UniversityofIllinoisInvestment,Performance,andAccountabilityCommitment
(IPAC)
FAQ
WhatisthegoaloftheUniversityofIllinoisIPAInitiative?
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Immediate:Begintheconversationthatisnotbeinghad.WhatisthefutureofIllinoispublic
highereducation?PublichighereducationisincrisisinIllinois.Thecurrentmodelisnot
working,andwewouldliketohelpfixtheproblemandrebuildthetrustbetweentheuniversity
andthestate.
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Long-term:Redefinetherelationshipbetweenthestateandtheflagshipuniversity.
• Establishalong-termbudgetplanningprocessthatbenefitsthestateandthe
university
• Holdstheuniversityaccountabletothestateindeliveringitsmissionsof
affordableeducation, workforcepreparation,innovationandeconomic
development
• Allowsforamoretransparentandproductiveappropriationsprocess.Provides
sunshineonuniversitymetricsand goalsforstudentaffordabilityand
enrollment
• Givestheuniversitythenecessaryautonomytooperatemosteffectivelyandefficiently
andthusbe competitiveontheworldstage,whilehelpingthestatereduce
expenditures
WhatisthebasicconceptoftheInitiative?
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Redefiningtherelationshipbetweenthestateanditsflagshipuniversity
Inexchangeforpredictableandsustainablefunding,theUofIwillcommittobeingheld
accountabletothestateonitstuitionrates,admissionnumbers,needbasedandunderserved
populationfinancialaid,andperformancemeasures.
Inaddition,thestatewillprovidemuchneededregulatoryrelief.Thiswillallowtheuniversityto
betterperformonbehalfofthestateandpeopleofIllinois.
WhyonlyspecifictotheUniversityofIllinois?
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TheUofIhasaforward-lookingstrategicframeworkdevelopedunderPresidentKilleenthatwill
guidetheuniversityforthenextdecade.TheIPAinitiativeisacriticalpartofourstrategic
frameworkandcouldbecomeamodelforotherpublicuniversities,eachofwhichhasitsown
uniquecircumstancesandstrategicimperatives.
Eachoftheninepublicuniversitiesareuniqueandservetheirownmissionandconstituency.
Wecannotspeakfortheotherpublicsorwriteaninitiativethattheywillhavetocommit.
ForthefirstiterationoftheIPAinitiative,thiscouldbeconsideredapilotprogram.
AtwhatlevelistheUniversityaskingtobeappropriated?
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FY15appropriationlevel,beforetherescission
Questions? Contact: Jennifer M. Creasey | Director State Relations | University of Illinois | [email protected] | 217-649-3548
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FY15wasthelasttimewehavereceivedafullbudget
Howisthisagreementmadebinding?
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Itisourintentandourhopethatgivenwhatwearecommittingto,theGeneralAssemblywould
agreetocommitmenttopredictablefundinglevelforthenextfiveyears.
OncethedetailsarenegotiatedandagreedtobetweentheUniversityofIllinois,theGeneral
Assembly,theGovernor,andtheComptroller,thebillwillneedtopassbothhousesofthe
GeneralAssemblyandbesignedbytheGovernortobecomestatestatute.
IfthestatedoesnotappropriatetheagreedamounttotheUniversity,thentheUniversitywill
notneedtomeetthemetricsstatedforthefollowingyear.
IftheUniversitydoesnotmeetthemetricsoutlinedinthestatute,thentheGeneralAssembly
willnotneedtoappropriatetheUniversitytheamountagreedupon.
WhatdoestheUniversityagreetobeheldaccountabletothestate?
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Inexchangeforthepredictablefundinglevel,theUniversityofIllinoiswouldagreetoputthe
followinginstatute:
• Promisetocaptuitionatnomorethantherateofinflation
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PromisetoadmitacertainandspecificnumberofIllinoisresidentsateachofourthree
universities
Promisetoacertainpercentageofourstateappropriationtogotowardsneedbased
financialaid
Promisetoinvestinadditionalfinancialaidprogramstargetedtounderserved
populations
Promisetocontinuetomeetthehigherstandardssetregardingretentionand
graduationrates
Promisetopublishallstatisticsandnumbersonourwebsiteasanannualreportcard
Whyisthisabigdealandwhyisn’ttheUofIalreadydoingthis?
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ThiswillbethefirsttimeinthehistoryofthestateofIllinoisthatapublicuniversityhasputsuch
metricsintostatestatute.AllowingtheGeneralAssemblytoweighinontheUofI’stuition,
admissions,financialaid,andperformancemetricsisredefiningtherelationshipbetweenthe
stateandtheflagshipuniversity.
