU:
Doctoral/Professional Universities under the
Carnegie Classification system;
(ii) the Board shall include in an eligible
public institution's adequacy target an additional
$700 for each enrolled student if the eligible
public institution is under the category of R2:
Doctoral Universities - High research activity
under the Carnegie Classification system; or
(iii) the Board shall include in an eligible
public institution's adequacy target an additional
$1,200 for each enrolled student if the eligible
public institution is under the category of R1:
Doctoral Universities - Very high research

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activity under the Carnegie Classification system.
(2) The Board shall include in each eligible public
institution's adequacy target the funding required to
promote public service and artistry. For the head count of
an eligible public institution, the eligible public
institution shall include public service and artistry
support in the amount of $200 per student in its adequacy
target.
(f) The operations and maintenance adequacy component
shall be determined as follows:
(1) The Board shall include in each eligible public
institution's adequacy target the funding required to
provide institutional support as follows:
(A) The Board shall include institutional support
in the amount of $1,941 per student in each eligible
public institution's adequacy target.
(B) The school size adjustment shall be applied to
any eligible public institution with a head count of
less than 20,000 students. The school size adjustment
shall be calculated by subtracting the eligible public
institution's head count from 20,000, dividing the
result by 20,000, then multiplying that quotient by
45%. The resulting percentage shall be multiplied by
the institutional support for each eligible public
institution to get the per-student subsidy amount.
That amount shall then be multiplied by the head count

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and the resulting amount shall be included in the
eligible public institution's adequacy target.
(2) The Board shall include in each eligible public
institution's adequacy target the funding required to
maintain the eligible public institution's physical plant
as follows:
(A) Each eligible public institution shall include
physical plant support in the amount of $7.78 per
square foot in its adequacy target.
(B) Each eligible public institution shall include
in its adequacy target a laboratory space adjustment
cost of $1.54 per square foot of laboratory space in
the eligible public institution's physical plant.
(g) As used in this subsection (g):
"Low-access adjustment" means an adjustment for an
eligible public institution having a disparity that is greater
than or equal to 1% but less than 10% in statewide public
university enrollment rates for any subgroup of students
compared to the statewide average of all other students.
"Medium-access adjustment" means an adjustment for an
eligible public institution having a 10% or greater disparity
in statewide public university enrollment rates for any
subgroup of students compared to the statewide average of all
other students.
Eligibility for the access adjustments shall be determined
using the gaps in the percentage of statewide public

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university enrollment of recent high school graduates for any
subgroup of students compared to the statewide average of all
other students, as determined by the Board. The access
adjustments shall be allocated based on the head count of
undergraduate students at each eligible public institution and
shall be categorized as either low-access adjustments or
medium-access adjustments, with student populations with
larger enrollment gaps having higher adjustment amounts.
Students with multiple characteristics shall be placed in the
category associated with their highest characteristic.
(h) As used in this subsection (h):
"High holistic support adjustment" means an adjustment for
an eligible public institution having greater than or equal to
11% disparity in retention rates for any subgroup of students
compared to the statewide average of all other students.
"Intensive holistic support adjustment" means an
adjustment for an eligible public institution having students
belonging to 2 other categories of holistic support, one of
which is high holistic support.
"Low holistic support adjustment" means an adjustment for
an eligible public institution having a disparity in retention
rates greater than or equal to 1% but less than 6% for any
subgroup of students compared to the statewide average of all
other students.
"Medium holistic support adjustment" means an adjustment
for an eligible public institution having a disparity in

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retention rates greater than or equal to 6% but less than 11%
for any subgroup of students compared to the statewide average
of all other students.
The academic and nonacademic support adjustments shall be
determined using the statewide gaps in the percentage of
year-over-year retention for any subgroup of students compared
to the statewide average of all other students, as determined
by the Board. The holistic support equity adjustments shall be
categorized, in descending order, as intensive, high, medium,
or low, with students with multiple characteristics being
placed one category above the category associated with their
highest characteristic. Undergraduate students are eligible
for all holistic support equity adjustments. Graduate students
are eligible for the high and medium holistic support equity
adjustments.
(i) The adequacy target does not include, among other
expenditures, any of the following:
(1) expenditures for hospitals, athletics,
auxiliaries, housing, health insurance, or deferred
maintenance; or
(2) institutional financial aid.
(j) The Board, in consultation with the Funding Formula
Review Panel, may, by rule, define additional academic and
nonacademic support and additional high-cost programs. The
Board, in consultation with the Funding Formula Review Panel,
may also define by rule the maximum adjustment and number of

