Fiscal Note, House Committee Amendment No. 1 (Illinois Board of Higher Education)
HB 1581 HA #1 creates the Adequate and Equitable Funding for Public Universities Act. Illinois Board of Higher Education (IBHE), in conjunction with outside consultants, estimates that the cost to implement this legislation is $1.85 billion. That means the state would have to increase public university appropriations by $1.85 billion above the current level at full implementation. The legislation calls for an annual increase in appropriation for the public universities of $135 million. Relative to the current fiscal year and assuming no inflation adjustment, that would mean an increase $135 million in the first year of implementation, $270 million in the second year of implementation, $405 million in the third year of implementation, etc., until the appropriation is $1.85 billion higher than it is today. However, the legislation specifies that components of the funding formula are adjusted by inflation each year. Therefore, the total cost will exceed $1.85 billion if incremental investments are made over time. Finally, the legislation assigns new responsibilities to IBHE, which would require three additional staff positions and associated costs, at an estimated total cost of $350,000.