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FEBRUARY 2001 Complete Board Agenda

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FEBRUARY 2001 Complete Board Agenda Powered By Docstoc
					                                                                  Contact: Don Sevener, 217/557-7334
                                                                                sevener@ibhe.state.il.us
                                                                            Ross Hodel 217/782-2551
                                                                                  hodel@ibhe.state.il.us

January 30, 2001

 BOARD TO ACT ON COMMISSION TO IMPROVE DEGREE COMPLETION

          SPRINGFIELD – Seeking to solidify the state’s premier position on the national higher
education report card, the Illinois Board of Higher Education will act next week on creating a
special commission of college and university presidents to improve Illinois’ record on getting
students through college with a degree.
          The Board will meet at 9 a.m. Tuesday, February 6, 2001, at Westin Hotel in Chicago.
          Illinois received its lowest grade – a C+ – in student persistence and degree completion
on the national higher education report card released late last year. The recommendation to
create the Presidential Commission on Persistence and Degree Completion is part of a report to
the Board outlining a series of possible “next steps” that will lead to an action agenda aimed at
maintaining Illinois’ premier standing on the national report card, which was devised by the
National Center for Public Policy and Higher Education. Patrick M. Callan, President of the
National Center, will speak to the Board about the report card and Illinois’ performance on it.
          The commission is to be comprised of five presidents each from independent and
proprietary institutions, from public universities, and from community colleges. Its job will be to
prepare recommendations for the Board by next fall to reduce the attrition rate from freshman to
sophomore year of college and to increase the number of students who leave college with a
degree. According to the national report card, 53% of first-year students at Illinois community
colleges return for their second year, compared with 64% in the top-performing states. At four-
year colleges and universities, 78% of freshmen return for their sophomore year, compared to
84% in the top-performing states. There also is room for improvement on degree completion.
According to the National Center, just over half – 55% -- of first-time, full-time students finish a
bachelor’s degree within five years, compared to two-thirds of students in the top-performing
states.
          “This presidential commission will help us rectify a problem that we were concerned
about even before the report card shined a light on it,” Keith R. Sanders, Executive Director of


                                          Printed on Recycled Paper
the Board, said. “Overall, we were delighted with the performance on the national report card,
particularly since the performance categories fit so closely to the goals articulated in The Illinois
Commitment, the strategic plan adopted by the Board in 1999. Still, we can’t afford to stand still,
and this Board and the higher education community are committed to taking steps now and in the
future to sustain Illinois’ preeminence in higher education nationwide.”
        Overall, Illinois topped the honor roll states on the national report card, with A’s in
student preparation for college, participation in college, and affordability, and a B- in the
economic and civic benefits derived from higher education. At its meeting in Chicago, the Board
also will act on recommendations that it push for assessment programs to gauge student learning
– a report card category in which all states received an “incomplete.” In addition, the report
recommends that the Board staff ensure that all information used by the National Center for
constructing the report card be available for Illinois; there were serious gaps in data relating to
course-taking patterns and student achievement in K-12 schools for Illinois in the recent report
card.
        The report to the Board also lists a series of potential actions the Board may consider in
the near future, including:
    •   Aligning Illinois high school graduation requirements with the college prep core
        curriculum and college admission standards.
    •   Increasing enrollments of low-income and minority students.
    •   Establishing the infrastructure, and obtaining funding, to ensure no Illinoisan is denied
        the opportunity for a college degree because of cost.
    •   Providing incentives for school districts to offer and students to take the college prep core
        curriculum, and for students who do well on the Prairie State Achievement Exam.


                                               # # #
      STATE OF ILLINOIS
  BOARD OF HIGHER EDUCATION




         MEETING AGENDA
          FEBRUARY 6, 2001
                9 a.m.
     Westin Michigan Avenue Hotel
            Consort Room
      909 North Michigan Avenue
            Chicago, Illinois




Board agenda materials are available online at
            www.ibhe.state.il.us
Printed on Recycled Paper
In compliance with Executive Order #5 and pertinent state and federal laws, this meeting will be
accessible to persons with disabilities upon notification of anticipated attendance. Persons
planning to attend and needing special accommodations should contact, either by telephone or by
letter: Board Secretary, Illinois Board of Higher Education, 431 E. Adams, Second Floor,
Springfield, Illinois 62701, telephone 217/557-7380 (TTD 217/524-3494) by January 31, 2001.
                          BOARD OF HIGHER EDUCATION
                              MEETING AGENDA
                                February 6, 2001
                                   9:00 a.m.

 Item                                                                                  Page
Number                                                                                Number

  1.     Announcements and Remarks by Chairman Philip J. Rock

  2.     Remarks by Terence B. Albright, President, Scholl College of
         Podiatric Medicine

  3.     Remarks by Keith R. Sanders, Executive Director

  4.     National Report Card
         Patrick M. Callan, President, The National Center for Public Policy and
         Higher Education, will discuss Measuring Up 2000, and present ideas for
         how states can improve their performance on the next national report
         card. (Introduction by Keith R. Sanders)

  5.     National Report Card – Next Steps (Action)                                        1
         This item documents the relationship between The Illinois Commitment
         and the performance standards used in Measuring Up 2000. The
         document reviews the performance measure criteria used in the national
         report card, explores Illinois’ standing, and presents a list of possible
         actions for the higher education community to build on the strengths and
         correct the weaknesses documented in the national report card.
         (Presentation by Keith R. Sanders)

  6.     Setting Capital Budget Priorities (Action)                                       21
         This item reviews the various steps taken in developing the capital budget
         recommendations, including a review of current policy priorities
         concerning facilities and the factors used in developing the capital
         priority list. The item recommends that the Board reconsider its existing
         policy priorities for capital. (Presentation by Debra Smitley)

  7.     Grant Program Realignments and Implementation (Action)                           35
         This item recommends changes to grant programs administered by the
         Board of Higher Education to align the programs more closely with The
         Illinois Commitment.       The changes are consistent with the
         recommendations contained in the recent comprehensive evaluation
         report of grant programs. (Presentation by Ross Hodel)

  8.     Progress Report and Plans for Calendar Year 2001                                 45
         This item highlights the accomplishments of the Board of Higher
         Education during the past year with respect to implementing The Illinois
         Commitment, and identifies priority activities for the coming calendar
         year. (Presentation by Keith R. Sanders)
9.    The Illinois Articulation Initiative: Endorsement of Sociology           55
      Articulation (Action)
      This item requests endorsement of the recommendations of the sociology
      degree major panel. (Presentation by Diane Gilleland)

10.   Access and Diversity Committee Report
      This oral report will provide an update on the work of the Board’s
      Committee on Access and Diversity. (Presentation by Jerry D.
      Blakemore)

11.   Consent and Information Agenda (Action)

12.   Advisory Committee Reports

13.   Executive Session

14.   Other Matters
                                                                                       Item #5
                                                                              February 6, 2001


                    NATIONAL REPORT CARD – NEXT STEPS


Submitted for:       Action.


Summary:             This report documents the close fit between The Illinois Commitment and
                     the performance standards used in Measuring Up 2000, the national
                     report card devised by the National Center for Public Policy and Higher
                     Education. The document reports the criteria used by the National
                     Center in each of the report card’s performance categories, explores
                     Illinois’ standing, and presents a “to-do” list of possible actions for the
                     Board and higher education community to take to build on strengths and
                     correct weaknesses documented by the report card.


Action Requested:    That the Board of Higher Education appoint a Presidential Commission
                     on Persistence and Degree Completion, comprised of presidents of
                     colleges and universities, to study and prepare recommendations for the
                     Board to consider; that the Board ensure that all data used to compile the
                     report card are available to the National Center; and that the Board
                     approve development of assessment programs aimed at gauging student
                     learning in college majors as well as the education value added between
                     the junior year of high school and the junior year of college. In addition,
                     a list of possible future actions is presented for discussion.




                                             1
2
                                                                                             Item #5
                                                                                    February 6, 2001


                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


                        NATIONAL REPORT CARD – NEXT STEPS

          It is tempting to rest on our laurels – three A’s, overall grade of B+, valedictorian on the
first-ever national report card on higher education. Connecticut, New Jersey, Massachusetts, and
other runners-up to the top-ranked system of higher education in the nation would be pleased for
Illinois to do so.

        But it’s not going to happen.

         This report opens the discussion of ways to use The Illinois Commitment to sustain
Illinois’ honor roll performance on Measuring Up 2000, the national report card produced by the
National Center for Public Policy and Higher Education.

        It is fortuitous, but not accidental, that the performance categories used in the national
report card are congruent with the goals of The Illinois Commitment. The authors of The Illinois
Commitment and the creators of Measuring Up 2000 drew inspiration and substance from the
same sources: the external constituencies of higher education.

        The Board of Higher Education and the National Center commissioned similar efforts to
glean the public’s thinking about what ought to be the public purposes of higher education. This
was done through state and nationwide public opinion polls, by interviews with opinion leaders,
focus groups, public hearings, and conversations with policymakers. Indeed, in one instance, the
Board of Higher Education purchased a separate Illinois sample of a national survey undertaken
and financed by the National Center. When the opinions of Illinoisans were compared with the
views of respondents nationally, they turned out to be much the same.

         Findings from these sources were tempered and refined, through consultation with higher
education’s internal constituencies. In the case of the Board of Higher Education, these
conversations took place with students, faculty, and staff, and the leadership of public, private and
proprietary colleges and universities. Out of this cacophony of internal and external voices came
The Illinois Commitment, which contains goals much like the performance categories in
Measuring Up 2000. Each document validates the other as an authoritative, compelling
articulation of the purposes which higher education ought to serve.

         This report sets forth the criteria the National Center used to evaluate performance in
each category of the report card and how Illinois measures up. It also asks the Board of Higher
Education to endorse an action agenda – consistent with The Illinois Commitment – designed to
maintain Illinois’ high grades and raise its low ones on the report card, thereby better serving the
public purposes of higher education in Illinois. In addition, a “to-do list” of possible additional
steps lays the groundwork for discussion of future actions that may be needed to maintain
Illinois’ honor roll status on the national report card. A more definitive action agenda will be
presented to the Board of Higher Education after discussions with the Board’s partners on the
Joint Education Committee, the Illinois Student Assistance Commission, public, private, and


                                                  3
propriety colleges and universities, the Governor’s Office, the General Assembly, and other key
constituencies.

          This blueprint for action signals the depth of commitment Illinois higher education will
make to build on its strengths and improve on its weaknesses to sustain its standing as a system
that is, literally, second to none in service to its constituents.

         The National Center used a variety of performance measures to grade each category of
the report card, indexed raw scores against the top-performing states, and weighted each indicator
by its relative importance. Where data did not exist for a state, the report card “imputed” a score
that presumed the state did no better nor worse on that indicator than on those for which
information was available. The To-Do list in various categories contains specific performance
goals and target dates; the goals are pegged to the performance of the top-performing states in
each category. Appendix I contains a full display of all performance measures and how Illinois
compares with top-performing states. The complete Measuring Up 2000 report is available at
www.highereducation.org.


PREPARATION: A
                                      National Center Criteria

        The grade in preparation was based on:

    •   High school completion (20% of the grade).

    •   K-12 course-taking patterns (40%).

    •   Student achievement (40%).

                                       Where Illinois Stands

         Like a student who thinks he flunked the final exam only to discover he aced the course,
Illinois has some justification to thank its lucky stars for its A in student preparation for college.
Illinois ranked third behind Massachusetts and Connecticut in this category.

    •   More than half the data used to calculate the grade in preparation were missing for
        Illinois – information relating to course-taking patterns of middle school and high school
        students and the achievement of eighth graders on the National Assessment of
        Educational Progress. Together, that information accounted for 60 percent of the
        preparation grade.

    •   Illinois’ performance on the remaining indicators – particularly the percent of young
        adults with a high school credential and the number of students scoring well on college-
        admission tests – raised the state’s overall score. Even so, there were 27 states with
        higher scores on the high school credential indicator. And the National Center noted that
        there is an income gap in Illinois: 97 percent of young adults from high-income families
        have a high school credential, only 62 percent from low-income families do.

    •   Illinois was the leading state in performance on college-admission tests, that is, the
        portion of high school graduates who score above 1,200 on the SAT or 26 on the ACT.


                                                  4
•   Data not covered by the report card show a preparation gap in Illinois. Academic
    requirements for high school graduation do not match the recommended core curriculum
    for adequate college preparation. Also, just over half of the students who take the ACT
    in Illinois report they have taken the recommended college prep core curriculum, one
    powerful predictor of college success. Indeed, Illinois ranks last among the midwestern
    states of Minnesota, Iowa, Ohio, Wisconsin, Missouri and Michigan on the percent of
    ACT takers who completed the college prep curriculum.

                                         To-Do List

•   Ensure that data on K-12 course-taking patterns are available for the 2002 report card.
    State Superintendent Glenn W. McGee has given assurances that Illinois is now
    participating in the surveys that will provide the necessary information. Some of the data
    will be available in a few weeks.

•   Ensure that upper level math and science courses are available to all high school students
    and that all eighth graders in the state have access to algebra. This can be accomplished
    through the regular curriculum or via the Illinois Virtual High School. Provide monetary
    incentives for school districts to offer such courses as well as other courses in the Board’s
    college prep core curriculum.

•   Provide strong monetary incentives for students to take and pass higher-level coursework,
    the college prep curriculum and/or to score well on the Prairie State Achievement Exam
    (PSAE). This can be accomplished by creating new merit-based student aid programs, or
    by adding a merit component to the Monetary Award Program (MAP), while maintaining
    MAP’s strong needs-based focus.

•   Use the PSAE as a mechanism to improve student achievement and readiness for college.
    Help high schools provide appropriate remediation in the senior year for students who do
    poorly on the PSAE. Use state funds to pay for a second taking of the exam in the senior
    year. Encourage students who demonstrate mastery of the Illinois learning standards
    through high scores on the PSAE to enroll in college courses in their senior year.

•   Align high school graduation requirements with the college prep core curriculum and
    with college admission requirements. This will require legislation.

•   Work with the Joint Education Committee to increase the percent of 18-24 year-olds who
    have a high school credential. In 1998, 87 percent of 18-24 year-olds in Illinois had a
    high school credential (diploma or GED), while 93 percent had a high school credential
    in the top-performing states. Illinois should be at 93 percent in no more than five years.
    Provide monetary incentives to school districts to increase the percent of students who
    graduate, and encourage the Illinois Community College Board to make completion of a
    GED for those without a high school diploma a top priority.

•   Close, or at least narrow, the income gap. Work with the JEC to increase high school
    graduation rates among 18-24 year-olds who are lower income students and to increase
    the number of low-income 18-24 year-olds who take and pass the GED. Provide
    financial incentives for school districts and low-income high school students to stay in
    high school or pass the GED. Seek support from the private sector. Raise the percent of



                                             5
       low-income 18-24 year-olds with a high school credential from 62 percent to 70 percent
       by 2005 and to 90 percent by 2010.

PARTICIPATION: A
                                    National Center Criteria

       The grade in college participation was based on:

   •   High school freshmen enrolling in college within four years (40% of the grade).

   •   18-24 year-olds enrolling in college (20%).

   •   24-44 year-olds enrolling in postsecondary education (20%).

                                     Where Illinois Stands

        Access to college is one of Illinois’ strengths, owing to the comprehensive community
college system, a broad array of high-quality public and private colleges and universities, and
generous needs-based student aid programs. Overall, the state ranked second only to Delaware
in the National Center’s participation category.

   •   Illinois ranks sixth among the states in the rate of high school graduates who go on to
       college.

   •   Nineteen states rank ahead of Illinois in the percent of young adults enrolled in college.

   •   Illinois is third in the nation in the percent of working-age adults enrolled part time in
       some type of postsecondary education – 4.7 percent of working-age adults are enrolled in
       Illinois colleges and universities, the same proportion as in the top-performing states.

   •   In Illinois, 54 percent of 18-24 year-olds from high-income families enroll in college,
       compared to 20 percent of those from low-income families.

                                           To-Do List

   •   Complete the Illinois Century Network, Illinois Community Colleges On-Line, and
       expand the Illinois Virtual Campus, using technology to increase participation,
       persistence, completion, and affordability.

   •   Based upon recommendations that will come soon from the Committee on Access
       Diversity, take strong steps to increase enrollments from low-income families from the
       current 20 percent to 25 percent by 2005 and to 35 percent by 2010.

   •   Complete the University Center of Lake County.

   •   Develop other regional initiatives which address participation, beginning in 2001 with
       DuPage County.




                                                6
    AFFORDABILITY: A

                                      National Center Criteria

        The grade for affordability was based on:

    •    Students’ ability to pay the cost of attending college at community colleges, public
         universities, or private institutions (50% of grade).

    •   The amount of needs-based grant assistance they receive to offset expenses (20%).

    •   The share of income that the poorest families need to pay tuition at lowest priced colleges
        (20%).

    •   The loan burden associated with higher education expenses (10%).

                                       Where Illinois Stands

        With the second largest needs-based student financial aid system in the country (when the
report card data were collected), Illinois is a national leader in college affordability. Overall, the
state ranked fifth among all states in this category.

    •    Sixteen states rank ahead of Illinois in family ability to pay the net cost of attending a
        community college. Illinois is 22nd in family ability to cover the net cost of college at a
        public university and 24th in affordability of private institutions. (Net cost of attendance
        is defined as college expenses minus financial aid.)

    •   Illinois is first in the amount of state grant aid that is targeted to low-income families as a
        percent of federal Pell grant aid to low-income families.

    •   Twelve states outrank Illinois in affordability as measured by the share of income needed
        to pay tuition at the lowest cost college.

    •   On average, Illinois students borrow $4,171 a year for college expenses, placing the state
        in the bottom five (46th) in affordability by this measure.

                                             To-Do List

    •   Review and update the November 1994 report of the Board’s Committee on
        Affordability.

    •   Develop an affordability index for the state and for each institution by income level so
        that affordability can be more closely monitored and more clearly communicated.

    •   Fully fund access to the Monetary Award Program for part-time students.

    •   Lower the percentage of income needed by poorest family at cheapest colleges from
        12 percent to 10 percent in 2004 and to nine percent in 2006.




                                                  7
    •   Lower the percentage of income needed to pay community college expenses to
        20 percent by 2004, and to 17 percent by 2010.

    •   Lower the percentage of income needed to pay public university expenses from
        24 percent to 22 percent by 2004, and to 19 percent by 2010.

    •   Secure the funding and develop the infrastructure necessary to assure that no Illinois
        citizen will be denied admission to a college or university, or will leave a college or
        university solely because of the cost of attendance.

COMPLETION: C+
                                       National Center Criteria

        The grade on persistence and degree completion was based on:

    •   Freshmen students at community colleges and at four-year institutions who return for
        their second year (20% of grade).

    •   First-time, full-time students completing bachelor’s degree within five years (30%).

    •   All degree completion at all institutions per 100 undergraduate students (50%).

                                        Where Illinois Stands

        This is the flip side of the participation grade – Illinois does well at getting students in the
door, much less well at getting them back out with a degree in hand. The state ranks 28th
overall in this category. This is the only category in which Illinois is decidedly average, and the
category that will require the greatest improvement.

    •   The state ranks 24th in percent of students returning for a second year at community
        colleges.

    •   Seventeen states outrank Illinois in the persistence of students returning to four-year
        colleges and universities for their sophomore year.

    •   Illinois is 13th in bachelor’s degree completion.

    •   Illinois ranks 37th in all degree completion.

    •   For every 100 Hispanic students enrolled in college in Illinois, nine receive a degree or
        certificate; in comparison, for every 100 white students enrolled, 16 receive a degree or
        certificate.

                                              To-Do List

    •   Increase baccalaureate-degree completion from 55 percent to 60 percent in 2005 and to
        66 percent in 2010.




                                                   8
   •   Increase persistence of community college students from 53 percent to 57 percent by
       2005 and to 64 percent by 2010.

   •   Increase persistence of freshmen at four-year colleges and universities from 78 percent to
       80 percent in 2005 and to 84 percent in 2010.

   •   The Board of Higher Education should appoint a presidential commission on persistence
       and degree completion. The commission should be comprised of five presidents from the
       private and proprietary sectors, five from the public university sector, and five from the
       community college system. The commission would define the problem and recommend
       solutions.

   •   Provide monetary incentives for colleges and universities to improve persistence and
       completion rates as indexed against their national peers. Persistence and completion
       rates are heavily a function of the type of student who is admitted, the mission of the
       college or university, investments in infrastructure such as advisement, and other factors
       which vary from campus to campus and are only partially modifiable. Thus, each
       campus should be judged against like campuses nationally and expected to perform
       among the top campuses in its national peer group.

   •   Implement recommendations from the Committee on Access and Diversity to close the
       gap between the persistence and completion of minority students and white students.
       Special steps must be taken here as elsewhere in this report to bridge the income and the
       racial/ethnic gaps that exist in several of the categories on the report card.

BENEFITS: B-
                                   National Center Criteria

       The grade for benefits of higher education was based on:

   •   The percentage of the adult population with a bachelor’s degree or higher (30%).

   •   The increase in total personal income as a result of the percentage of the population
       holding a bachelor’s degree (25%).

   •   The percent of eligible voters voting in 1996 and 1998 (12.5%).

   •   The percent of taxpayers filing an itemized return who declare charitable gifts (12.5%).

   •   The percent of adults who demonstrate high-level quantitative literacy skills on the
       National Adult Literacy Survey (6.7%).

   •   The percent of adults who demonstrate high-level prose literacy skills on the National
       Adult Literacy Survey (6.7%).

   •   The percent of adults who demonstrate high-level document literacy skills on the
       National Adult Literacy Survey (6.6%).




                                               9
                                       Where Illinois Stands

        A study completed by the University of Illinois a year ago – Illinois Higher Education:
Building the Economy, Shaping Society – concluded that the economic and non-economic
benefits of Illinois higher education to individuals, the state and national economy, state and local
governments, and to society are pervasive and substantial. More like an A+ than a B-. This study
was considerably more comprehensive than the National Center’s criteria, but was not nationally
benchmarked.

        As measured by the National Center criteria, Illinois was 17th overall in the benefits of
higher education.

    •   Illinois ranked 15th in the percent of its adult population with a bachelor’s degree.

    •   Twenty-three states had greater increases in total personal income as a result of
        educational attainment.

    •   Illinois ranked 27th in the percent of its eligible voters who went to the polls in 1996 and
        1998.

    •   Sixteen states had a higher percentage of taxpayers declaring charitable gifts than in
        Illinois.

    •   Fifteen states had a higher percentages of adults with high-level quantitative literacy
        skills than in Illinois.

    •   Illinois was 20th in the percent of adults with high-level prose literacy skills.

    •   Illinois was in the middle of the heap – 25th – in the percent of its adults with high-level
        document literacy skills.

    •   If all ethnic groups in Illinois had the same educational attainment and earnings as
        whites, total personal income in the state would be $9.1 billion higher, and state tax
        revenues would grow an estimated $3.2 billion.

         The performance measures in this category are among the least direct and timely used in
the report card, as the National Center is quick to acknowledge. The percent of Illinoisans who
vote is influenced by numerous factors, only one of which is educational attainment. The same
can be said of the percentage of taxpayers declaring charitable gifts on their federal income tax.
Moreover, the literacy measures used in the report card are based on data that are nearly 10 years
old. Nevertheless, Illinois can take several steps to improve its standing in the benefits category.

                                              To-Do List

    •   Work with the Secretary of State’s Office of Literacy and the Governor’s Literacy
        Officer to improve literacy statewide. Also, encourage the National Center and others to
        call for a new and improved national literacy assessment.

    •   Raise the percentage of Illinoisans aged 25-65 with a bachelor’s degree or higher from 28
        percent to 31 percent by 2005 and to 34 percent (the level of the top states) by 2010.


                                                  10
    •   As the Illinois Commitment is reviewed, consider adding the expectation that colleges
        and universities will impart a greater sense of civic and political responsibility to their
        students. The Illinois Commitment has been rightly criticized because it does not contain
        this expectation and does not sufficiently emphasize the value of the liberal arts. Thomas
        Ehrlich, writing on civic engagement in Measuring Up 2000, said, “We can hope that a
        broader range of political and civic activities will be sampled in subsequent editions of
        Measuring Up. In particular, we can hope that the connections between higher education
        and civic engagement will become clearer on a state-by-state comparative basis.”


LEARNING: I (Incomplete)

         The report card gave all states an “Incomplete” on the assessment of learning on the
grounds that information on the educational performance of college students that would permit
systematic state or national comparisons is unavailable. This is true in Illinois just as it is true in
all other states.

         For at least two reasons, Illinois should take a much stronger interest in assessing student
learning. First, systematic assessment of what students learn at the undergraduate level, both
after they have completed their general education curriculum and when they have nearly
completed their major field of study, is essential if curricula and pedagogy are to be improved.
There is no better way to improve the quality of teaching and learning than to assess what is
learned and what is not based upon clearly drawn learning objectives for students completing a
program of study. The Board of Higher Education, in The Illinois Commitment, has asked all
colleges and universities to have an assessment process for all academic programs in place by
2004. The Board’s annual Results Reports show that most campuses are moving in this direction,
but further encouragement is needed to achieve this goal.

          The second reason to assess student learning is to draw comparisons of performance
between one university and another or one state and other states. While this is a laudable goal, it
is clearly a less valuable outcome than assessing learning to improve pedagogy and curricula
within each academic department and the general studies curriculum, whether or not the
assessment tools are standardized nationally. Nevertheless, to avoid a future “Incomplete” for
Illinois in this category, and, more importantly, to gain knowledge about the value added between
the junior year of high school and the early junior year of college, we propose a nationally
standardized test for a random sample of college juniors. We are seeking the cooperation of
public universities to randomly select some 500 to 1,000 first-term juniors to take the CAP test, a
follow-up to the ACT. CAP scores could be compared with earlier ACT scores from high school
to derive a measure of the value added by students’ final year of high school and first two years
of college. These CAP scores would not, under any circumstances, permit valid institution-by-
institution comparisons, but would permit valid comparisons with some other states.

        Finally, on the matter of the assessment of learning, the State Board of Education is to be
commended. The Prairie State Achievement Exam, which it has developed and which will be
administered to all high school juniors this spring, is a major step forward because it
simultaneously accomplishes both of the assessment goals mentioned earlier. One part of the
examination assesses learning as it relates to the Illinois Learning Standards; the second part of
the examination, is the nationally standardized ACT that will allow comparisons with students
across the country. Appendix B to this report is a brief summary of the State Board’s efforts,




                                                  11
which constitute one of the most important developments in education in Illinois in recent times.
The PSAE has the enthusiastic support of the Joint Education Committee.

                                           Conclusion

         To stand still is to fall behind. Measuring Up 2000 highlights many strengths and
exposes some weaknesses in Illinois higher education. Illinois has in place an effective
mechanism for ongoing improvement: The Illinois Commitment. This strategic plan, adopted by
the Board of Higher Education in 1999, fits snugly with each of the graded categories of the
national report card. To raise performance on the report card is to fulfill the promise of The
Illinois Commitment. The Board calls upon the entire higher education community in Illinois to
keep that promise and help maintain the state’s preeminence on the national report card.

        Presented below is a resolution for action by the Board. In addition, staff is
contemplating a resolution based on the following list of benchmarks and action steps to be
considered by the Board in April or at a subsequent meeting.

    •   Align Illinois high school graduation requirements with the college core curriculum and
        college admissions requirements.

    •   Increase college enrollments from low-income families from the current 20 percent to
        25 percent by 2005 and to 35 percent by 2010.

    •   Develop an affordability index for the state and for each institution of higher learning by
        income level.

    •   Secure the funding and create the infrastructure to ensure that no Illinois citizen will be
        denied admission to a college or university, or forced to leave a college or university
        solely as a result of the cost of attendance.

    •   Provide monetary incentives for colleges and universities to improve persistence and
        completion rates as indexed against their national peers.

    •   Implement recommendations of the Committee on Access and Diversity to close the gap
        between the persistence and completion rates of minority students and white students.

    •   Raise the percentage of Illinoisans with a bachelor’s degree or higher from 28 percent to
        31 percent by 2005 and to 34 percent by 2010.

        The staff recommends adoption of the following resolution:

        The Board of Higher Education is committed to sustaining Illinois’ preeminence in
higher education as measured by the national report card, which is consistent with the goals of
The Illinois Commitment. The Board asks the Illinois elementary/secondary and higher
education communities to join in the effort to reach this goal.




                                                12
       The Board of Higher Education endorses the following action and directs its staff to
proceed with implementation:

    1. Ensure that all data required for the 2002 national higher education report card be
       available to the National Center on Public Policy in Higher Education.

    2. Create, by appointment of the Board of Higher Education, a Presidential Commission on
       Persistence and Degree Completion, comprised of five presidents from the private and
       proprietary sector, five from the public university sector, and five from the community
       college system.

    3. Develop assessment programs that will gauge student learning by academic field as well
       as measure the education value added between a student’s junior year of high school and
       junior year of college.