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students who are eligible for the school size adjustment.
Section 30. Resource profile.
(a) As used in this Section:
"Deemed State appropriation percentage" means that portion
of an eligible public institution's core funding that State
appropriations are deemed responsible to cover, predicated on
a weighted average of the following apportionments of the core
funding, using the head count at the eligible public
institution of the following students, provided that the
apportionments set forth within each paragraph are cumulative
so that if a student is associated with more than one
apportionment criterion, the multiple apportionments shall be
added together:
(1) 30% of the core funding associated with each
in-state undergraduate student included in the eligible
public institution's head count; plus
(2) 50% of the core funding associated with each
in-state undergraduate who is also an underrepresented
student included in the eligible public institution's head
count; plus
(3) 50% of the core funding associated with each
in-state undergraduate student attending the eligible
public institution who is qualified by income for a grant
under the Monetary Award Program or the Federal Pell Grant
Program; plus

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(4) 10% of the core funding associated with each
in-state undergraduate student included in the eligible
public institution's head count who also attended a public
high school located in a school district placed into Tier
1 under Section 18-8.15 of the School Code; plus
(5) 10% of the core funding associated with each
in-state undergraduate student included in the eligible
public institution's head count who also attended a public
high school located in a school district placed into Tier
2 under Section 18-8.15 of the School Code and who is also
low income; plus
(6) 25% of the core funding associated with each
in-state undergraduate student included in the eligible
public institution's head count who is an adult student,
provided that in no event shall more than 100% of the
responsibility for covering the core funding associated
with any in-state undergraduate student included in an
eligible public institution's head count be apportioned to
State appropriations under this Section, irrespective of
how many apportionment adjustments may be applicable to
the student; plus
(7) 25% of the core funding associated with each
in-state graduate student included in the eligible public
institution's head count, plus an additional 50% of the
core funding associated with each in-state graduate
student who is also an underrepresented student included

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in the eligible public institution's head count; plus
(8) 10% of the core funding associated with each
out-of-state undergraduate student included in the
eligible public institution's head count; plus
(9) 25% of the core funding associated with each
out-of-state undergraduate student who is also an
underrepresented student included in the eligible public
institution's head count; plus
(10) 25% of the core funding associated with each
in-state undergraduate student included in the eligible
public institution's head count who is low income,
provided that in no event shall more than 35% of the
responsibility for covering the core funding associated
with any out-of-state undergraduate student be apportioned
to State appropriations under this Section, irrespective
of how many apportionment adjustments may be applicable to
the student; plus
(11) 5% of the core funding associated with each
out-of-state graduate student included in the eligible
public institution's head count; plus
(12) 25% of the core funding associated with each
out-of-state graduate student who is also an
underrepresented student included in the eligible public
institution's head count.
"ESS index" means, for an eligible public institution, a
percentage that is equal to 100% minus the deemed State

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appropriation percentage applicable to the eligible public
institution in the fiscal year, as determined in this Section.
(b) The resource profile shall be the sum of each eligible
public institution's other resources, equitable student share,
base funding minimum, and special operational funding as
determined under this Act.
(1) The other resources of an eligible public
institution shall be an amount that is equal to 4.2% of the
most recent 4-year average of the eligible public
institution's end-of-fiscal-year endowment value.
(2) The equitable student share apportionments shall
be predicated on data that shows disparities among various
student subgroups in enrollment and retention at each
eligible public institution. In each academic year, the
equitable student share of an eligible public institution
shall be a dollar amount that is equal to the eligible
public institution's core funding multiplied by its ESS
index.
(3) The base funding minimum shall be calculated under
subsection (b) of Section 35.
(4) Special operational funding is funding for
scholarships and specific appropriations aimed at a
specific initiative, project, or center that is aligned
with one or more of the adequacy components.
(A) For Fiscal Year 2026 and Fiscal Year 2027, the
following line-item State appropriations shall be

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included in the resource profile :
(i) at Chicago State University, the Chicago
State University Education Improvement Fund and
the College of Pharmacy.
(ii) at Eastern Illinois University, the
equity-based student achievement program, Grow
Your Own Teachers at Eastern Illinois University
scholarships, and scholarship appropriations.
(iii) at Illinois State University,
scholarship appropriations.
(iv) at Northern Illinois University,
scholarship appropriations.
(iv) at Southern Illinois University, the
Daily Egyptian, the School of Pharmacy, and
scholarship appropriations.
(vi) at the University of Illinois, labor and
employment relations, the Hispanic Center of
Excellence, the Dixon Springs Agricultural Center,
the Institute of Government and Public Affairs,
the College of Dentistry, the College of Pharmacy
in Rockford, and scholarship appropriations.
(B) For Fiscal Year 2028 and each fiscal year
thereafter, the Board shall determine, based on the
recommendations of the Funding Formula Review Panel,
the special operational funding to be included in the
resource profile.

