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1    AN ACT concerning education.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 3. The Board of Higher Education Act is amended by
5changing Section 8 as follows:
6    (110 ILCS 205/8)  (from Ch. 144, par. 188)
7    Sec. 8. The Board of Trustees of the University of
8Illinois, the Board of Trustees of Southern Illinois
9University, the Board of Trustees of Chicago State University,
10the Board of Trustees of Eastern Illinois University, the Board
11of Trustees of Governors State University, the Board of
12Trustees of Illinois State University, the Board of Trustees of
13Northeastern Illinois University, the Board of Trustees of
14Northern Illinois University, the Board of Trustees of Western
15Illinois University, and the Illinois Community College Board
16shall submit to the Board not later than the 15th day of
17November of each year its budget proposals for the operation
18and capital needs of the institutions under its governance or
19supervision for the ensuing fiscal year. Each budget proposal
20shall conform to the procedures developed by the Board in the
21design of an information system for State universities and
23    In order to maintain a cohesive system of higher education,



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1the Board and its staff shall communicate on a regular basis
2with all public university presidents. They shall meet at least
3semiannually to achieve economies of scale where possible and
4provide the most innovative and efficient programs and
6    The Board, in the analysis of formulating the annual budget
7request, shall consider rates of tuition and fees and
8undergraduate tuition and fee waiver programs at the state
9universities and colleges. The Board shall also consider the
10current and projected utilization of the total physical plant
11of each campus of a university or college in approving the
12capital budget for any new building or facility.
13    The Board of Higher Education shall submit to the Governor,
14to the General Assembly, and to the appropriate budget agencies
15of the Governor and General Assembly its analysis and
16recommendations on such budget proposals.
17    Each state supported institution within the application of
18this Act must submit its plan for capital improvements of
19non-instructional facilities to the Board for approval before
20final commitments are made. Non-instructional uses shall
21include but not be limited to dormitories, union buildings,
22field houses, stadium, other recreational facilities and
23parking lots. The Board shall determine whether or not any
24project submitted for approval is consistent with the master
25plan for higher education and with instructional buildings that
26are provided for therein. If the project is found by a majority



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1of the Board not to be consistent, such capital improvement
2shall not be constructed.
3(Source: P.A. 89-4, eff. 1-1-96.)
4    Section 5. The Eastern Illinois University Law is amended
5by adding Section 10-92 as follows:
6    (110 ILCS 665/10-92 new)
7    (Section scheduled to be repealed on July 1, 2019)
8    Sec. 10-92. Tuition waiver limitation pilot program.
9    (a) The General Assembly makes all of the following
11        (1) Both access and affordability are important points
12    in the Illinois Public Agenda for College and Career
13    Success.
14        (2) This State is in the top quartile with respect to
15    the percentage of family income needed to pay for college.
16        (3) Research suggests that as loan amounts increase,
17    versus grants-in-aid, the probability of college
18    attendance decreases.
19        (4) There is further research indicating socioeconomic
20    status may affect the willingness of students to use loans
21    to attend college.
22        (5) Strategic use of tuition waivers will decrease the
23    amount of loans that students must use to pay for tuition.
24        (6) A modest, individually tailored tuition waiver can



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1    make the difference in choosing to attend college and would
2    enhance college access for low (up to 150% of the federal
3    poverty level) and middle income (151% to 300% of the
4    federal poverty level) families.
5        (7) Even if the federally calculated financial need for
6    college attendance is met, the federally determined
7    Expected Family Contribution can still be a daunting
8    amount.
9        (8) This State is the second largest exporter of
10    students in the country.
11        (9) Illinois students need to be kept in this State.
12    State universities in other states have adopted pricing and
13    incentives that make college expenses for residents of this
14    State less than in this State.
15        (10) A mechanism is needed to stop the outflow of
16    Illinois students to institutions in other states,
17    assisting in State efforts to maintain and educate a highly
18    trained workforce.
19        (11) By being competitive on costs of attendance, this
20    State can bring out-of-state students to this State.
21        (12) The pilot program established under this Section
22    will allow Eastern Illinois University to compete for
23    highly qualified students who may reside in other states by
24    mitigating the effect of cost differences.
25        (13) Modest tuition waivers, individually targeted and
26    tailored, result in enhanced revenue for university



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1    programs.
2        (14) By increasing Eastern Illinois University's
3    capacity to strategically use tuition waivers, the
4    University will be capable of creating enhanced tuition
5    revenue by increasing enrollment yields.
6        (15) The Board of Higher Education's current
7    institutional tuition waiver limitation is 3% of total
8    available undergraduate tuition revenue.
9    (b) The Board shall establish a pilot program to increase
10the Board of Higher Education's institutional tuition waiver
11limitation for the university over a 4-year period to increase
12access to college and make college more affordable for
13undergraduate students. Under the pilot program, the
14institutional tuition waiver limitation shall be increased by 2
15percentage points in the 2012-2013 academic year, 2 percentage
16points in the 2013-2014 academic year, 2 percentage points in
17the 2014-2015 academic year, and one percentage point in the
182015-2016 academic year, resulting in an institutional tuition
19waiver limitation of 10% in the fourth year of the pilot
21    (c) The pilot program shall require that students who
22receive a tuition waiver under the pilot program be accepted to
23the university through normal admissions standards and
24processes. Individual tuition waivers granted under the pilot
25program must not exceed $2,500 per academic year. The pilot
26program shall provide a maximum of one waiver per academic year



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1for a maximum of 4 years to each student in the pilot program
2who maintains satisfactory academic progress. The pilot
3program shall be terminated after the 2015-2016 academic year,
4with no new students receiving waivers. However,
5notwithstanding the Board of Higher Education's institutional
6tuition waiver limitation, existing students receiving waivers
7under the pilot program are eligible to maintain those waivers,
8with satisfactory academic progress, under the 4-year
9limitation, after the 2015-2016 academic year due to
10maintenance of effort within their 4-year window. Sunset dates
11for waiver support shall be based upon the first academic year
12in which a student receives a waiver. The sunset dates are as
13follows for each annual cohort of pilot program participants:
14        (1) Cohort 1: the beginning year is 2012-2013 and the
15    terminal year is 2015-2016.
16        (2) Cohort 2: the beginning year is 2013-2014 and the
17    terminal year is 2016-2017.
18        (3) Cohort 3: the beginning year is 2014-2015 and the
19    terminal year is 2017-2018.
20        (4) Cohort 4: the beginning year is 2015-2016 and the
21    terminal year is 2018-2019.
22    (d) The Board shall annually report to the Board of Higher
23Education on the pilot program's impact on tuition revenue,
24enrollment goals, and increasing access and affordability on
25such dates as the Board of Higher Education shall determine.
26    (e) The Board of Higher Education may adopt any rules that



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1are necessary to implement this Section.
2    (f) This Section is repealed on July 1, 2019.
3    Section 99. Effective date. This Act takes effect July 1,