HB5054 93RD GENERAL ASSEMBLY

LRB093 15981 NHT 41605 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5054

Introduced 02/05/04, by Ricca Slone

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.625 new

Creates the University Tuition Stabilization Act and amends the State Finance Act. Creates the University Tuition Stabilization Fund as a special fund in the State treasury to reduce the need for State universities to increase tuition in fiscal years of State budgetary shortfalls. Provides that a university's use of tuition revenues shall not exceed 99.5% of the estimated tuition revenues for the fiscal year when estimated State general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4% (instead, the university shall deposit a total amount equal to 0.5% of the estimated tuition revenues into the Fund). Provides that a university's use of tuition revenues shall not exceed 99% of the estimated tuition revenues for the fiscal year when estimated State general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4% for 2 or more consecutive fiscal years (instead, the university shall deposit a total amount equal to 1% of the estimated tuition revenues into the Fund). Provides that moneys in the Fund shall be appropriated to universities for budget years (i) in which the rate of insured unemployment in this State equals or exceeds 6%, as determined by the Department of Employment Security, or (ii) in which the amount of State funds budgeted for universities is equal to or less than the amount appropriated to universities the prior fiscal year. Effective July 1, 2004.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning higher education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the University Tuition Stabilization Act.

Section 5. Purpose. The University Tuition Stabilization Fund is a special fund in the State treasury established for the purpose of reducing the need for State universities to increase tuition in fiscal years of State budgetary shortfalls.

Section 10. Definitions. Unless the context otherwise requires, in this Act:

"Estimated State general funds revenues" include, for each budget year, all taxes, fees, and other revenues expected to be deposited into the State's general funds, including recurring transfers from other State funds into the general funds.

"Fund" means the University Tuition Stabilization Fund.

"University" means a public university in this State.

Section 15. University Tuition Stabilization Fund.

(a) The University Tuition Stabilization Fund is created as a special fund in the State treasury, consisting of moneys appropriated or deposited into the Fund, as provided in Section 25 of this Act and as otherwise provided by law. All earnings on Fund investments shall be deposited into the Fund.

(b) Moneys in the Fund shall be appropriated to universities for budget years (i) in which the rate of insured unemployment in this State equals or exceeds 6%, as determined by the Department of Employment Security, or (ii) in which the amount of State funds budgeted for universities is equal to or less than the amount appropriated to universities the prior fiscal year.

Section 20. Tuition revenue limitations.

(a) A university's use of tuition revenues shall not exceed 99.5% of the estimated tuition revenues for the fiscal year when estimated State general funds revenues exceed the prior fiscal year's estimated State general funds revenues by more than 4%.

(b) A university's use of tuition revenues shall not exceed 99% of the estimated tuition revenues for the fiscal year when estimated State general funds revenues exceed the prior fiscal year's estimated State general funds revenues by more than 4% for 2 or more consecutive fiscal years.

(c) Year-over-year comparisons used to determine the percentage growth factor of estimated State general funds revenues shall exclude the sum of the following:

(1) expected revenues resulting from new taxes or fees or from tax or fee increases during the first year of the change;

(2) expected revenues resulting from one-time receipts or non-recurring transfers in;

(3) expected proceeds resulting from borrowing; and

(4) increases in federal grants that must be completely appropriated based on the terms of the grants.

Section 25. Deposits into Fund.

(a) For each fiscal year when a university's use of tuition revenues does not exceed 99.5% of the estimated tuition revenues pursuant to subsection (a) of Section 20 of this Act, the university shall deposit a total amount equal to 0.5% of the estimated tuition revenues into the Fund.

(b) For each fiscal year when a university's use of tuition revenues does not exceed 99% of the estimated tuition revenues pursuant to subsection (b) of Section 20 of this Act, the university shall deposit a total amount equal to 1% of the estimated tuition revenues into the Fund.

Nothing in this Act prohibits the General Assembly from appropriating additional moneys into the Fund.

Section 80. Rules. The Board of Higher Education and Department of Employment Security may adopt any rules necessary to implement this Act.

Section 90. The State Finance Act is amended by adding Section 5.625 as follows:

(30 ILCS 105/5.625 new)

Sec. 5.625. The University Tuition Stabilization Fund.

Section 99. Effective date. This Act takes effect July 1, 2004.