                                              13
14
                                            APPENDIX A



PREPARATION                                                      A
HIGH SCHOOL COMPLETION (20%)                    Illinois   Top States

       18-24-year-olds with h.s. credential      87%         93%


K-12 COURSE TAKING (40%)
 th    th
9 -12 graders taking at least one upper-          n/a        59%
                      level math course
 th    th
9 -12 graders taking at least one upper-          n/a        37%
                   level science course
                  th
                 8 graders taking algebra         n/a        28%


K-12 STUDENT ACHIEVEMENT (40%)
            th
           8 graders scoring at or above
       “proficient” on national assessment
                                       exam:
                                     in math      n/a        33%
                                  in reading      n/a        38%
                                   in writing     n/a        31%
                       th
      Low-income 8 graders scoring at or          n/a        19%
         above “proficient” on the national
               assessment exam in math

       Number of scores in the top 20%           207          192
 nationally on SAT/ACT college entrance
           exam per 1,000 h.s. graduates

Number of scores that are 3 or higher on         103          158
an Advanced Placement subject test per
          1,000 h.s. juniors and seniors




                                                 15
PARTICIPATION                                                            A
YOUNG ADULTS (60%)                             Illinois       Top States

High school freshmen enrolling in college       49%                54%
               within 4 years in any state

      18-24-year-olds enrolling in college      35%                42%



WORKING AGE ADULTS (40%)

    25-44-year-olds enrolled part-time in       4.7%               4.7%
  some type of postsecondary education




AFFORDABILITY                                                                      A
FAMILY ABILITY TO PAY (50%)                            Illinois           Top States

   Percent of income needed to pay for college
                  expenses minus financial aid:
                        At community colleges              21%               17%
          At public 4-year colleges/universities           24%               19%
         At private 4-year colleges/universities           52%               30%

STRATEGIES FOR AFFORDABILITY (40%)

 State grant aid targeted to low-income families          124%              106%
   as a percent of federal Pell Grant aid to low-
                                 income families

 Share of income that poorest families need to             12%               9%
       pay for tuition at lowest priced colleges

RELIANCE ON LOANS (10%)

     Average loan amount that students borrow             $4,171           $3,094
                                    each year




                                                16
COMPLETION                                                                 C+
PERSISTENCE (20%)                                  Illinois            Top States
      ST
     1     year community college students             53%               64%
                                       nd
                  returning for their 2 year

 Freshmen at 4-year colleges/universities              78%               84%
      returning for their sophomore year


COMPLETION (80%)

First-time, full-time students completing a            55%               66%
          bachelor’s degree within 5 years

     Certificates, degrees, and diplomas               15                 20
  awarded at all colleges and universities
        per 100 undergraduate students




BENEFITS                                                                            B-
EDUCATIONAL ACHIEVEMENT (30%)                               Illinois      Top States

         Population aged 25 to 65 with bachelor’s            28%               34%
                                degree or higher

ECONOMIC BENEFITS (25%)

 Increase in total personal income as a result of             8%               11%
      the percentage of the population holding a
                               bachelor’s degree

CIVIC BENEFITS (25%)

         Eligible resident voting in 1996 and 1998           50%               60%
                                  national elections

 Of those who itemize on federal income taxes,               90%               93%
       the percentage declaring charitable gifts

ADULT SKILL LEVELS (20%)

Adults demonstrating high-level literacy skills:
                                     quantitative            24%               28%
                                           prose             22%               28%
                                       document              20%               26%




                                                   17
18
                                           APPENDIX B


                    Preparing all Illinois Students to Be “College-Ready Kids”


        The Illinois State Board of Education has set rigorous learning standards that are
expected to be taught to all students in all public school classrooms. We see mastery of the
standards as the single most important opportunity for all students to be “college-ready,”
including children of poverty and those at risk for other reasons.

        The State Board has developed the Prairie State Achievement Examination for all 11th
graders. This is the first high school exit test in the nation to incorporate the ACT in its entirety,
thus putting Illinois first in the nation to require all students to take this highly respected college-
entrance examination. In addition to the ACT, the test includes sections on writing, science
content and social science, making it a comprehensive measure of the Illinois Learning Standards.

         Access to educational opportunities is key to becoming “college-ready.” Beginning with
early childhood education, students at risk of academic failure are given opportunities to increase
their learning power. The State Board has put a priority on early reading skills, and manages the
Illinois Reads initiative under the leadership of Governor Ryan. ISBE has distributed over 30,000
reading kits to elementary school teachers and principals, with the latest research into reading
strategies that work. An aggressive mathematics initiative is underway, focusing at the middle
school grades where math achievement lags behind. And high schools are being afforded a
variety of opportunities to broaden their offerings, most visibly through the kickoff of the Illinois
Virtual High School in January of 2001.

        Advanced Placement is a success story for Illinois. Our state’s students were first in the
country in both the numbers of tests taken and the overall scores achieved. A federal grant helps
to subsidize AP courses for schools that have difficulty affording the offerings.

        In April 1999, Illinois participated for the first time in the National Assessment of
Educational Progress (NAEP). This will provide baseline data to monitor Illinois school student
achievement against that in other states. Illinois will continue its participation in NAEP into the
foreseeable future.

        The State Board plans to improve its accountability for school performance, including
support and interventions for those that do not prepare students to succeed, and rewards for those
that improve and those that excel.




                                                  19
20
                                                                                      Item #6
                                                                             February 6, 2001


                    SETTING CAPITAL BUDGET PRIORITIES


Submitted for:          Action.


Summary:                This item describes the various steps taken in developing the capital
                        budget recommendations and the accompanying priority list of
                        capital improvement projects. Master Plan Policies and The Illinois
                        Commitment serve as guides in selecting projects to be recommended
                        for funding. Development of the priority list takes into consideration
                        several factors, including whether a prior year commitment has been
                        made for a project, if the status of an on-going project necessitates
                        additional funding during the year, if the project addresses an
                        emergency facility need, whether the project received a priority
                        ranking on institutional or agency priority lists, and the placement of
                        a project on the prior year statewide capital priority list.

                        The item recommends that the Board of Higher Education undertake
                        a study of higher education’s capital needs and capital priorities.


Action Requested:       That the Board of Higher Education undertake a study of the capital
                        needs and facilities’ priorities for Illinois higher education.




                                           21
22
                                                                                           Item #6
                                                                                  February 6, 2001

                                 STATE OF ILLINOIS
                             BOARD OF HIGHER EDUCATION


                      SETTING CAPITAL BUDGET PRIORITIES

         The statutory authority of the Illinois Board of Higher Education (110 Illinois Compiled
Statutes 205) requires the Board to recommend to the Governor and General Assembly the
budgetary needs of colleges and universities for operations and grants and for capital
improvements. Refocusing Higher Education Budget Development (February 1999) describes the
processes followed by the Board in developing the annual budget recommendations. The
processes ensure that budget development is goal-based and responsive, promotes accountability,
provides incentives for achieving statewide goals, acknowledges institutional diversity, and is
inclusive. The processes outlined in the February 1999 document are followed in developing the
recommendations for operations and grants and capital improvements. While the document
identifies the overall framework in which budget development occurs, it does not provide specific
information related to how capital projects are identified for funding and subsequently prioritized
within the budget recommendations. This item describes the various steps taken in developing
the capital budget recommendations.

         Institutional and Agency Requests. In September the twelve public universities, the
Illinois Community College Board on behalf of the state’s 48 community colleges, and the
Illinois Mathematics and Science Academy submit their annual capital requests to the Board of
Higher Education. These requests include specific funding needs and a prioritized list of
requested projects. The institutions each determine the criteria they will use in developing their
respective priority lists.

         Public universities consider the following objectives when developing their priority lists:
preventing disruption in daily operations; maintaining and protecting the state’s investment in
educational facilities; providing a safe work area and adequately controlled environment for
occupants; providing accessibility improvements; providing equipment to complete state funded
facilities; and providing funds to complete projects where funds have been previously
appropriated. In addition to maintaining and improving existing facilities and completing
ongoing projects, universities consider the need to construct new facilities and to renovate
existing space for instructional, public service, and research program activities. Requested
projects may fund new facilities for new and expanding programs, or they may fund the
renovation of existing facilities to provide necessary technology or specialized space for changing
programs. Campus infrastructure also must be sufficient to support university programs and
facilities.

        Community college districts submit capital requests to the Illinois Community College
Board for its evaluation. The Community College Board identifies projects recommended for
funding, and submits the recommendations to the Board of Higher Education. The
recommendations generally do not include funding for all of the projects requested by the
individual community college districts. Therefore, the magnitude of the requests from
community college campuses is understated by the Community College Board’s priority list.




                                                23
         Administrative rules of the Illinois Community College Board delineate the factors used
to develop the recommendation and priority list of community college projects. When
considering new facilities, the Illinois Community College Board considers the type of space
requested, core campus needs, utilization of existing space and space per student, and the need for
special facilities to house programs. When considering remodeling or rehabilitation of existing
facilities, the Community College Board considers structural deficiencies, program space needs,
and core campus needs. Requests for land acquisition, utilities projects, and site improvements
are evaluated based on the need to support existing campus facilities and services. The priority
ranking of a project with previous Illinois Community College Board approval for planning or
construction may be given additional consideration. Points are assigned to the criteria, and new
projects are added to the priority list based upon the total points assigned to a project in the
evaluation process. Projects that remain unfunded from the prior year are reviewed to ensure
their evaluation is relatively unchanged.

         Statewide Budget Recommendations. The Illinois Commitment and the Master Plan
Policies for Illinois Higher Education 1997 serve as guides in selecting projects to be included in
the Board of Higher Education’s budget recommendations. This ensures that recommended
projects are consistent with and advance state and institutional priorities. The Illinois
Commitment sets forth statewide goals for higher education and the Master Plan provides
statewide facilities policies and priorities for higher education. Specifically, the Master Plan
states that the Board of Higher Education:

    •   gives high priority to remodeling;

    •   requires a clearly demonstrated need due to special program requirements and use and
        condition of existing space for additional classroom and class laboratory space;

    •   approves new construction for community colleges on the basis of enrollments, taking
        into account all permanent space and projected enrollments;

    •   requires a clearly demonstrated need due to total use, condition of existing space, and
        special program requirements for additional space for health professions education
        programs;

    •   considers state participation in the debt retirement of revenue bonds for public university
        capital projects a low priority;

    •   will not approve construction of dormitories for commuter institutions;

    •   considers state participation in such facilities as outdoor athletic and recreation fields,
        field houses, and spectator seating at community colleges a low priority; and

    •   considers several factors, including institutional program direction, student body
        composition, campus type, total allocation of institutional space, and efforts toward
        entering into cooperative agreements with other institutions before approving performing
        arts facilities at public universities and community colleges.

Once projects are identified for inclusion in the budget recommendations, a statewide priority list
is developed suggesting an order for funding the recommended projects.




                                                24
        Statewide Priority List. Prior to fiscal year 1990, the Board of Higher Education
approved the capital budget recommendations in January of each year and the statewide capital
priority list was approved separately in either February or March. With the development of the
fiscal year 1990 budget and subsequently, the recommendations and priority list have been
approved simultaneously. This change occurred in order to provide the information earlier to the
Governor and General Assembly, and has been particularly important in the past few years to
coincide with changes in the legislative calendar.

        Since a project’s position on the approved priority list may increase or decrease the
likelihood it will be funded, the Board strives to ensure projects are prioritized in a fair manner.
A number of factors are considered when developing the statewide priority list, including
whether:

•   a commitment for a project has been made through prior appropriation(s) or authorizations,

•   the status of an ongoing project for which planning or construction funds have been
    appropriated necessitates that funding be provided to complete the project in a timely fashion,

•   the project addresses an emergency infrastructure problem, e.g. problems caused by fire or
    tornado damage, construction defects, or compliance with life, health, and safety code
    requirements,

•   the project received a high ranking on a public university governing board’s priority list, the
    Illinois Community College Board’s priority list of community college projects, or the
    Illinois Mathematics and Science Academy’s priority list, and

•   the location of the project on the Board of Higher Education’s prior year’s priority list to
    encourage multi-year, statewide planning through a “living priority” list.

         While each factor listed above is important, occasionally the individual factors may
conflict with one another. For example, institutions frequently change their priorities from year
to year. If institutional priorities are followed, maintaining a ‘living priority list’ that reflects
consistent statewide priorities and long-term planning is compromised. Also, the Governor and
General Assembly may make commitments for projects through planning appropriations for
projects that do not appear on the prior year’s statewide priority list or institutional priority lists.
In certain instances equipment funds needed to complete a project may not be required until two
years following the year in which construction funds were recommended and appropriated.
These factors and the large number of important projects make developing the priority list
complex and challenging.

                                   Fiscal Year 2002 Priority List

        Table 1 presents the fiscal year 2002 priority list, and includes information for each
project concerning its priority placement on the fiscal year 2001 statewide priority list, its
placement on the fiscal year 2002 institutional or agency priority list, and other comments
concerning a project and the reasons behind its specific placement on the fiscal year 2002 priority
list. Further discussion on how each of the factors considered in developing priority lists
influenced the fiscal year 2002 capital priority list follows.




                                                  25
         Consistent with Master Plan policies that place emphasis on maintaining and protecting
existing higher education facilities, funding for Capital Renewal projects is the first priority on
the fiscal year 2002 capital list. The Capital Renewal allocation provides each community
college and public university with resources to undertake minor infrastructure improvements and
helps reduce the deferred maintenance backlog. While each community college and public
university receives and annually anticipates funding, the University of Illinois is the only
institution or agency that incorporates Capital Renewal within its priority list. The Board of
Higher Education’s priority list has assigned the first priority to Capital Renewal in nine of the
last ten fiscal years.

        The Capital Renewal program dates to fiscal year 1986 with the implementation of the
Build Illinois program and continued through fiscal year 1991 when the Build Illinois program
was fully appropriated. In fiscal year 1992, the Board recommended the continuation of the
program, but the General Assembly and Governor did not appropriate any funds for it. In fiscal
year 1993, in an atmosphere marked by little or no economic growth, state agencies and the
higher education community were encouraged to resist building new facilities if the state was
unable to maintain existing facilities, and the Governor and General Assembly continued the
program with funding from General Obligation Bonds.

        In addition to the ongoing annual funding through the General Obligation Bond Program,
Governor Ryan’s Illinois FIRST initiative, implemented in fiscal year 2000, included $50 million
over five years to assist higher education institutions with renovating their facilities. The Capital
Renewal recommendation of $30 million for fiscal year 2002 reflects not only a policy priority of
the Board, but also relates in part to a prior year commitment made by the Governor and General
Assembly.

         Completing Prior Commitments. Funds to complete ongoing projects are a high priority.
These may include funds for construction where planning funds have been appropriated
previously, funds to purchase equipment to complete a new building or major renovation project,
and funds to address unforeseen conditions discovered during an ongoing project. These projects
may have originated as initiatives of the Governor or General Assembly and may not have been
prioritized previously by the Board. In this area of consideration, institutions and Board staff
assess the current status of planning and construction for new facilities and major remodeling
projects. Priorities 2 through 10 from the fiscal year 2002 capital priority list are examples of
projects that meet this decision rule. The projects also illustrate the recognition given to these
projects by priority lists approved by Boards of Trustees of the public universities and by the
Illinois Community College Board.

        Emergency infrastructure needs. Staff takes into consideration unforeseeable needs to
address emergency infrastructure needs. Examples include the remedy of construction defects or
damage caused by a fire or tornado. There are no projects in the fiscal year 2002 budget
recommendations that meet this criteria and appear as a top priority on either institutional or
agency priority lists.

        Institutional and Agency Priority Lists. In 1996, the Board of Higher Education agreed to
follow, without modification, the priority lists submitted by the Illinois Community College
Board and it has done so. The Board also attempts to follow all other institutional priority lists.

        Previous year priority list. The Board of Higher Education’s approved priority list is
considered a “living” list. After a project is recommended to the Governor and General
Assembly for funding, the Board endeavors to advance its position on the list until it is funded.



                                                 26
The Illinois Community College Board similarly advances projects from one fiscal year to the
next.

         Staff attempts to hold a priority on the list for an institution if it is able to fund or
complete a project requested in a prior year without waiting for state funding. Fiscal year 2002
Priorities 12 and 14 are examples of this decision rule at work. In fiscal year 2001, Southern
Illinois University requested funding for improvements to the chilled water system at
Edwardsville. After the project was not funded, the campus identified other resources to
complete this project important to their operations. The fiscal year 2002 priority list reallocates
the position on the fiscal year 2001 priority list to two Southern Illinois University projects.

                                     Other Considerations

         Development of the capital budget recommendations and accompanying priority list is
complicated by a number of factors, including an environment in which needs and expectations
far exceed available state revenues, where available funding may fluctuate drastically from one
year to the next, and individual project costs are escalating. Developing the capital improvements
recommendation and the priority list requires that the magnitude of requests be considered in
comparison to what might reasonably be deemed affordable by the Governor and General
Assembly. Higher education projects compete with requests from all other state agencies when
the Governor and General Assembly consider and determine which capital projects will be
funded.


                                             Table 2

                                History of the Capital Program
              Requests through Final Action: Fiscal Year 1992 __ Fiscal Year 2002

          (dollars in thousands)

                                          Board of           Governor’s
                                       Higher Education     Recommended                Final
       Fiscal Year      Requests       Recommendation          Budget                 Action

          1992       $ 397,667.0         $ 276,338.1          $ 52,748.1           $ 52,748.1
          1993          423,718.7          220,243.6            50,320.3             58,679.3
          1994          309,838.9          206,592.2            88,151.7            142,691.3*
          1995          437,166.1          218,557.9           142,894.6            146,845.0
          1996          378,103.3          194,645.0            87,475.4                 50.0
          1997          471,538.6          237,056.6           148,676.9            158,952.9
          1998          603,043.4          284,465.3           126,113.9            148,143.3
          1999          665,941.5          240,446.2           145,184.2            154,750.1
          2000          714,234.3          319,956.7           161,070.3            318,306.4
          2001          877,057.5          443,815.3           171,874.7            218,074.7
          2002        1,005,852.1          539,981.3                 --                   --

       *Includes $46,189.6 allocated by the Capital Development Board to public institutions for
        accessibility improvements.




                                                27
         Table 2 illustrates the variance between institution capital requests and the capital
program finally approved for the higher education community. The total amount appropriated
for capital projects in fiscal year 2001 represented one-fourth of the amount requested by colleges
and universities and approximately one-half of the amount recommended by the Board of Higher
Education. In fiscal year 2000, in which record-level appropriations were enacted for higher
education projects, funding levels represented 45 percent of the amounts requested and were
nearly equal to the amount recommended by the Board of Higher Education

        Final appropriations often include funding for projects not included in the Board’s budget
recommendations. For example, in part due to the implementation of Governor Ryan’s Illinois
FIRST initiative, the final appropriations enacted by the General Assembly and Governor for
fiscal year 2000 included over $71.0 million for projects at public institutions—almost
$26.0 million for community colleges and over $45.0 million for universities—not recommended
by the Board and $5.0 million for projects at private institutions. In fiscal year 2001, final
appropriations included $7.0 million for a workforce development center at Kankakee
Community College and $1.9 million for projects at Lewis and Clark Community College and the
Rend Lake College Pinckneyville Industrial Center. Also, $27.0 million was appropriated for an
addition to the Springfield Combined Laboratory, a facility shared by the Southern Illinois
University School of Medicine, the Illinois Department of Public Health, and the Illinois
Environmental Protection Agency.         Governor Ryan’s VentureTECH initiative provided
$23.5 million for projects for the University of Illinois and $10.0 million for a project at
Northwestern University. Two private institutions also benefited from projects totaling
$2.5 million.

        Table 2 also highlights the magnitude of differences in the amounts appropriated annually
for higher education capital improvements. During the eleven years presented, final
appropriations ranged from $50,000 in fiscal year 1996 to $318.3 million in fiscal year 2000.

         Table 3 illustrates the impact of the cost of individual projects on the number of projects
that might reasonably be funded in a given year. The top twenty fiscal year 2002 projects include
$196.7 million to continue or complete projects for which $61.7 million were appropriated
previously. The top twenty fiscal year 2002 recommended projects include requests for planning
funds totaling $2.9 million for two projects. The estimated future costs for the projects are
$58.6 million. Within the top twenty projects on the fiscal year 2002 priority list are three
projects that cost $40 million or more (including Capital Renewal) and four projects with total
costs of between $15 million and $40 million. The magnitude of these larger projects eventually
affects the total number of higher education capital projects that can be funded within limited
resources.

                                              Table 3

                             Board of Higher Education Priority Lists
                                      Top Twenty Projects

                 (dollars in thousands)

                 Fiscal Year    Capital Renewal      Regular Capital           Total

                    2000         $ 21,669.3             $ 163,378.8        $ 185,048.1
                    2001           60,000.0               131,592.4          191,592.4
                    2002           30,000.0               262,567.5          292,567.5



                                                28
                                   Summary and Conclusions

         A number of factors are considered by the Board of Higher Education in the development
of the annual budget recommendations for capital improvements and the accompanying statewide
priority list. Statewide goals and policies articulated in The Illinois Commitment and the Master
Plan for Higher Education serve as guides in selecting projects for inclusion in the
recommendations. Development of the statewide capital priority list considers a number of
factors, including whether a commitment has been made for a project as evidenced by a prior
year’s appropriation or authorization, the status of an on-going project, institutional and agency
priority lists, and prior year statewide priority lists. These factors, which at times conflict with
one another, make development of the statewide list both complex and challenging. Higher
education has enjoyed record levels of funding for capital improvements in the past two years.
Yet, the magnitude of higher education’s facilities needs continues to increase. This further
complicates the process of developing the annual priority list.

       The current statewide policies concerning facilities priorities that appear in the Master
Plan have not been reviewed for many years. While many of the policies remain relevant, a
complete review of the policies in the context of current facilities needs is warranted.

        The staff recommends adoption of the following resolution:

       The Board of Higher Education shall undertake a comprehensive study of the capital
needs and priorities of Illinois higher education.




                                                29
30
                                                                                                       Table 1
                                                                                   FISCAL YEAR 2002 CAPITAL PRIORITY LIST (Revised)
                                                                                           BOARD OF HIGHER EDUCATION
(dollars in thousands)

 FY01     FY02        FY02
 BHE      BHE       Institution                                                                                                                                Cumulative
Priority Priority    Priority                       Institution                                            Project                            Recommend.         Total                          Comments

            1                     Statewide                                        Capital Renewal                                            $   30,000.0 $     30,000.0 Illinois FIRST already authorizes $10,000.0.

            2                     Eastern Illinois University, Southern Illinois   Public Television Stations Infrastructure Digitalization        4,886.7       34,886.7 Fiscal year 2002 is the third year of funding for

                                  University, University of Illinois, Black                                                                                                 the initiative.
                                  Hawk College, City Colleges of Chicago
29 and      3            3        Northeastern Illinois University                 Building "C" Window Wall, HVAC Replacement,                     9,064.3       43,951.0 Bond authorization was added by the General
  41                                                                               Office Modifications; Buildings "F" and "E"                                            Assembly and Governor in spring 2000. This
                                                                                   Remodeling and Expansion                                                               project combines two projects from the fiscal year
                                                                                                                                                                          2001 priority list.
            4            1        Chicago State University                         Library Building                                               16,000.0       59,951.0 Bond authorization was added by the General
                                                                                                                                                                          Assembly and Governor in spring 2000; $19,000.0
                                                                                                                                                                          previously appropriated.
  27        5            1        John Wood Community College                      New Campus, Phase II                                            5,436.2       65,387.2 Planning for the core campus was funded in fiscal
                                                                                                                                                                          year 1999. This project funds the remaining
                                                                                                                                                                          building of the core campus. ICCB #13 in fiscal
                                                                                                                                                                          year 2001.
  30        6            2        Oakton Community College                         Ray Hartstein Addition, Phase II                                7,581.0       72,968.2 Planning (ICCB #6) was funded in fiscal year
                                                                                                                                                                          2001. ICCB #14 in fiscal year 2001 was
                                                                                                                                                                          construction funding.
  20        7            1        Eastern Illinois University                      Fine Arts Center Renovation and Expansion                      40,003.0      112,971.2 Project received prior funding in fiscal years 2000
                                                                                                                                                                          and 2001.
  31        8            3        College of Lake County                           Technology Building, Phase II                                  26,504.0      139,475.2 Planning (ICCB #7) was funded in fiscal year
                                                                                                                                                                          2001. ICCB #15 in fiscal year 2001 was
                                                                                                                                                                          construction funding.
  25        9            1        University of Illinois at Urbana-Champaign       Siebel Computer Science Building                               32,000.0      171,475.2 In fiscal year 2001 the Siebel Computer Center was
                                                                                                                                                                          the University's third priority (BHE #25). In fiscal
                                                                                                                                                                          year 2002 it is the University's second priority. In
                                                                                                                                                                          fiscal year 2001 planning was funded.
  22        10           1        Illinois State University                        Schroeder Hall Rehabilitation                                  17,500.0      188,975.2 Planning was funded in fiscal year 2000.
  24        11           1        Western Illinois University                      Memorial Hall Infrastructure Rehabilitation                    12,000.0      200,975.2 Project also requested in fiscal years 1999 and
                                                                                                                                                                          2000; BHE priority #38 in fiscal year 2000.

  45        12           1        Southern Illinois University at Carbondale       Morris Library Renovation and Addition (planning                1,918.9      202,894.1 In fiscal year 2001 the University's chilled water
                                                                                   and equipment)                                                                         system project was BHE's #23 priority. The
                                                                                                                                                                          University used internal funds to complete the
                                                                                                                                                                          chilled water system project; however, the priority
                                                                                                                                                                          was given to the University in fiscal year 2002 for
                                                                                                                                                                          a similar amount of funding.
  33        13           4        Lake Land College                                Student Services Building Addition                              6,401.0      209,295.1 ICCB #16 in fiscal year 2001.
                                                                                 FISCAL YEAR 2002 CAPITAL PRIORITY LIST (Revised)
                                                                                         BOARD OF HIGHER EDUCATION
(dollars in thousands)

 FY01     FY02        FY02
 BHE      BHE       Institution                                                                                                                     Cumulative
Priority Priority    Priority                       Institution                                         Project                     Recommend.        Total                           Comments

  48        14           2        Southern Illinois University at Edwardsville   Science Laboratory Building Renovation/Expansion        1,500.0     210,795.1 See fiscal year 2002 priority #12.
                                                                                 (planning)
  21        15           2        University of Illinois at Urbana-Champaign     Campus Chiller                                     $   45,000.0 $ 255,795.1 In fiscal year 2001 the University's second priority
                                                                                                                                                             was the chiller project (BHE #21). In fiscal year
                                                                                                                                                             2002 the second priority is the Siebel Computer
                                                                                                                                                             Center.
  26        16           1        Northern Illinois University                   Campus Chilled Water Production and Distribution        7,829.8   263,624.9 In fiscal year 2001 the Hoffman Estates project
                                                                                                                                                             was BHE's priority #26. The project is a lower
                                                                                                                                                             priority for the University in fiscal year 2002 and
                                                                                                                                                             was not recommended by BHE; however, the
                                                                                                                                                             priority was allotted to the University.
  34        17           5        Triton College                                 Technology Building Rehabilitation                      7,434.8   271,059.7 ICCB #17 in fiscal year 2001.
  36        18           6        Joliet Junior College                          Utilities Renovation                                    3,009.8   274,069.5 ICCB #18 in fiscal year 2001.
  38        19           7        Illinois Central College                       Manufacturing Technology Center                         7,248.0   281,317.5 ICCB #19 in fiscal year 2001.
  28        20           2        Illinois State University                      Life Safety Improvements                               11,250.0   292,567.5 Project requested in fiscal years 1998, 1999, and
                                                                                                                                                             2000. In fiscal year 2000 project was BHE #34.

            21           2        Northeastern Illinois University               Buildings A, B, E Rehabilitation (equipment)            3,557.4     296,124.9 The University did not request this project in fiscal
                                                                                                                                                               year 2001. Remodeling funds were appropriated in
                                                                                                                                                               fiscal year 2000. Completion is anticipated spring
                                                                                                                                                               2002.
  32        22           3        Southern Illinois University at Carbondale     Communications Building Renovation/Addition             3,644.4     299,769.3 Renovation project has been recommended by
                                                                                                                                                               BHE since fiscal year 1998. BHE #40 in fiscal
                                                                                                                                                               year 2000. Addition component added in fiscal
                                                                                                                                                               year 2002 to address digitalization of WSIU-TV
                                                                                                                                                               and WUSI-TV.
  37        23           2        Western Illinois University                    Life Safety Improvements, Phase I                       8,000.0     307,769.3 The University first requested this project in fiscal
                                                                                                                                                               years 1999 but it was not recommended by BHE
                                                                                                                                                               until fiscal year 2001.

  39        24           8        Morton College                                 Building Structural Repairs                             3,767.0     311,536.3 ICCB #20 in fiscal year 2001.
  40        25           9        Rock Valley College                            Art Instructional Building                             23,494.0     335,030.3 ICCB #21 in fiscal year 2001.
  46        26           3        University of Illinois at Springfield          Classroom office Building                              30,000.0     365,030.3 In fiscal year 2001 the Chicago west side chiller
                                                                                                                                                               was the university's fifth priority (BHE #42). The
                                                                                                                                                               Springfield classroom building was the university's
                                                                                                                                                               seventh priority (BHE #46). The priority position
                                                                                                                                                               was allotted to the Springfield project in fiscal year
                                                                                                                                                               2002. The chiller is not recommended in fiscal
                                                                                                                                                               year 2002 because it is a lower University priority
                                                                                                                                                               than the Chicago roofs and masonry repairs (BHE
                                                                                                                                                               #35).
  43        27           10       Elgin Community College                        Spartan Drive Extension                                 2,594.3     367,624.6 ICCB #22 in fiscal year 2001.
  44        28           11       Parkland College                               Student Services Center                                10,471.0     378,095.6 ICCB #23 in fiscal year 2001.
                                                                             FISCAL YEAR 2002 CAPITAL PRIORITY LIST (Revised)
                                                                                     BOARD OF HIGHER EDUCATION
(dollars in thousands)

 FY01     FY02        FY02
 BHE      BHE       Institution                                                                                                                Cumulative
Priority Priority    Priority                       Institution                                    Project                      Recommend.       Total                           Comments

  47        29           12       Sauk Valley Community College              T-1 and Building One West Wing Remodeling;              3,158.0     381,253.6 ICCB #24 in fiscal year 2001.
                                                                             Storage Facility Construction
            30           13       William Rainey Harper College              Engineering and Technology Center Renovation       $   13,640.0 $ 394,893.6 ICCB #25 in fiscal year 2001.
  50        31            2       Chicago State University                   Convocation Center                                      3,000.0   397,893.6 Project has prior funding.
            32           14       Rend Lake college                          Art Program addition                                      327.0   398,220.6 ICCB #26 in fiscal year 2001.
            33            1       Illinois Mathematics and Science Academy   Laboratory Remodeling and Expansion                     4,881.8   403,102.4 Fiscal year 2002 first year requested.
            34           15       Lake Land College                          Rural Development Technology Center                     5,021.0   408,123.4 ICCB #27 in fiscal year 2001.
            35            4       University of Illinois at Chicago          Roof and Masonry Repairs                                8,000.0   416,123.4 In fiscal year 2001, the first year requested, this
                                                                                                                                                         project was the system's #9 priority.
            36           2        Northern Illinois University               Campus Improvements                                    12,710.0   428,833.4 Project provides funds to complete the renovation
                                                                                                                                                         of Altgeld Hall, to purchase equipment for
                                                                                                                                                         Barsema Hall, and to make site improvements.
            37           2        Eastern Illinois University                South Campus Chilled Water Loop                         2,500.0   431,333.4 Project was recommended by BHE at #46 in fiscal
                                                                                                                                                         year 2000; it was requested by the University but
                                                                                                                                                         not recommended in fiscal year 2001.