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(c) The resource profile may not include any of the
following:
(1) tuition and fee revenue;
(2) revenue from State or federal financial aid; or
(3) special operational funding as follows:
(A) for Fiscal Year 2026 and Fiscal Year 2027, the
following line-item State appropriations may not be
included in the resource profile:
(i) at Southern Illinois University, the
National Corn-to-Ethanol Research Center,
programming at Belleville, the Office of Community
Engagement, the Center for Rural Health and Social
Service Development, and the Simmons Cancer
Institute; and
(ii) at the University of Illinois, the
Prairie Research Institute, the University of
Illinois Hospital, Illinois Heart Rescue, the
Illinois Innocence Project, the Climate Jobs
Institute, the Illinois Fire Service Institute,
emergency mosquito abatement, pet population
control, carbon dioxide capture technology, carbon
capture utilization and storage, and water reports
under the federal Advanced Research Projects
Agency.
(B) for Fiscal Year 2028 and each fiscal year
thereafter, the Board shall determine, based on the

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recommendations of the Funding Formula Review Panel,
the special operational funding to be included in the
resource profile.
Section 35. Distribution of State appropriations for
eligible public institutions.
(a) As used in this Section:
"Guardrail percentage" means the percentage obtained by
multiplying 50% by the lesser of either:
(1) the annual inflation rate measured by the
Employment Cost Index (Midwest Economy) published by the
Bureau of Labor Statistics of the United States Department
of Labor for the 4-quarter period ending on December 31 of
the immediately preceding fiscal year, but not less than
0%; or
(2) the percentage equal to (i) the total amount of
new State formula funding for the fiscal year, divided by
(ii) the total amount of annual formula funding for the
immediately preceding fiscal year.
The dollar amount of new State formula funding in a fiscal year
that remains after accounting for all guardrail distributions
to be made in the fiscal year shall be referred to as the new
State formula funding.
"New State formula funding" means, in a fiscal year, the
dollar amount of State appropriations that exceeds the dollar
amount of the annual formula funding appropriated for public

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universities in the immediately preceding fiscal year.
"Pro rata share" means an amount that is equal to the sum
of (i) the amount of the guardrail distribution allocated to
the eligible public institution for the fiscal year, as
determined in subsection (e), plus (ii) the eligible public
institution's adequacy gap formula distribution and dollar gap
formula distribution for the fiscal year, as determined in
paragraph (1) of subsection (f).
(b) The base funding minimum for each eligible public
institution shall be determined as follows:
(1) For Fiscal Year 2026, the base funding minimum of
an eligible public institution shall be the sum of all
State appropriations made from the Education Assistance
Fund or the General Revenue Fund to the eligible public
institution to use as operating funds in the previous
fiscal year.
(2) For Fiscal Year 2027 and each fiscal year
thereafter, the base funding minimum of an eligible public
institution shall be the dollar value of its base funding
minimum from the immediately preceding fiscal year,
increased by any new State formula funding the eligible
public institution received in the immediately preceding
fiscal year, provided that there was new State formula
funding appropriated in the immediately preceding fiscal
year. If there was no increase or decrease made to annual
formula funding in the immediately preceding fiscal year,

SB3965 - 35 - LRB103 41230 RJT 74447 b
then the dollar value of the base funding minimum for the
eligible public institution that pertained to the
immediately preceding fiscal year shall carry forward into
the next fiscal year. If there was a year-to-year
reduction in annual formula funding in the immediately
preceding fiscal year, then the base funding minimum for
the eligible public institution in the next succeeding
fiscal year shall be the State appropriations made to the
eligible public institution to meet its operational
expenses for the fiscal year.
(c) To enhance the stability of long-term funding for
public universities, to create predictability in funding, to
enhance the capacity of public universities to prepare
budgets, and to create a feasible pathway to fully fund the
adequacy target of each public university within a reasonable
period of time, in Fiscal Year 2026 and in each fiscal year
thereafter, the State shall endeavor to increase the aggregate
amount of annual formula funding by an amount that is at least
$135,000,000 more than the aggregate annual formula funding
appropriation made in the immediately preceding fiscal year,
and that amount shall be designated as the minimum target
increase. The minimum target increase shall be in addition to
and not a replacement for any other appropriations the State
makes to support either public universities or the students
who attend public universities.
The first fiscal year occurring after the adequacy target

