Core Component 5.A

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DRAFT

5.A The institution’s resource base supports its current educational programs and its plans for maintaining and strengthening their quality in the future.

  1. The institution has the fiscal and human resources and physical and technological infrastructure sufficient to support its operations wherever and however programs are delivered.
  2. The institution’s resource allocation process ensures that its educational purposes are not adversely affected by elective resource allocations to other areas or disbursement of revenue to a superordinate entity.
  3. The goals incorporated into mission statements or elaborations of mission statements are realistic in light of the institution’s organization, resources, and opportunities.
  4. The institution’s staff in all areas are appropriately qualified and trained.
  5. The institution has a well-developed process in place for budgeting and for monitoring expense.

Argument

5.A.1. Southern Illinois University Carbondale’s (SIUC) annual operating budget in fiscal year 2019 was $571 million with $363 million for the Carbondale campus and $208 million for the School of Medicine. As a public institution, SIUC relies on a combination of state appropriations and additional funding sources, primarily tuition and fees, to provide the general support of educational and related activities for students. The combination of reduced state support and declining enrollment have challenged the ability of the institution to maintain operations. Since fiscal year 2015, the Carbondale campus operating budget has been cut 16%. The campus developed a Financial Sustainability Plan in 2017 approved by the SIU Board of Trustees on July 12, 2017. The plan outlined permanent budget reductions totaling $19 million in fiscal year 2018 and outlined future steps to reduce expenses, grow revenue, and realign the University’s academic programs and resources for the future. To the extent possible, budget reductions have been based on maintaining the University’s core academic mission.  The most recent IPED data provides a breakdown of the distribution of core revenues and expenses.

Fiscal Resources

State support: The fiscal condition of the State of Illinois has deeply affected SIUC over the past decade, with the largest budget challenges attributable to state appropriated funding occurring during the budget impasse of fiscal years 2016 and 2017. During the impasse, funding for higher education was reduced and delayed. To assure financial stability, the University had planned for the financial impacts of declining enrollment with the expectation of predictable level of state appropriations. However, SIUC only received 29% of the expected fiscal year 2016 state funding, and following a protracted legislative budget impasse, 100% of expected fiscal year 2017 funding. The 71% reduction in fiscal year 2016 appropriated funding resulted in a $64 million decrease in total unrestricted cash on June 30, 2017, compared to June 30, 2015. The depletion of total unrestricted cash reserves resulted in the Carbondale campus borrowing from SIUE in order to avoid spending restricted funds. The borrowing was short-term; following the July 2017 receipt of $19.5 million of state appropriated funds and $11.7 million in MAP funding, SIUC’s unrestricted cash was in the black as of July 24, 2017. With the restoration of state funding in July 2017, additional borrowing from SIUE was not needed. State appropriated funding for fiscal year 2018 was then cut 10%, compared to the prior year. The campus received a 2% increase in funding for fiscal year 2019 compared to fiscal year 2018. 

Tuition/fees: The decrease in state support is a major contributor to the significant increase in tuition and fees in the past 10 years. The high point for state appropriated funding was fiscal year 2002. Tuition has increased from $103.40 per credit hour in fall semester 2002 to $321.25 per credit hour in fall semester 2018. There was no increase to tuition or fees for fall semester 2019. The net tuition price to students is considerably less than the list price. In fiscal year 2018, SIUC discounted 31% of tuition, valued at $42.5 million. Nearly 6,400 students received at least a partial waiver. Beginning fall 2019, the state’s new AIM HIGH program will provide additional funding for merit based scholarships for new students who are Illinois residents. Budgeting and planning for tuition revenues is impacted by Illinois’ Guaranteed Tuition Program that guarantees the tuition rate charged to new undergraduate students remains constant for four continuous academic years. Falling enrollment is also a critical factor that impacts the tuition and fee revenue budget. Tuition accounts for approximately 25% of the University’s operating budget, approximately the same percentage that is currently provided from state appropriations. Enrollment at the Carbondale campus has been in decline, but it worsened in fall 2017, perhaps in large part due to the uncertainty created by the lack of a state budget for higher education. Enrollment declined again in fall 2018, with 10-day enrollment totaling 12,817, a decrease of 1,737 students from the previous fall. 

