HIGHER EDUCATION
FUNDING IN ILLINOIS

JOIN THE MOVEMENT FOR

The Higher Education

council is a 10-member group elected statewide. Its charge is to advocate for and advise the IEA on all things higher education.

In light of the funding crisis in Illinois due to the governor not passing a budget, most of the state universities and colleges were on the brink of disaster. We worked with the Fund our Future coalition on the MAP grant postcards and participated in other actions. But as the crisis lingered and schools were about to shut down, we determined that we needed to somehow harness the power of the IEA’s 130,000 members to help pressure legislators to fully fund higher education. And to show that it is in our interest to change this.

We have three parts: why higher education is good, what the effects not funding has on the state economy, and what you can do to get involved.

HIGHER EDUCATION HELPS YOU GET A JOB AND INCREASES YOUR INCOME

These next slides will go through the benefits of having a college degree. In this slide, you can see that someone with at least a bachelor’s degree earns nearly twice as much as someone with only a high school degree and earns 43 percent more than someone who has not finished high school. This also shows that the unemployment rate is at 2.7 vs 5.2. Thus they contribute to the tax base!

HIGHER EDUCATION IS
GOOD FOR ILLINOIS

“States can increase the strength of their economies and their ability to grow and attract high-wage employers by investing in education and increasing the number of well-educated workers.”

Berger and Fisher, “A Well-Educated Workforce is Key to State Prosperity”

As this slide shows that those with a college education and a graduate education help attract businesses who locate here because the labor pool is well trained and ready to go. Thus, building a more robust spending and tax base.

HIGHER EDUCATION IMPROVES OUR HEALTH

“College graduates report being in better health, have lower mortality rates and higher civic engagement, and are less likely to draw on the social safety net.”

“The Economics of Higher Education,” p. 15

College educated people are more likely to vote, attend forums, contribute to campaigns, call or visit their legislators

They are less likely to rely on the social safety net because they rarely need unemployment compensation, they have work-sponsored health insurance, they rarely require aid to their families.

HIGHER EDUCATION IS KEY TO INTELLECTUAL GROWTH AND CIVIC ENGAGEMENT

the mind is not a vessel to be filled, but a fire to be kindled

(Plutarch)

Those with a college education can participate more fully in the democratic process because in college they developed their critical thinking skills, they are able to find both sides of an argument to make an informed decision about candidates or issues. They are less likely to be guided by television commercials or sound bites.

WHAT IS THE HIGHER EDUCATION CRISIS IN ILLINOIS?

So now we look at what has fueled the manufactured but very real crisis.

ILLINOIS HAS STEADILY DISINVESTED IN HIGHER EDUCATION

As you can see in this slide the state has allocated funding at much lower rates than what the Illinois Board of Higher Education recommends.

In the last two years that underfunding ballooned to nearly 1.3 billion and 1.2 billion dollars. Since 2000 the amount the state has contributed to higher education has been cut by 50 percent. Although we passed a budget this year, higher ed received 10 percent less than what it did in 2015.

ILLINOIS

IS

LAST

IN
FUNDING

HIGHER ED

ILLINOIS

Illinois’s lack of investment has placed it at the bottom of the list of states when it comes to funding. The blue shows the states that have increased funding.

HOW HAVE COLLEGES AND UNIVERSITIES WEATHERED THIS CRISIS?

What has it cost?

Who has paid?

So how have schools managed with such egregious underfunding?

Photo credit: http://chicagoreporter.com/students-of-color-take-biggest-hit-in-illinois-higher-education-funding-crisis/

TUITION AT ILLINOIS PUBLIC UNIVERSITIES IS SKYROCKETING

http://www.collegeillinois.org/PlansAndPricing/CollegeTuitionCostandFees.html

School administrators have made up part of difference through increased tuition. The average cost of tuition at Illinois schools increased from $2,538 in 1992 to $13,983 in 2015 – an increase of 450 percent.

STUDENT LOAN DEBT IN ILLINOIS

  • 66% of Illinois students owe an average of $29,305
  • 1.8 million students have student loan debt
  • Illinois students owe $47.2 billion dollars in debt

(Project Student Debt)

Those tuition increases have crushed students and their prospects. They come out of college with high average debt. Collectively, Illinois students owe 47.2 billion dollars. So how does that hurt the economy? They can’t contribute to the economy because much of their earnings goes to pay off debt. They can’t buy much. They delay having families. They can’t buy houses. They can’t take as many risks while paying debt. Their overall earning power is reduced, so they may not be prepared for retirement. This all shows that despite their degrees, they are not contributing to the tax base, which means less money to fund social services and k-12 public education.

TUITION INCREASES
CANNOT
BE SUSTAINED

In the mean time, earnings of middle and working class families has flat lined. This slide shows that the tuition costs are greatly outpacing what people can afford to send their kids to school.


ENROLLMENT IS DECREASING
RACE TO THE BOTTOM?

  • 3.5% enrollment drop at Illinois public universities from 2016 to 2017
  • Higher proportion of Illinois high school grads leaving state to attend college elsewhere
    • “Sticker shock” of increased tuition more likely a barrier for first-generation college students

Contributing to the free fall is that the instability caused by the last two years has driven students out of state. Enrollment has dropped, so what schools used to recoup in tuition is now 3.5% less. Students who leave the state don’t usually come back. Students who are first-generation college bound may not actually go to college. So schools have a harder time keeping programs open when revenues from enrollment drop.

TUITION INCREASES
ARE SOCIALLY INEQUITABLE

  • 42% of African-American families have student loans,
  • Compared to 28% of white families
  • Average loan debt for African American students was $10,295
  • Compared to $8,020 for white families.