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of every eligible public institution is fully funded, after
accounting for inflation and enrollment changes, shall be the
full funding date, and the minimum target increase shall be an
amount equal to the annual formula funding amount for the
fiscal year of the full funding date, increased on a
cumulative basis by a percentage equal to the percentage
increase, if any, in the Employment Cost Index (Midwest
Economy) published by the Bureau of Labor Statistics of the
United States Department of Labor for the 4-quarter period
ending on December 31 of the fiscal year in which the full
funding date occurs. Thereafter, the minimum target increase
in a fiscal year shall be the annual formula funding amount for
the immediately preceding fiscal year, increased by a
percentage equal to the percentage increase, if any, in the
Employment Cost Index (Midwest Economy) published by the
Bureau of Labor Statistics of the United States Department of
Labor for the 4-quarter period ending on December 31 of the
immediately preceding fiscal year.
(d) In Fiscal Year 2026 and in each fiscal year thereafter
in which the State appropriates new State formula funding,
each public university shall receive an appropriation from the
Board equal to the sum of its base funding minimum for the
fiscal year, plus its pro rata share of new State formula
funding for the fiscal year. A public university shall receive
all funding on behalf of each eligible public institution that
is part of that public university and then distribute that

SB3965 - 37 - LRB103 41230 RJT 74447 b
funding to each eligible public institution.
(e) In each fiscal year in which the State appropriates
new State formula funding, a portion of the new State formula
funding shall be set aside and used as the aggregate guardrail
distribution that shall be made to all public universities in
the fiscal year. The amount of the guardrail distribution a
public university shall receive in an applicable fiscal year
shall be equal to the dollar value of its base funding minimum
for the fiscal year, multiplied by the guardrail percentage.
(f) In each fiscal year in which there is new State formula
funding, 50% of the new State formula funding shall be
calculated using the dollar gap formula for each eligible
public institution, and the remaining 50% shall be calculated
using the adequacy gap formula for each eligible public
institution through the following calculations:
(1) The portion of the new State formula funding to be
distributed under the dollar gap formula shall be
calculated for each eligible public institution as
follows:
(A) First, add the total dollar value of the
adequacy gap of all eligible public institutions for
the fiscal year, which shall be the total adequacy
gap.
(B) Second, divide the dollar value of the
adequacy gap of the eligible public institution by the
dollar value of the total adequacy gap, which shall be

SB3965 - 38 - LRB103 41230 RJT 74447 b
the gap percentage A.
(C) Third, multiply the eligible public
institution's gap percentage A times the amount
available for the dollar gap formula for the fiscal
year.
(D) The dollar value of the product obtained after
calculating subparagraph (C) of this paragraph (1)
shall be the dollar gap formula distribution for the
eligible public institution.
(2) The portion of the new State formula funding to be
distributed under the adequacy gap formula shall be
calculated for each eligible public institution as
follows:
(A) First, add the percentage gaps of all eligible
public institutions for the fiscal year, which shall
be the total percentage gap.
(B) Second, divide the percentage gap of the
eligible public institution by the total percentage
gap, which shall be the gap percentage B.
(C) Third, multiply the eligible public
institution's gap percentage B times the amount
available for the adequacy gap formula for the fiscal
year.
(D) The dollar value of the product obtained after
calculating subparagraph (C) of this paragraph (2)
shall be the adequacy gap formula distribution for the

SB3965 - 39 - LRB103 41230 RJT 74447 b
eligible public institution.
(g) The reduction formula shall be used in a fiscal year in
which the State reduces its overall appropriations to public
universities relative to the previous fiscal year such that
funds are insufficient to provide each public university with
its base funding minimum. In each fiscal year in which there is
a reduction in funds relative to the previous fiscal year, the
funding reductions shall be borne by public universities using
the reduction guardrail factor, which equals 25%, and the
remaining 75% shall be borne by public universities using the
scaled institutional ratio cut. The reduction formula shall be
determined as follows:
(1) A reduction shall be determined by multiplying the
amount of the reduction of funds relative to the previous
fiscal year by the reduction guardrail factor. This amount
is to be subtracted from the eligible public institutions'
base funding minimum, with each eligible public
institution absorbing the percentage of the amount that
corresponds to each eligible public institution's
percentage of the base funding minimum.
(2) The balance of the remaining reduction in funds
shall be distributed to universities using the reduction
ratio formula determined as follows:
(A) The reduction ratio formula shall be
calculated by dividing the cumulative statewide
adequacy gap percentage by each eligible public

SB3965 - 40 - LRB103 41230 RJT 74447 b
institution's adequacy gap percentage and multiplying
the result by the percentage decrease in the current
fiscal year's appropriation compared to the prior
fiscal year's appropriation.
(B) To complete the reduction calculation, each
eligible public institution's percentage of the cut
shall be proportionally scaled up or down to fit the
total amount of the reduced appropriations. The scaled
institutional ratio cut shall be scaled by:
(i) calculating the difference between the
statewide sum of institutional ratio cuts and the
statewide sum of the guardrail reduction;
(ii) calculating the ratio of each
institutional ratio cut and the statewide sum of
institutional ratio cuts; and
(iii) calculating the product of subdivisions
(i) and (ii) of this subparagraph (B) and
subtracting that amount from each institutional
ratio cut.
(C) Once the reduction calculation is complete,
each eligible public institution that is part of a
public university shall have its cuts aggregated into
a total cut for the public university.
Section 40. Accountability and transparency framework;
reporting; committee.