            38           16       College of DuPage                          Instructional Center Noise Abatement                    1,135.0     432,468.4 ICCB #29 in fiscal year 2001.
            39           17       William Rainey Harper College              Science Center                                         27,844.0     460,312.4 ICCB #30 in fiscal year 2001.
            40            3       Northern Illinois University               Stevens Building Renovation (planning)                    917.8     461,230.2 Project has been requested by the University each
                                                                                                                                                           year since fiscal year 1993.

            41            1       Northeastern Illinois University           Education Building                                      3,440.9     464,671.1   Fiscal year 2002 first year requested.
            42            1       Governors State University                 Campus Roadway and Sidewalk Renovation                  1,847.5     466,518.6   Fiscal year 2002 first year requested.
            43           18       Illinois Valley Community College          Community Instructional Center                         10,874.0     477,392.6   ICCB #31 in fiscal year 2001.
            44           19       Lake Land College                          Technology Building, Phase II                           5,498.0     482,890.6   ICCB #32 in fiscal year 2001.
            45            2       Illinois Mathematics and Science Academy   Mezzanine Renovation and Expansion                      7,943.7     490,834.3   Fiscal year 2002 first year requested.
            46           20       College of Lake County                     Student Services Building                              29,811.0     520,645.3   ICCB #33 in fiscal year 2001.
            47           21       Heartland Community College                Workforce Development Center                           11,435.0     532,080.3   ICCB #28 in fiscal year 2001.
            48           22       Kaskaskia College                          Child Care Facility/Workforce Development Center        7,901.0     539,981.3   Fiscal year 2002 first year requested by ICCB.
                                                                                    Item #7
                                                                           February 6, 2001


                    GRANT PROGRAM REALIGNMENTS
                        AND IMPLEMENTATION


Submitted for:      Action.


Summary:            This item provides staff recommendations for realignments in state grant
                    programs administered by the Board of Higher Education to bring the
                    focus of the grant programs more in line with the goals of The Illinois
                    Commitment. The recommendations result from the Grant Program
                    Evaluation and Report prepared by independent consultants and input
                    from the higher education community regarding that report and its
                    recommendations. This agenda item contains recommendations for
                    changes in the grant programs and a proposed implementation schedule.


Action Requested:   That the Board of Higher Education adopt the recommendations
                    contained herein for realignment and restructuring of grant programs
                    administered by the Board.




                                          35
36
                                                                                            Item #7
                                                                                   February 6, 2001


                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


                         GRANT PROGRAM REALIGNMENTS
                             AND IMPLEMENTATION

                                           Introduction

        This item presents recommendations for realignments in state grant programs
administered by the Board of Higher Education to bring the focus of the grant programs more in
line with the goals of The Illinois Commitment. The recommendations result from the Grant
Program Evaluation and Report prepared by independent consultants and input from Board
Members and the higher education community regarding that report and its recommendations.

          The Illinois Board of Higher Education, in fiscal year 2000, commissioned a
comprehensive examination of the higher education grant programs by outside consultants.
While individual grant programs and projects have been evaluated on a regular basis, the Board
has not previously undertaken a comprehensive examination of the grant programs collectively,
as a set of tools to achieve the goals of higher education. This evaluation focused on the goals of
The Illinois Commitment and the extent to which the grant programs are collectively contributing
to achievement of these goals.

         The consultants’ evaluation process included a review of historical and trend information,
analyses of the program purposes, as well as analyses of the alignment of grant funds with The
Illinois Commitment, and grant impact and effectiveness. Additional information about the grant
programs was collected during a series of meetings held with members of the Board of Higher
Education, the Board’s staff, leadership of each of the three higher education sectors, and grant
project directors.

         The consultants presented their report and recommendations to the Board in October.
That report was mailed out in a wide distribution to institution presidents, grant project directors,
and many others in the Illinois higher education community with requests for their comments.
Responses were received from Board Members and nearly 40 higher education institutions, the
Illinois Community College Board, the Federation of Independent Illinois Colleges and
Universities, higher education consortia, and other interest groups. In December, the Board
reviewed an information item consisting of a summary of the consultants’ findings and
recommendations, a summary of the feedback received, and preliminary recommendations for
making grant program changes.

          Outlined in the following pages are more detailed recommendations for implementation
of program realignments in the Illinois Financial Assistance Act, Health Services Education
Grants, the Higher Education Cooperation Act, minority fellowship programs and development of
a new critical workforce program. For purposes of implementation, the two recommendations
relating to the Illinois Financial Assistance Act are combined into one action statement along with
Health Education Grants. The three recommendations relating to the Higher Education
Cooperation Act also are combined.


                                                 37
                        Action Statements and Implementation Plan

Consultants’ Recommendations

1. & 4. Use formula elements that align the Financial Assistance Act and Health Education
Grants programs to the goals of The Illinois Commitment and organize the Financial
Assistance Act program into two components, Access Grants and Illinois Commitment
Grants.

       The Financial Assistance and Health Education programs currently emphasize capacity
       by distributing funds through formulas based on the number of students enrolled on a
       certain day early in the fall term. The Financial Assistance formula has higher rates for
       third- and fourth-year students. This emphasis on capacity was appropriate in the 1970s
       but less important within the current policies and priorities of Illinois higher education.

       Persistence and Completion Grants. Legislation should be initiated to allow for the
       option of using outcome measures including either end-of-term enrollments and/or
       degrees conferred to provide accountability and to emphasize persistence and completion.
       Board of Higher Education staff will work with representatives of the Federation of
       Independent Illinois Colleges and Universities (FIICU) to establish dates and formulas
       for restructuring the Financial Assistance Act program.

       Legislative changes, amendments to administrative rules and changes to grant
       administration procedures will be required for the program changes described above.
       Staff proposes to implement program changes for the Financial Assistance Act grants
       starting in fiscal year 2003.

       Illinois Commitment Grants. The statutory mechanism necessary to initiate Illinois
       Commitment grants as envisioned by the consultants already exists in Section 6 of the
       IFAA statute and is something that the Board of Higher Education may want to consider
       at a future date as an option for further implementation of The Illinois Commitment. If
       such grants are initiated at a future time, staff would work with representatives from the
       Federation of Independent Illinois Colleges and Universities in program development. A
       reallocation of dollars from either the Financial Assistance Act or the Health Education
       Grants for this purpose should not be necessary.

       Change formula elements to align Health Education Grants to the goals of The
       Illinois Commitment. As with the Financial Assistance Act, the consultants suggested
       placing the emphasis of the Health Education Grants on retention and completion by
       changing formula elements. A review of Board policies on health professions education
       should be done as an integral part of proposing changes to Health Education Grants.
       Representatives of the Federation of Independent Illinois Colleges and Universities also
       should be involved in decisions on outcome measures and development of new allocation
       formulas.

2., 5., & 7. Establish appropriate mechanisms for funding long-term statewide programs;
Consolidate existing project categories within the Higher Education Cooperation Act
(HECA) into new categories tied directly to The Illinois Commitment’s goals, and establish
two funding classifications within the Higher Education Cooperation Act for Enterprise
Grants and Renewable Grants.



                                               38
Proposed realignments to the HECA grants will require changes to administrative rules.
In addition, staff already has underway the redesign of content and format of the Request
for Proposals for grants under this program. The grant schedule for fiscal year 2002 will
be adjusted to allow sufficient time for development of amendments to administrative
rules, completion of the redesign of the RFP, and scheduling of grant workshops. The
workshops will provide an opportunity for institutional representatives and project
directors to review and discuss program changes including administrative rules, grant
procedures and proposal format.

One step in implementing the proposed program changes already has been taken. The
fiscal year 2002 higher education budget recommendations approved by the Board of
Higher Education in December reflect the move of some 28 long-term statewide grant
projects totaling over $5.0 million to the funding bases of various Illinois higher
education institutions and agencies. Examples of these projects include the Illinois
Articulation Initiative; Minority Internship Program; Illinois Virtual Campus; Faculty
Exchange, Minority Recruitment and Retention; and Illinois Cooperative Collection
Management Program. Additional program transfers may take place in the future as this
change in funding format is evaluated.

Fiscal year 2002 funding for these projects is proposed to be appropriated directly to the
institutions that sought funding for the projects during the last several years. This
transfer of program funding to institutional bases is reflected in an equivalent reduction to
the base of funding for the HECA program. This represents one new means of funding
long-term projects. A second mechanism for funding long-term projects in the form of
Renewable Grants is discussed below.

The Grant Programs and Special Initiatives section of the fiscal year 2002 higher
education budget recommendations provides narrative and display tables in a format with
grants aligned to the goals of the Illinois Commitment. New labels for Higher Education
Cooperation Act (HECA) project categories will clarify the connection to The Illinois
Commitment. Requests for Proposals (RFP) will provide guidance to institutions about
the specific components of the action plan that will be given priority within each
category. Selection criteria and evaluation measures may be tailored for each category
and updated periodically as the Board refines its short-term priorities.

The two new funding classifications within HECA will be Enterprise Grants and
Renewable Grants. Enterprise grants will provide start-up funds for new cooperative
ventures that will be expected to be self-supporting or supported by another source of
funds at the end of the grant period. These grants can also be used for policy-related pilot
projects and experimental initiatives that will be funded for a short period of time and, if
successful, could be transferred to a line item in the appropriate budget. Enterprise
Grants will be award on a competitive basis and funds distributed later in the year.

Renewable Grants will provide longer term, but not necessarily permanent, support for
organizations, services or projects that have substantial statewide benefits and require
continuing state support. Initially, these will be initially selected through a competitive
process with very high standards. After initial approval or recognition, these projects will
not be required to participate annually in a competitive process but will apply annually
for a grant renewal and provide a progress report on grant activities. Progress reports will
be considered during the budget development process so that awards for Renewable
Grants can be distributed early in the fiscal year.


                                        39
       In the adoption of these two funding classifications, it is understood that support will be
       discontinued or phased out for current projects that can neither become self-supporting
       nor meet high standards for a Renewable Grant.

3. Strengthen incentives for participation in minority fellowship programs.

       Board staff met with representatives from the Illinois Consortium for Educational
       Opportunity Program (ICEOP), the Illinois Minority Graduate Incentive Program
       (IMGIP), and the Illinois Committee on Black Concerns in Higher Education (ICBCHE)
       as well as other interested persons to discuss the consultants’ recommendations for
       minority fellowship programs. The group concluded that the programs could be
       combined under one piece of enabling legislation while maintaining the individual
       characteristics of each program, and that the combined program should be funded
       through a separate appropriation, including means for funding administration of the new
       combined programs and funding for internships to strengthen placements. Stipend
       amounts should be determined annually by the ICEOP Board, with guidance from the
       IBHE. Payback requirements should be modified in the combined program as they relate
       to the elimination of the payback provision for students taking jobs in worker shortage
       areas or geographic areas of the state that may have a shortage of professionals in certain
       fields. Staff proposes to submit legislation and rule changes to achieve these changes.

       Staff proposes to continue work with the Consortium Board as well as other members of
       the minority higher education community in developing more detailed plans for
       implementation of these recommendations. If possible, program changes should be
       implemented in fiscal year 2003.

6. Create a Critical Workforce Grant Program.

       The proposed Critical Workforce Grant Program would respond promptly to new
       workforce needs for education by supporting expansion or development of new
       educational programs in specific high-demand fields. Staff proposes to develop enabling
       legislation for such a program with funding recommendations to be included in the Board
       of Higher Education fiscal year 2003 budget. Consideration will be given to developing a
       program that works in tandem with the existing Cooperative Work Study grant program
       to prepare workers and provide student work-study opportunities in high demand fields.

8. Reduce administrative processes and strengthen accountability by consolidating
applications for formula-driven programs, requiring quantitative performance measures,
conducting periodic performance audits of major programs and groups of similar
programs, and developing mechanisms for disseminating best practices.

       In addition to reorganizing and restructuring activities cited earlier in this report, staff
       also will move to implement changes to processes such as those listed below to reduce
       the administrative burden for the Board and institutions participating in grant programs.

   •   Consolidate the applications for formula-driven programs and develop a system for
       processing applications electronically.

   •   Require all grant-funded projects to identify and annually report quantitative measures
       that are tied to specific objectives. Develop uniform annual reporting requirements for



                                               40
       similar projects. Eliminate funding for projects that do not provide reports or fail to meet
       their objectives.

   •   Using Performance Audit of Illinois’ Minority Graduate Fellowship Programs as a
       model, review major projects and groups of similar projects on a periodic basis with a
       fixed schedule.

   •   Develop mechanisms for dissemination of best practices across similar projects.

                                  Conclusion and Recommendations

         The evaluation of Board of Higher Education grant programs focused on the goals of The
Illinois Commitment and the extent to which the grant programs are collectively contributing to
the achievement of these goals. Realignment or restructuring of several existing programs and
the establishment of one new program to address critical workforce needs are recommended.
Strengthening of administrative procedures and requiring quantitative performance measures in
individual projects as well as across classes of projects also will improve accountability.

         As noted in the December information item to the Board, Grants Program Evaluation
Results and Implementation, the implementation of recommendations contained in this item will
facilitate the continued achievement of the goals and objectives of The Illinois Commitment as
well as the improvement of the state’s performance in its Report Card for Higher Education.
Statutory changes and amendments to administrative rules will be required in some cases, and as
reflecting in the following recommendations, implementation of the recommendations will take
place over a two- to three-year period of time.

       The staff recommends the adoption of the following resolution:

        The Board of Higher Education hereby adopts the following recommendations for
realigning and restructuring grant programs administered by the Board:

       Financial Assistance Act and Health Education Grants. The Illinois Financial
       Assistance Act and the Health Services Education Grants Act should be restructured to
       emphasize access, retention and completion. Legislation will be initiated to allow the use
       of end-of-term enrollments (persistence) and/or degrees conferred (completion).

       Higher Education Cooperation Act. Project categories within the Higher Education
       Cooperation Act (HECA) should be restructured into new categories tied directly to The
       Illinois Commitment and should be divided into two funding classifications—Enterprise
       (typically one to three years) and Renewable Grants (typically three to five years).
       Alternative funding methods should be developed for programs of long-term statewide
       significance.

       Minority Fellowships. Incentives for participation in minority fellowships should be
       strengthened by initiating legislation to combine the two existing programs and allowing
       changes in stipend amounts. Rules changes should be initiated to address issues
       including recruitment and payback requirements.

       Critical Workforce Grant Program. Legislation should be initiated to create a Critical
       Workforce Grant Program to respond to new workforce needs by supporting expansion
       or development of new educational programs in specific high-demand fields.


                                               41
Administrative Processes. Administrative processes should be reduced and account-
ability strengthened for formula-driven grant programs by requiring performance
measures, conducting periodic program audits, using common data collection
instruments where possible, developing electronic methods for grant submission, and
developing mechanisms for distribution of best practices.




                                    42
                                   Grant Program Changes
                           Summary of Activities and Proposed Timeline

                                                              Adopt/              Change
              Actions Required                      Revise    Revise   Revise   Administrative     Proposed
                                                    Statute   Rules    Budget    Procedures        Timeline

1. Use formula elements that align the               Yes       Yes      Yes          Yes          Spring 2001
Financial Assistance and Health Education                                                          Legislation
programs to the goals of The Illinois                                                            FY2003 Budget
Commitment.


2.    Consolidate existing project categories         No       No       Yes          Yes          Spring 2001
into new categories tied directly to The Illinois
Commitment’s goals.


3. Strengthen incentives for participation in        Yes       Yes      Yes          Yes          Spring 2001
minority fellowship programs.                                                                      Legislation
                                                                                                 FY2003 Budget

4. Organize the Financial Assistance Act              No       Yes      Yes          Yes          Spring 2001
program into components, Access Grants and                                                         Legislation
Illinois Commitment grants.                                                                      FY2003 Budget


5.    Establish two funding classifications           No       Yes      Yes          Yes          Spring 2001
within HECA, Enterprise Grants and
Renewable Grants.


6.    Create a Critical Workforce Grant              Yes       Yes      Yes          Yes          Spring 2001
Program.                                                                                           Legislation
                                                                                                 FY2003 Budget

7. Establish appropriate mechanisms for               No       No       Yes          Yes            FY2002
funding long-term statewide programs.                                                             and FY2003
                                                                                                    Budget

8.    Reduce administrative processes and             No       Yes      Yes          Yes             Begin in
strengthen accountability by consolidating                                                         Spring 2001
formula-driven programs, requiring quantita-                                                     and Complete in
tive performance measures, conducting                                                               Fall 2003
periodic performance audits of major
programs and groups of similar programs, and
developing mechanisms for disseminating best
practices.




                                                     43
44
                                                                              Item #8
                                                                     February 6, 2001


        PROGRESS REPORT AND PLANS FOR CALENDAR YEAR 2001


Submitted for:        Information.


Summary:              This report highlights the accomplishments of the Board of
                      Higher Education during the past year with respect to
                      implementing The Illinois Commitment, and outlines plans for
                      focusing the work of the Board and staff during the coming year.


Action Requested:     None.




                                     45
46
                                                                                          Item #8
                                                                                 February 6, 2001

                                  STATE OF ILLINOIS
                              BOARD OF HIGHER EDUCATION


         PROGRESS REPORT AND PLANS FOR CALENDAR YEAR 2001

        This report highlights the accomplishments of the Board of Higher Education during the
past year with respect to implementing The Illinois Commitment, and outlines plans for focusing
the work of the Board and staff during the coming year. This report is intended to give the Board
and the higher education community a sense of the priority activities for the past year and current
calendar year. It presents neither a comprehensive list of all calendar year 2000 accomplishments
nor a comprehensive list of the work necessary to carry out plans identified for calendar year
2001.

        Fulfilling the statutory responsibilities of the Board of Higher Education -- master
planning, program approval and review, budget development, grant program administration, and
information system design and management -- requires that a variety of projects be undertaken
during the course of any year. Some of these projects involve creating mechanisms to address
statewide policy concerns, while others carry out existing programs. Many projects, such as the
task being undertaken by the Committee on Access and Diversity, development of the Illinois
Century Network, realignment of grant programs, the Illinois Articulation Initiative, and
development of the annual budget recommendations, are complex and require months of work
and cooperation with many individuals within and outside the higher education community. In
addition to the activities listed in this item, a number of on-going activities will be undertaken
including administering grant programs; maintaining information systems; serving on numerous
advisory committees and boards; working with the media, governors staff, and members of the
General Assembly; preparing analytical studies; and responding to emerging issues and concerns.




                                                47
Goal 1:        Higher Education will help Illinois business and industry sustain strong
               economic growth.

    Calendar Year 2000 Accomplishments                  Plans for Calendar Year 2001

§ Continued efforts to reduce the shortage of § Continue efforts to reduce the shortage of
  information technology workers. Status         information technology workers, monitor
  Report on Information Technology Workers:      and report progress.
  2000 showed noteworthy achievements,
  including increases in the number of § Complete work with partner agencies in
  programs offered, enrollments in such          doing a skills gap analysis for information
  programs, and degrees conferred.               and technology occupations and programs,
                                                 bringing learning outcomes closer to
§ In cooperation with the Illinois Student       employer needs.
  Assistance Commission, launched the
  Arthur F. Quern Information Technology § Identify emerging occupations and supply-
  Scholarship Program.                           demand imbalances, and develop policies
                                                 and programs to address the needs of
§ Initiated work with partner agencies on a      targeted industries and to increase the
  skills gap analysis for information and        number of graduates in high demand areas.
  technology occupations and programs.
                                               § Create Critical Workforce Grant Program.
§ Initiated work on the in- and out-migration
  of Information Technology graduates.         § Continue work with partnership agencies on
                                                 Education to Careers and other workforce
§ Worked with partner agencies on Education      preparation initiatives.
  to Careers and other workforce preparation
  initiatives.                                 § Work with partner agencies to develop an
                                                 International Career Academy.
§ Illinois Higher Education: Building the
  Economy, Shaping Society documented the § Continue strategic incentives initiative to
  economic and the non-economic benefits         make baccalaureate completion programs
  derived by the state and the individual from   available on community college campuses
  the state’s colleges and universities.         and elsewhere.

§ Allocated $10 million in State Matching
  Grants to 19 institutions as incentives for
  securing federal and private grants.

§ Allocated $4.7 million in workforce and
  economic development grants, supporting
  consortia efforts in meeting regional
  educational needs, assist small- and
  medium-sized companies in upgrading
  manufacturing technology, and enhance
  workforce training initiatives.

§ Allocated $2 million for Cooperative Work-
  Study Grants supporting 41 work study
  programs in a variety of fields.


                                             48
Goal 1:        Higher Education will help Illinois business and industry sustain strong
               economic growth. (continued)

    Calendar Year 2000 Accomplishments                   Plans for Calendar Year 2001

§ Developed strategic incentives to encourage
  development       of     Internet-enhanced
  baccalaureate degree completion programs.



Goal 2:        Higher education will join elementary and secondary education to improve
               teaching and learning at all levels.

    Calendar Year 2000 Accomplishments                   Plans for Calendar Year 2001

§   Worked with the State Board of Education §       Work with the Joint Education Committee
    to design the Prairie State Achievement          and State Board of Education to implement
    Examination (PSAE). Endorsed PSAE and            the Prairie State Exam and monitor results
    recommended to colleges and universities         for potential admissions and placement
    that the exam be considered in admission         viability.
    processes and as a placement tool.
                                               §     Recommend steps for reducing the need for
§   Investing in the Future: College Readiness       post-secondary remediation.
    in Illinois reviewed college readiness and
    remediation, and presented proposals for §       Continue to work with the Joint Education
    improving student persistence, educational       Committee to implement the Title II state
    attainment, and workforce success.               teacher preparation report card.

§   Initiated work with the Illinois Student §       Prepare statewide analysis of students
    Assistance Commission to find ways to            completing the recommended college
    create financial incentives for enhancing        preparation core curriculum.
    high school student preparation for college.
                                                 §   Design value-added assessment strategy of
§   Completed first review of Illinois               general education from the junior year
    Articulation Initiative core curriculum and      through the end-of-term sophomore year.
    endorsed additional baccalaureate major
    agreement.                                   §   Implement the State Teacher Quality
                                                     Enhancement Grant funded under Title II
§   Initiated work to create a data system on        of the federal Higher Education Act.
    teacher education supply and demand in
    conjunction with the State Board of §            Work with the Illinois Community College
    Education.                                       Board and the State Board of Education to
                                                     develop a federal grant proposal for
§   Allocated $725,000 in grants for twelve          improving the preparation of teacher
    projects supporting College Ready Kids           education candidates in the use of
    and/or Classroom Ready Teachers                  technology.
    initiatives.




                                              49
Goal 2:        Higher education will join elementary and secondary education to improve
               teaching and learning at all levels. (continued)

    Calendar Year 2000 Accomplishments                   Plans for Calendar Year 2001

§   In cooperation with partner agencies, §          Work with the Illinois Student Assistance
    prepared Recommendations Concerning              Commission to find ways to create
    Adult Education:        Report on House          financial incentives for enhancing high
    Resolution 304 recommending the transfer         school student preparation for college.
    of adult education to the Illinois
    Community College Board. Worked with §           Work with the Illinois On-Line Leadership
    partnership agencies in securing passage of      Council to coordinate distance learning
    legislation enacting recommendation.             activities and initiatives in Illinois.

§   Worked cooperatively with the Governor’s §       Prepare joint P-16 budget and legislative
    Office and other Joint Education                 agenda with the Illinois Community
    Committee partners in advancing the P-16         College Board and State Board of
    Partnership Agreement.                           Education.

§   Worked with the State Board of Education §       Continue development of the Illinois
    and others to complete a format for              Century     Network      connecting 500
    institutional and state teacher preparation      additional constituents.
    report cards.
                                                 §   Work with the Governor and Secretary of
§   Continued development of the Illinois            State’s offices to improve adult literacy.
    Century Network, with over 4,000
    connections to schools, colleges and §           Complete work with the State Board of
    universities, libraries, museums, hospitals,     Education and Illinois Community College
    and state agencies. The Network became a         Board on the study of educational needs in
    significant delivery vehicle for education       East St. Louis.
    content.

§   Helped develop the Illinois Virtual High
    School, in conjunction with the State
    Board of Education, Illinois Community
    College Board, and colleges and
    universities.

§   Secured     federal  Teacher      Quality
    Enhancement grant supporting a three-year
    effort to improve preparation of middle
    school teachers.




                                              50
Goal 3.        No Illinois citizen will be denied an opportunity for a college education
               because of financial need.

    Calendar Year 2000 Accomplishments                   Plans for Calendar Year 2001

§   Initiated work to create an affordability §     Review and update the 1994 report of the
    index in cooperation with the Illinois          Committee on the Study of Affordability.
    Student Assistance Commission, colleges
    and universities.                         §     Complete affordability index.

§   Held a statewide conference on issues
    concerning      student       preparation,
    persistence, and graduation.     Time to
    Degree: A Report on the Conference
    presented a summary of key findings.

§   Prepared tuition statement materials
    required by Public Act 91-0185.



Goal 4:        Illinois will increase the number and diversity of citizens completing training
               and education programs.

    Calendar Year 2000 Accomplishments                   Plans for Calendar Year 2001

§   Continued work of the Committee on §            Complete work of the Committee on
    Access and Diversity, including public          Access    and    Diversity,     including
    hearings and focus groups.                      development      of      report       and
                                                    recommendations.
§   Prepared Report to the Governor and
    General Assembly on Underrepresented §          Prepare report on underrepresented groups
    Groups in Illinois Higher Education.            in Illinois higher education, with emphasis
                                                    on best practices.
§   Selected location of the University Center
    of Lake County, and appointed members of §      Continue work on development of the
    the new board.                                  University Center of Lake County.

§   Illinois Virtual Campus continued to grow, §    Implement results of an evaluation of
    with enrollments exceeding 26,000 in            minority student transfer centers.
    spring 2000.
                                               §    Work with presidential commission on
§   Increasing       Educational   Attainment       persistence and completion.
    addressed strategies for increasing
    educational attainment and noted new §          Expand the Illinois Virtual Campus.
    initiatives undertaken during past two
    years.                                     §    Work to consolidate and strengthen
                                                    minority graduate incentive programs.




                                              51
Goal 4:         Illinois will increase the number and diversity of citizens completing training
                and education programs. (continued)


          Calendar Year 2000 Accomplishments              Plans for Calendar Year 2001

§   Allocated $5.8 million for Minority
    Educational      Achievement        Grants
    supporting programs to better prepare K-12
    students for college, improve retention
    rates, and strengthen the pipeline to
    graduate and professional schools.

§   Allocated $2.7 million for Minority
    Articulation Grants supporting centers
    designed to smooth the transfer from
    community colleges to four year programs
    and      to   create     campus-friendly
    environments.



Goal 5:         Illinois colleges and universities will hold students to even higher expectations
                for learning and will be accountable for the quality of academic programs and
                the assessment of learning.

    Calendar Year 2000 Accomplishments                    Plans for Calendar Year 2001

§   Recommended approval of proposals for §          Complete redesign of program review
    111 new on- and off-campus units of              process, and make necessary adjustments
    instruction, research, and public service,       in redesigned program approval process.
    and administration and operating authority
    for three new in-state institutions and two §    Convene a small workgroup from
    out-of state institutions.                       institutions and experts to advance the
                                                     development of program assessment and
§   Stimulated development of high quality           student learning.
    program content for the Illinois Century
    Network through grants for 12 projects §         Prepare issue papers on quality and
    totaling $1.0 million.                           assessment.




                                               52
Goal 6:         Illinois colleges and universities will continually improve productivity, cost-
                effectiveness, and accountability.

    Calendar Year 2000 Accomplishments                   Plans for Calendar Year 2001


§   First-ever national report card on higher §     Continue the development of evidence for
    education shows that Illinois is ranked first   statewide progress on the goals of The
    in the nation.                                  Illinois Commitment.

§   Initiated work on a student information §       Complete development of on-line academic
    system, an “evidence inventory” for             program inventory system.
    documenting results in achieving statewide
    goals, and on-line academic program §           Design first phase of consumer education
    inventory.                                      and protection website.

§   Developed fiscal year 2002 budget §             Prepare third annual statewide results
    recommendations targeting resources to          report.
    implementing statewide policy goals.
                                                §   Complete comprehensive study of higher
§   Worked with Governor, General Assembly,         education finance in Illinois.
    higher education community, and others to
    pass the Board of Higher Education’s fiscal §   Implement consultants recommendations
    year 2001 budget recommendations.               from the evaluation of grant programs.

§   Prepared second annual statewide results §      Complete transfer of databases from the
    report.                                         Department of Central Management
                                                    Services mainframe computer.
§   Created a Steering Committee to oversee
    study of higher education finance.      §       Complete comprehensive study on higher
                                                    education facilities.
§   Initiated work on a comprehensive study
    on the condition and utilization of space. §    Continue      development   of    student
                                                    information systems to include relevant
§   Prepared reports on faculty and staff           data to support assessment of progress on
    salaries, instructional costs, and staffing.    The Illinois Commitment.

§   Combined the Illinois Video Education §         Develop fiscal year         2003    budget
    Network and the Illinois Century Network        recommendations.
    to maximize technology resources.
                                              §     Work with the Governor and General
§   Evaluation of the Grant Programs                Assembly to secure passage of the fiscal
    presented a set of recommendations for          year 2002 budget recommendations.
    changing grant programs administered by
    the Board of Higher Education to better §       Prepare report on part-time faculty
    align them with the goals of The Illinois       pursuant to requirements of House Joint
    Commitment.                                     Resolution 19.




                                               53
Goal 6:        Illinois colleges and universities will continually improve productivity, cost-
               effectiveness, and accountability. (continued)

    Calendar Year 2000 Accomplishments                  Plans for Calendar Year 2001

§   Joined the National Center for Public
    Policy and Higher Education in survey of
    public opinion on higher education to
    ensure that The Illinois Commitment goals
    continue to be consistent with what
    Illinoisans expect of their colleges and
    universities.