Sophie Quinton, “The Disproportionate Burden of Student-Loan Debt on Minorities,” The Atlantic (May 5, 2015)

Some people have argued that these policies of no funding are a demonstration of institutional racism. College is a gateway to a more prosperous and engaged life. The costs of tuition and the lack of Monetary Award Program grants over the last two years in Illinois added another barrier for brown and black kids getting a college education.

COLLEGES HAVE TURNED TO CONTINGENT FACULTY

More than 50% of all faculty appointments nationwide are part-time

83% of instructional appointments at community colleges are contingent

71% of the faculty organized by the IEA are contingent

7896!

Another way that colleges have been able to weather the loss of state support is by employing contingent or part-time faculty.

WHAT’S LIFE LIKE FOR THE 70% OF FACULTY WHO ARE CONTINGENT?

No job security

Typically paid “per course” well below equivalent pay for tenure-track faculty

Few, if any, benefits

Office space, if any, typically a desk in a “gang” office

Few opportunities for professional development

Little input into curriculum and programs

Disconnected from academic community

The manufactured funding crisis in Illinois has now resulted in the thinning of courses offered to contingent faculty. Course offerings are reduced so that only full-time faculty can teach.

LAYOFFS OF SUPPORT STAFF
AND PROGRAM CUTS

Illinois State University cut its budget by $1.021 million between FY2015 and FY2016.

Chicago State University laid off 400 non-faculty positions (40 percent of their workforce).

Western Illinois University laid off and furloughed hundreds of workers, and cut academic and athletic programs.

University of Illinois eliminated 484 non-instructional staff positions.

For every dollar cut from higher education, there’s a $2.29 loss to the state economy

Center for Tax and Budget Accountability, pp. 7-8

But the manufactured Illinois funding crisis jolted the system, resulting in staff layoffs and program cuts. So students who are interested in courses in philosophy or languages or other liberal arts courses won’t have as much opportunity to study the liberal arts. Once such programs are cut, I am not confident that they would be restored.

This is an example of how the loss of staff jobs has hurts the state economy. The Center for Budget and Tax Accountability estimated that for every dollar not spent on higher education, there is a loss of $2.29 of spending in the state economy.

REGIONAL VIEW OF LOST REVENUE

Overall loss to the state economy is $948.7 million

  • $487.0 million Northeast
  • $289.0 million East central
  • $78.5 million West central

This slide shows by geographic area the economic loss in millions of dollars by the disinvestment of higher education.

THIS IS CAUSING A BRAIN DRAIN IN ILLINOIS

“States can increase the strength of their economies and their ability to grow and attract high-wage employers by investing in education and increasing the number of well-educated workers.”

Berger and Fisher, “A Well-Educated Workforce is Key to State Prosperity”

This brain not only hurts college institutions, it makes the state a less appealing for companies to locate here.

YET ILLINOIS’ ECONOMY HAS GROWN AND HAS THE FIFTH HIGHEST GDP IN THE U.S.

This graph shows the development of Illinois' GDP from 2000 to 2016. In 2016, the GDP of Illinois was 692.45 billion U.S. dollars.

So the question for me is why would a state that has the fifth highest gross domestic product disinvest in higher education?


RIGHT’S PLAN FOR HIGHER EDUCATION

1970s Right wing plan to choke the democratic process as it applied to higher education

  • stop making college free and charge a hefty tuition
  • ensure that students will have a strong economic incentive to focus on their studies
  • educate far fewer Americans, particularly lower-income Americans who could not afford full-cost tuition

I have often wondered why higher education tuition was out of reach? Why it was being run like a business? And Why were working class and brown and black kids getting cut out. Nancy MacLean’s book democracy in chains book traces the political economic architect James M. Buchanan as writing the play book. This puts together all the pieces that I have been reading for years on the how and the why. For Buchanan it began with the Brown v the Topeka Board of Education decision. His plan as it applies to higher education:

RIGHT WING PLAN 40 YEARS LATER


 Many graduate students, especially those pursuing doctorates, now get tuition waivers in exchange for teaching classes or doing research. 

Taxing that money, as the GOP is proposing to do, would make graduate school unaffordable for low- and middle-income students and families, and exacerbate the shortage of U.S. workers equipped for good-paying jobs in science, technology, engineering, and mathematics (STEM). 

Crippling new taxes that were suggested by the House Tax plan sought to impose taxes on graduate student tuition waivers and teaching stipends that  would have made it impossible for any but the rich to go to public schools. Happily, that was taken out of the plan, but the option demonstrates the aims of the Libertarian branch of the GOP for our future.

WHAT CAN YOU DO?

  • Raise questions about higher education funding at IPACE recommendation meetings
  • Attend in-district meetings with state legislators
  • Join advisory councils on education set up by state legislators
  • Attend Fund Our Future Coalition Actions
  • Participate in a Member to Member Canvass

I hope that you see that we are in this together. And that we can do something stem the tide and maybe even reverse this horrible trend. Our ask is that you raise the question about higher Education at your IPACE endorsement hearings, bring the issue up when you attend in-district meetings with your state legislators, join or foster advisory councils on education set up by your state legislators and be sure to find people who can represent higher education, and take action. We have launched member-to-member house canvasses. We would love to have you join us. We would love to be invited to your local membership meetings to present. If you want to help us, here is a pledge card. We will let you know when we are doing an activity that will match your interest. Thank you.

HTTP://WWW.STAND4HIGHERED.ORG

FILL OUT THE FORM

You are part of the solutionIf you are Fair Share join the IEA. This makes for a larger group of people to be clearly represented and have impact throughout the State. Join the Action Network, get involved through phone banks and other activity to move Illinois forward.

PICK AN ACTIVITY YOU WOULD LIKE TO PARTICIPATE IN

http://www.stand4highered.org

10minuteIEA --edited.pptx - Google Slides