Development/Support:  One of SIUC’s most ambitious fundraising efforts began January 1, 2017. “Forever SIU: The Campaign for Students” is a three-year, $75 million fundraising campaign by the SIU Foundation to provide scholarships and other support for the students of SIUC. The campaign is scheduled to end in December 2019, the year of the University’s 150th anniversary. As of August 2019, the foundation exceeded its goal with $75.3 million raised. This campaign will propel the Forever SIU initiatives, which include increased scholarships, expanded opportunities in the classroom, enhanced facilities and resources, and deeper community engagement. In March 2017, SIUC initiated the annual "Day of Giving", a 24-hour online campaign designed to encourage financial support for SIUC. On March 6, 2019, the “Day of Giving” officially launched SIUC’s year-long celebration of its 150th anniversary. Over 2,900 gifts totaling over $911 million came from people in over 45 states and 10 countries for scholarships, programs and other priorities.  The School of Medicine’s Development Office works diligently to nurture and expand relationships with benefactors, resulting in an increase in cash contributions from $193,300 in fiscal year 2013 to over $3.3 million in fiscal year 2017.

Grants and Contracts: Externally funded grants and contracts in support of research contribute about 17% of the University’s operating budget. While these revenues are often restricted to the support of specific activities, they provide support for initiatives that might not be funded otherwise. Fiscal year 2013 was a high point for external funding, which declined due to the challenges of the federal sequestration and the impact on state grant funding. Spending from grants and contracts has stabilized in the last few years, totaling about $56 million from the Carbondale campus and $15.2 million at the School of Medicine for fiscal year 2018. 

Human Resources

SIUC is a Carnegie High Research Activity Doctoral University with 1,316 faculty, 3,274 staff members and 1,189 graduate/undergraduate assistants in fall 2017. As a result of both position vacancies and layoffs, SIUC has roughly 400 fewer positions (6.7%) since the beginning of the state budget impasse in FY16. Most of these positions were already vacant, but the Financial Sustainability Plan included the layoff of 49 civil service employees and the non-renewal of contracts of two administrative professional staff and 27 non-tenure-track faculty to begin fiscal year 2018. Not all of the layoffs were state funded positions; some were in auxiliary units dependent on student fees.

Employee retirements and the ability to place some staff in other positions mitigated the number of lay-offs. Beginning fiscal year 2018, a central salary pool was created to hold available funds at a central level to facilitate efficient management of resources and to support and prioritize the hiring of faculty and staff in critical positions.  As of FY19, the Provost and Vice Chancellor for Academic Affairs manages the vacant faculty positions in the central salary pool.

Physical Infrastructure

SIUC maintains the physical infrastructure to support facilities for teaching, research, student housing, and other space required for student success. The majority of buildings on the Carbondale campus were funded by state appropriations. The University continues to prioritize facility needs and submits annual capital budget requests to the state. The highest priority capital project for fiscal year 2020 is estimated $83 million renovation and expansion of the Communications Building build in 1964. Other current high priority projects include a $91 million renovation and addition to the Agricultural Science building and the $98 million renovation and addition to the Neckers building. SIUC has also requested $16 million in state funding for capital renewal projects, including construction of an agriculture teaching greenhouse, campus roof replacements, water line replacements, steam tunnel repairs, sewer line replacements, electrical upgrades, and fire alarm system repairs. Revenue bonds finance housing and student services related facilities and certificates of participation finance other capital projects, such as the renovation of Woody Hall. A facilities maintenance fee paid by students totaling over $6 million per academic year provides another revenue source for renovation and maintenance. The current infrastructure of the Carbondale campus is more than sufficient to support current enrollment and anticipated growth. A committee was formed in February 2018 to perform a review of campus space, including classrooms, laboratories, student housing, and other areas to determine current use and make recommendations for improvements. 

In the School of Medicine, space continues to be evaluated and renovated as needed for teaching, research, and service activities. Facilities have updated technology to support distance learning and multi-media presentations. Teaching laboratories have also been upgraded to remain technologically current.

During 2018, the School of Medicine partnered with Southern Illinois Healthcare (SIH) on a new $17 million 41,000 square-foot building adjacent to Carbondale’s Memorial Hospital which will be used to further the education of students in the Family Medicine Residency and the Physician’s Assistant programs. The School of Medicine has also developed two major professional development laboratories, one in Springfield and one in Carbondale. These facilities are utilized throughout the curriculum for teaching and assessment. One of the SIU School of Medicine’s affiliated teaching hospitals has built a new learning and innovation center allowing SIUC to serve the full continuum of medical education. Research facilities in the School of Medicine have also been enhanced through a mix of University, state, and private funding.