                                             54
                                                                                     Item #9
                                                                            February 6, 2001


                THE ILLINOIS ARTICULATION INITIATIVE:
              ENDORSEMENT OF SOCIOLOGY ARTICULATION


Submitted for:      Action


Summary:            The Illinois Articulation Initiative (IAI) was launched in January 1993 to
                    ease the transfer of students among Illinois public and independent,
                    associate and baccalaureate degree-granting institutions with the
                    objective of increasing baccalaureate degree completion. To date, five
                    general education panels and 27 major panels have developed and
                    implemented statewide recommendations of courses that will be
                    accepted in transfer at participating institutions. The most recent panel
                    to complete its articulation agreement is sociology. The IAI Steering
                    Panel endorsed the recommendation at its November 17, 2000 meeting.


Action Requested:   That the Board of Higher Education endorse the recommendations of the
                    sociology major panel.




                                           55
56
                                                                                            Item #9
                                                                                   February 6, 2001

                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


                  THE ILLINOIS ARTICULATION INITIATIVE:
                ENDORSEMENT OF SOCIOLOGY ARTICULATION

         The Illinois Articulation Initiative (IAI) was launched in January 1993 to ease the transfer
of students among Illinois public and independent, associate and baccalaureate degree-granting
institutions with the objective of increasing baccalaureate degree completion. Two key concepts
provided the basic foundation of IAI policy: that “associate and baccalaureate degree-granting
institutions are equal partners” in educating freshman and sophomore students, and that “faculties
should take primary responsibility for developing and maintaining program and course
articulation.” To date, five general education panels and 27 major panels have developed and
implemented statewide recommendations of courses that will be accepted in transfer at
participating institutions.

        Major panels were created to help students complete appropriate prerequisites, support
courses, and other lower division coursework to prepare them for advanced work in the
discipline. The most recent panel to complete its articulation agreement is sociology. The IAI
Steering Panel endorsed the recommendation at its November 17, 2000 meeting. The Steering
Panel requests that the Board of Higher Education endorse the work of the sociology major panel.

                                            Resolution

        The staff recommends adoption of the following resolution:

         The Board of Higher Education hereby endorses the recommendation of the sociology
panel (Attachment 1) and requests staff and institutions begin the steps necessary to implement
the articulation plan.




                                                 57
                                           Attachment 1


SOCIOLOGY

        To transfer as a junior into a baccalaureate sociology program, students must complete a
minimum of 60 semester credits. Community and junior college students are strongly encouraged
to complete an Associate in Arts or Associate in Science degree prior to transfer. Freshmen and
sophomores who plan to major in sociology are encouraged to complete additional foundation
courses (including courses in the social and behavioral sciences) and mathematics. The number
of sociology courses should be minimized.

General Education Core Courses 1                                             37-41 semester credits
   Communication                                                                  9 semester credits
   Mathematics                                                                  3-6 semester credits
      M1 902, Statistics, or M1 906, Finite Math, is recommended
   Physical and Life Sciences                                                    7-8 semester credits
   Humanities and Fine Arts
   9 semester credits
   Social and Behavioral Sciences                                                  9 semester credits
      S1 900N, Introduction to Anthropology, or S1 901N,
      Introduction to Cultural Anthropology, is recommended
1
    General education courses are described in the Illinois General Education Core Curriculum

Required Sociology Prerequisite Course                                            3 semester credits
   Introduction to Sociology (S7 900)                                              3 semester credits

       Other Sociology Courses                                               Up to 9 semester credits

        A maximum of three courses beyond Introduction to Sociology from the list below are
guaranteed for transfer credit under the following conditions: If the receiving school offers the
course as a lower-division course, the course-for-course transfer is guaranteed; if the receiving
school does not offer the course or does not offer it at the lower-division level, the student will
receive elective lower-division sociology credit for the course.

       SOC 911, Social Problems                                                    3 semester credits
       SOC 912, Marriage and Family                                                3 semester credits
       SOC 913, Racial and Ethnic Relations                                        3 semester credits
       SOC 914, The Sociology of Sex and Gender                                    3 semester credits
       SOC 915, The Sociology of Deviance                                          3 semester credits

         This list is not meant to limit the transferability of additional courses or to discourage the
development of new courses. The current articulation process should continue between schools
for courses not on this list. Academic advisors should continue to be knowledgeable about
transfer requirements at various colleges and universities, and students should regularly consult
with their advisors throughout their academic careers. The panel believes it is in the best interests
of the students and the discipline to continue to offer the depth and the breadth of courses that are
available at many schools.




                                                  58
Sociology Course Descriptions

Sociology Prerequisite Course (in General Education Core Curriculum)

S7 900: INTRODUCTION TO SOCIOLOGY (3 credits): A study of society, including the rules,
interactions, and cultural patterns that organize everyday life. Analysis of social conflict, the
structure and function of institutions, the dynamics of individual and group interactions, social
stratification, and interaction among diverse groups of people.

Other Sociology Courses

SOC 911: SOCIAL PROBLEMS (3 credits): Analysis of contemporary social problems and
investigation of theories on social organization and conflict. Explores the genesis, significance,
and amelioration of social problems.

SOC 912: MARRIAGE AND FAMILY (3 credits): Survey of the contemporary family in
historical and cross-cultural perspectives. Includes trends in mate selection, marriage, child-
rearing, employment, gender roles, and communication within the family.

SOC 913: RACIAL AND ETHNIC RELATIONS (3 credits): Analysis of racial, religious, ethnic,
and other groups, examining persistence of group identity, inter-group relations, social
movements, government policy, and related social problems.

SOC 914: THE SOCIOLOGY OF SEX AND GENDER (3 credits): Introduction to sociological
perspectives on gender as a factor in social stratification, gender role acquisition, and individual
and social consequences of changing social definitions of gender roles.

SOC 915: THE SOCIOLOGY OF DEVIANCE (3 credits): Examines the sociological study of
the origins, causes, and control of deviance and deviant behavior. Considers deviance as a
labeling process. Emphasis is placed on individual and group deviance, resulting form societal
norms and values. Areas to be covered include drug use, sexual deviance, criminal behavior,
marginal deviance, and career deviance.




                                                59
SOCIOLOGY PANEL

Public Universities:

Hugh Barlow, Southern Illinois University at Edwardsville
Nick Maroules, Illinois State University, CO-CHAIR
Kenneth J. Mietus, Western Illinois University
Robin Moremen, Northern Illinois University
Anthony M. Orum, University of Illinois at Chicago
Arthur Redman, Chicago State University
Gillian Stevens, University of Illinois at Urbana/Champaign
Ron Wohlstein, Eastern Illinois University

Community Colleges:

Mark G. Eckel, McHenry County College, CO-CHAIR
Minta Littlejohn, Illinois Central College
Gwen Nyden, Oakton Community College
Mary O’Hara, John A. Logan College
Helnut Publ, William Rainey Harper College
Harold Strangeman, Lake Land College
Kathryn Talley, Olive-Harvey College
Michael Vitoux, Parkland College
Denis Wright, Joliet Junior College
Delores Wunder, College of DuPage

Private Institutions:

Lizabeth Crawford, Bradley University
Richard Schaefer, DePaul University

Transfer Coordinators:

Chuck Baldwin, Parkland College
Patricia Gartley, Eastern Illinois University
Paula Knopp, Lincoln College

Staff:

David Greeson, Illinois Board of Higher Education
Karen Hunter-Anderson, Illinois Community College Board




                                                60
                                                                                        Item #14
                                                                                 February 6, 2001


                                  STATE OF ILLINOIS
                              BOARD OF HIGHER EDUCATION


          ESTABLISHMENT OF COMMITTEE TO CONDUCT INQUIRY
           INTO MASTER’S DEGREE IN SOCIAL WORK PROGRAM

        House Resolution 19, introduced by Representative Kevin McCarthy on January 24,
2001, directs the Board of Higher Education to conduct an inquiry into the issues surrounding the
master’s degree in social work at Governors State University. The resolution specifically requires
the Board to conduct at least one public hearing related to the topic and to examine the following:

    §   the reasons that candidacy for accreditation of the program was denied,
    §   the efforts by the University to address the reasons for denial,
    §   the extent to which students were fully informed as to the status of the program, and
    §   options to address needs of students in the program.

        The resolution also requires the Board to submit a report to General Assembly by
March 15, 2001 recommending actions to be taken to address issues related to accreditation, and
reporting student concerns resulting from the denial of the accreditation of the program. The
report also is to recommend actions that can be taken to avoid such occurrences at any public
university in the future.

        Representative Judy Erwin, Chair of the House Committee on Higher Education, has
scheduled a meeting of the Committee for Wednesday, February 7, to consider House
Resolution 19. It is likely that the resolution will be reported from the Committee and adopted by
the House of Representatives. It also is likely that a similar resolution will be introduced in the
Senate. It is important that the Board of Higher Education be prepared to undertake the work
required under House Resolution 19 or other similar resolutions. Since the work required must be
completed prior to the next meeting of the Board of Higher Education, it is recommended that a
committee comprised of Board Members be established to oversee this project.

        The staff recommends adoption of the following resolution:

        The Board of Higher Education hereby authorizes the Chairman to appoint a committee
to conduct the inquiry into issues surrounding the master’s degree in social work at Governors
State University in the likely event that such task is assigned to the Board of Higher Education by
one or both houses of the Illinois General Assembly.
                                                                                        Item #14A
                                                                                  February 6, 2001


                                      STATE OF ILLINOIS
                                 BOARD OF HIGHER EDUCATION


        TEACHER QUALITY ENHANCEMENT STATE GRANT AWARD

         The Illinois State Board of Education, the Illinois Community College Board, and the
Illinois Board of Higher Education endorsed the creation of a P-16 Partnership Agreement in
February 1999. Under the leadership of the Deputy Governor for Education and the Joint
Education Committee, the chief executive officers of the education agencies and their staffs have
worked together to improve student preparation, teacher preparation, and the implementation and
integration of technology in all levels of instruction. One of the most tangible results of this
sustained focus on joint educational priorities is the successful submission of a grant proposal to
the federal Title II Teacher Quality Enhancement State Grant Program that resulted in a
$4.3 million grant over three years.

        The key objective of the Title II State Grant Program is to make systemic change in state
teacher recruitment, preparation, licensure, certification, and relevant support policies and
practices. To do this, states are required to build and sustain broad partnerships across their
education system in order to develop and implement major reforms in these areas. The major
goals of the Illinois grant are the following:

§   Develop a middle-grade teaching certificate;

§   Improve the knowledge and skills of middle grade teachers, with initial priority on teacher
    preparation programs serving high-poverty urban and rural areas;

§   Develop and implement statewide recruitment activities to increase the supply of effective
    teachers; and

§   Expand and redesign, as necessary, a data system to identify teacher supply and demand
    imbalances.

        On February 1, the Board was notified by the State Board of Education, the fiscal agent
of record for the grant, that it is ready to issue a subgrant of $1,010,864 to the Board of Higher
Education to carry out the terms, activities, and deliverables delineated in the grant application
work plan and budget for the first year of the grant. The grant will support the hiring of new staff
to oversee the project and related activities as well as subgrants to four public universities:
Chicago State University, Northeastern Illinois University, Southern Illinois University at
Carbondale, and Southern Illinois University at Edwardsville.

        The staff recommends adoption of the following resolution:

         The Board of Higher Education authorizes the Executive Director to oversee the
activities and expenditures of the Title II Teacher Quality Enhancement State Program sub-grant
in a manner consistent with state and federal regulations. In addition, the Board requests an
annual summary report of grant progress and accomplishments.
                        BOARD OF HIGHER EDUCATION
                     MEETING AGENDA – CONSENT AGENDA
                               February 6, 2001
                                  9:00 a.m.

 Item                                                                                  Page
Number                                                                                Number

CA-1.    Board Meeting Minutes – December 13, 2000

CA-2.    Financial Report

CA-3.    Illinois Financial Assistance Act Fiscal Year 2001 Grant Allocation               1
         This item presents an institutional allocation of the $21.5 million
         appropriated to the Board of Higher Education for grants made pursuant
         to the Illinois Financial Assistance Act for Nonpublic Institutions of
         Higher Learning. Grants, based on the enrollment of Illinois resident
         students in undergraduate programs, are recommended for 68
         institutions. (Ross Hodel)

CA-4.    International Career Academy Fiscal Year 2001 Grant                               9
         This item recommends an allocation of $169,500 to the Illinois
         Mathematics and Science Academy for the purpose of developing an
         International Career Academy. The Academy will support unique study
         opportunities for high school students in the areas of policy development,
         international education and policy, and economics and finance. (Ross
         Hodel)

CA-5.    New Units of Instruction, Public Service, and Research at Public                 13
         Universities
         This item recommends approval for Northern Illinois University to offer
         the Master of Science in Education degree in Educational Administration
         in South Metropolitan Region #6. (Diane Gilleland)

CA-6.    New Operating and/or Degree-Granting Authority for Independent                   17
         Institutions
         This item recommends approval for certain degree programs for Aurora
         University, Benedictine University, the International Academy of
         Merchandising and Design, and Westwood College of Technology-
         Chicago West. (Diane Gilleland)

CA-7.    Public University Noninstructional Project Approval                              27
         This item recommends approval for noninstructional projects at
         Northeastern Illinois University, Southern Illinois University at
         Carbondale, and the University of Illinois at Urbana-Champaign.
         (Sharon Ward)
                                                                        Item #CA-1
                                                                    February 6, 2001


                          MINUTES – BOARD MEETING
                               December 13, 2000


Submitted for:      Action.


Summary:            Minutes of the December 13, 2000 meeting of the Board of Higher
                    Education held at the Swissôtel, Chicago, Illinois.


Action Requested:   That the Board of Higher Education approve the Minutes of the
                    December 13, 2000 meeting.




                                Printed on Recycled Paper
                                                                                   Item #CA-1
                                                                              February 6, 2001

                                 STATE OF ILLINOIS
                             BOARD OF HIGHER EDUCATION


                            MINUTES - BOARD MEETING
                                December 13, 2000

        A meeting of the Illinois Board of Higher Education was called to order at 9:10 a.m. in
the Grand Ballroom of the Swissôtel, Chicago, Illinois, on December 13, 2000.

       Philip J. Rock, Chairman, presided.
       Patricia Sexton was Secretary for the meeting.

       The following Board members were present:

               J. Robert Barr                           Cordelia Meyer
               Edward T. Duffy                          Lourdes Monteagudo
               Robert J. English                        Lucy A. Sloan
               James L. Kaplan                          John Thompson
               Thomas R. Lamont                         Jane T. Williamson
               Steven H. Lesnik

       Also present by invitation of the Board were:

               Keith R. Sanders, Executive Director, Illinois Board of Higher Education
               Joseph J. Cipfl, President and CEO, Illinois Community College Board
               Larry Matejka, Executive Director, Illinois Student Assistance Commission

                                  Presidents and Chancellors

               Stuart Fagan                             John Neuhaus
               Zelema Harris                            John Peters
               Michael Horowitz                         Donald Spencer
               Stephanie Marshall                       Salme Steinberg

                              Advisory Committee Chairpersons

               Scott Andrews, Student                   Jerry Dill, Proprietary
               David Bardack, Faculty                   Gretchen Naff, Community College




                                              1
1.      Announcements and Remarks by Chairman Philip J. Rock

        Chairman Rock called the meeting to order. A quorum was present. Chairman Rock
said: “My remarks are short. I hope you all have a great holiday season and a Happy New Year.
I know that everyone is anxious to have the meeting conclude so that we can all get out on
Michigan Avenue and improve the economy. We are due to have a special guest who is not yet
with us, but as soon as she arrives, we will give her the opportunity to wish you all well.”

2.      Remarks by Keith R. Sanders, Executive Director

3.      Summary and Review of Measuring Up 2000: The State-By-State Report Card for
        Higher Education

         Dr. Sanders said: My report today is a very happy one. It’s about the Report Card on
which Illinois is at the head of the class nationally. I’m proud to have a few minutes of your time
to run through that Report Card and give some credit where credit is due. I think any parent here
would be proud if his or her son or daughter brought home three A’s, a B, and a C, especially if
those grades were among the very best in the nation. That’s what we received on our Report
Card. Let me explain how we got the grades, what they are, and a word or two about what they
mean to us. I apologize to those whom I cannot see but who can see the screen.

         “Illinois is Number 1 on the National Report Card. We received five grades and one
‘incomplete.’ We have an A in preparation, which speaks to how well prepared our students are
to enter higher education. This is based largely on how well they do on entrance exams such as
the ACT. We received an A in participation, which is based largely upon the percent of our
citizens who are enrolled in higher education at all levels. We have the best percentage of
enrollment across the nation in the age group 24 to 44 years old. We received an A in
affordability, attributable to many things, but mainly to the fact that we have one of the very best
needs-based student aid programs in the nation. We got a B- on benefits of higher education to
the state. The National Center says we’re only slightly above average in terms of the economic
impact of our graduates on our economy. Frankly, we think this is the weakest part of the Report
Card, because our economy is so strong that when you get a degree in Illinois, it means a lot more
than if you get one in a lesser economy.

        “The one area where we got a decidedly average grade is the C+ in completion. We’re
really quite average in terms of the percent of our students who, once they enter the front door,
leave with a degree or a certificate – whether an associate’s degree or a bachelor’s degree – and
we certainly are going to work on that. But, our overall grade point is 88.8, which is the highest
in the country – B+. The other states that are nearly as good as we are are Connecticut, New
Jersey, Maryland, and Massachusetts. Each of us received a B+.

        “A word or two about the National Center for Public Policy and Higher Education, the
group that gave us these fine and quite accurate grades. The National Center is well-respected.
Pat Callan, who is the leader of the group, will be at our next BHE meeting to talk about the
Report Card, what it means, and how we might improve. I respected him even before he showed
the good judgment that he did in these grades. Pat and his group are financed by foundations. It
is important to know that they have no direct financial or other ties to any college or university
across the country or to any state. They are financed by private dollars.

      “Just a word or two on the relationship between the National Report Card and The Illinois
Commitment. As I do that, I’ll talk about some of our strengths and our weaknesses. Goal 2 of


                                                 2
The Illinois Commitment asks us to improve teaching and learning by working with K-12. We
received an A in preparation. Eighty-seven percent of the 18 to 24 year-olds in this state have a
high school credential, one of the highest percentages in the nation. But only 62 percent of young
adults from low-income families have a high school credential, compared to 97 percent of those
from high-income families. Clearly, there is a gap between the rich and the poor. Our Goal 4 is
access and diversity, and we got an A in participation. Forty-nine percent of high school
freshmen enroll in college within four years in Illinois, compared to about 54 percent in the other
top states. So we’re not at the very top of the participation list, but we’re within the top five or
six states. But there is a huge racial gap. Forty-one percent of white young adults are enrolled in
college, but just 24 percent of young adults of all other racial and ethnic groups are enrolled.

         “We received an A in affordability. That is Goal 3 of The Illinois Commitment. We are
the top performer in needs-based financial aid, but still, on average, our students borrow more
money to get through college in Illinois than in the other five top-performing states. Goal 5 of
The Illinois Commitment is high expectations and high academic quality, and here we only get a
C+ because completion is an important part of our expectations. Seventy-eight percent of our
freshmen at four-year institutions return for their sophomore year and 84 percent do so in the top-
performing states. For every 100 Hispanic students enrolled in college in Illinois, nine receive a
degree or certificate, compared to 16 for every 100 white undergraduates.

        “For the economic benefits of higher education we got a B-. This relates to several of our
goals. Twenty-eight percent of the Illinois population age 25 to 65 has a bachelor’s degree,
compared to 34 percent in other states. So we’re decidedly average on educational attainment as
measured in this way. Here’s a startling statistic: if all ethnic groups had the same educational
attainment and earnings as whites, Illinois’ total personal income would rise $9.1 billion this year
and tax revenues would go up $3.2 billion. Were that the case, the chances of our budget passing
would certainly be increased.

         “So, we think the National Report Card is a fine idea. It is a tool for holding ourselves
accountable against all of the other states, particularly the top-performing states, and it’s a good
tool for policymaking. It helps us identify some strengths and some weaknesses, and it helps us
in our advocacy. The Governor was asked at a press conference where he announced our number
one status, ‘Governor Ryan, they’re doing so well, why do you need to keep giving them good
budgets?’ He said, ‘They’re doing so well because we have been giving them good budgets, and
we intend to continue. The money is well invested.’

        “What the Report Card does not grade is graduate education. It is focused entirely on
undergraduate education across public and private institutions. It doesn’t evaluate the public
service that our institutions regularly engage in, nor does it say a word about the quality of our
great research institutions. The rationale for limiting the Report Card just to undergraduate
education is that that is where 81 percent of our students are, and that is where the state probably
has the greatest influence.

        “Let me provide a very brief historical context. As I started thinking about this, it
occurred to me that we owed a lot of thank you’s to a lot of people who are not here. In 1957, the
Governor and the General Assembly established the Student Assistance Commission that
administers a great needs-based program for our students. In 1961, the BHE was established.
The community college system, which helps us with a number of the grades here, was established
in 1965. Governor Ogilvie may have put his political life on the line when he and the General
Assembly approved the first Illinois income tax in 1969. In 1989, the income tax was increased
for education, and higher education received a significant part of that. A young man by the name


                                                 3
of Phil Rock, who was President of the Illinois Senate, had a lot to do with that vote, as well. The
income tax surcharge was made permanent. Throughout the 1990s, Governor Edgar supported
nearly every Board of Higher Education budget. From the mid-nineties going forward, the State
Board of Education has worked well in establishing high standards and outcome assessments.
And, of course, since Governor Ryan was elected, we have had record budgets.

         “But I also want to be sure that we say thank you to our extraordinarily high quality
institutions. We have had strong leadership from presidents, chancellors, the Faculty Advisory
Committee to this Board, and other faculty, staff, students, Board Members present and past,
trustees, alums, and a lot of other citizens across the state. So credit is due broadly, and I hope
that those who have helped us in the past now know of our gratitude. So we’re Number 1,
designated so by the National Center for Public Policy and Higher Education. The National
Report Card and our own Illinois Commitment are hand-in-glove. They very much have the same
priorities. That says something about both of them. The Report Card is a fine idea. We want to
figure out how to maintain our A’s and improve our B and our C.”

         Ms. Monteagudo asked if our A in preparation is going to be affected by more high
school students taking the ACT exam that probably would never have taken it. Dr. Sanders
replied, “Our A in preparation is a little shaky. About seven or eight key points of data were not
available to the National Center when they did the Report Card because they had not been
reported by the State Board of Education. The three or four points of data they had were very
strong for us, so in this first Report Card, they gave us the benefit of the doubt. They won’t do
that again. Secondly, all high school juniors this spring will take the most rigorous examination
they have ever taken. They’ll take the ACT, they’ll take the Work Keys part of the ACT, and
they’ll take a new exam designed to measure Illinois learning standards. It will be about two days
of testing. I think it’s a big plus, but I think there will be a lot of controversy. A lot of parents
will say that we’re testing their kids over content that they haven’t learned, and in some cases that
will be true because the standards have not yet been incorporated into day-to-day pedagogy. So
there will be a lot of low scores. Kids are going to catch the brunt of it, but they are the
instruments of reform. We ought to go very easy on kids who do poorly on this test because in
many cases they simply haven’t been taught the material. But it’s a great thing to give a test in
the junior year and provide remediation in the senior year so that we don’t spend multiple
millions of dollars in higher education teaching what should have been taught in high school.”

        Ms. Monteagudo said that she agreed, but for the purposes of the Report Card, it may
come back to haunt us. Dr. Sanders said, “It may. There is mixed evidence here. Arkansas was
giving the ACT at about the rate that we’re now giving it, and Diane Gilleland tells me that they
then required it for everyone and the scores amazingly did not drop very much. In other states the
experience has been different – every time a new group is added to the ACT, the score tends to go
down. So I guess I don’t know for sure what will happen.”

         Mr. Thompson asked what California is doing in the area of affordability that gives them
a 100 percent on the Report Card. Dr. Sanders responded, “They put literally millions of dollars
into a needs-based scholarship program much like our Monetary Award Program (MAP). They
really needed to do that because in their vast state, more and more college was unaffordable, even
though they have low tuition. So they really just poured multiple millions of dollars into financial
aid and knocked us out of second place in the nation in terms of the largesse behind our needs-
based student aid program. That’s why they received such high grades.”




                                                 4
4.      Statewide Results Report

        Chairman Rock said, “By happy coincidence, the timing is good. We will now hear our
own kind of internal audit, the Statewide Results Report, to highlight the progress and the
business of fulfilling our mandate, our aspirations – that is, The Illinois Commitment. Diane
Gilleland will present the item.”

         Dr. Gilleland said: “This year, the institutions have really made a broad and deep
commitment to The Illinois Commitment. The quality of the Results Reports was a lot better this
year. They were more results-oriented rather than the maiden voyage that we had last year. I
worked with a number of people on the fiscal staff and the academic affairs staff to put this
together, and we tried to hold each of the five goals down to two pages, but here were so many
wonderful examples of what institutions have accomplished that we decided to ease up on the
two-page control factor so there would be a more comprehensive record for the state about the
progress that has been made. I’d like to thank members of the Academic Affairs staff and the
Fiscal staff for their analyses, and the institutions for their contributions. Institutions in the state
submit Results Reports voluntarily. They do not have to do it, and I think that is a real credit to
the maturity of our system of higher education and the respect with which this Board is held.

         “Goal 1 of The Illinois Commitment is our commitment to higher education sustaining
economic development in the state of Illinois. Here, there was notable progress. The Board has
committed itself to focusing on increasing the number of Information Technology graduates and
the level of IT skills in this state. We have increased from 1998 to 1999 the number of graduates
by 17 percent to 8,900 graduates a year. There is a 23 percent increase in the IT programs to 892
in the state, and we are up eight percent in our enrollment in IT programs. In spite of these gains,
there is still a notable gap, as reported by other agencies and entities. The Chicago Software
Association reports that there are still 19,000 IT openings in Chicago. The Illinois Department of
Employment Security reports that there are 10,800 openings in computer mathematics and
engineering. So one of the major notable gaps we have is accurate information on IT supply and
demand and IT migration data. You have authorized studies to that effect to see if we can get a
better handle on exactly what the status and needs are. We know what we are producing, but the
demand side and the migration side are still issues to be better addressed.

         “Goal 2 is P-16 teaching and learning. We’ve made notable progress with the Joint
Education Committee in the relationships between the staffs of the education agencies – the
Illinois Community College Board, the Board of Higher Education, the Illinois State Board of
Education, and the Workforce Investment Board. These improved relationships and joint
priorities will improve the education infrastructure and results in Illinois. One important result of
the long-term educational investment in Illinois is that Illinois ACT test-takers routinely outscore
their national peers. On the composite score – reading, math, and English – we are at least a half
point ahead of our national peers. When ACT comes to talk with us about our annual scores, they
have no criticisms because we are at the top. From 1999 to 2000, our ACT scores improved by
one-tenth of one percentage point.

         “Notable gaps – one of the crucial indicators of students planning to go to college is the
number and characteristics of those who take the ACT exam and pay for it. That gives you a
good estimate of how many students in their junior year are at least thinking about going to
college. Seventy-two percent of our students take that ACT exam and they are paying for it, and
that is good. However, only 53 percent of our ACT test-takers have actually prepared for college
by taking the college preparation core curriculum. Seventy-five percent of all new jobs in 2005
will require some level of postsecondary education, and 20 percent are going to require a four-


                                                   5
year baccalaureate degree. Therefore, we have a notable educational preparation gap for the
workforce and the college academic experience.

        “Notable progress on affordability – we have the third-largest need-based grant program
at $357 million. From 1989 to 1999, the amount increased by 89 percent. Notable gaps – loans
during that same period increased 162 percent. Tuition and fees in the same time frame increased
79 percent at community colleges, where they are still less than the national average; 89 percent
at public universities, where they are about 20 percent over the national average; and 97 percent
at private institutions, where they are about three percent under the national average. And the
Board staff is still working on the development of an affordability index for the state.

         “In access and diversity, we’ve made notable progress. We’ve had a one percent increase
from 1998 to 1999 in Hispanic and Black degree completion. Black representation in higher
education enrollment is 86 percent that of the Black representation as a whole. This ranks fourth
among the 10 most populous states and exceeds the national average. Among these same 10
states, we rank second and exceed the national average with Hispanic representation on campus
equal to 95 percent of their representation in the population as a whole. Notable gaps – the
notable gap is the same as the notable progress: we have only made a one percent increase in
Black and Hispanic degree completion. While we have fairly decent enrollment representation
compared to our national counterparts, it’s not as good as to what we aspire.

         “In terms of quality, we’ve made notable progress. Higher education institutions in
Illinois have long been considered one of the top in the country. We have three institutions that
have been identified in the U.S. News and World Report ‘report card’ as in the top 50: the
University of Chicago at Number 10, Northwestern University at Number 13, and the University
of Illinois at Urbana-Champaign at Number 41. There are some arbitrary – and some say ‘proxy’
– indicators that comprise that report card and it’s much debated, unless you’re in the top and
then it’s not debated at all. It’s still good news for us. Eighty-nine percent of the baccalaureate
degree-holders are employed full time after five years. That is really an astounding result for our
baccalaureate graduates. We have made progress in developing a culture of assessment of
student learning in all academic programs. There is a lot of activity going on that is required by
regional and specialized accreditors, but there are many academic programs that are not required
to have assessment by regional and specialized accreditors. With The Illinois Commitment, you
have called on the institutions of Illinois to have an assessment of student learning in place for
every academic program by 2004, and there is a lot of activity going on with respect to that.

        “With respect to gaps, we need a consumer education and alert system in Illinois. We
have more and more entrepreneurs, and there is nothing wrong with being an entrepreneur if you
have academic integrity associated with that academic enterprise. But, we have some information
and alerts that really need to be available to our students and consumers in Illinois. We are
currently in phase one of doing that

         “Identification and assessment of student learning outcomes by all academic programs
was cited as notable progress. We still must cite it as a notable gap. While there is notable
progress, we still have a way to go. The other issue is that we need to imbed into the definition of
quality learning, content, experience, and outcomes the concept of diversity – whether we’re
talking about low income, race, ethnicity, or disability. There is substantial evidence that tells us
that this diversity of perspective and experience is a very crucial element of quality.

        “Goal 6, accountability and productivity. In this state, we spend $12 billion in total
educational and general restricted and unrestricted funds on the higher education enterprise. We


                                                 6
had a 50 percent increase in appropriations from 1990 to 2000. We’ve had a very stable
enrollment increase during that time of only four percent, so the money hasn’t been going to fund
new students. That boils down to a 12 percent increase in funding per one percent enrollment
increase. I would suggest to you that that is an investment in quality and academic programs that
you couldn’t have done with a rapidly growing enrollment. It would have been tough to keep up.
We’ve also had substantial institutional acceptance of The Illinois Commitment.

