Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 121]

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1968]

UNIVERSITY OF ILLINOIS

121

T h e next section of Schedule A (section B) summarizes the increases requested for 1969-71, which total $114,773,786. This sum represents an increase of approximately 43 per cent over the budget for 1967-69. The corresponding increase for the current biennium above the budget for 1965-67 was 31 per cent. As will be explained later, the greater relative increase requested for 1969-71 is due mainly to a 1967 statute requiring a much higher appropriation than heretofore for the State Universities Retirement System. If the figures for the Retirement System are omitted from both budgets, the percentage increase is only slightly higher for 1969-71 than for 1967-69 (33 vs. 29 per cent). It should be noted also that some 83 per cent of the total increase for 1969-71 falls under the first seven categories and that the amounts were determined by state statutes or were calculated by using budget formulae and procedures developed by the staff of the Board of Higher Education and its Budget Formula Committee. Such items constitute almost 36 per cent of the 1967-69 appropriations, thus accounting for most of the increase of 43 per cent requested in the base budget. T h e "non-formula" items account for the remaining 7.3 per cent of the increase above the present biennium's total appropriation. The request for the latter type of increases two years ago amounted to approximately 6.5 per cent of the preceding biennium's total budget. Thus the University's request for increases in the "flexible" items is approximately the same percentagewise as it was two years ago. Adding the increases proposed for 1969-71 to the base budget for 1967-69 gives a total of $382,586,444 as the University's requested biennial appropriation for operations at all three campuses during the coming biennium. Of this total, the sum of $27,440,000 would be provided from the University's income fund. The latter, it should be noted, is 67.5 per cent higher than the income estimate of $16,375,000 included in the 1967-69 budget appropriation. T h e sharp increase in projected income is due primarily to a combination of higher tuition rates and projected increases in enrollment. Explanation of Increases Calculated in Accordance with Budget Formulae and Related Procedures The increases requested in P a r t II of the University's 1969-71 budget request have been determined, as already noted, in accordance either with statutory requirements or with the formulae and procedures established by the staff of the Board of Higher Education in consultation with its Budget Formula Committee. The detailed calculations underlying the specific amounts shown for these categories are being supplied separately to the staff of the Board of Higher Education.

ADJUSTMENTS TO THE B A S E BUDGET $13 080 930

As noted in Schedule A, the General Assembly appropriated the sum of $267,812,658 to the University of Illinois for the biennium 1967-69. Of this amount, the sum of $127,365,864 was provided for 1967-68 and $140,446,794 for 1968-69. The increase of $13,080,930 in the second year of the current biennium provided funds for additional enrollment, salary and price adjustments, operation of newly opened buildings, and other increases which did not become effective until 1968-69. T h e budget base for the 1969-71 biennial appropriations—exclusive of the increases indicated in Schedule A — is therefore twice the amount of the 1968-69 budget of $140,446,794, or a biennial amount of $280,893,588. In order to maintain this level of expenditure throughout the 1969-71 biennium — a level approved by the Seventy-fifth General Assembly in appropriating funds for 1968-69 — an increase of $13,080,930 over the 1967-69 biennial appropriation of $267,812,658 is required, which is the "adjustment to the base budget" listed as item B l in Schedule A.

STATUTORY INCREASES (RETIREMENT SYSTEM CONTRIBUTIONS) $27 813 160

In previous biennia, the General Assembly has appropriated to each statesupported university only the amount estimated to be needed to meet benefits payable by the Retirement System, plus maintenance of a limited reserve. The total has always been substantially less than the actuarial value of current service requirements. T h e Seventy-fifth General Assembly directed in 1967, in Senate Bill 515, that each university include in its 1969-71 biennial budget an amount sufficient to fund fully current service costs and to provide interest on the un-