SB3965 - 41 - LRB103 41230 RJT 74447 b
(a) The Board shall oversee an accountability and
transparency framework for assessing the distribution and use
of funds appropriated by the funding formula under Section 30
and evaluating the funds' effects on institutional outcomes
pertaining to student affordability, enrollment, persistence,
and outcome metrics.
(b) The Board shall report annually to the General
Assembly on the implementation of the funding formula as
follows:
(1) The report shall be posted publicly on the Board's
website by March 1 of each year and shall, at a minimum,
include all of the following:
(A) an updated adequacy target for each eligible
public institution for the upcoming fiscal year,
calculated from the following:
(i) the updated resource profile for each
eligible public institution; and
(ii) the updated adequacy gap for each
eligible public institution; and
(B) a description of the use of all resources
received by eligible public institutions through the
appropriations of the funding formula; and
(C) a description of the status and year-over-year
progress of each eligible public institution on a
series of institutional spending, institutional
performance, and student support metrics described in

SB3965 - 42 - LRB103 41230 RJT 74447 b
this Section.
(2) The Board, with advice of each public university,
shall specify a set of metrics and associated information
designated for evaluating institutional performance and
annually report on those metrics. These metrics shall
include both point-in-time and longitudinal measures of
institutional spending of any resources received from the
funding formula and institutional performance regarding
student affordability, student enrollment, student
retention, and student graduation. Each eligible public
institution shall provide the needed data to calculate the
set of metrics and related information annually to the
Board by December 31. The metrics and related information
and materials shall include all of the following
information:
(A) Prospective spending proposals through which
eligible public institutions delineate their projected
use of appropriations allocated through the funding
formula for the forthcoming fiscal year. These
expenditure plans shall be categorized according to
accounting spending classifications established by the
Board.
(B) Retrospective spending summaries through which
eligible public institutions disclose the expenditure
of all new appropriations received in the preceding
fiscal year. These expenditure reports shall be

SB3965 - 43 - LRB103 41230 RJT 74447 b
structured based on accounting spending categories
designated by the Board.
(C) Metrics measuring the institutional status and
year-over-year changes in students' tuition and fees,
net price, and expected share of expenses. Student
affordability data and data trends shall be
disaggregated by undergraduate and graduate students
with further disaggregation by the student equity
categories aligned with the equitable student share,
set forth in paragraph (2) of subsection (b) of
Section 30.
(D) Metrics measuring the institutional status and
year-over-year changes in student enrollment.
Enrollment data and data trends shall be disaggregated
by undergraduate and graduate students with further
disaggregation by the student groups who carry with
them equity adjustments, as set forth in subsections
(c) through (e) of Section 25.
(E) Metrics measuring the institutional status and
year-over-year changes in student retention increased
rates from one year of enrollment to the next, minus
those that transfer from one eligible public
institution to another, and minus those that receive a
credential and no longer enroll thereafter. Student
retention data and data trends shall be disaggregated
by the student groups who carry with them equity

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adjustments, as set forth in subsections (c) through
(e) of Section 25.
(F) Metrics measuring student graduation rates
within 4 years, 5 years, and 6 years and
year-over-year changes in graduation rates. Graduation
data and data trends shall be disaggregated by the
student groups who carry with them equity adjustments,
as described in subsections (c) through (e) of Section
25.
(3) The Board shall identify at what point an adequacy
gap is sufficiently small, thereby signifying an eligible
public institution's capability to consistently advance
toward achieving State objectives, including, but not
limited to, institutional student affordability,
enrollment, persistence, completion, and outcomes. If an
eligible public institution's adequacy gap exceeds the
level determined by the Board, the eligible public
institution is exempt from the actions described in
paragraph (4) of subsection (e).
(c) For each of its metrics, the Board, with advice from
eligible public institutions, shall determine goals for each
eligible public institution in alignment with the funding
formula. These goals shall include overall progress and status
goals for the eligible public institution, as well as goals
that close equity gaps between students who carry with them
subsidies and the institutional average. The Board shall track