         “Notable gaps – we have some gaps in our information infrastructure, which is one of the
issues Keith was talking about, and we have gaps in information with respect to student
preparation. We need a student unit record system that would allow us to check student decisions
and performance across all sectors. We also need the supply and demand migration system that
will focus on information technology. We have overproduction in some teaching areas and
underproduction in others, and we continue to have questions about nursing supply and demand.
We need other information as well, but those are the ones that present themselves as critical at
this point.

        “As Keith referenced earlier, just increasing the preparation, participation, and
educational attainment rates to those of the more advantaged population would add $9 billion to
this economy, a staggering result, and $3 billion additional dollars for the state treasury. We have
plenty of evidence over a number of years that there is a confluence of factors that surround
people with respect to race, ethnicity, disability, and low income that ultimately disadvantage or
handicap students in terms of preparation, persistence, and completion. We need to focus on
raising that participation, persistence, and completion for them without losing our focus on
increasing learning and attainment for all students, advantaged students as well.

         “That’s a very brief sketch of the Results Report. I hope that you will read The Illinois
Commitment that we’ve summarized in the agenda book if you haven’t already to find out what
the institutions are doing. A summary of 20 pages or less doesn’t do justice to what the
institutions have actually done.”

         Dr. English said, “First, a comment on the first two reports that we had today. I want to
say that success does not happen within a vacuum. Success happens because of good public
policy, budgets that reflect that policy, delivery by the institutions, and acceptance and
participation by the citizens, business, and industry of the state of Illinois. My one concern in
response to Lourdes’ question, regardless of the effect of any letter or numerical grade system, is
that we must stay the course of good public policy, and that is The Illinois Commitment. If that
results in our receiving a lower grade because we have higher participation in the ACT or
anything else, we must stay the course on good public policy.

        “I have two questions. You reflect a 50 percent increase in budgets from 1990 to 2000.
I’ve been here during that period, and in 1991, 1992, and 1993, the increases were really
miniscule, not even reflecting inflation. I believe your 50 percent does not reflect inflation-
adjusted numbers. Is it inflation-adjusted or not?” Dr. Gilleland said, “No, it’s not inflation-
adjusted.” Dr. English continued, “So I think it is a misstatement to say 50 percent when more
than likely we only had a true increase after inflation adjustments probably of 10 to 12 percent.
My point is that I would hate for the public to say that we gave them 50 percent more dollars and
they only have four percent more students. I don’t think that’s an accurate reflection.

        “The next comment/question dates back to a Bob Barr comment from about a year ago
when we focused in on the IT problem with a very rifle approach, and Bob was against it. Over
the year I’ve thought about his comments at that time, and I have to say I have some concerns that


                                                 7
we rifle in on one segment when we know there are other employment areas that need as much
work, if not more. One is the area of teacher education. We are desperately short on teachers,
and we haven’t rifled in on them yet. I think we might be doing ourselves a disservice if we just
focus on the IT issue. That may resolve itself with the current depression that’s occurring in the
dot.com markets and the number of people that are being released back into that industry.”

         Dr. Gilleland said: “The teaching issue is in our sights and we are working on that. What
we do know is that in higher education we produce 8,000 teacher graduates every year, and we’re
really a little over that right now. One thousand of those leave the profession after their first year.
In the urban areas, we have a 50 percent attrition rate within the first three years. It’s pretty
staggering. Our enrollments are going to peak in K-12 in 2005, so we need to increase the
number of teachers that we have. But, while we increase the number of teacher graduates, we
need also to improve the quality of those graduates in the preparation, because some of those are
not in the right areas. We have shortages in math, science, and foreign language. So, what is
good public policy with respect to that? It has been debated across the country. Do you allow
people to go on and get elementary education majors where there is no real specialty in a core
academic subject, and when we have an over-production there and an under-production in
secondary education where that core specialty is critical? We have some real serious issues and
we haven’t made the same amount of progress that has been made in the IT area.”

        Dr. English said, “Back to the basic issue. If we have good public policy on that issue,
public policy will drive the budget and the budget will drive results. So if we say that we need
fewer teachers in the K-16 arena, or generalist as opposed to specialist, we can drive that decision
with good public policy and budgets.” Dr. Gilleland said, “Right. And we have to have our K-12
partners with us on this.”

         Ms. Meyer said, “One of the things that has been the topic of much discussion in the P-16
Partnership is the high-tech issue in terms of studies that are being done. One of my concerns is
about our counting the graduates but not understanding whether they have jobs and whether or
not they have the type of training that allows them to be employed. So there are studies going on
at the University of Illinois at Chicago and other universities across the state to identify the needs
and how these people have gotten jobs and stayed in Illinois, so that we have a better and more
strategic approach to how we fund and provide the training so that people can fill those
technology jobs.

         “Secondly, on the teacher education piece, it is critical that we focus on that. We’ve been
pushing hard on the State Board of Education. On Page 11, there is a great paragraph which talks
about ensuring that high school students are well prepared and that the challenge to colleges and
universities is to strengthen teacher preparation programs by involving faculty from all core
disciplines to refocus and fortify the curriculum for prospective teachers while increasing the
number and quality of graduates. A classroom-ready teacher must be knowledgeable enough to
raise the academic bar for students and skilled enough to get them over it. This is not a little
point. The new teacher also must be able to improve learning for diverse groups of students –
ethnic, racial, socio-economic, or disabled – and employ various teaching styles to accommodate
different learning styles. That’s the challenge, and it’s no little feat. That is critical as we look at
what we’re doing in the near future. I had a meeting this week with the Large Unit District
Association, and their belief is that 20 percent of the schools have integrated the Illinois Learning
Standards into their curriculum. So in terms of distance and the types of training that need to be
provided to the teachers, it’s real. I agree with you, and I think it’s very important for us to be
able to have good data to be able to determine the appropriate public policy to deal with both the
technology and the teacher training issues.”


                                                   8
         Ms. Sloan said, “On the same page I see that only 53 percent of our high school students
are taking the core curriculum. We’ve been trying to deal with this for years. The national
average is 63 percent of students are taking the core curriculum. What more can we do in Illinois
to get our students to take the core curriculum?”

        Dr. Sanders said: “We will not retain our A rating in preparation eternally unless we
solve this very problem. I’m encouraged by the attitude the State Board of Education is taking
when they decide to give an examination at the end of the junior year that is really quite
comprehensive, the most comprehensive any high school student in Illinois will ever have taken.
And then, to use the results to decide what ought to happen in the senior year. If you do not take
the core curriculum, you are not going to do well on the Prairie State Examination. For the first
time now, we have a test that will tell parents, students, administrators, and teachers that if you
don’t study it, you don’t know it, and therefore your grade will be lower. The greatest tool to get
students to take the core curriculum in their first three years in high school will be the outcome of
the Prairie State Exam. After they take it in their junior year, their senior year can be one of
remediation for those who need remediation, and then they take it again at the end of their senior
year. And all of this is free of charge to them. So, Lucy, I think that’s the best news that I’ve
heard in a long time. We’re working with K-12 to take that senior year in high school and make
something real good happen there rather than students experiencing ‘senioritis.’”

        Ms. Monteagudo said: “We can test the children and we will have better measures of
where the children are, and maybe put more of the responsibility on them and their parents. But,
the issue of the accomplishments of the children is a reflection of the quality of the teachers. In
the high schools, we don’t have enough teachers teaching the subject matters that are part of the
core curriculum. There are schools that have no physics teachers and there are schools that have
no chemistry teachers. They may have a music teacher teaching chemistry. That is the reality,
and the children cannot be held accountable for what the system doesn’t offer them. So the focus
must go back to the public policy on teacher quality. The issues in elementary education are
different than the issues in high schools, but it is still an issue of the quality of the teachers that
are in front of the children. It will not be solved only by K-12. It has to be helped by the
resources of the universities, but not only in teacher preparation. That’s where the expertise lies.
We have people in the community colleges and in the universities that have the knowledge that
we don’t have in the high schools at this point. It’s going to have to be done through a bridge
process where some of that talent helps the high schools fulfill their requirements. Then,
hopefully, we will be able to generate enough high school teachers and elementary teachers that
are prepared to do the job.”

        Dr. Gilleland said, “I think one of the real challenges to us is that we develop a common
vision and a common message. We’ve been working with the Joint Education Committee on
this.”

        Dr. Sanders said, “Lourdes, may I quickly address the public policy question. I think
Bob English is absolutely right. If we don’t have the policies and the advocacy for them, nothing
happens. One really important policy decision that this Board has made repeatedly is that we are
going to use the new technologies and deal in creative ways to improve K-12 education. I am
convinced that we absolutely never will solve the problem of enough physics teachers, enough
teachers of Russian, and enough teachers in pre-calculus. We never, never, never will solve those
problems unless we figure out how to harness the new technologies, i.e., the Illinois Virtual High
School which is designed to deliver high-demand scarce curricular materials and teaching to high
schools which do not have a good physics teacher and will never ever have a good physics
teacher because they’re simply not available at that pay to do that kind of work. So we must use


                                                  9
these technologies or we’ll be meeting here 10 years from now and we’ll still be saying that the
57 or 51 percent of those who take the ACT don’t take the core curriculum.”

         Dr. English said, “A historical perspective that dates back to the early days when Jane
and I were first on this Board – in the late 1980s, the Board studied the concept of the core
curriculum and it was going back to the Carnegie unit concept. Ross was one of the persons who
was spearheading it for the Board of Higher Education, and we did come back in with the core
curriculum. The major opponents of the core curriculum were the schools that had high
participation in the ACT, had the highest graduation rates in the 99 percents, and were sending
their students to the best universities. A good majority of the opposition was from the North
Shore area – Winnetka, Wilmette, Kenilworth, Glencoe, most of Lake County, most of north
Cook County, a bit of northwest Cook County – and they fought this issue vociferously. They
said ‘we need to provide our students with the ability of choice within the curriculum and if
they’re already at this high attainment level, then we should allow them to have choice in other
things that they want to do. So if they don’t want to take four years of English or three years of
math, they should be able to take any subject they want. Let them, in Maslov’s terms, self-
actualize while they’re in high school.’ I bet if we did a study on that 53 percent, we would find
that of the 47 percent who did not take the core curriculum, a higher proportion were from
schools that were well-to-do and high-achieving schools. We will always have this problem.
That’s my historical perspective on that issue.”

         Mrs. Williamson said: “You’re absolutely right in your comments, but I think the reality
is that the students at those high-achieving public high schools are, in fact, taking the core
curriculum. I think it was more of a control issue on the part of the administrators and the local
school boards that gave us so much difficulty.” Dr. English said, “I remember the Glenbrook
High School Superintendent sending me one foot of data on why we shouldn’t get involved in
having the core curriculum, and he was supported by all of the high school districts in that
region.”

         Dr. Gilleland said, “I think one of the key issues, one that Dea has been concerned with,
is the status of the teaching profession, where we would have a 50 percent attrition rate in urban
schools of teachers who just cannot persist. Thirteen percent of our graduates that we produce
every year are leaving the profession after year one. The issue is really choice, and in many of
these urban schools and suburban and rural schools with low tax bases, those students don’t have
the choice of taking the core curriculum. If the system does change, there will be a lot of people
who need to be upgraded in order to be able to teach that core curriculum.”

        Ms. Meyer said she thought it would be interesting to know, of those that don’t take the
core curriculum, where they are located. Dr. Gilleland said, “We can have ACT run that for us.”

         Mr. Duffy said: “Isn’t some of this based on the notion that the schools are delivering
programs in an attempt to stop dropouts and worrying about whether or not the students actually
finish school rather than getting to a level of dealing with a core curriculum? It seems to me that
we’re focusing on the notion that everyone who goes into the school is necessarily going to finish
and what we deliver to them has to be the core curriculum because, after all, what it takes to get
out ought to be what it takes to get in. But isn’t it also based on the fact that a lot of them aren’t
going to finish and they’re trying to find ways in which they can get them at least one more year
through the system?”

        Ms. Monteagudo said, “I would tend to disagree with you when it comes to the bigger
picture. There are schools that may in a wrongful way do it the way you describe, but in reality,


                                                 10
most of the kids who fail, fail very early in their high school years. So by the time we end the
first year of high school, most of the kids who are going to drop out have dropped out as they
turned 16. You have to understand that in some of the urban districts they celebrate their 16th
birthday dropping out of school. The schools are not doing very much. The greatest predictable
data you could use to know whether the kids are going to stay in school is algebra. They fail
algebra very early, which means they weren’t prepared to take algebra to begin with. There is a
high school in Chicago that had eight levels of pre-algebra to try to deal with the issue that you
described. Algebra is algebra. You can’t change algebra. You can change the methodology, you
can have teachers that understand the issues of children not having strong backgrounds in
mathematics having to take algebra, but there were kids who were graduating, who after four
years were in the fourth level of pre-algebra. Does that make any sense? That was a decision
made by the administrators of that school and supported by the Chicago Public Schools. Those
are things that the kids cannot change. If you’re put in pre-algebra, you’re in pre-algebra, and if
you fail, you fail, and if you pass, you pass. However, if you don’t ever pass algebra, your
chances of not graduating from high school are huge.”

         Mr. Duffy said, “I wouldn’t disagree with what you’re saying. Over 30 percent of the
students coming into the community college system require some level of remediation, primarily
in mathematics or in reading. But we’re not talking pre-calculus, calculus, or physics; we’re
talking algebra. We’re talking the things that I suggested, which is trying to get them through the
system. I don’t disagree with you, but I also think that there is a tremendous lack at the policy
level at the secondary education level in terms of what they’re delivering in getting those students
out.”

         Dr. English said, “It is frightening to think, from what Dea said, that of the 50 members
of the Large Unit District Association only 10 of them have adopted the Illinois Standards that
have been established by the State Board of Education.” Ms. Meyer said, “They’re saying that is
their estimate of the state, not of their membership. I think some of the North Shore districts may
not be ‘integrating’ the Standards, per se, but they are certainly teaching by the Standards. That
was their estimate statewide.”

         Chairman Rock said, “This is a subject that we’ve heard a lot about. I remember
debating this back in the early eighties, the core curriculum and the necessity for it, and the cost
of it, and we never put it in place. Diane, thank you very much.”

5.      Grants Program Evaluation Results and Implementation

         Chairman Rock said: “We’ve all received a copy of the grant program evaluation which
is the result of a study by consultants who did a remarkably good job. We will now get some
information with respect to the grant program evaluation. At the next meeting, there will be some
specific recommendations for the Board to take action on. Ross Hodel will present the item.”

          Dr. Hodel said: “As you will recall, we commissioned Dr. Ansley Abraham of the
Southern Regional Education Board, Dr. Jim Mingle, former Executive Director of the State
Higher Education Executive Officers, and Dr. Kathleen Kelly, former Deputy Director of our
staff, to conduct a review of all of our grant programs over this past summer. We had asked the
consultants to examine five questions in relation to our grant programs. We asked them to look at
what contribution they make to The Illinois Commitment; how well the grant programs are
achieving the purposes for which they were established; to review our grant programs in a
national perspective and how well we compare with other states; to bring recommended changes



                                                11
in the grant programs back to us; and to make recommendations concerning the administrative
procedures that we use to make the programs more efficient and effective.

        “During the summer, they reviewed the history of the programs: their establishment, the
funding trends, state statutes and rules, and met with a number of constituent groups. We
received their report about October 1, distributed it widely in the higher education community,
and we received considerable feedback – including about 40 written responses. We also received
feedback in meetings with constituent groups – administrators, project directors, and others.

        “The agenda item before you includes the recommendations from the consultants, a
summary of the feedback we received, and a signal as to what our recommendations will be for
the Board to consider in February. Please refer to Page 42 that provides a one-table summary of
the consultants’ eight recommendations, a summary of activities and proposed timelines that the
Board and staff will have to take to implement these program changes.

        “I have a few brief comments on some of the key recommendations. The first
recommendation calls for a change in the formulas used in the allocation of some of our formula
grants. The consultants recommend that we alter the enrollment formula, which is now an early
fall enrollment to emphasize degree completion or graduation rather than using increased
enrollment, which originally designed to build capacity in these programs. Given our C+ grade
on the National Report Card in completion, I believe staff is inclined to agree with this
recommendation that we should move to a different indicator in the allocation of these grants.

        “The second recommendation received overwhelming support from the higher education
community, and we plan to move forward to bring a closer tie to the categories of our grants and
The Illinois Commitment. The third recommendation on minority program incentives is being
positively received. Terry Nunn and I have met with the boards of the two minority student
graduate programs, the Illinois Committee on Black Concerns in Higher Education, and the
minority student transfer centers. We will continue these meetings, as we talk about further
incentives such as increases in staffing and other things we can do to improve the administration
and the incentives for these minority programs.

        “The fourth recommendation calls for organizing the Financial Assistance Act into two
components – access grants and commitment grants. The consultants suggested reduced funding
from one part of the Financial Assistance Act and the Health Education grants to fund this new
component. We received no comment on the value of having two grant components, but we did
receive extensive comment, written commentary, phone calls, and legislative contacts regarding
the reduction in funding recommendation. In fact, almost half of our input was related to this
recommendation. I think in February we will be recommending that we move forward with
dividing the Financial Assistance Act into two components, but probably not reducing the
funding for this program or the Health Education grants.

        “The fifth recommendation to establish two funding classifications in the Higher
Education Cooperation Act received a very favorable response. We’re inclined to move forward
to establish enterprise grants and renewable longer-term grants. Recommendation number six
establishes a new grant program. In February, we will be asking you to approve submission of
enabling legislation to move forward with this grant program in the fiscal year 2003 budget.

      “In recommendation seven, funding of long-term state programs, the consultants
recommended that we name this after Board Member Bob English because of his long-standing
commitment to move some of these long-term grant programs into institution budgets and not


                                               12
look at them every year. We’ve begun this process in the budget before you, where we’ve taken
approximately $5 million worth of grants and begun to move them into institutions’ budgets. The
final recommendation calls for improvement of administrative processes and electronic
submission of grants.

        “We are in the process of establishing seven or eight working teams to implement each of
these recommendations. In summary, I think the consultants’ report was very well crafted. It has
been very positively received on the whole and it seems to be within the range of political
tolerance in the higher education community. We think that if we move forward with the
recommendations that our grant programs as a whole will be considerably more responsive in the
future.

         “I would like to thank the staffs of Southern Illinois University, Northern Illinois
University, and the Illinois Community College Board for their detailed and thoughtful feedback
that has been very helpful. I will be pleased to answer any questions.”

        Chairman Rock said, “This is a very optimistic report. My guess is that between now and
February, we will be hearing from one or another whose ox is apparently being gored, so be
ready. Any time this Board makes a recommendation to cut someone out of some funding or cut
the funding itself the world seems to open up.”

          Dr. English said, “I think Kathleen, Ansley, and Jim did an excellent job in analyzing the
grant programs, hearing what the Board had to say and what the higher education community had
to say, and coming in with one of the best reports I’ve seen in two decades in higher education. I
think it is a great report and a great stepping-stone to the future.

         “I’d like to talk a bit about recommendation number three where we’re strengthening
incentives for participation in minority fellowship programs. This is a payback program, wherein
if we loan the money to the students, they are to pay it back. I would suggest that we look at a
couple of approaches where we continue to forgive some of the debt for public service, but
accelerate that payback if they work in disadvantaged areas, which we can easily determine by
Title I funding in the K-12 area. So if they work in that area, accelerate that payback very
quickly. Or if they work in areas where we have severe shortages – math, science – accelerate
that payback to get those people in those fields and working. And, also consider reciprocity
agreements with other states – form consortia with other states so if our student or our graduate
goes to another state where we have reciprocity, they will be forgiven if they go into
disadvantaged areas or high-need areas, as well as if their graduates came to us. I think we ought
to think about that in that program.

         “For recommendation number four, my mantra today has been good public policy drives
budgets. Budgets should not drive any kind of public policy, and that’s what we’re doing when
we say let us maintain the status quo. We have not heard an argument in Item 4 that the supply
and demand of health education or engineering people are imbalanced. We are just hearing that it
is in our budget and has been in our budget for the last 20 years, so why change it? It’s an issue
of, if we have a need for nurses, let’s change the funding on the nursing program so that we get
higher levels of participation in nursing. But if we don’t need orthodontists, let us decrease
support. Let’s look at a supply and demand issue. As we learned in 1995 and 1996 when we did
the medical study, we said we had too many specialists in the field of medicine. So we changed
the funding formula for residents from $7,500 across the board for every year of residency to
$20,000 for primary care physicians, $4,500 for OB/GYN people, and zero for specialists. What
happened in that six-year period of time since then? We now have the appropriate number of


                                                13
primary care physicians, general practitioners, and OB/GYN as compared to specialists. Again,
good public policy drives budgets. We ought to look at this and, if possible, reallocate some of
these funds – not take them away, not create a budget exercise – but move them into other
priorities that fulfill The Illinois Commitment.”

6.      Fiscal Year 2002 Budget Recommendations for Illinois Higher Education

        Chairman Rock said, “Now we come to the main event of this meeting. There are several
people who have indicated they wish to comment on the 2002 budget proposal. We will be
asking the Board to make its sense known in terms of a vote on the recommendation of this
budget. Debra Smitley will walk us through this $2 billion enterprise.”

         Ms. Smitley said: “The document before you today represents the work of many people
throughout the higher education community in Illinois. You will recall that our budget process
actually began last February when we solicited the higher education community’s input on what
programs and activities should receive priority in fiscal year 2002. In April, you considered a
budget context paper that clearly articulated the programs and activities that we would place
priority on to advance the goals of The Illinois Commitment in fiscal year 2002. In addition to
making a relationship between the budget and the Board’s policies clear to the higher education
community, it also served as a guide for them in putting together their fiscal year 2002 budget
requests. Over this past fall, the staff held budget overview meetings with each public university,
the Illinois community college system, the Illinois Student Assistance Commission, the Illinois
Mathematics and Science Academy, and the Board’s advisory committees, listening to each of
their individual needs and concerns for fiscal year 2002. We also met with members of the
Governor’s staff, the Bureau of the Budget, legislators, and others to identify their expectations of
the higher education community in the coming year and to gain a better perspective on state
revenue availability. The recommendations before you today are the product of a rather long and
highly consultative process.

         “The fiscal year 2002 budget recommendations call for a total investment of $3.6 billion
in higher education, of which $2.7 billion are in state general funds, approximately 5.7 percent
over current year appropriations. Every new dollar included in the budget recommendations is
targeted toward advancing one of the goals of The Illinois Commitment. The budget asks for
$4.8 million in new funds to help business and industry sustain strong economic growth, and a
total of $1.5 million is to support new and expanded public university programs to increase the
number of trained IT professionals in Illinois. Funds are recommended for the second year of the
Arthur Quern Technology Grant Program. This program, which provides grants of $2,500 to
assist individuals in the costs related to their retraining, is expected to help 1,500 individuals in
fiscal year 2002. Approximately $2.9 million are recommended for programs to promote
business development, to support the new Cancer Institute at Southern Illinois University School
of Medicine in Springfield, community college workforce preparation grants, and public
university programs and partnerships.

       “The recommendations also include support for a new category of grants in fiscal year
2002, Strategic Incentives for Baccalaureate Completion Programs. These funds support the
development of Internet-enhanced public university programs to provide baccalaureate degree
completion opportunities for community college students. This new state investment will be
matched with institutional resources and will support the development of six public university
programs to help business and industry sustain economic growth.




                                                 14
         “A total of $6.0 million is recommended to improve teaching and learning at all levels.
These funds will support the development of alternative teacher education programs and other
programs designed to improve teacher preparation. Funds are included to enhance support for
community college efforts to provide accelerated college enrollment opportunities for students,
and over $1.0 million are recommended for expansion of the DeBolt Teacher Scholarship
Program. This program provides grants of up to $5,000 to assist persons who are training for
careers in the teaching profession. The program is critically important to the state’s effort to meet
an impending shortage of teaching professionals. This recommendation assumes that eligibility
for the DeBolt program will be expanded in fiscal year 2002 to include students who are enrolled
in alternative teacher certification programs.

        “The recommendations include $20 million to ensure opportunities for education beyond
high school. New funds are included for the Monetary Award Program to increase the maximum
award by $228 to offset costs related to tuition and fee increases, to expand the application
deadline, and to expand aid for part-time students. You will recall that aid for part-time students
is currently provided on a demonstration project basis, and these funds will allow the Illinois
Student Assistance Commission to move with formalizing that aid as part of the Monetary Award
Program. Funds are also included for new outreach initiatives planned by the Illinois Student
Assistance Commission that will target early awareness, adult learners, and multi-lingual
families. Funds are also included for a new grant program supporting innovative programs that
are identified by colleges and universities to address student affordability concerns, particularly
for those with most financial need.

         “As you will recall, last spring Governor Ryan and the General Assembly enacted
legislation transferring the administration of the state’s adult education system from the State
Board of Education to the Illinois Community College Board. That transfer is effective on July 1,
2001. The recommendations for this coming fiscal year include $11.2 million in new state
general funds support for adult education programs. Community colleges, community-based
organizations, local school districts, regional offices of education, and a host of other providers
provide these programs for persons 16 years of age and older who are in need of training and
additional education. The resources recommended for fiscal year 2002 assume an increase in
enrollments of 10 percent in these programs and will begin to address a long-standing shortfall in
state funding for adult education programs provided by community colleges.

        “Other funds are targeted to increase access and diversity in higher education. They
include Higher Education Cooperation Act grants for minority programs, community college
Special Populations grants, the University Center of Lake County, the Capital Scholars Program
at the University of Illinois at Springfield, and the East St. Louis College Center.

         “The fiscal year 2002 budget recommendations include funds for the third year of a five-
year plan to recruit and retain critical faculty and staff. Funds for the initiative were first
provided in fiscal year 2000 and were designed to improve the competitiveness of faculty salaries
with those of peer institutions in other states. You will recall that a faculty salary study presented
to the Board this past August presented an analysis of the results from the first year of this
initiative, and that study indicated that our results were less than were anticipated. Peer
institutions in other states simply outpaced Illinois efforts to improve faculty salary
competitiveness. These budget recommendations include additional resources for these purposes.
Institutions who are at or above their peer medians will be expected to maintain their level of
competitiveness in fiscal year 2002. Those institutions that are below their peer medians will be
expected to improve their relative positions. Institutions use these resources for a variety of
purposes related to recruiting and retaining critical faculty and staff. For example, the resources


                                                 15
may be used for persons in high-demand fields such as information technology; they may be used
to remodel laboratories and purchase equipment that is necessary to recruit a new faculty member
to an institution; or they may be used for special programs to increase the diversity of the faculty
complement. This new effort, previously referred to as ‘3+1+1,’ in the fiscal year 2002 budget
recommendations becomes a ‘3+2+1’ plan and should keep us on track to be at peer medians by
fiscal year 2005.

        “The recommendations also include funds for various technology and program
enhancements at community colleges and public universities, new assessment programs at
Eastern Illinois University and Chicago State University, and a new category of grants related to
quality and expectations – these funds are designed to improve student performance and
information systems issues that were identified in the recently released National Report Card.

        “Of the $116 million in the budget that are directed at improving quality, nearly
$63 million are targeted for purposes that are base funding support, average increases of three
percent in salaries, libraries, and utilities costs in fiscal year 2002, as well as operating and
maintenance funds for new facilities that will open during the course of the next fiscal year.

         “Over $33 million are included in the budget for increasing productivity, cost
effectiveness, and accountability in fiscal year 2002. Funds are provided for the second year of a
ten-year deferred maintenance plan in the coming year to reduce the backlog of deferred
maintenance projects on our college and university campuses. Our preliminary analyses indicate
that after the first year, our institutions are on track and we believe that within the next nine years,
that backlog will be reduced to under $100 million. The budget also includes new funds for
performance-based funding grants for community colleges, to replace outdated computing
systems used by the Illinois Student Assistance Commission in determining student aid
eligibility, and to meet the statutory requirements for funding of our State Universities Retirement
System.

        “The budget recommendations for capital improvements in fiscal year 2002 total
$540 million. The projects recommended were selected from requests totaling over $1.0 billion
that were submitted by community colleges, public universities, and the Illinois Mathematics and
Science Academy. This request amount was an all-time record within the higher education
community. Projects are selected based on their relationships to the goals of The Illinois
Commitment, and they are categorized as either regular capital or capital renewal projects. There
are 47 regular capital projects in the recommendations. These are major remodeling projects,
construction projects, and funds to complete ongoing projects. There are $30 million that are
included in the budget recommendations for capital renewal projects. These funds support small
remodeling projects on each public university and community college campus. Of the total
amount recommended for capital improvements in fiscal year 2002, a little over half of the
funding that is recommended supports 22 projects that involve either the planning or construction
of a new facility. The remaining projects are major remodeling projects.

         “A listing of the projects recommended for fiscal year 2002 appears in the budget book
on Pages 8 and 9 in priority order. The staff considers primarily four things in developing the
prioritization: one, whether or not a commitment for a project has been made through a prior
appropriation by the General Assembly and the Governor; two, the status of a current ongoing
project that is in need of completion funds either for equipment or additional construction funds;
three, institutional priorities that are submitted by each of the public universities, by the Illinois
Community College Board on behalf of the Illinois community college system, and the Illinois



                                                  16
Mathematics and Science Academy; and four, we consider the prior year’s Board priority list to
encourage multi-year planning through a ‘living’ priority list of capital projects.

        “Before each of you today there is a revised priority list. That priority list reflects a
reordering of three projects identified for Northeastern Illinois University. The revision to the list
is necessary to honor a commitment that was made during the last spring’s budget negotiations.

        “As I mentioned earlier, development of the budget recommendations involves many
individuals throughout the higher education community. I want to thank each of them for their
continued cooperation and hard work during this past fall. I’d like to particularly acknowledge
the work of the Board’s fiscal staff – Geoff Andres, Mike Mann, Sharon Ward, and Darice
Yonker – for their contributions. They are here with me today and we stand ready to answer any
questions you may have regarding the budget recommendations.”

         Chairman Rock said, “Debra, thank you. That’s a remarkably good job on a very
difficult subject matter. For the benefit of the Board, the revised list of capital projects does not
really do a great deal of damage to the list as originally submitted, but it does reflect a
commitment made by the chief executive of this state in the waning hours of the session, which
we obviously felt it important to live up to. Now, there are several individuals who have
indicated they wish to comment on the budget recommendations.”