Technological Infrastructure

SIUC uses academic and administrative technology, services, and tools to promote and support the University’s mission and business efficiency. The Center for Teaching Excellence provides and maintains academic technology tools, including technology enhanced open access classrooms, classroom computer software, video conferencing, live virtual classrooms, the University's Learning Management System (D2L), and guidance for these tools in the classroom. The Office of Information Technology selects, implements, administers, and maintains business and enterprise systems that enhance operational efficiency and allow the University to conduct business and meet its educational and research mission.  

University administration has a long track record of sponsoring major technology projects. Information Technology (IT) staff meets regularly with the Computer Advisory Committee (CAC), a group of general and technology-focused faculty, staff, campus auditors, and students, who vet IT projects and provide input and perspective. The IT office follows Project Management Institute standards to provide vigorous and transparent oversight of technology projects. Additionally, IT staff connect as required with departments, units, and grant committees who use the High Performance Computing Cluster for research.

SIUC School of Medicine uses diverse technology to support medical education. Technology is embedded in the curriculum via electronic problem-based learning modules. The school provides an extensive video conference network that connects to its remote clinical and educational sites, other SIU campuses, and a number of rural and critical care hospitals. Access to information resources is broad, and educational content is increasing. Support for these resources is effective, coordinated, and well integrated within the medical education programs.

5.A.2. SIUC follows an historical budget model with incremental increases or decreases necessary to maintain a balanced state-appropriated budget. The Vice Chancellor for Administration and Finance oversees the campus resource allocation processes. Each vice chancellor receives a share of the total budget. The final proposed budget is subject to approval by the SIU Board of Trustees. Budgetary decisions by the chancellor are formulated with input from the cabinet. To inform the decision making process, the provost has formal and informal meeting that with deans, directors, and other direct report. Since fiscal year 2013, various budget reduction strategies have been used, including a productivity model based on credit hour production and the number of new students, across-the-board cuts and cuts designed to limit the impact on direct instruction.

5.A.3. SIUC’s mission statement is, “SIU embraces a unique tradition of access and opportunity, inclusive excellence, innovation in research and creativity, and outstanding teaching focused on nurturing student success.  As a nationally ranked public research university and regional economic catalyst, we create and exchange knowledge to shape future leaders, improve our communities, and transform lives.”

SIUC’s diverse student population is supported by the Veterans, Hispanic/Latino, LGBTQ, Women’s, and Black Resource Centers as well as the Nontraditional Student Services Office. The Center for International Education serves over 2,000 students and scholars, including 1,256 international students and 350 dependents from 101 countries, 70 study abroad experiences, 61 visiting scholars, and recent graduates on Optional Practical Training. The Office of Disability Support Services (DSS) provides academic and programmatic support services, including test proctoring, note taking services, a wide variety of assistive technologies, captioning, and interpreters to students with disabilities. 

The community values and supports the service of SIUC's students. In 2015, SIUC was awarded the Community Engagement classification by the Carnegie Foundation for Advancement of Teaching, making it just one of 361 universities and colleges nationwide to hold this distinction. The award recognizes the University's long-standing commitment to community partnerships and service programs. The Center for Service Learning and Volunteerism coordinates and supports community engagement activities, including The Big Event: A Saluki Day of Service.  Inaugurated in 2017, an average of 3,000 students contribute more than 30,000 hours of community service annually.

SIUC demonstrates a commitment to research by awarding significant research appointment to tenured and tenure-track faculty.  Support for research and scholarship is provided by the Office of the Vice Chancellor for Research, which processes grants from state, federal, industry, and foundation sources, with sponsored projects' income varying between $45-$77 million annually between FY14-FY18.  Even though external support has varied markedly during the past decade due to budgetary uncertainty in the state, faculty are well-regarded scholars in their fields, obtaining competitive grants and awards from federal agencies, state agencies, industry, and foundations. The University has been recognized nationally for its entrepreneurial spirit and celebrated the issuance of its 100th patent in 2018.  