SB3965 - 45 - LRB103 41230 RJT 74447 b
and report publicly on its website and in its annual written
reports the progress of each eligible public institution
toward those goals.
(d) The Board may review data submitted by an eligible
public institution to ensure that it is responsive to the
requirements of this Act. If the Board determines that the
data submitted is not responsive to the requirements of this
Act or the Board's rules, the Board may require an eligible
public institution to submit corrected data.
(1) If an eligible public institution does not comply
with data requests promptly, the Board may withhold any
funds appropriated to that eligible public institution
from the funding formula beyond the eligible public
institution's base funding minimum until the proper data
is submitted.
(2) If the Board determines that an eligible public
institution has reported revenue or expenditures in the
wrong category as set by the Board, the Board may
reclassify those revenues or expenditures.
(e) To aid the Board in upholding the accountability and
transparency framework and in reporting its findings in Fiscal
Year 2026, the Executive Director of the Board shall establish
an Accountability and Transparency Committee tasked with
conducting pertinent technical evaluations of each eligible
public institution's resource allocation and advancement in
student affordability, enrollment, persistence, and outcome

SB3965 - 46 - LRB103 41230 RJT 74447 b
metrics. The Accountability and Transparency Committee shall
offer relevant and necessary technical expertise in
facilitating the implementation of the accountability and
transparency measures set forth in this Act, including, but
not limited to, those in paragraph (4) of this subsection (e).
(1) The Accountability and Transparency Committee
shall be composed of no more than 15 individuals and shall
consist of Board members, policymakers, and State and
national technical experts on higher education
accountability systems.
Members of the Accountability and Transparency
Committee shall be appointed by the Executive Director of
the Board. The Accountability and Transparency Committee
shall include:
(A) 4 members of the Board or their designees;
(B) one member with expertise in closing
educational disparities and identifying and
implementing solutions that address historic
inequities in higher education;
(C) one member with expertise in providing
research-based academic and student support that
prepares all students to achieve success in college
and a career;
(D) 2 members with expertise in public university
budget and finance; and
(E) one member with expertise in university

SB3965 - 47 - LRB103 41230 RJT 74447 b
management and performance.
The Executive Director of the Board shall ensure that
the membership of the Accountability and Transparency
Committee includes representatives reflecting the
geographic, socioeconomic, racial, and ethnic diversity of
this State. Members shall be appointed to 4-year terms,
except that for the initial appointments, half of the
members shall be appointed to initial 2-year terms.
Members may be reappointed to the Accountability and
Transparency Committee, and all reappointments shall be
for 4-year terms.
(2) Recommendations of the Accountability and
Transparency Committee shall be made based on a simple
majority vote of those Committee members present and
voting. A minority opinion may also accompany any
recommendation of the Accountability and Transparency
Committee.
(3) The Accountability and Transparency Committee
shall holistically assess progress on each of the Board's
metrics. The Accountability and Transparency Committee may
request an additional explanation or data from an eligible
public institution, which the Committee may consider in
determining if an eligible public institution has made
progress toward a goal. All considerations shall be
thoroughly documented and reported to the Board and the
public.

SB3965 - 48 - LRB103 41230 RJT 74447 b
(4) The Accountability and Transparency Committee may
request additional data from an eligible public
institution regarding spending and reporting if deemed
necessary. If the Accountability and Transparency
Committee determines that an eligible public institution
is failing to meet progress metrics despite being
adequately funded, the Accountability and Transparency
Committee shall advise the Board to implement the
following actions, including, but not limited to,
requiring that an eligible public institution:
(A) develop a plan for ensuring adequate progress
based on the resources provided;
(B) provide additional reporting on institutional
spending in alignment with the components of the
adequacy target;
(C) provide additional reporting on the
institutional metrics set forth in this Section; and
(D) permit closer oversight for spending by the
Board.
If other actions under this paragraph (4) prove to be
unsuccessful, the Board may recommend restricting or
pausing access to additional funds until progress has been
made.
(5) The Board shall review its existing reporting
requirements to ensure that the required reporting from
each eligible public institution is not duplicative.

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Section 45. Funding Formula Review Panel.
(a) The Board shall establish a Funding Formula Review
Panel tasked with studying and reviewing topics pertaining to
the implementation and impact of the funding formula. The
Panel shall provide recommendations and service to the
Governor, the General Assembly, and the Board.
(b) The Executive Director of the Board or the Executive
Director's designee shall serve as a voting member and
chairperson of the Funding Formula Review Panel.
(c) Members of the Funding Formula Review Panel shall be
appointed by the Executive Director of the Board, except as
otherwise provided in this Section. The Funding Formula Review
Panel shall include representatives of public universities,
faculty, students, families, advocacy organizations, and State
government agencies, along with technical experts, and shall
include:
(1) the Executive Director of the Board;
(2) one member of the House of Representatives,
appointed by the Speaker of the House of Representatives;
(3) one member of the Senate, appointed by the
President of the Senate;
(4) one member of the House of Representatives,
appointed by the Minority Leader of the House of
Representatives;
(5) one member of the Senate, appointed by the