Wewanttosustainourhighstandards,andalsowanttogrow.Butwecannotdosowithout
statesupport.
TheUofIisconfidentthatwecanliveuptothehighstandardsetbythestate,ifandonlyifthe
statecommitstoinvestingandsupportingtheUniversity.
Howdoesthishelpthestateinatimeofbudgetcrisis?
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ThiswillguaranteethestateandthepeopleofIllinois,apositivereturnontheirinvestment
ByholdingtheUniversityofIllinoisaccountable,thepeoplewillknowthattheirstatetaxdollars
arebeingspentwisely
TheUofIhasa$14billionimpactonthestateeconomy.IftheUniversityofIllinoissucceeds,
thestateofIllinoiscansucceed.
Whatdoesthestategiveinreturn?
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TheGeneralAssemblyandtheGovernorwouldagreetoanappropriationamountforthe
UniversityofIllinoisforthenextfiveyears
• TheGeneralAssemblywouldstillhavetovoteandappropriatethemoneyeveryyear,
buttheamountwouldalreadybeagreedto,assumingthattheuniversityhelduptoour
endofthebargain.
Inaddition,thestatewouldalsoagreeto:
• CreateanIllinoisExcellenceFundtohelprecruitandretainrisingstarfacultythrough
capitalinvestments
• Provideregulatoryreforms,includingbutnotlimitedtoanexemptionfromthe
procurementcode.
RegulatoryReformdetailsandwhy?
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ExempttheUniversityfromthestateprocurementcode
• Allowresearcherstodotheirjobinamoreeffectiveandcompetitiveenvironment.Lost
academicandentrepreneurialtalentandlostopportunitycostsarethedirectresultof
theprocurementfrustrationsencounteredbytheUniversitysystems.
• Contractingofcostsofgoodsandservicesareneedlesslyincreasedtothedetrimentof
studentsandresearchers.Somebusinessesaredecliningtoprovidegoodsandservices
totheUniversitybecausethecurrentpoliciesmakethetransactionnon-economically
viable.
• The State’s procurement goals of openness, transparency, avoidance of conflicts of
interest, will be obtained in a more cost efficient through the Universities’ proposed
revisions to their respective Acts to incorporate appropriately designed procurement
practicesgoverningtheexpenditureofUniversityfunds.TheUniversitybelievesthiswill
leadtowideropportunityforvendors,andincreasedcompetitionwhichwilldrivedown
costs.
ReinstatetheCertificateofParticipationProgram
• The State University Certificates of Participation Act granted the Board of any state
university the authority to enter into financing agreements to fund capital
improvements by selling Certificates of Participation (COPs), which expired on
December31,2014.
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TheexpirationofthisActeliminatedtheauthorityoftheBoardofanystateuniversityto
finance capital improvements by selling certificates of participation. This adversely
impacts the state universities’ ability to maintain and expand their academic facilities
andwouldincreasetheirrelianceonstatecapitalappropriations.
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The state universities have no legislative authority to borrow for academic capital
projectsotherthanCOPs.
AmendthePropertyControlAct
• GovernsallUniversityProperty&Equipment
AssignspropertyownershiptotheState
Regulatespropertyhandlingfrom“cradletograve”(purchaseto
disposal)
o Promotesgoodstewardshipoverproperty,butisadministrativelyvery
burdensome
o Objectivescanbeachievedmoreefficiently
ExemptionfromAct/AmendmentstoAct=RelieftotheUniversity
University-basedcontrolscanensurestewardship
UnlikemanyStateAgencieswhereCMStracksequipmentinventory,the
UniversitytracksandmaintainsitsequipmentinventoryandCMSdoesnot.The
UniversityalsooperatesourowncampussurpluswarehousesontheUICand
UIUCUniversities.
Examplesofreformspossiblewithexemptionoramendments:
§ Universitycouldincreaseequipmenttrackingthresholdfrom$500to
$5,000,whichwould:
• Dramaticallyreduceadministrativeburdenonfacultyandstaff
• Maintaintrackingof83%ofequipmentcosts,bytrackingonly
15%itemstrackedtoday
§ Reduceadministrativeburdenonfurnitureprocurementsover$500by
eliminatingrequirementtofilenotarizedaffidavitofneedwithState
§ Retainproceedsonsurplussalesofretiredproperty,insteadofsending
toState
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