Students are given the opportunity to participate in research, including the REACH (Research Enriched Academic Challenge), McNair Scholars Program, undergraduate assistantships, graduate assistantships, and fellowships.

5.A.4. SIUC's policies in the Employee Handbook provide a detailed overview of hiring procedures for Faculty/AP positions and Civil Service positions. Staff openings are carefully evaluated by higher administration prior to being advertised, and Human Resources staff use technology to ensure a smooth and efficient hiring process. Implementing HireTouch, a web-based recruiting and evaluation program for job applicants, resulted in the expansion of candidate pools starting academic year 2017-2018. Positions are advertised in the local newspaper and online. The State Universities Civil Service System staff continue to evaluate policies and procedures for recruitment of out-of-state applicants and examination procedures that expand the number of eligible candidates, particularly in job groups that are more challenging for recruitment. Affirmative Action office staff provide training for search committees to assist in the evaluation of potential candidates consistently and equally.  The University requires annual evaluations of job performance of employees to ensure quality work, good communication between employee and supervisor, identification of goals, and discussion of areas for improvement.

SIUC invested over $4 million during fiscal year 2018 on professional development opportunities for faculty and staff, including paid travel to conferences and workshops, memberships in professional organizations, and other learning opportunities. Employees were granted tuition and fee waivers valued at $1.6 million to attend SIUC classes during the 2017-18 academic year.

5A.5. SIUC uses two models to construct the state appropriated and income fund budget. One is incremental based budgeting, and the other is a very basic responsibility-centered model.

  1. The first model includes an historical base budget contingent on state appropriations and estimated tuition revenue, excluding distance education and summer session. Tuition and fee rates for the University are sent to the Board of Trustees for approval at its February meeting. These rates, along with enrollment projections, are used to obtain the estimated tuition revenue. Adjustments are made to the tuition revenue projection after official enrollment information for the fall semester is available. Any increase or decrease is applied to the current base in order to develop the budget for the following year. Every effort is made to protect the University’s core mission of teaching, research, and public service.
  2. The second model, originally introduced in FY12, is now used for both distance education and summer session accounts. The distance education revenue model is applied to off-campus and online courses while the summer session model is applied to summer on-campus courses. The model was refined in 2015 and 2016. Under the current distance education model, 65% of the tuition revenue goes back to the colleges to cover the cost of instruction, 29.5% goes to central administration to cover the overhead costs associated with delivery of the courses, and 5.5% goes to the provost’s office. The current summer revenue model allocates 70.5% of the revenue to the colleges, 27.5% to central administration, and 2% to extended campus. Colleges are able to spend an amount equal to or less than the actual revenue generated and may retain any funds remaining at the end of each fiscal year.

Non-appropriated budgets include those for auxiliaries, self-supporting, indirect cost recoveries, and service departments. The projections for revenue and expenditures relies heavily on the fiscal officers of the unit or account. The non-appropriated budgets are collected using an online system during the months of May and June.

The final operating budget for SIUC is approved annually by the Board of Trustees, typically in September.

Each October, SIUC sends its annual budget request to the Illinois Board of Higher Education in the form of the Resource Allocation Management Program (RAMP) document. This includes both the operating and capital budget requests for the following fiscal year.

Monitoring expenses

Revenue and expense reports with account details are sent to each vice chancellor on a monthly basis in order to provide a reference to the overall fiscal health of their area. Monthly reports of transactions are provided to the fiscal officers in order for them to reconcile their accounts. It is the responsibility of each fiscal officer to ensure that they stay within their budgets and that transactions are recorded, reported properly, and follow state and University guidelines. Monthly revenue and expense reports for distance education, LAC fees, and summer session accounts are sent to the provost. Fiscal officers are responsible for ensuring there is enough revenue to cover expenses for these accounts.

SIUC submits data to the systems office that is used in the SIU annual report of financial performance presented to the Board of Trustees. This report includes actual revenue and expense totals as well as explanations for any large variances.

SIUC is subject to annual financial and compliance audits performed by independent external auditors who serve as special assistant auditors for the Illinois Auditor General. The University’s financial statements are prepared in accordance with accounting principles as prescribed by the Governmental Accounting Standards Board. The Internal Audit office of the SIU system conducts regular reviews of operations and procedures and reports its findings and recommendations to the institution's administration and to the SIU Board of Trustees.

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