SB3965 - 50 - LRB103 41230 RJT 74447 b
Minority Leader of the Senate;
(6) one member appointed by the Governor;
(7) 6 members from public universities, each appointed
to reflect the diversity of public universities;
(8) the Executive Director of the Illinois Student
Assistance Commission or the Executive Director's
designee;
(9) 2 members representing an organization that
advocates on behalf of public university faculty members
who are each employed by a different public university;
(10) one member representing a statewide organization
that has specific expertise in research-based education
policy to support a healthy public education system that
prepares all students to achieve success in college, a
career, and civic life;
(11) one member representing a higher education
advocacy organization focused on eliminating disparities
in college completion in this State for low-income and
first-generation college students and students of color;
(12) one member representing a statewide advocacy
organization focused on improving educational and
employment opportunities for women and adults;
(13) one member representing a statewide organization
that has specific expertise in equity, justice, and
economic prosperity for the Latino community;
(14) one member representing a statewide organization

SB3965 - 51 - LRB103 41230 RJT 74447 b
that has specific expertise in equity, justice, and
economic prosperity for the Black community;
(15) 2 members with specific expertise in education
finance; and
(16) 2 members representing an organization that has
specific expertise in amplifying young adult voices.
The Executive Director shall ensure that the membership of
the Funding Formula Review Panel includes representatives
reflecting the geographic, socioeconomic, racial, and ethnic
diversity of this State.
The Executive Director shall appoint a vice chairperson
from the membership of the Funding Formula Review Panel.
(d) Members shall be appointed for 4-year terms, except
that for the initial appointments, half of the members shall
be appointed to 2-year terms. Members may be reappointed to
the Funding Formula Review Panel, and all reappointments shall
be for 4-year terms.
(e) Recommendations of the Funding Formula Review Panel
shall be made based on a simple majority vote of those Panel
members present and voting. A minority opinion may also
accompany any recommendation of the Funding Formula Review
Panel.
The Funding Formula Review Panel shall study topics at the
direction of the General Assembly, the Board of Higher
Education, or the chairperson and shall recommend any funding
formula recalibrations or changes to the Board, including, but

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not limited to, all of the following:
(1) special operational funding for inclusion in the
resource profile;
(2) equitable student share;
(3) the high-cost and high-priority program
adjustments;
(4) the inclusion of graduate students throughout the
funding formula;
(5) medical expenses; and
(6) additional underserved students to be included in
the equity adjustments and equitable student share,
including, but not limited to, student parents,
undocumented students, English learners, and
first-generation students.
(f) On an annual basis, the Funding Formula Review Panel
shall validate the following per-student elements of the
adequacy target on a cumulative basis by inflation computed
using the Employment Cost Index (Midwest Economy) published by
the Bureau of Labor Statistics of the United States Department
of Labor for the 4-quarter period ending on December 31 of the
fiscal year in which the full funding date occurs:
(1) access support;
(2) academic and nonacademic support;
(3) core instructional program support;
(4) research support;
(5) public service and artistry support;

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(6) institutional support; and
(7) physical plant support.
(g) Once every 3 years, the Funding Formula Review Panel
shall consider and make recommendations to the Board and
General Assembly for recalibrating each of the following
adjustments of the adequacy target, except for inflation
adjustments under subsection (b) of Section 20, based on
evidence-based practices, research, a study of average
expenses, and the U.S. National Science Foundation's Higher
Education Research and Development database and as reported in
the Board's most recent revenue and expenditure reports:
(1) the access adjustment;
(2) the holistic support equity adjustment;
(3) the concentration factor adjustment;
(4) the core instructional program adjustment;
(5) the diversity programs adjustment;
(6) the research support adjustment;
(7) the school size adjustment; and
(8) the laboratory space adjustment.
(h) Within 5 years after the implementation of this
Section and every 5 years thereafter, the Funding Formula
Review Panel shall conduct a comprehensive review on the
functioning of the funding formula that is aligned as much as
possible to the Board's strategic plan development timeline.
The Funding Formula Review Panel shall report to the Board of
Higher Education, the General Assembly, and the Governor on

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the findings of the review.
Section 50. Board of Higher Education capacity. The
Board's annual budget request shall describe any additional
resources needed to support the implementation of the funding
formula, the Funding Formula Review Panel, and the
Accountability and Transparency Committee. The budget request
shall include any relevant descriptions regarding how the
Board is supporting the initial implementation of the funding
formula, including establishing the necessary definitions,
reviewing submitted eligible public institution data for
accuracy and completeness, working with each eligible public
institution to ensure the accuracy of reported data,
determining whether each eligible public institution is
complying with the requirements of this Act, and supporting
each eligible public institution to improve the eligible
public institution's performance.
Section 55. Data infrastructure.
(a) The Board's annual budget request shall describe the
resources needed to support the collection of data needed to
implement and recommend recalibrations of the funding formula.
If the Accountability and Transparency Committee or Funding
Formula Review Panel recommends additional data capacity, the
Board shall consider those recommendations in developing its
annual budget request.