         Chairman Rock recognized Salme Steinberg, President of Northeastern Illinois
University, representing the public university presidents. Dr. Steinberg said: “I’m delighted on
behalf of my colleagues in public higher education to make a few comments about this important
budget that is before you. We have many different perspectives in the public higher education
community and we offer various kinds of important services and education to our students with a
common goal in mind. But I think it’s very important to realize that whether we’re a public
comprehensive university such as Northeastern or a major research institution like the University
of Illinois, we are united in the support of The Illinois Commitment. We see this in evidence
throughout the important stages, all of which we have talked about in some fashion today –
whether we’re talking about partnerships with business and industry to sustain economic growth
in the state of Illinois; whether we’re talking about improving teaching and learning at all levels;
or how we improve our access and diversity. Most importantly, I think we make common cause
in enhancing student learning and assessment, and in this way improving the quality of all of the
graduates in the state so that we can, indeed, note progress continually on that Report Card of
which we’re so proud. We have seen this commitment, not only by this Board but also by the
Governor and the General Assembly. We can do no less. Thank you.”

        Chairman Rock recognized Joseph Cipfl, President and CEO of the Illinois Community
College Board. Dr. Cipfl said: “I appear before you this morning in strong support of the fiscal
year 2002 IBHE budget. The processes and procedures which were utilized by IBHE leadership
to determine funding priorities, funding needs, and funding levels for the fiscal year 2002 budget
were necessary, effective, and they were inclusive. We from the Illinois community college
sector – trustees, presidents, faculty, staff, students, and the ICCB itself – appreciated the
opportunity we were provided to engage the IBHE in the necessary discussion and dialog about
the ever-expanding and ever-evolving role of Illinois community colleges. We were given ample
opportunity to outline the budgetary implications of two of our primary responsibilities, the first
one of those being community colleges as undergraduate institutions providing the freshman and
sophomore years of the baccalaureate degree; and the second one being community colleges as
primary providers of workforce development providing education, training, and skill growth for
both incumbent workers and aspiring workers. Dollars for these initiatives were placed in the


                                                 17
fiscal year 2002 budget by the IBHE in the particular funding categories, actual line items,
exactly as they were recommended by the ICCB, and we certainly are most appreciative.

         “Also, as each of you are well aware, Governor George Ryan and the Illinois General
Assembly determined during the 1999-2000 legislative session that the time had come to expand
the adult education role and adult education responsibilities of the Illinois Community College
Board. Legislation was overwhelmingly approved to transfer the governance of adult education
from the Illinois State Board of Education to the Illinois Community College Board. The
Governor and the General Assembly concluded that the number of individuals needing access to
adult education is growing dramatically, particularly in two specific areas. One of those is
English as a Second Language, and the other is workplace literacy. The Governor and the
General Assembly have called upon the ICCB to create the necessary and effective governance
structure to deliver the necessary and effective adult education programs, and have asked the
ICCB to direct and to maximize the adult education efforts of community-based organizations, of
secondary schools, regional offices of education, and community colleges. In the fiscal year 2002
budget, the ICCB has requested an amount of funding which is equal to 50 percent of the
underfunding which has plagued adult education programs for multiple years, and an amount of
funding which will provide a 10 percent growth in the population served by adult education
providers. This morning, I want to acknowledge to you the great appreciation of the Illinois
community college system for the support that the IBHE provided in the consideration of the
transfer of adult education governance from the ISBE to the ICCB. You were there each and
every step of the way and we appreciate the confidence you’ve placed in us. I want to
acknowledge also Chairman Ron Gidwitz and Superintendent Max McGee of the ISBE who
likewise gave their full and complete support. I promise you we are prepared to deliver.

         “As we examined the priority list for higher education capital improvements, we from the
Illinois community colleges were encouraged by the fact that of the 47 projects recommended for
funding, approximately 44 percent of the budgeted dollars were for community college projects.
However, as we engaged in more detailed examination of the capital list, dividing it into
$100 million intervals, we were somewhat disappointed by the fact that it was not until the final
$100 million interval that community colleges got anywhere close to the 44 percent factor. The
likelihood of funding at that level is somewhat remote. We in the community colleges fully
realize the complexity of capital issues. However, I must call to your attention that we have
community college buildings that are taking on considerable age. We have employers within the
communities that we serve who are demanding that we have facilities available that are capable
of providing teaching and learning environments necessary for the education and training of their
current and potential employees. All of these issues are compounded by the fact that we still have
19 community college districts that have temporary buildings. It is our hope that the portion of
capital dollars allocated for Illinois community colleges at an appropriate and necessary time can
increase. We believe that the funding equity study currently being conducted by all of higher
education can help address these difficult capital issues. We understand the complexity of the
issue, and we certainly want to express to you this morning appreciation for your great support.
Thank you.”

         Chairman Rock recognized Stephanie Marshall, President of the Illinois Mathematics and
Science Academy. Dr. Marshall said: “I want to commend the Board and Dr. Sanders for
creating a planning and budgeting process and structure that aligns the goals expressed in The
Illinois Commitment with budget development and program and institutional accountability. This
integration of planning, budgeting, and evaluation has brought coherence and focus to
institutional planning and has enabled IMSA to frame our business planning process within the
context of the IBHE commitment. IMSA’s recommendations are framed primarily around our


                                               18
three customer groups: IMSA residential students, other Illinois students served by our external
programs, and Illinois educators served through our professional development work.

         “Specifically, our budget recommendations are in four primary areas: student research
and inquiry to expand our research and mentorship programs; recruitment and underrepresented
populations to expand recruitment in program deliver for historically underrepresented students in
mathematics, science, and technology; increasing and enhancing teacher quality, preparation, and
professional development opportunities for Illinois teachers, primarily through a unique
alternative certification program grounded in problem-based learning which is a pedagogy
pioneered at Southern Illinois University Medical School which IMSA has adapted to
professional development; and technology support, most notably for the Illinois Virtual High
School that we are privileged to co-lead and through videoconferencing capabilities for enhanced
professional development. IMSA’s capital recommendations would enable us to remodel critical
science laboratories that are well over 20 years old and renovate an existing facility to
accommodate significant expansion of our external programs that serve the needs of Illinois
students and teachers. This capital expenditure will be matched by federal and corporate
programmatic dollars.

        “These initiatives support the public policy context of The Illinois Commitment in four
areas: improving teaching and learning; increasing the number and diversity of students
completing educational programs; holding students to higher expectations; and increasing
accountability for the quality of academic programs and learning assessment. We believe that
IMSA serves as a critical link and laboratory in the work of the Board of Higher Education and,
as such, can advance the initiatives of the P-16 Partnership.

         “We commend the Board of Higher Education on this budget. As Dr. Sanders said, this
budget is ambitious, yet responsible. It is ambitious because it is aggressive and invests in those
areas of critical need. In the words of Wayne Gretsky, ‘Position institutions to skate to where the
puck is going to be.’ It is responsible because it directs resources strategically to those areas of
greatest leverage. This budget is policy and goal driven, it is results focused, and it is responsive
to the needs of the state and our citizens. It demonstrates that the priorities in higher education
are access, affordability, quality, and accountability within the context of improved teaching and
learning for all Illinois citizens, which includes creative uses of information technology. I
commend the Board and the staff on this budget and recommend its approval. Thank you.”

          Chairman Rock recognized Larry Matejka, Executive Director of the Illinois Student
Assistance Commission. Mr. Matejka said: “I think this budget recommendation is a gift we can
all be thankful for. I’m encouraged each year by this state’s commitment to the goal of making
postsecondary education and training affordable for Illinois families, and I think this budget
recommendation is another step in that direction. As has been mentioned several times this
morning, the cornerstone of the Student Assistance Commission’s commitment to the citizens of
Illinois is the need-based Monetary Award Program. The recommended increases to this program
for fiscal year 2002 in terms of funding for tuition and fee increases, an increases in the maximum
award, and a continued extension of the MAP priority filing date will allow us to maintain a
consistent level of support for MAP recipients and will serve to improve affordability for Illinois
students. The recommended increase for the less-than-half-time demonstration project moves us
closer to fully integrating the less-than-half-time eligibility for students in the Monetary Award
Program. Ultimately, this will provide greater flexibility in the program to address the changing
demographics of our student population.




                                                 19
         “As has been indicated by many people this morning, we were gratified by the tangible
results expressed in the affordability component of the Report Card and the role that the
Monetary Award Program plays in that achievement for Illinois. Although the Monetary Award
Program is the cornerstone scholarship program that we administer, we have several other
programs that play an important role in making higher education both accessible and affordable.
Two of those are the Arthur Quern Technology Scholarship and the DeBolt Teacher Shortage
Scholarship. Through the Quern program, the Board of Higher Education has demonstrated
higher education’s commitment to supporting workforce preparation and economic development
in Illinois. During fiscal year 2001, we feel that approximately 1,100 students should benefit
from this Quern IT grant. With the recommended increase of $400,000 for fiscal year 2002, we
will be able to continue to expand this program to allow for initial awards as well as renewal
awards for the second year of study, thus further assisting the state in this vital area of
information technology recruitment and training.

        “Another critical area for the state is the recruitment and training of talented individuals
for preschool, elementary, and secondary teaching positions, particularly in the shortage areas.
The DeBolt Teacher Scholarship program continues to support this effort by providing a financial
incentive to encourage academically talented students to pursue a teaching career in designated
teacher shortage disciplines. As the need for qualified teachers accelerates, the recommended
increase for funding in fiscal year 2002 of just over $1.0 million will provide for continued
expansion of this program.

         “One final highlight of the budget recommendation is the recommended funding for
delivery service enhancement at the Commission. The budget recommendation includes
$650,000 for scholarship and grant system re-engineering for programs that exist in our agency
that are over 16 years old, and over $300,000 for expanded outreach into underserved areas.
Although very different from one another, both of these items will significantly add to ISAC’s
ability to serve the students of Illinois.

        “Ensuring that the students of Illinois have access to affordable higher education requires
a true partnership between all of the parties involved. I want to express my appreciation and the
appreciation of the Commission to the Members of the Board of Higher Education for their
continued support of ISAC’s programs as we continue our commitment to making students the
number one priority in Illinois. This recommendation continues the long-standing commitment to
the programs of the Commission, which we feel are very important. We applaud and support
these recommendations. Thank you.”

         Chairman Rock recognized Scott Andrews, Student Advisory Committee. Mr. Andrews
said: “Over the past six months, the Student Advisory Committee has had the opportunity to put
together our higher education priorities and how they relate to the budget. Over this last
weekend, we spent about 20 hours reviewing the fiscal year 2002 budget recommendations. We
agree with Dr. Sanders that these represent an ambitious yet responsible request. We do have a
number of comments on several critical issues. I would highlight faculty salaries. We strongly
believe that quality faculty members really are the key component in ensuring a quality education
for the students of Illinois. The new ‘3+2+1’ program demonstrates that the Board of Higher
Education shares our commitment to maintain quality academic instruction. Regarding deferred
maintenance and the higher education facilities investment of over $10 billion, we are glad to see
that a priority is being given to maintaining and updating this vital infrastructure. On the issue of
financial aid, the $1.0 million increase in the Monetary Award Program, in particular for part-
time and summer students, is very beneficial. The $1.0 million increase for the DeBolt Teacher
Shortage Scholarship addresses the future and allows us to remember that the training of new


                                                 20
teachers is important to provide ongoing professional development for current teachers and
administrators.

         “We believe the primary goal of student financial aid should be to improve accessibility
and level the playing field between high- and low-income students. The information provided in
Appendix A, Table A-4, which compares tuition with the various economic indicators, presented
a real concern as related to the affordability of higher education and students’ ability to pay. The
Student Advisory Committee appreciated the opportunity to articulate priorities to help guide
staff efforts toward the development of the fiscal year 2002 budget. The Committee was
extremely impressed with supplemental data, which was provided in Appendix A. We feel this
data will be the most helpful as members of the public at large and the higher education
community as they continue to stress the importance of higher education, the role it plays in the
state, and bring that to the Governor and the General Assembly. The Student Advisory
Committee strongly supports this budget and thanks Dr. Sanders and the rest of the staff for
allowing us to have input on this issue over the last six months.”

        Chairman Rock recognized Donald Fouts, Independent Colleges and Universities.
“Dr. Fouts said: “My brief comment on the budget will suffice for my advisory committee report.
Indeed, this is a good budget. The Federation supports it, and we appreciate the support of the
IBHE staff in working with us on the budget formulation. We’re particularly pleased with the
increase proposed for student assistance in the Monetary Award Program. We know that we’re
not there yet; we have some other hurdles to surmount. We have to win the support of the
Governor, and the General Assembly will be the final arbiter of this budget. We pledge that the
Federation stands ready to work with our colleagues under the leadership of the Board of Higher
Education to make this budget a reality in the upcoming legislative session. Thank you.”

         Chairman Rock recognized Jerry Dill, Proprietary Schools Advisory Committee.
Mr. Dill said: “First, I would say that this budget reflects the leadership and the vision that good
public policy has driven it to. As a former financial aid administrator, I need to support Larry
Matejka and the ISAC staff in their expansion of and continued involvement with funding in the
MAP program, the Quern IT Scholarship program, and the innovative programs for part-time and
summer students. I think those programs will further the goals and objectives of the Board in
terms of getting students through to completion at greater rates. Putting the resources there
clearly reflects the adoption of the vision of the goals of this Board. Thank you.”

        Chairman Rock recognized Gretchen Naff, Community College Presidents Council.
Dr. Naff said: “I might state that it is delightful to be before you today on a topic other than the
location of the University Center of Lake County. I just want to state that the community college
presidents are in full support of the comments offered by Dr. Cipfl. We are in full support of the
higher education budget, and we support Dr. Cipfl’s comments regarding the budgeting process,
the capital projects, and adult education. Thank you very much for the inclusion of us in all of
the discussions. We appreciate your support. Thank you.”

        Chairman Rock recognized David Bardack, Faculty Advisory Committee. Professor
Bardack said: “We did discuss the budget in our meeting earlier this month with Dr. Sanders.
We had a number of questions on sharing of various salary items and benefits issues, but
basically there is strong support from the FAC.”

         Chairman Rock recognized Sue Kaufman, Secretary-Treasurer of the University
Professionals of Illinois. Ms. Kaufman said: “Mitch Vogel and Ron Ettinger asked me to convey
their thanks to Dr. Sanders and the staff for the budget proposal that we have before us today. As


                                                21
you know, University Professionals of Illinois has supported the budget proposals for the past two
years, and we’re delighted to say that we’re eager to support the fiscal year 2002
recommendations as well. As Mr. Vogel noted last year, we have had some concerns regarding
the language in the IBHE budget documents related to the collective bargaining process that is
specifically related to the distribution of salary increases. The Illinois Educational Labor
Relations Act is quite clear that salary decisions are mandatory subjects of bargaining between
the employer and employee representatives, and we take some comfort in the fact that on Page 27
of this budget document, it states clearly that the actual salary increase decisions will vary by
campus and individual based on available campus resources. We appreciate that reference. We
also want to commend the Board and staff for the excellent Report Card. We appreciate the
cautionary words issued by Dr. Sanders and others on what it is going to take to keep up this pace
and to do even better. We’re very excited about the report. Also, we hear the words of Bob
English, that policy is based on some very crucial decisions that we have to make. In that light,
we’re beginning to put together a comparative analysis based on revenue and budget data that we
hope to share with you at the February meeting.

         “Finally, if you look at the document we distributed, we want to call your attention to and
we look forward to working with you on House Joint Resolution 19 calling for a review of what
seems to be a growing dependence on part-time and non-tenure faculty in the state. Fairness and
quality are key concerns and we look forward to working with you on reviewing that situation.
Also, on House Resolution 569, which dealt with the salary equity for our civil service
employees, we encourage you to continue to monitor the salary policies on each campus and to
expand your report to include salary data for the top-ranking administrators. Mr. Vogel
specifically wanted me to remind you to take a good look at the AFT Teacher Guidelines for
Good Practice in Distance Education. We’ve co-hosted, with the Illinois Federation of Teachers,
one conference on e-learning issues with our community college colleagues, and we will be doing
another one at the IFT convention in February. We’re looking forward to a busy spring semester
with several of our campuses deeply involved in improving our performance on technology-
related issues.”

         Chairman Rock asked for comments from Members of the Board. Mr. Lamont said,
“With regard to the capital prioritization, this Board rarely gets involved in the minutia of the
prioritization, but it also generates a number of comments and inquiries about the process in
which these are taking place. I’m not sure if the Board wants to get involved in this, but speaking
for myself, I think I would prefer a little bit better understanding of how some of the decisions are
reached. I would suggest that we examine some way of putting more light on the process,
perhaps through a committee structure where some of these things can be discussed and
reviewed. I think it might be helpful if we have some knowledge of the process.”

        Dr. Sanders said, “We’d be happy to do that. In fact, the year before you came on the
Board, we had a Board budget committee that was chaired by Lucy Sloan. The committee
walked through nearly every step of the process with us, including the criteria we were using to
make decisions on both the operations and grants side and on the capital side. They decided the
next year – for reasons that were pretty apparent, given all the hard work they had to put in – that
maybe their having confirmed the integrity, legitimacy, and wisdom of the process that they now
needed only to monitor it to see whether it was being done well by the staff and not get so
intimately involved themselves. So, we have had a Board committee, and we would be delighted
to have another. This is perhaps the most important thing that we do, and we want everyone to
understand as best as we can articulate, the criteria by which we make these very difficult
decisions.”



                                                 22
        Mr. Lamont continued, “I don’t know that’s necessarily the best way to do it. I only raise
that as an option. But I do think it is important that the Board have knowledge of how the
conclusions are reached. Secondly, another issue I want to raise deals with the recent
announcement of a fairly significant tuition increase at the University of Illinois. This is a turning
point in the way we’ve addressed some of our funding issues. This is a matter that has not yet
been adopted by the University of Illinois Board of Trustees. The announcement was in
conjunction with a discussion with them, but it probably behooves this Board, if that matter goes
forward, to have some discussion at this table.”

         Chairman Rock said, “I don’t think there is any problem at all having some discussion.
Since I’ve been on the Board, I don’t think this Board has ever taken a position pro or con on any
tuition increase that is voted upon favorably or unfavorably by an institution board.” Mr. Lamont
continued, “I understand that, but given the nature of where we might be going and if, in fact, we
do ultimately get there in the next two or three months, it might be a healthy discussion to have.”

        Dr. English said, “You are correct. We have never had discussions relative to a given
operating board making a decision on tuition issues. We have had broader policy discussions as
to the level and the affordability issues, but a never a specific institution’s decision process.
There were two schools of thought. One was, they are the operating boards and let them do what
they may and they will have to be responsible for their decisions. And there was a faction within
the Board that said let us try to control this process. But we never made a decision.”

       Ms. Meyer asked, “When was the last time there was a broad policy tuition discussion?”
Dr. English responded, “The Committee on Affordability studied the issue seven years ago. Jerry
Blakemore was the chair of that committee.”

        Mr. Lamont said, “The fact that we are really going to the affordability issue is what may
merit some explanation to this Board from the administration, as well as a discussion.” Chairman
Rock said he agreed.

         Mr. Thompson said: “Since we’re on the subject of affordability, I have a few quick
comments. We read in the Results Report that tuition and fees on average have gone up 80 to
90 percent over the past 10 or 11 years while the Consumer Price Index rose 34 percent. The
commitment from the General Assembly only rose 52 percent. Obviously, over the past 10 years,
that cost was certainly passed on to someone, and from conversations I have with people, they’re
still paying it off. I am encouraged to see the MAP increase of $20.2 million and that is going to
help students pay for college. I think I read somewhere that it will cover up to a four percent
increase. That is very encouraging, so long as the increases are at four percent. I also read that
54 percent of our high-income students are enrolled, whereas still only 20 percent of the lower-
income families have students in college. It is good to see that there will be more monies
dedicated to students that are attending college less than part-time. I find that very encouraging
because I see those students as not attending college full-time because of the affordability issues.
So this increase to students will certainly help. I hope that the General Assembly concurs with us
on this. Affordability is a top priority in my book, and I’m glad to see that the Board and others
around the state are addressing it as well.”

        Mr. Duffy said, “I too want to congratulate Dr. Sanders and the staff for the excellent job
they’ve done in developing this budget. The notion that all these folks would come and speak
favorably about a process that typically would gird your loins speaks well to the staff. A year
ago, the Illinois Community College Board adopted a resolution that asked for some review of the
process that we went through with regard to funding equity, and Dr. Sanders and the staff have


                                                 23
worked well toward that. It is not completed yet, but we feel confident that it’s coming along
very well. I want to congratulate them also because the process on new programs such as the
adult education efforts oftentimes causes great consternation in terms of how they are developed.
Again, they did a remarkable job. I would like to point out that the comments made by Dr. Cipfl
and Dr. Naff with regard to the capital budget for community colleges is an issue that is near and
dear to our heart, because unlike a lot of the requests that we may be getting in terms of wish lists
for the future, there are true needs that exist on community college campuses. As Dr. Cipfl
pointed out, there are 19 community colleges that presently have temporary facilities that were
put up years and years ago just for that purpose, to be temporary. These need to be replaced. It is
a process that we need to get through. I support this budget and I support the efforts of
Dr. Sanders and the staff.”

         Dr. English said, “To follow up on Mr. Lamont’s and Mr. Duffy’s comments, Lucy Sloan
was the workhorse of the budget committee. I do not remember the paradigm for distribution of
capital. Could you send me a copy of that paradigm decision model on capital allocation, because
I am concerned about Dr. Cipfl’s and Mr. Duffy’s comments and I would like to review that
document. I think Deb Smitley did an unbelievable job in the presentation of this budget. Thank
you, Deb.”

         Chairman Rock said, “The paradigm decision model will be made available to everyone.
Anyone who has been through this process on an intimate basis attempting to make sense out of
about a billion dollars’ worth of requests and wish lists knows how difficult it can be. Then, you
come in with feasibility and engineering studies and all the rest, and must live within a budget
that you’ve been dictated. Then, of course, you have certain negotiations that go on in
Springfield, particularly near the end of the session, where some member – recalcitrant or not – is
able to get a commitment that otherwise perhaps would not have made the list. That’s the reality.
So I think it’s a remarkably good job and one that I hope we all get familiar with so the budget
will reflect what it ought to reflect – that is, a reasoned policy decision by this Board with respect
to statewide needs.”

       Ms. Sloan said, “I would like to thank Deb and the staff for the wonderful job they’ve
done in putting this together. Having worked with them two years ago, I know what a
tremendous amount of time it takes to do it, and I think you’ve done a great job on this budget. I
would concur with the others that we do have confusion about how the capital list is developed,
and we do need to revisit that so we can better educate our public.”

        Chairman Rock said, “If there is no further discussion, recognizing that we are dealing
with the revised capital project list which reflects three changes, the Chair would entertain a
motion to approve the fiscal year 2002 recommendations for operations and grants and capital
improvements in Illinois higher education.”

        The Board of Higher Education, on motion made by Mr. Barr and seconded by
Ms. Sloan, unanimously approved the fiscal year 2002 budget recommendations for higher
education operations and grants and capital improvements (including revised Fiscal Year 2002
Priority List Higher Education Capital Improvements) in the amounts and for the purposes
outlined in Item 6 dated December 13, 2000.

        The roll call vote on Item 6 was as follows: Yes – Barr, Duffy, English, Kaplan, Lamont,
Lesnik, Meyer, Monteagudo, Rock, Sloan, Thompson, Williamson. No – None.




                                                 24
        Chairman Rock said that we would make the recommendation known to members of the
House and the Senate for their consideration. He said, “In that respect, let me recognize a
member of the House of Representatives. She is the current Chair of the House Committee on
Higher Education and is a member of the House Appropriations Committee that deals with the
higher education budget. We have just recommended to you for your consideration a budget of
about $2 billion. Representative Judy Erwin, welcome.”

         Representative Erwin said, “It’s great to be here. It is always nice when you have your
meetings in Chicago so some of us around here can come. First, let me say congratulations on
your top ranking in the state-by-state report. I think that was really exciting, and I hope to be able
to share that when we’re back in session with all of the members of the newly constituted
education committees. Secondly, thank you to Keith Sanders, Ross Hodel, Deb Smitley, and the
entire staff for all of the help they give those of us who grapple with always conflicting interests
in the General Assembly. It is not easy; it is sometimes even ugly. But your staff does a great
job in helping us try to do a better job. I look forward to supporting this budget recommendation.
I think there are some very exciting parts to it, and I look forward to trying to help deliver that
message to my colleagues on both the education committees and the appropriations committee.
Finally, I am particularly interested in your emphasis again this year on issues as they relate to the
changing demographics of the state, recognizing that nearly 50 percent of the college-age students
are adults, and emphasizing the importance of outreach to adult learners. I think it relates also to
the needs and demands of the state’s economy. Any time we can renew our focus on what the
need is in the workplace is very important. With the Quern Scholarship, less than half time and
summer school awards, I think that this budget does that. So thank you very much.”

       Chairman Rock thanked Representative Erwin for her comments and thanked all who
spoke during the discussion of the budget recommendations.

7.      Committee on Access and Diversity

       There was no presentation on this item because Jerry Blakemore was unable to attend the
meeting. Chairman Rock said Board Members would be provided a written report.

8.      Illinois Century Network: Activities Update

        Chairman Rock said that Neil Matkin would present the item. Dr. Matkin said: “I will
be very brief. The State Board of Education, the Board of Higher Education, and the Illinois
Community College Board continue to work hand-in-hand to make sure that we’re moving
forward at the Illinois Century Network. Several good things are happening. Currently, we’re
working on the interagency agreement between the funding agencies to create the rules of
deployment for the two funding agencies and create a pseudo entity that can negotiate with other
vendors and agencies on which we depend to do business. The interagency agreement creates an
entity of sorts and delegates certain authorities to the Illinois Century Network, which, in turn,
allows us to develop other agreements to expedite the ICN mission. One of the biggest
accomplishments that we’re creating today is moving the end points of the Network closer to the
constituents, reducing costs for those constituents so they can reinvest that capital money, or the
money they spend on telecommunications expenditures on their own infrastructures to take
advantage of the Network. One of the ways we’re doing that is by the development of
community networks, and the ICN seeks to raise the Digital Divide by moving those end points
close enough to have a real effect, especially in rural and far-removed communities from
telecommunications services.



                                                 25
        “The item contains a brief summary of fiscal year 2000 budget expenditures. I want to
call your attention to the equipment line for the Board of Higher Education. Last year, we spent
$8.7 million on premise equipment to help institutions connect to the Illinois Century Network.
The $5.4 million under the State Board of Education is all backbone equipment. Also, in the
Regional Technology Centers, we spent $4.4 million that the Board approved to fund centers in
nine regions across the state to make sure that there were feet on the street and technicians
available to help people to connect and stay connected. It is a two-year grant that has been very,
very successful.

         “A big item of current news is the installation of our large backbone circuits. We brought
up an OC-3 and two OC-12s this week. Those circuits have been very slow in coming. The item
mentions that some of our circuits are running 60 to 65 percent capacity. In reality, we’re
running 85 to 90 percent capacity in the southern part of the state, and these circuits come none
too soon. We have some delays in Peoria that are being worked out, and there are some very
good things happening there. As these big backbone circuits come into play, some interesting
developments are also occurring. Last night, I was FAX’d the results of the statewide audit.
We’ve been counting as well here in Illinois, but we’ve been counting connections to the Illinois
Century Network. I reported to you that in March we had 3,400 institutions connected. Today
we have 4,268 institutions verified that are connected, with 239 pending. That includes county
governments, K-12 schools, libraries, medical centers, museums, one zoo, public universities,
private colleges and universities, community colleges, hospitals, and a large group of things like
Boys and Girls Clubs and other not-for-profit service organizations and things like the Illinois
Mathematics and Science Academy and other organizations of that type. So overall, with 4,268
connections and 239 pending, along with 220 state agencies that will go onto the Illinois Century
Network in the first quarter of 2001 and 200 rural hospitals that we’re currently in negotiations
with, at the end of the first quarter of the next year, we should have almost 5,000 connections to
the Illinois Century Network. Throughout the state, our constituents are also coming together and
forming regional user groups, developing best practices, and working together to put the Network
to use in their own regions.

         “I want to tell you about a development that is occurring that is very exciting. We talked
about almost 5,000 constituent institutions in Illinois. We’ve now been contacted in
conversations with the Wisconsin state network, Kentucky, Missouri, Iowa, Indiana – all of
whom want to ride our large backbone to the Chicago network access point. If, indeed, we strike
deals in the future to carry their traffic, we won’t be talking about 5,000 Illinois institutions
connected, we’ll be talking about 6,000 to 10,000 additional institutions connected, which can
very much help us finance and pay for that backbone as we get larger than ever and provide
excellent service to our constituents. We can’t really consummate any deals with these states
until such time as the backbone is completely in place, and we expect that in the next six months.

         “Illinois is the singular state where all sectors – schools, colleges, universities, museums,
libraries, state agencies, and municipalities – are striving to work together on a singular network,
and it is very exciting to be part of this project. We’ve created an advanced engineering task
force to help direct us into the future that has already had an excellent meeting. We’ve also
created an online leadership council. We’ve distributed a matrix of online initiatives. Todd Jorns
of the Community College Board pulled this together for the Illinois Online Leadership Council,
and I want to express thanks to him. He worked very hard to make this information available.
Also, I want to call your attention to a new website at the Illinois Century Network called e-
learning.Illinois.net that seeks to be an e-learning portal for online content initiatives, and those
initiatives are summarized in this matrix. The Illinois Century Network is listed in every one of
them as the crucial element of their success, which is a little scary, but I think we can pull it off.


                                                 26
         “We have had a good communication with information meetings as well as a bid opening
at the facility in the Thompson Center later this afternoon. I want to express thanks to our staff
member Lynn Murphy who has worked with other staff to bring those things about. We are
continuing marketing efforts, and as the backbone circuits get in place, we will be targeting
marketing to bring the rest of our K-12 communities and other institutions onto the Network as
quickly as possible. All that said, I believe the Board of Higher Education will have many
reasons to be proud of what the ICN is today and what it is going to mean for tomorrow. I would
be pleased to answer any questions.”

