Governor Quinn presented his FY2010 budget plan before a joint session of the Illinois General Assembly on March 18, 2009. I want to use this website as a resource to provide information about the FY2010 budget process as it develops in Springfield over the next two to three months. The website will focus on the major aspects of the Governor's budget proposal (and any subsequent budget proposals) and how they affect NIU and our students, faculty and staff. In regard to capital funding, the Governor has called for a $26 billion capital bill named "Illinois Jobs Now" that will create over 340,000 construction and labor jobs to rebuild roads, bridges and schools. Approximately $600 million of the capital budget is targeted towards public universities. Funding for the renovation of Stevens Hall, as well as planning funds for a new computer science and technology facility are included in the Governor's FY10 budget request. We have made additional requests for Cole Hall, Grant Hall renovation, and the centralized chiller in the stimulus package allocation. The Governor chose to allocate ALL of the State Fiscal Stabilization Funds (stimulus funds) from the federal government to operating expenses and deficit management, with none allocated towards capital projects. This issue will be debated in Springfield over the coming months.
On the General Revenue side, if the Governor's budget passes the General Assembly, NIU is slated to receive a 1.6% increase in General Funds from the state for FY10. This is an increase to the FY09 enacted budget and does not include the 2.5% rescission for FY09 established by the previous Governor. That rescission (FY09) stands in Governor Quinn's budget proposal. Again, let me emphasize that NIU or the other public universities are by no means guaranteed this increment for FY10. It is dependent on the outcome of the revenue package proposed by the Governor during the General Assembly's budget deliberations over the coming months.
Impacts on university employees from the Governor's proposed budget include not only the increase in the income tax, but also a proposed 2% increase in employee contribution to the pension system and higher costs for health benefits. A cost differential between the two available heath (health) plans is also under consideration, but details are not yet available. Much of the information about pension reform, the creation of a Taxpayer Action Board and tax reform that includes an increase in the individual income tax to 4.5% along with a corresponding increase from $2K to $6K for personal exemptions will be debated as the session develops.
Reaction from the four legislative caucuses, business, labor and other constituencies forecast a healthy debate before this is settled. NIU will be addressing a number of these issues and their impact during our appearances before the Senate and House appropriation committees on April 1st and 2nd.
John G. Peters
President