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(b) The Board shall develop guidelines for each eligible
public institution receiving funds under the funding formula
to submit data annually for inclusion in the funding formula.
Section 900. The Board of Higher Education Act is amended
by changing Section 8 as follows:
(110 ILCS 205/8) (from Ch. 144, par. 188)
Sec. 8. The Board of Trustees of the University of
Illinois, the Board of Trustees of Southern Illinois
University, the Board of Trustees of Chicago State University,
the Board of Trustees of Eastern Illinois University, the
Board of Trustees of Governors State University, the Board of
Trustees of Illinois State University, the Board of Trustees
of Northeastern Illinois University, the Board of Trustees of
Northern Illinois University, the Board of Trustees of Western
Illinois University, and the Illinois Community College Board
shall submit to the Board not later than the 15th day of
November of each year its budget proposals for the operation
and capital needs of the institutions under its governance or
supervision for the ensuing fiscal year. The Illinois
Community College Board shall also submit its budget proposal
for the operational
needs of the institutions under its
governance or supervision for the ensuing fiscal year at this
time. Each budget proposal shall conform to the procedures
developed by the Board in the design of an information system

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for State universities and colleges.
In order to maintain a cohesive system of higher
education, the Board and its staff shall communicate on a
regular basis with all public university presidents. They
shall meet at least semiannually to achieve economies of scale
where possible and provide the most innovative and efficient
programs and services.
The Board, in the analysis of formulating the annual
budget request, shall consider rates of tuition and fees and
undergraduate tuition and fee waiver programs at the State
universities and public community colleges. The Board shall
also consider the current and projected utilization of the
total physical plant of each campus of a public university or
community college in approving the capital budget for any new
building or facility.
The Board of Higher Education shall submit to the
Governor, to the General Assembly, and to the appropriate
budget agencies of the Governor and General Assembly its
analysis and recommendations on such budget proposals.
The Board is directed to form a broad-based group of
individuals representing the Office of the Governor, the
General Assembly, public community colleges institutions of
higher education, State agencies, business and industry,
statewide organizations representing faculty and staff, and
others as the Board shall deem appropriate to devise a system
for allocating State resources to public community colleges

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institutions of higher education based upon performance in
achieving State goals related to student success and
certificate and degree completion.
In each fiscal year Beginning in Fiscal Year 2013, the
Board of Higher Education budget recommendations to the
Governor and the General Assembly shall include allocations to
public community colleges in
stitutions of higher education
based upon performance metrics designed to promote and measure
student success in degree and certificate completion. Public
university metrics must be adopted by the Board by rule, and
public community college metrics must be adopted by the
Illinois Community College Board by rule. These metrics must
be developed and promulgated in accordance with the following
principles:
(1) The metrics must be developed in consultation with
public community colleges institutions of higher
education, as well as other State educational agencies and
other higher education organizations, associations,
interests, and stakeholders as deemed appropriate by the
Board.
(2) The metrics shall include provisions for
recognizing the demands on and rewarding the performance
of community colleges institutions in advancing the
success of students who are academically or financially at
risk, including first-generation students, low-income
students, and students traditionally underrepresented in

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higher education, as specified in Section 9.16 of this
Act.
(3) The metrics shall recognize and account for the
differentiated missions of community colleges institutions
and sectors of higher education.
(4) The metrics shall focus on the fundamental goal of
increasing completion of college courses, certificates,
and degrees. Performance metrics shall recognize the
unique and broad mission of public community colleges
through consideration of additional factors including, but
not limited to, enrollment, progress through key academic
milestones, transfer to a baccalaureate institution, and
degree completion.
(5) The metrics must be designed to maintain the
quality of degrees, certificates, courses, and programs.
In devising performance metrics, the Board may be guided by
the report of the Higher Education Finance Study Commission.
Each State university must submit its plan for capital
improvements of non-instructional facilities to the Board for
approval before final commitments are made if the total cost
of the project as approved by the institution's board of
control is in excess of $2 million. Non-instructional uses
shall include but not be limited to dormitories, union
buildings, field houses, stadium, other recreational
facilities and parking lots. The Board shall determine whether
or not any project submitted for approval is consistent with

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the strategic plan for higher education and with instructional
buildings that are provided for therein. If the project is
found by a majority of the Board not to be consistent, such
capital improvement shall not be constructed.
(Source: P.A. 102-1046, eff. 6-7-22.)