         Mr. Kaplan asked, “When we discussed the grant evaluation proposal with our
consultants, one of them expressed concern about the utilization of the ICN at various centers.
Can you explain how we’re doing with that?” Dr. Matkin responded, “Depending on what part of
the state we’re talking about, the ICN has varied utilization among the different backbone pipes.
There are two types of utilization to be concerned about. One is the access to the Network, and in
that case, they’re generally quite good. The other one is the backbone itself. There are some
other components, though. We are building a giant backbone, and as that backbone gets in place,
we turn our attention to access circuits. One of the things that we’ve done in our audit is to
determine what institutions are connected, but also at what speed. They have to be connected at a
speed that allows them to take advantage of the things that we’re pushing down the pipe like the
Illinois Virtual High School. One of the entities on the matrix, the Illinois Occupational
Information Coordinating Committee, has a career information application used by most K-12
schools and community colleges. They are fielding 160 career-oriented streaming videos and
they get 250,000 hits a month on their website. Those kinds of things make it crucial for us to
start thinking about access speeds as we get the backbone in place. I will be preparing a report to
let everyone know where those access speeds are and what needs to be done to ensure that we
have that connectivity, not only on the backbone but going out to the institutions.”

         Mr. Kaplan continued, “We’re working on the East St. Louis area now, the Mecca area
they call it. How are we doing wiring them up, and are they interested in pursuing the Illinois
Virtual High School as well?” Dr. Matkin responded, “There are some who are interested.
We’ve been in communication with representatives of East St. Louis as well as the University of
Illinois and some of the programs and courses going on there. We are working with several
different groups in that area.” Mr. Kaplan said, “Some of that information should be given to the
committee that is studying this, because we’ve been told there are no AP courses being offered
and foreign languages are a problem. So utilization down there might be a factor to look at, as
well.” Dr. Matkin said he would be happy to follow up and make sure that information is
provided on the activities there.

10.     Advisory Committee Reports

         Chairman Rock recognized David Bardack, Faculty Advisory Committee. Professor
Bardack said: “I have Dorothy Beck’s report that I will share with you. A major portion of the
November FAC meeting was dedicated to exploring equity and quality issues involved in the
extensive use of part-time faculty in private colleges, state universities, and community colleges.
Following a panel presentation by three adjunct faculty from around the state, the FAC agreed to
revisit the issue and update its statement from 1997. At our December meeting, Keith Sanders
distributed a resolution passed by the legislature calling for the Board of Higher Education to
make recommendations to the legislature on the issue of part-time faculty. Specifically, the
rsolution asks for a commitment to fair employment and consistent emphasis on quality
instruction at all levels of higher education. This was a very productive discussion, and we will
provide some data to the BHE at the February meeting. Some of the specific questions we


                                                27
discussed were such things as the credentials of part-time faculty, the general uninvolvement of
full-time faculty in the hiring of part-time faculty, the general lack of a consistent evaluation
process for part-time faculty, the failure on the part of many institutions to offer professional
development for part-time faculty, the inability of many part-time faculty to hold office hours for
students, and their general lack of participation in academic decisions. We will provide a much
more detailed report at the next meeting.

        “We spent some time discussing quality issues. Last summer, the FAC provided the
Board with a position paper on Quality in Higher Education. That paper calls upon higher
education to go beyond grades and test scores and consider a variety of strategies to assess
students’ abilities in communication, initiative, critical thinking, creativity, and collaboration. In
its conviction that higher education must do more than provide a student with a body of
knowledge, the FAC is now working to identify such strategies for assessing the less quantifiable
value that our institutions of higher education should add to students’ lives. We expect the
process will take us the rest of the year.

        “On another issue of dual credit, we began a discussion at the initiative of one Faculty
Advisory Committee member into the practice of offering high school students college credit
along with their high school credit for courses in the high school curriculum. The Committee will
develop guidelines for ensuring the integrity of college credit courses offered to high school
students with dual credit.

       “Finally, we’ve established a set of five subcommittees, each with representation from
community colleges, private colleges and universities, and state universities. The subcommittees
are Quality, Technology, Access, Budget, and Faculty Governance. Each of these will develop
recommendations and some of them will eventually, I am sure, come before the Board. Thank
you.”

        Chairman Rock recognized Gretchen Naff, Community Colleges. Dr. Naff said that the
major concern with the Community College Presidents Council relates to the budget, so she had
no additional comment.

         Chairman Rock recognized Jerry Dill, Proprietary Schools Advisory Committee.
Mr. Dill said: “On behalf of Ron Taylor and the Proprietary Advisory Committee, we extend our
congratulations to the Board and to the higher education community in the state for its
recognition in the Measuring Up 2000 Report Card. There certainly is a rich fabric of higher
education in this state, and the degree-granting proprietary institutions – although we are probably
the smallest portion of it – are certainly proud to be part of that. We were a bit tardy in getting
our accomplishments in for the Results Report, and we apologize for that, but we do appreciate
the inclusion in the Results Report that was part of the agenda today, an acknowledgement of the
activities of many of the activities of many degree-granting institutions and our contributions to
The Illinois Commitment.

         “On the agenda topic on the grants program evaluation, we did not have a chance to have
direct input to, and we do participate in somewhat of an indirect way, and we certainly appreciate
the opportunity to make a few comments about the grant program evaluation and the direction the
programs may take in the future. We appreciate being able to participate through the HECA
program indirectly through funding for the Regional Academic Consortia and our participation in
the Interactive Video Network. To the extent that funding for those kinds of programs as a
renewable grant versus enterprise grants be considered in the future, we think that is a good
direction that would provide some stability to the funding of those particular programs over the


                                                 28
long term. In the critical workforce grant program, a new concept has been developed, and we
would suggest that the students at degree-granting proprietary schools be considered eligible to
participate in programs that might be funded under that program. As statutory approval is gained
for that in the future, we would suggest that the proprietary school students be considered. Thank
you.”

        Chairman Rock recognized Donald Fouts, Independent Colleges and Universities.
Dr. Fouts said, “I would add just one point to my earlier comment about the budget, and that is to
thank the staff and the consultants for their work on the grant program evaluation. I thought it
was done very professionally. We appreciated the input into that program, and we appreciate a
continuing opportunity to be involved as you move toward the action phase and your
deliberations in February.”

        Chairman Rock recognized Scott Andrews, Student Advisory Committee. Mr. Andrews
said: “First, I would like to thank Dr. Sanders and the Board staff for including us early on in the
budget process. The Student Advisory Committee met this past weekend at Northeastern Illinois
University and passed the following resolution:

        ‘WHEREAS, in light of recent events, the Illinois Board of Higher Education Student
Advisory Committee is concerned with academic units of instruction losing or not receiving
accreditation; and

       ‘WHEREAS, students enroll in an accredited degree program with the expectation that,
upon completion, their degree will maintain or receive accreditation; and

        ‘WHEREAS, the Illinois Board of Higher Education, as a coordinating body of higher
education, should recommend policies for all colleges and universities in the State of Illinois
addressing the problems which arise for students when an academic program loses or does not
receive accreditation;

        ‘THEREFORE BE IT RESOLVED, that the Illinois Board of Higher Education Student
Advisory Committee requests that the Illinois Board of Higher Education coordinate an effort to
enact comprehensive policies which protect students in the event that their academic program
should lose or not receive accreditation.’

        “In a nutshell, the Committee respectfully requests that the Board of Higher Education
recommend policies to protect students in the event of an academic program not receiving or
losing accreditation. The concern that we have for students and their needs as customers of this
higher education system is first and foremost on our minds at all times. We know that as a
coordinating board, you work in great cooperation with all institutions and all sectors. The
Committee would appreciate the opportunity to work with you to determine what kind of policies
should be recommended to protect students if their degrees are jeopardized.

         “On another note, in the Report Card on the completion issue, we would also hope that at
some point in the near future the time-to-degree issue would be addressed. Will there be another
conference? Will there be a more comprehensive report or study? There were only a few
students who participated in the last conference, and we see that as one of the more serious issues
we have looking at the next 10 years. How can students get through school quickly but with
some leverage of academic freedom? I know many of you went to college years ago where you
had all sorts of open-ended electives, and these days if you take one wrong class, you still have an
extra semester-plus to keep going on.


                                                29
       “Since the budget process seems to be going so smoothly each year, if you have any free
time next year, if you’d be interested in doing another affordability study, I can guarantee there
would be numerous students who would be happy to volunteer their time, testify, and share their
wisdom with you on that topic. Thank you.”

        Chairman Rock thanked all who presented the advisory committee reports.

        Chairman Rock said: “I switched the agenda items to afford President Fagan from
Governors State University an opportunity to comment with respect to the very subject of course
accreditation. Dr. Fagan said: “As an aside I would mention to Scott that we consider students
more than customers. I think we have a covenant with the students, a covenant that goes both
ways. I think it is a more serious relationship than simply a customer type of relationship.

         “The Board has before it a paper (attached to these minutes as an appendix) chronicling
the history and the background of the Master of Social Work program at GSU. It describes what
happened. First, I want to emphasize that the situation is regrettable and we recognize the
disappointment and frustration of the students. Our attention must be focused on the students –
on how to reduce the negative impact on them and, whenever possible, to make the best of what
is a poor situation. This includes a number of options for students: pursuing a related GSU
degree with tuition waived; career counseling and placement advice by a social work and human
service career counselor; tuition refunds to students admitted to the program and taking classes in
fall 2000, among other options that we’re now developing. Discussions are also taking place
regarding preferred admission to other MSW programs and the possibility of grandfathering
existing students into another accredited program.

        “Second, there are several lessons to be learned from the situation. The most important is
the need for a university to have a policy regarding admission of students into programs in which
licensing and accreditation are tied. At other institutions I’ve always adopted the policy, and
GSU has now adopted the policy, that whenever licensing is tied to program accreditation, such
program will not admit students until candidacy, as distinct from eligibility for candidacy, is
approved, and based on external evaluation, the chances for a positive accreditation are
substantial. There are other lessons, but this is the most important. Let me add that GSU
academic programs overall are of high quality, but it is also clear that the University relies on the
public’s trust. Miscalculations by well-meaning people were made in the past. As a result,
people’s trust in the University’s credibility has been questioned. This is a challenge that we will
confront directly. We must be clear as to what we expect of ourselves and promise to our
students. We will hold ourselves to a high standard and expect the public to hold us accountable.
Thank you.”

9.      Consent and Information Agenda

         Chairman Rock said, “With respect to Items 6 and 7, there are representatives of the
institutions in the audience if there are questions. Otherwise, the Chair will entertain a motion to
approve the Consent Agenda as presented. Dr. English made the motion and it was seconded by
Mr. Kaplan.

        Mr. Thompson said: “I would like to remove Item CA-6 from the Consent Agenda. I
have concerns.” Chairman Rock said, “The motion will be to approve Items CA-1, 2, 3, 4, 5, 7,
8, and 9 of the Consent Agenda.”




                                                 30
       The Board of Higher Education, on motion made by Dr. English and seconded by
Mr. Kaplan, unanimously approved the following items:

CA-1. Board Meeting Minutes – October 3, 2000

       The Board of Higher Education unanimously approved the minutes of the October 3,
2000 meeting.

CA-2. Financial Report

       The Board of Higher Education unanimously approved the financial report dated
October 31, 2000.

CA-3. Graduation Incentive Grants: Fiscal Year 2001 Allocation

         The Board of Higher Education unanimously approved the fiscal year 2001 grant
allocation of $50,000 to Western Illinois University as provided for under the Graduation
Incentive Grant Program. Payment of grants is subject to the receipt of all required documents.
The Board authorizes the Executive Director to withhold payment or to adjust a grant allocation,
if necessary, to conform with the existing statute or the rules implementing the statute.

CA-4. Engineering Grant Program: Fiscal Year 2001 Allocation

       The Board of Higher Education unanimously approved the allocation of $2,658,000 for
engineering equipment grants to the institutions in the amounts specified in Item CA-4 dated
December 13, 2000.

CA-5. Dwight D. Eisenhower Professional Development Program: Fiscal Year 2001 Grant
      Awards

        The Board of Higher Education unanimously approved the allocation of $2,151,000 from
the appropriation for the Dwight D. Eisenhower Professional Development Program to the
projects and for the amounts described in the listing in Item CA-5 dated December 13, 2000. The
Board authorizes the Executive Director to withhold payment or to adjust a grant allocation, if
necessary, to conform with existing statutes or rules.

CA-7. New Operating and/or Degree-Granting Authority for Independent Institutions

        The Board of Higher Education unanimously granted to Chicago School of Professional
Psychology Authorization to grant the Master of Arts in Organizational and Industrial
Psychology at 47 W. Polk Street in Chicago, subject to the institution’s maintenance of the
conditions that were presented in its application and which form the basis upon which this
authorization is granted.

         And unanimously granted to Dominican University the Certificate of Approval and
Authorization to Operate in Western Region #4 and Central Region #5, and further grants
Authorization to Grant the Master of Library and Information Science in these regions, subject to
the institution’s maintenance of the conditions that were presented in its application and which
form the basis upon which these authorizations are granted.




                                               31
         And unanimously granted to Morrison Institute of Technology Authorization to grant
the Associate of Applied Science in Network Administration and the Certificate in Computer
Hardware and Network Administration at 701 Portland Avenue, Morrison, Illinois 61270, subject
to the institution’s maintenance of the conditions that were presented in its application and which
form the basis upon which these authorizations are granted.

         And unanimously granted to Saint Francis Medical Center College of Nursing the
Certificate of Approval and Authorization to Operate in Western Region #4, and further grants
Authorization to Grant the Bachelor of Science in Nursing in that Region, subject to the
institution’s maintenance of the conditions that were presented in its application and which form
the basis upon which these authorizations are granted.

CA-8. New Units of Instruction at Public Community Colleges

         The Board of Higher Education unanimously granted authority for Black Hawk College
to offer the Associate in Applied Science in Carpenter Apprenticeship.

CA-9. Public University Noninstructional Project Approval

       The Board of Higher Education unanimously approved the noninstructional capital
improvement project included in Item CA-9 dated December 13, 2000.

CA-6. New Units of Instruction, Public Service and Research at Public Universities

         Mr. Thompson said: “With regard to Item CA-6, I’m concerned that an institution which
is having problems with an accreditation issue, as we just heard. In light of this, I can’t believe
that an institution would want to expand. I would think that a practical solution would be to fix
what you have before you want more. I’m willing to listen to what you all have to say.”

         Dr. English said, “Having been party to the process of program development and
approval for 33 years, I think I understand the process. I understand your concern, John, but I
think it’s unrelated to the issue of the social work program at Governors State University. They
were entering into a program and started it before they considered the licensure issues and the
accreditation issues, which was not prudent. It was a judgment mistake. These programs are not
licensable programs, so I think it’s a totally different standard. And we need this type of
program, especially within the Chicagoland area, for mathematics and mathematics in secondary
education. I think they are two unrelated things, and I think Dr. Fagan has done a major mea
culpa. It is going to take a lot of work to get out of that social work problem, but these are two
different issues. Also, the social work issue predates Dr. Fagan’s tenure as President at the
institution. So I would move approval of this item as presented.” Ms. Sloan seconded the
motion.

          Chairman Rock said, “Let me add that my sentiments are the same. I talked with John a
little this morning on this issue. One, this predates Dr. Fagan; and two, they are two separate and
distinct items. This one I think is essential, as Dr. English indicated, if we’re serious about
secondary teacher training as part of the program. So I think your concern is well expressed,
John. The Student Advisory Committee has promised us a copy of their resolution and I have
committed that it will, indeed, be discussed so that this unfortunate happenstance simply won’t
occur again. In the meantime, we have to move forward.”




                                                32
        Mr. Lesnik said, “As long as we have Dr. Fagan here and John’s asking for a
commitment, can we ask him to give us a comment on his confidence and certainty that he is
going to be able to deliver this program?”

        Dr. Fagan said, “There is no doubt whatsoever that we can commit to delivering this
program and it will be of the highest quality. We’re in the process of developing a strategic plan.
The number one component of that strategic plan will be to assure that quality infuses all
programs at the University. I will repeat what I said before. When it comes to the development
of new programs, we will have qualified and experienced people on board and the curriculum
developed before students are admitted. That is my commitment, and I wouldn’t have taken the
job unless I felt that way. I recognize your concern and I share that concern.”

        The Board of Higher Education, on motion made by Dr. English and seconded by
Ms. Sloan, unanimously granted the following universities approval to establish the following
degree programs and urban institute:

       Governors State University, B.A. in Mathematics, B.A. in Mathematics with a Secondary
Teacher Education Sequence;

       Illinois State University, North Suburban Region #1, B.S. in Special Education, M.S. and
M.S.Ed. in Curriculum and Instruction, M.S. and M.S.Ed. in Special Education; Fox Valley
Region #2, M.S. and M.S.Ed. in Curriculum and Instruction, M.S.Ed. in Reading; Chicago
Region #10, B.S. in Special Education, M.S. and M.S.Ed. in Curriculum and Instruction, M.S.Ed.
in Reading, M.S. and M.S.Ed. in Educational Administration, M.S. and M.S.Ed. in Special
Education, Ph.D. in Mathematics Education; M.S. in Instructional Technology On Campus and
Off Campus in North Suburban Region #1, South Metropolitan Region #6, Chicago Region #10;

        Northern Illinois University, B.S. in Nursing in West Suburban Region #3, MPH degree
in West Suburban Region #3;

        Southern Illinois University at Edwardsville, B.A. and B.S. in Criminal Justice Studies,
M.S. in Computer Science, Urban Institute;

         University of Illinois at Urbana-Champaign, B.S. in Molecular and Cellular Biology,
B.S. in Integrative Biology, M.F.A. in Creative Writing.

II-1.   Enrollments in Illinois Higher Education

        There was no discussion on this information item.

         Dr. Sanders said: “I just want to say with regard to Governors State, let us not forget that
Governors State University underwent an extensive accreditation review only about seven months
ago. The reviewers came back with one of the cleanest accreditation reports I have ever seen.
They gave Governors State an unqualified 10-year renewal of its accreditation. That happens
rarely, and it never happens if a university is not committed to quality.”

11.     Other Matters

       Chairman Rock said that the next meeting of the Board would be on February 6, 2001 at
the Westin Hotel. There being no further business to come before the Board, Chairman Rock
adjourned the meeting at 12 p.m.


                                                 33
        Respectfully submitted by Patricia Sexton, Secretary for the Board.




         Note: Copies of all items referred to in the minutes (i.e., letters, statements, reports, etc.)
are on file with the official minutes of the December 13, 2000 meeting.




                                                  34
                                                                                Item #CA-3
                                                                           February 6, 2001


                    ILLINOIS FINANCIAL ASSISTANCE ACT
                    FISCAL YEAR 2001 GRANT ALLOCATION


Submitted for:          Action.


Summary:                This item requests approval of the allocation of the fiscal year 2001
                        appropriation of $21.5 million for the Illinois Financial Assistance
                        Act. The grants provide direct financial assistance to independent
                        Illinois institutions of higher education based on enrollment of
                        Illinois resident undergraduate students.


Action Requested:       That the Board of Higher Education approve the allocation of
                        $21,469,100 for Illinois Financial Assistance Act grants to the 68
                        institutions and for the amounts specified in this item.




                                           1
2
                                                                                      Item #CA-3
                                                                                 February 6, 2001


                                  STATE OF ILLINOIS
                              BOARD OF HIGHER EDUCATION


                      ILLINOIS FINANCIAL ASSISTANCE ACT
                      FISCAL YEAR 2001 GRANT ALLOCATION

         This report includes the recommended allocation of fiscal year 2001 grants under the
Illinois Financial Assistance Act for Nonpublic Institutions of Higher Learning. The Act
authorizes the Board of Higher Education to make grants of direct financial assistance to Illinois
independent institutions of higher education. To be eligible for a grant, an institution must meet
the following statutory criteria: be not-for-profit; be in conformity with standards equivalent to
those of the state-supported institutions; provide at least a two-year program of collegiate grade
in the liberal arts and sciences directly applicable to the attainment of a baccalaureate degree;
maintain an open policy with respect to race, creed, and color for the admission of students and
appointment of faculty and staff; be able to demonstrate its current financial stability and
prospects for future stability; and assure that the institution's governing board possesses its own
sovereignty and final authority in all matters of local control. In addition, an institution must
meet the eligibility and application requirements provided for in the rules for administration of
the Act.

        Grants are based on the number of full-time-equivalent (FTE) Illinois resident students
enrolled at eligible institutions. Grants are calculated using a formula based on weighted FTE
which is the total lower-division FTE (freshman and sophomore level) plus two times the
upper-division FTE (junior and senior level).

        Fiscal year 2001 grants are recommended for 68 institutions which have a total weighted
FTE of 102,481 (lower-division FTE of 39,099 plus two times the 31,691 upper-division FTE).
The fiscal year 2001 appropriation is $21,469,100 and is distributed among the institutions at a
rate of approximately $209 per weighted FTE. Grants to some institutions have been adjusted
due to overpayment as identified by fiscal year 2000 audits.

        The staff recommends adoption of the following resolution:

         The Board of Higher Education hereby approves the fiscal year 2001 grant allocations
totaling $21,469,100 as provided for under the Illinois Financial Assistance Act for Nonpublic
Institutions of Higher Learning. Payment of grants is subject to the receipt of all required
documents. The Board authorizes the Executive Director to withhold payment or to adjust a
grant allocation, if necessary, to conform with the existing statute or the rules implementing the
statute.




                                                3
4
                                  ILLINOIS FINANCIAL ASSISTANCE ACT
                            FOR NONPUBLIC INSTITUTIONS OF HIGHER LEARNING
                                     FISCAL YEAR 2001 ALLOCATION


                                            Lower          Upper     FY2001     Adjustments
                                           Division       Division   Weighted   For FY2000         FY2001
               Institution/City              FTE            FTE       FTE       Overpayment       Allocation

Augustana College (Rock Island)              1,119            886      2,891                  $     605,878
Aurora University (Aurora)                     448            594      1,636                        342,863
Barat College (Lake Forest)                    273            248        769                        161,162
Benedictine University (Lisle)                 816            694      2,204                        461,901
Blackburn College (Carlinville)                305            172        649                        136,014
Blessing-Rieman College of Nursing
   (Quincy)                                      5             26         57                         11,946
Bradley University (Peoria)                  2,043          1,752      5,547                      1,162,507
Columbia College Chicago (Chicago)           3,017          2,193      7,403                      1,551,476
Concordia University (River Forest)            338            275        888                        186,102
DePaul University (Chicago)                  4,666          3,394     11,454                      2,400,461
Dominican University (River Forest)            440            405      1,250                        261,968
East-West University (Chicago)                 627             84        795                        166,611
Elmhurst College (Elmhurst)                    714          1,196      3,106                        650,937
Eureka College (Eureka)                        257            200        657                        137,690
Finch University of Health Sciences/
  Chicago Medical School (North Chicago)         -              5         10                          2,096
Greenville College (Greenville)                318            385      1,088                        228,017
Illinois College (Jacksonville)                511            345      1,201                        251,698
Illinois College of Optometry
  (Chicago)                                      -            103        206                         43,172
Illinois Institute of Technology
  (Chicago)                                    337            412      1,161                        243,315
Illinois Wesleyan University
  (Bloomington)                              1,061            865      2,791                        584,921
Judson College (Elgin)                         302            379      1,060                        222,148
Kendall College (Evanston)                     290            144        578                        121,134
Knox College (Galesburg)                       279            293        865                        181,282
Lake Forest College (Lake Forest)              306            242        790                        165,563
Lakeview College of Nursing (Danville)           6             27         60                         12,574
Lewis University (Romeoville)                  974          1,282      3,538                        741,473
Lexington College (Chicago)                     39              -         39                          8,173
Lincoln College (Lincoln)                      885              -        885                        185,473
Loyola University of Chicago
  (Chicago)                                  2,029          2,121      6,271                      1,314,239
MacCormac College (Chicago)                    361              -        361                         75,656
MacMurray College (Jacksonville)               618            320      1,258                        263,644
McKendree College (Lebanon)                    548            681      1,910                        400,286
Midwestern University (Downers Grove)            -            477        954                        199,934




                                                      5
                                                 Lower          Upper     FY2001     Adjustments
                                                Division       Division   Weighted   For FY2000         FY2001
               Institution/City                   FTE            FTE       FTE       Overpayment       Allocation

Millikin University (Decatur)                      1,066            867      2,800                 $      586,807
Monmouth College (Monmouth)                          564            421      1,406                        294,661
Morrison Institute of Technology
 (Morrison)                                          156              -        156                         32,694
NAES College (Chicago)                                 5              -          5                          1,048
National-Louis University
 (Evanston)                                          734          1,022      2,778                        582,197
National University of Health Sciences
 (Lombard)                                             -            116        232                         48,621
North Central College
 (Naperville)                                        833            788      2,409                        504,864
North Park University (Chicago)                      519            308      1,135                        237,866
Northwestern University (Evanston)                 1,778          1,079      3,936                        824,883
Olivet Nazarene University
 (Kankakee)                                          478            463      1,404                        294,242
Quincy University (Quincy)                           410            327      1,064    $   5,571           217,416
Ravenswood Hospital Medical Center
 Henry J. Kutsch College of Nursing (Chicago)         54              -         54                         11,317
Robert Morris College (Chicago)                    3,513          1,158      5,829                      1,221,607
Rockford College (Rockford)                          359            451      1,261                        264,273
Roosevelt University (Chicago)                     1,003          1,380      3,763                        788,627
Rush University (Chicago)                              -            140        280        1,651            57,030
St. Anthony College of Nursing
 (Rockford)                                            -             56        112                         23,472
St. Augustine College (Chicago)                      859             46        951                        199,305
St. Francis Medical Center College
 of Nursing (Peoria)                                   -            111        222                         46,525
St. John's College (Springfield)                       -             61        122                         25,568
St. Xavier University (Chicago)                    1,017            947      2,911                        610,070
Scholl College of Podiatric
 Medicine (Chicago)                                    -             15         30                          6,287
School of the Art Institute
 of Chicago (Chicago)                                151            188        527                        110,446
Shimer College (Waukegan)                             19             36         91                         19,071
Springfield College in Illinois
 (Springfield)                                       266              -        266                         55,747
Trinity Christian College
 (Palos Heights)                                     220            151        522        1,032           108,366
Trinity College of Nursing (Moline)                   43             19         81                         16,975
The University of Chicago (Chicago)                  473            445      1,363                        285,649
University of St. Francis (Joliet)                   512            775      2,062                        432,142
Vandercook College of Music
 (Chicago)                                            30             22         74                         15,508
West Suburban College of Nursing
 (Oak Park)                                            -             48         96                         20,119

 Subtotal-Institutions                            38,994         31,640    102,274    $   8,254    $ 21,425,717




                                                           6
                                     Lower          Upper     FY2001     Adjustments
                                    Division       Division   Weighted   For FY2000         FY2001
                  Hospitals           FTE            FTE       FTE       Overpayment       Allocation

BroMenn Regional Medical Center
 (Normal)                                15              -         15                  $       3,144
Graham Hospital Association
 (Canton)                                19              8         35                          7,335
Methodist Medical Center (Peoria)        63             43        149                         31,227
United Samaritans Medical Center
 (Danville)                               8              -          8                          1,677

 Subtotal-Hospitals                     105             51        207    $   -0-       $      43,383


 TOTAL - ALL INSTITUTIONS            39,099         31,691    102,481    $   8,254     $ 21,469,100




                                               7
8
                                                                                Item #CA-4
                                                                           February 6, 2001


                    INTERNATIONAL CAREER ACADEMY
                         FISCAL YEAR 2001 GRANT


Submitted for:      Action.


Summary:            This item proposes allocation of a fiscal year 2001 appropriation of
                    $169,500 for career academy grants to the Illinois Mathematics and
                    Science Academy to develop an International Career Academy. The
                    Career Academy will support unique study opportunities for high school
                    students in the areas of policy development, international education and
                    policy, and economics and finance.


Action Requested:   That the Board of Higher Education authorize the Executive Director to
                    enter into a grant agreement and to distribute fiscal year 2001 funds for
                    the general grant identified in this item.




                                           9
10
                                                                                      Item #CA-4
                                                                                 February 6, 2001

                                  STATE OF ILLINOIS
                              BOARD OF HIGHER EDUCATION


                        INTERNATIONAL CAREER ACADEMY
                             FISCAL YEAR 2001 GRANT

         In addition to appropriations for office operations and continuing grant programs
administered by the Board of Higher Education, the General Assembly passed and Governor
George H. Ryan enacted an appropriation of $169,500 for Career Academy Grants. The intent of
this legislation was to support unique study opportunities for high school students in the areas of
policy development, international education and policy, and economics and finance.

         The Illinois Mathematics and Science Academy (IMSA), working with the Illinois
Consortium on International Education, state education agencies, other government agencies and
private sector business and industry, proposes to develop the International Career Academy. The
International Career Academy will provide a graduated career practicum for high school students
who have demonstrated a sustained interest in international studies. Students will have internship
and externship opportunities to provide for the development of a workforce for Illinois business,
industry, government and education that will possess the skills which will enable it to compete
effectively for Illinois in the global economy. A more detailed description is provided in the
attached narrative.

        The staff recommends adoption of the following resolution:

        The Board of Higher Education hereby authorizes the Executive Director to enter into a
grant agreement, where necessary to comply with state statute and administrative rules, and to
distribute fiscal year 2001 funds for the grant identified in this item.




                                                11
                                 International Career Academy

         The Illinois Commitment: Partnerships, Opportunities, and Excellence, an initiative of
the Governor and Illinois Board of Higher Education, makes “preparation of high school students
for postsecondary training and education and for careers” a priority of higher education and
calls for partnership activity between business, industry and Illinois education agencies to help
Illinois business and industry sustain strong economic growth.

         Governor Ryan has long espoused the concept of preparing an international workforce for
Illinois. An initiative to enhance the international dimension of higher education was passed into
law in 1992 under Governor Ryan’s leadership; however, the agenda to enhance the international
dimension of K-12 education has not advanced as far, mainly due to the pressing nature of other
educational priorities. To address the need for greater attention to the international dimension in
Illinois schools, a fiscal year 2001 appropriation of $169,500 to the Illinois Board of Higher
Education was enacted to provide for Career Academy Grants. For that purpose, the Illinois
Mathematics and Science Academy, in conjunction with the Illinois Consortium on International
Education and the Joint Education Committee, proposes the development of the International
Career Academy (ICA).

         The International Career Academy is conceived as a capstone program made available by
the Illinois Math and Science Academy (IMSA) to students who have demonstrated a sustained
interest in international academic and professionally-related pursuits. Students now live in a
global environment, an environment that is characterized by diversity in language, culture and
ethnicity. Thus, graduates must be prepared to thoughtfully and deliberately approach critical,
international issues in the highly competitive global workplace. Academic and applied
experiential opportunities should be combined to lead students to admission to capstone
experiences through an International Career Academy. The goal shall be to translate secondary
school student interest in the international dimension into enrollment in collegiate career studies
with international focus.

        Public Act 87-1179 statutorily charged Illinois higher education to facilitate the
coordination of international academic programming and international activities, integrating those
programs and activities into the teaching, research and service missions of Illinois institutions of
higher education; and to facilitate the development of an international workforce for Illinois
business and industry that is prepared to compete successfully for the benefit of the Illinois
economy in the global business, scientific and cultural environments.

        In accord with their responsibility for workforce preparation, Illinois education agencies
and institutions will be requested to work together with IMSA to establish and provide
opportunities for the International Career Academy. Establishment of guidelines for the
International Career Academy shall be the responsibility of the Illinois Mathematics and Science
Academy working with the Illinois Consortium on International Education, Illinois Board of
Higher Education, Illinois State Board of Education, and Illinois Community College Board.




                                                12
                                                                             Item #CA-5
                                                                        February 6, 2001


                 NEW UNITS OF INSTRUCTION, PUBLIC SERVICE,
                   AND RESEARCH AT PUBLIC UNIVERSITIES


Submitted for:          Action.


Summary:                This item recommends approval for Northern Illinois University to
                        offer the Master of Science in Education (M.S.Ed.) degree in
                        Educational Administration in South Metropolitan Region #6.


Action Requested:       That the Board of Higher Education approve the program described
                        in this item.




                                         13
14
                                                                                       Item #CA-5
                                                                                  February 6, 2001

                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


                NEW UNITS OF INSTRUCTION, PUBLIC SERVICE,
                  AND RESEARCH AT PUBLIC UNIVERSITIES

        By statute, the Board of Higher Education is responsible for approving new on- and off-
campus units of instruction, organized research and public service, and administration proposed
by public university governing boards. The Board’s approval criteria, defined in rules adopted
for administering the statute, address university mission, academic control, faculty and staff,
support services, financial resources, student demand, curriculum, statewide need, and
congruence with Board policies and priorities. In addition to the approval criteria in the rules,
each program was reviewed for its contributions to the goals of The Illinois Commitment that set
forth new priorities to guide Illinois higher education in the first decade of the new millennium.

        This item recommends approval for Northern Illinois University to offer one master's
degree program off campus. The proposed program responds to unmet needs for public school
administrators. This graduate program addresses multiple goals of The Illinois Commitment
pertaining to the needs of Illinois public schools.

Northern Illinois University

    •   M.S.Ed. in Educational Administration in South Metropolitan Region #6

         Northern Illinois University is seeking approval to offer the M.S.Ed. in Educational
Administration degree in South Metropolitan Region #6. This degree will enable experienced
public school teachers to develop the competencies to be effective school leaders. Those teachers
who already have earned a baccalaureate degree and a certificate will, through the proposed
M.S.Ed. in Educational Administration degree program, gain the Illinois Type 75 general
administrative endorsement. The program will involve teachers from six to eight school districts
in the South Metropolitan Region, which are already experiencing shortages of building-level
leaders such as principals, assistant principals, curriculum coordinators, and department chairs. It
is anticipated that the shortage will be exacerbated as retirements increase in the next few years.
The proposed program will also support the University's commitment to increasing partnerships
with regional educational institutions and agencies.

        The University plans to deliver the program using traditional delivery mechanisms and
distance education technology as a supplemental delivery strategy. Admission and graduation
requirements, curriculum, and courses are the same for the off-campus program as for the on-
campus program. Students complete 33 semester hours of degree requirements, including an
internship in their local school district, and a comprehensive examination.

        Northern Illinois University estimates fall on-campus enrollments in the M.S.Ed. in
Educational Administration in South Metropolitan Region #6 will be 30 the first year, with 27
students graduating within three years. Similarly, it is projected that a new cohort of
approximately 30 students will be admitted in the third and fifth years, and 27 degrees will be



                                                15
awarded in each of these student cohorts within three years from initial enrollment. Northern
Illinois University has reported 155 and 179 fall enrollments for 1998 and 1999, and 125 and 68
degrees awarded for fiscal years 1998 and 1999 for the same program currently offered on
campus and in four other off-campus regions.

        The courses offered in Region #6 will be delivered in selected facilities based on the
availability of equipment needed to support course delivery. In addition to standard classroom
space available at these facilities, the program may take advantage of distance education facilities
including those with videoconferencing and Internet technologies for course delivery. The Web-
based delivery of supportive course materials will use currently available university support
services.

          The M.S.Ed. in Educational Administration courses will be taught by a mix of full-time
and part-time faculty similar to that for on-campus educational administration courses. Field-
based experts who have experience in school administration may be employed to enhance the
supervision of internship experiences. An academic advisor, who may be contacted by telephone
during office hours or by e-mail, will provide on-site assistance at the off-campus sites. A set of
specific courses for the program will be delivered according to a pre-announced schedule.
Computer laboratories at local schools and community college locations will also be used. All
students will have full library privileges in the University libraries and reciprocal guest privileges
at most academic libraries in the region. Access to University library resources including
electronic journals, databases, and course reserve documents will be made via high-speed Internet
connections.

        Six methods currently used to assess the outcomes of the on-campus program also will be
applied to the off-campus program: 1) portfolios; 2) comprehensive examination; 3) internship
performance; 4) state certification examination; 5) enrollment, retention, and graduation rates and
time to degree; and, 6) employment in the field and career advancement.

        No new state resources are needed to establish the program.

        The staff recommends adoption of the following resolution:

       The Illinois Board of Higher Education hereby grants approval to the following
University to establish the degree program identified below:

        Northern Illinois University
               M.S.Ed. in Educational Administration in South Metropolitan Region #6




                                                 16
                                                                                 Item #CA-6
                                                                            February 6, 2001


            NEW OPERATING AND/OR DEGREE-GRANTING AUTHORITY
                     FOR INDEPENDENT INSTITUTIONS


Submitted for:        Action.


Summary:              The Illinois Board of Higher Education has responsibility for
                      administration of "The Private College Act" (110 ILCS 1005) and
                      "The Academic Degree Act" (110 ILCS 1010). Under these statutes,
                      new independent institutions, institutions planning to operate at a
                      new location including a new off-campus site, and out-of-state
                      institutions planning to operate in Illinois for the first time are
                      required to obtain authorization to operate. These institutions also are
                      required to obtain authorization for each new degree program.


Action Requested:     That the Board of Higher Education approve recommendations to
                      grant operating and/or degree-granting authority to the following
                      institutions:

                      Aurora University—Master of Business Administration in West
                      Suburban Region;

                      Benedictine University—Master of Education in North Suburban,
                      Fox Valley, South Metropolitan, and Chicago regions;

                      International Academy of Merchandising and Design—Associate of
                      Applied Science in E-Commerce; and

                      Westwood College of Technology-Chicago West—A.A.S. degrees in
                      CAD/Architectural Drafting, Computer Network Engineering,
                      Computer Network Technology, Computer Programming and
                      Software Technology, Graphic Design and Multimedia, and Medical
                      Assisting.




                                         17
18
                                                                                         Item #CA-6
                                                                                    February 6, 2001

                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


            NEW OPERATING AND/OR DEGREE-GRANTING AUTHORITY
                     FOR INDEPENDENT INSTITUTIONS

          The Illinois Board of Higher Education has responsibility for administration of "The
Private College Act" (110 ILCS 1005) and "The Academic Degree Act" (110 ILCS 1010). Under
these statutes, new independent institutions, institutions planning to operate at a new location
including a new off-campus site, and out-of-state institutions planning to operate in Illinois for
the first time are required to obtain authorization to operate. These institutions also are required to
obtain authorization for each new degree program.

         Applications for new operating and degree-granting authority submitted by independent
Illinois institutions and out-of-state institutions are reviewed by the staff. Recommendations are
developed by applying criteria for operating and/or degree-granting authority, which are defined
in the rules adopted for administration of the statutes. These criteria encompass educational
objectives, institution and degree titles, curricula, facilities, faculty and administrator
qualifications, student policies, publications, records, compliance with pertinent laws, and fiscal
stability. Staff recommendations are based on analyses of application materials, responses to
questions, and site visits. Off-campus sites are defined as ten regions comprised of various
community college districts in which an institution wishes to operate. Approval to operate within
a region means that once the Board of Higher Education has granted approval, approval pertains
to the entire geographic area in the region, not solely the site at which the institution initially
applied.

         This item includes recommendations to grant operating and/or degree-granting authority
to four institutions.




                                                  19
Aurora University
347 South Gladstone Avenue
Aurora, Illinois 60506
President: Dr. Rebecca Sherrick

        Background and History. Aurora University was originally founded as Mendota
Seminary in 1893, and subsequently renamed Mendota College. In 1911, the institution moved to
Aurora and was renamed Aurora College. In 1947, the College's evening program was initiated
as one of the first adult education programs at a liberal arts college. In 1985, the College was
renamed Aurora University and now provides over 50 undergraduate and 16 graduate majors.
Aurora University established the New College in 1991 to serve the needs of non-traditional adult
students, many who were studying in off-campus settings. The North Central Association of
Colleges and Schools has accredited the University since 1938. In fall 1999, the University
enrolled approximately 2,400 students.

        Program Description. Aurora University is seeking approval to offer the Master of
Business Administration in the West Suburban Region. The program is accredited by the
Association for Collegiate Business Schools and Programs (ACBSP). It will be delivered at the
DuPage County Airport that has made available facilities for this purpose. This site is within 12
miles of the main campus making access to library and other resources easily accessible to
students. However, the University also will provide on-line computer access to students at the off-
campus site allowing for remote library access.

         At the outset, the full-time faculty of the University, all but one of who have a doctoral
degree, will conduct the program. It is expected that part-time students may complete the
program in as few as 36 months if they progress with the cohort of students with whom they
entered. The University expects approximately 50 students to enroll in the program in the first
year, increasing to 120 students by the third year.

         The program requires completion of 36 semester credits in coursework encompassing the
following topics: marketing; organizational management and leadership; business research
methods; financial analysis; investments; human resources; entrepreneurship; and management
dynamics and skills. Admission requirements include a baccalaureate degree in a business
discipline although the University has identified a series of five prerequisite courses for students
who do not have this discipline background: foundations of accounting; principles of
management; foundations of economics; principles of marketing; and general statistics.

         The University has a student learning outcomes assessment system that focuses on broad
outcomes; tracking students through the courses making up the program; exit survey; nationally
normed alumni surveys; and formal and informal faculty assessment of student progress in areas
such as writing and presentation. These measures occur within a four-year timeframe and result
in curriculum enhancements, course revisions, and administrative improvements.

        Staff Conclusion. The staff believes that Aurora University and its proposed program
meet the criteria in Sections 1030.30 and 1030.60 of the rules to implement "The Private College
Act" (110 ILCS 1005) and "The Academic Degree Act" (110 ILCS 1010).




                                                20
Benedictine University
5700 College Road
Lisle, Illinois 60532-0900
President: Dr. William J. Carroll

        Background and History. Benedictine University was founded in 1887. The University
was first chartered in Chicago by the state of Illinois in 1890. Later it was decided that the
college should be located outside the city. The University became fully coeducational in 1968.
The fall 1999 enrollment was 2,600, including students in several master’s degree programs and a
single doctoral program. The Commission on Institutions of Higher Education of the North
Central Association of Colleges and Schools accredits Benedictine University.

         Program Description. Benedictine University is seeking approval to offer a field-based
Master of Education: Leadership and Administration in North Suburban, Fox Valley, South
Metropolitan, and Chicago regions. The program will address two of The Illinois Commitment
goals: increasing the educational attainment of Illinois citizens and extending access to programs
across the state. This program also may lead to an Illinois State Board of Education Type 75
Certificate in General Administration. The coursework, internship and administrative portfolio
are all informed by the six Illinois Content Area Standards for Administrative Fields.

        As part of the initial course in the curriculum, Introduction to Technology, all students
complete a proficiency instrument during the first class meeting followed by individual
conversations with instructors. Students also complete an exit assessment using a written
instrument and instructor interviews. In all courses applicable to the Type 75 Certificate, students
are required to engage in practical application of course content and are evaluated primarily
through performance-based measures.

        The program is made up of 19 courses ranging from one to four hours of credit. At
least 33 semester credits must be completed in courses such as school law, school finance,
organization and administration of schools, adult learning strategies, instructional technology,
performance appraisal, conflict management, issues and trends in school improvement, and
curriculum and instruction.

         The University expects a maximum of nine cohorts—approximately 160 students—in the
four regions for which it is seeking approval. The audience for the program is practicing teachers
seeking advanced degrees in education, primarily in education administration. Faculty in the
program will be a mix of full-time and adjunct professors. Since all students in the program will
be required to have a laptop computer, the University will provide library access to all via Illinet
Online, Illinois Bibliographic Information Service (IBIS), InfoTrac, FirstSearch, EBSCOhost, and
LIBRAS (a consortium of 18 private academic libraries in the Chicago area.) Document delivery
from the University’s main library also will be available for students enrolling in the program.
The program will be delivered at school sites which will be required to provide at least T-1
Internet access, data projectors, whiteboards, printers, overhead projectors and screens, VCRs and
monitors, and computer projection devices with Internet accessibility.

        Staff Conclusion. The staff believes that Benedictine University and its proposed
program meet the criteria in Sections 1030.30 and 1030.60 of the rules to implement "The Private
College Act" (110 ILCS 1005) and "The Academic Degree Act" (110 ILCS 1010).




                                                21
International Academy of Merchandising and Design, Limited
One North State Street, Suite 400
Chicago, Illinois 60602-9736
President: Helen M. Carver

         Background/History. The International Academy of Merchandising and Design, Ltd. is
a for-profit corporation chartered by the state of Illinois. The institution's mission is to provide
academic excellence in Merchandising Management, Fashion Design, Interior Design,
Advertising and Design, Computer Graphics, and Interactive Media through a career-related and
general curriculum. The institution’s main campus is in Chicago with branch campuses located
in Tampa, Florida; Montreal, Canada; and Toronto, Canada. In May 1981, the Illinois Board of
Higher Education granted the Academy authority to offer the Associate of Applied Science in the
following areas: Interior Design, Fashion Design, and Fashion Merchandising. In May 1987, the
institution received Board of Higher Education approval to offer the Bachelor of Fine Arts in
Interior Design and the Bachelor of Arts in Fashion Merchandising Management. In July 1991,
the institution received approval to offer the Associate of Applied Science in Advertising
Design/Communications, and the Bachelor of Fine Arts in Advertising Design/Communications.
In 1999, the institution received approval to offer the Bachelor of Fine Arts in Multimedia
Production and Design, the A.A.S. in PC/LAN, and the Certificate in PC/LAN. The institution
also operates under the authority of the Private Business and Vocational Schools Act
administered by the State Board of Education. The International Academy of Merchandising and
Design, Ltd. is accredited by the Accrediting Council of Independent Colleges and Schools.
Fall 2000 enrollments at the Academy totaled 1,739 students.

         Program Description. The International Academy of Merchandising and Design, Ltd. is
requesting authority to offer the Associate of Applied Science in E-Commerce. The proposed
degree program is designed to meet industry demands for graduates who possess the relevant
skills needed to develop and support Internet solutions within a commercial environment. The
program will expand the scope of current programs offered at the institution as well as address
requests from students for a two-year electronic commerce program. Admission to the program
is limited to students holding a high school diploma or equivalent.

         The program includes 24 quarter credit hours of general education coursework in
interpersonal communication, beginning and advanced composition, critical thinking, quantitative
literacy, social science, economics, and a general education elective. The program major core
consists of additional coursework in business, information technology and society, web design, e-
commerce, consumer behavior, e-business technologies, Internet marketing, Java programming,
visual basic programming, product development, e-marketing, Internet project management, web
statistics and strategies, programming for e-commerce, retailing practices and principles,
principles of marketing, human-computer interaction, programming for the Internet,
programming concepts, introduction to database systems, and professional development planning.
Students complete a three-quarter credit hour internship in the final quarter. The proposed
program will serve full-time adult students. The institution anticipates that 20 students will enroll
during the associate degree program's first year of operation, increasing to 152 by the program's
fifth year.

        Existing faculty will teach many of the courses for the proposed program, and other
qualified faculty are scheduled to be hired as needed. The institution's catalog and other materials
detailing program requirements and institutional policies and procedures governing faculty and
student affairs are clear and not misleading. Library, equipment, and instructional resources are



                                                 22
adequate, and financial resources available to the institution are adequate to meet stated
objectives and fulfill commitments to students.

        The International Academy of Merchandising and Design has systematic procedures for
ensuring that all academic programs offered by the institution are evaluated regularly. These
procedures are designed to provide a comprehensive assessment of program quality and
effectiveness as well as student learning outcomes.

         Staff Conclusion. The staff believes that the program proposed by the International
Academy of Merchandising and Design meet the criteria in Sections 1030.30 and 1030.60 of the
rules to implement "The Private College Act" (110 ILCS 1005) and "The Academic Degree Act"
(110 ILCS 1010).


Westwood College of Technology-Chicago West
1805 High Point Drive
Naperville, Illinois 60563
Executive Director: Christa Jones

        Background/History. The stated mission of Westwood College of Technology-Chicago
West is to offer high quality associate of applied science degree programs and other non-degree
programs while providing a positive and cooperative environment that promotes respect, pride,
and teamwork among staff and students. Alta Colleges, Inc., Westwood's corporate parent, owns
and operates two career schools in Illinois (Schiller Park and Calumet City), and seven career
schools outside of Illinois, three in Colorado, three in California, and one in Texas. The Illinois
school in Schiller Park received a Certificate of Approval from the Illinois State Board of
Education in October 1999 to offer non-degree programs in a number of subject areas; and
received operating and degree-granting authority from the Illinois Board of Higher Education in
January 2000 to offer A.A.S. degrees in computer programming and software technology,
CAD/architectural drafting, computer network technology, graphic design and multimedia, and
medical assisting.

        The Illinois school in Calumet City received a Certificate of Approval from the Illinois
State Board of Education in July 2000 to offer non-degree programs in a number of subject areas,
and received operating and degree-granting authority from the Illinois Board of Higher Education
in October 2000 to offer A.A.S. degrees in computer programming and software technology,
CAD/architectural drafting, computer network technology, computer network engineering,
graphic design and multimedia, and medical assisting.

        The current application is for a third Illinois school to be located in Naperville, Illinois.
Total enrollment for the Naperville school is anticipated to be 70 during the first year of
operation, increasing to 450 students by the school’s third year. The ACICS approval of the
degree programs is subject to Board of Higher Education approval of the degree programs.

        Institution/Program Description. Westwood College of Technology-Chicago West is
requesting authorization to operate and to offer A.A.S. degrees in CAD/Architectural Drafting,
Computer Network Engineering, Computer Network Technology, Computer Programming and
Software Technology, Graphic Design and Multimedia, and Medical Assisting at 1805 High
Point Drive, Naperville, Illinois. The proposed programs build upon diploma programs approved
by the State Board of Education. Admission to the institution's degree programs requires a high
school diploma or equivalent and an acceptable score on one of the following tests: Standard


                                                 23
Achievement Test (SAT), American College Testing (ACT), or Career Programs Assessment
Test (CPAT).
                         A.A.S. in CAD/Architectural Drafting

         The A.A.S. in CAD/Architectural Drafting prepares students with the knowledge and
skills necessary to enter the field of architectural drafting. Program emphasis is on the design and
computerized drafting required in the working world. The student also will receive a complete
theoretical background including applied mathematics and communication. The program’s major
core consists of courses in basic drafting, CAD1-Basic AutoCAD, residential construction
technology, residential and commercial CAD design, AutoLISP/Customization, 3-D AutoCAD,
and residential and commercial construction documents, commercial construction documents II,
and computer applications. The program requires 24 quarter credits of general education
coursework to include college-level courses in college writing, communications techniques,
technology and society, human relations, introduction to physical science, college algebra I and
II, and trigonometry. In addition, all students must complete a three-quarter credit hour course,
Success Strategies.

                            A.A.S. in Computer Network Engineering

         The A.A.S. in Computer Network Engineering encompasses all the skills that are
required to design, operate, and troubleshoot an enterprise network. The program includes all of
the training in network operating systems and network hardware devices offered in the Computer
Network Technology program, adding specific learning in the areas of Microsoft Network
Operating System technology and administration. The major core includes courses in
introductory and advanced microcomputers, workstation operation system, introduction to
networks, Microsoft Network Operating System, Internetworking I, Internetworking II, UNIX
Systems Administration, Introduction to HTML, UNIX Operating System, Advanced Enterprise
Administration I, Advanced Enterprise Administration II, computer applications, and database
applications. The program requires 24 quarter credits of general education coursework to include
college writing, communication techniques, American government, college algebra I and II,
introduction to physical science, human relations, and technology and society. During their first
quarter, all students must complete a three-quarter credit hour course, Success Strategies.

                             A.A.S. in Computer Network Technology

        The A.A.S. in Computer Network Technology is designed to provide students with the
skills and knowledge necessary to obtain entry-level positions in the field of computer
networking and system administration. The program covers installation and configuration of
hardware/software; design and construction of local area networks and wide area networks; and
the installation, configuration, administration, tuning and troubleshooting of network operating
systems. The program major core includes courses in introductory and advanced microcomputers,
workstation operation system, introduction to networks, Microsoft Network Operating System,
Internetworking I, Internetworking II, UNIX Systems Administration, Introduction to HTML,
UNIX Operating System, computer applications, and database applications. The program
incorporates 24-quarter credits of general education coursework to include college-level courses
in writing and communications, American government, college algebra I and II, introduction to
physical science, technology and society, and human relations. In addition, all students must
complete a three-quarter credit hour course, Success Strategies.




                                                24
                   A.A.S. in Computer Programming and Software Technology

         The proposed A.A.S. in Computer Programming and Software Technology would
provide students with the skills and knowledge necessary to successfully pursue entry-level
positions in the field of computer programming, using equipment and software commonly
employed in the working world. The major consists of courses in programming, UNIX, HTML,
Visual Basic, object oriented program design, C levels I and II, C++ Programming, Perl
Programming, Database Design, ANSI Standard, Relational Database Management Systems, Java
Scripting, database applications, and computer applications. The program requires 24 quarter
credits of general education coursework to include courses in college writing, communication
techniques, American government, technology and society, human relations, college algebra I
and II, and introduction to physical science. In addition, all students must complete a three-
quarter credit hour course, Success Strategies.

                            A.A.S. in Graphic Design and Multimedia

        The A.A.S. in Graphic Design and Multimedia is designed to provide students with the
design, computer, and up-to-date software skills needed to obtain employment as a graphic
designer. Students will use color and type in a hands-on environment and work on Macintosh
computers to produce original art for color comprehensive design layouts, prepress, and
multimedia. Students also will explore the full range of graphic design including image editing,
web page design, animation, and computer presentations, enabling them to move into the
marketplace with the job skills necessary for a rewarding career. The program's major core
includes courses in graphic design, digital illustration and digital layout, Image Editing, Web
Page Design, Multimedia/Presentation Graphics, Multimedia/Audio-Video, Modeling and
Animation, Graphic Design Business Practices, Advanced Design/Portfolio Review, computer
applications, and a professional externship. The program requires 24 quarter credits of general
education coursework to include college-level writing, communications techniques, college
algebra I, art history, psychology, introduction to physical science, human relations, and
technology and society. In addition, all students must complete a three-quarter credit hour course,
Success Strategies.

                                    A.A.S. in Medical Assisting

         The A.A.S. in Medical Assisting prepares students for positions in a physician's office,
health care center, or clinic. The program provides students with a complete range of high-level
front office and back office skills appropriate to work in these healthcare settings. The major core
includes courses in medical terminology, medical office procedures, medical law and ethics, basic
clinical procedures, financial management, medical insurance, behavior science, microbiology,
pharmacology, minor surgical procedures, advanced clinical procedures, electrocardiology
(EKG), medical laboratory procedures, "working with specialties," limited-scope radiology, and
computer applications. The program includes a practicum in a specialty area and a six-quarter
credit externship. The program requires 27 quarter credits of general education coursework to
include college-level courses in college writing, communication techniques, college algebra,
anatomy and physiology, psychology, American government, and technology and society. In
addition, all students must complete a three-quarter credit hour course, Success Strategies. The
Commission on Accreditation of Allied Health Education Programs through the American
Association of Medical Assistants will accredit the A.A.S. in Medical Assisting.

        Students in all programs may achieve advanced standing in the institution's programs by
proficiency or by transfer of credits from an accredited institution that are applicable to the


                                                25
student's program of study at Westwood. For associate degree programs, no more than 50 percent
of a program's credits may be transferred or exempted through proficiency examinations.
Westwood College of Technology-Chicago West does not award credit for life experience.

         Faculty teaching the general education courses will be expected to hold a master's degree
or higher and have prior teaching experience. Hiring criteria for technical courses include a
bachelor's degree or appropriate certification, and a minimum of three years of related practical
work experience. Facilities and equipment are adequate to support the proposed programs. The
institution's tuition and refund policies are reasonable. Westwood requires an end-of-course,
outcomes-based assessment for every course in its degree programs to test whether the student
has acquired the knowledge, skills, and abilities that will be needed to perform the work required
in the job or career for which that student was educated. In courses with a laboratory component,
this assessment involves actually testing the student's competency in the skills taught, using the
equipment on which the student was trained, i.e., the equipment that the student will be using on
the job. For didactic and theory-based courses, the assessments represent the most appropriate
selection of educational tests for a particular course, for example, selected response items, open-
ended questions, or multiple measures.

        Staff Conclusion. The staff believes Westwood College of Technology-Chicago West
and its proposed programs meet the criteria in Sections 1030.30 and 1030.60 of the rules to
implement "The Private College Act" (110 ILCS 1005) and "The Academic Degree Act" (110
ILCS 1010).

        The staff recommends adoption of the following resolutions:

        The Illinois Board of Higher Education hereby grants to Aurora University the
Authorization to Grant the Master of Business Administration degree in West Suburban
Region #3, subject to the institution’s maintenance of the conditions that were presented in its
application and which form the basis upon which this authorization is granted.

        The Illinois Board of Higher Education hereby grants to Benedictine University
Authorization to Grant the Master of Education: Leadership and Administration in North
Suburban Region #1, South Metro Region #6, Fox Valley Region #2, and Chicago Region #10,
subject to the institution’s maintenance of the conditions that were presented in its application
and which form the basis upon which these authorizations are granted.

        The Illinois Board of Higher Education hereby grants to International Academy of
Merchandising and Design authorization to Grant the Associate of Applied Science in
E-Commerce subject to the institution's maintenance of the conditions that were presented in its
application and that form the basis upon which this authorization is granted.

         The Illinois Board of Higher Education hereby grants to Westwood College of
Technology-Chicago West the Certificate of Approval and Authorization to Operate at 1805 High
Point Drive, Naperville, Illinois 60563, and further grants Authorization to Grant the following
degrees: Associate of Applied Science degree in CAD/Architectural Drafting; Associate of
Applied Science degree in Computer Network Engineering; Associate of Applied Science degree
in Computer Network Technology; Associate of Applied Science degree in Computer
Programming and Software Technology; Associate of Applied Science degree in Graphic
Design and Multimedia; and Associate of Applied Science degree in Medical Assisting. These
authorizations are subject to the institution's maintenance of the conditions that were presented
in its application and that form the basis upon which these authorizations are granted.


                                                26
                                                                             Item #CA-7
                                                                        February 6, 2001


                            PUBLIC UNIVERSITY
                    NONINSTRUCTIONAL PROJECT APPROVAL


Submitted for:          Action


Summary:                This item recommends approval of the following public university
                        noninstructional capital projects:

                        Northeastern Illinois University
                          Parking Lot Expansion                      $ 1,300,000

                        Southern Illinois University at Carbondale
                          Service Building Construction                2,000,000

                        University of Illinois at Urbana-Champaign
                          Child Development Lab Expansion              5,200,000


Action Requested:       That the Board of Higher Education approve the projects listed in
                        this item.




                                           27
28
                                                                                        Item #CA-7
                                                                                   February 6, 2001

                                 STATE OF ILLINOIS
                             BOARD OF HIGHER EDUCATION


     PUBLIC UNIVERSITY NONINSTRUCTIONAL PROJECT APPROVAL

        The Boards of Trustees of Northeastern Illinois University, Southern Illinois University,
and the University of Illinois request approval for the following noninstructional capital
improvement projects. The Boards of Trustees have reviewed and approved the projects
requested for their respective institutions, including review and approval of financing.

     Institution/Project                                                 Total Estimated Cost

Northeastern Illinois University
   Parking Lot Expansion                                                          $ 1,300,000

Southern Illinois University at Carbondale
   Service Building Construction                                                     2,000,000

University of Illinois at Urbana-Champaign
   Child Development Lab Facility Expansion                                          5,200,000


                                       Description of Plans

Northeastern Illinois University

         Parking Lot Expansion – This project provides for constructing a parking lot on the
southwest corner of the main campus to add approximately 375 parking spaces. The 1,900
parking spaces currently available are insufficient to support the needs of the student population,
faculty, and staff, resulting in cars being double-parked throughout the campus. The two-phase
project will include lighting, sidewalks, storm drainage, signage, and landscaping. The Facilities
Maintenance Building currently on the site will be relocated. The estimated cost of the project is
$1,300,000. (Source of funds: parking fees and appropriated permanent improvement funds.)

Southern Illinois University at Carbondale

        Service Building Construction – This project provides for constructing a 25,564 NASF
service building on a 200-foot by 300-foot parcel of land owned by the University in the
300 block of West Calhoun Street in Springfield. The new steel structure will be adjacent to the
School of Medicine campus and will house Copy and Duplicating Operations, Central Moving
and Distribution, Central Receiving, Mail Service, Records Management, Medical Records
Storage, off-site Library Storage, Surplus Property, and general warehouse space. A number of
the service units are located currently in a rental facility that is in disrepair and located several
blocks from the Medical School. The new facility will be more efficient for both staff and facility
maintenance. The estimated cost of the construction is $2,000,000, including contingency, fees,
site improvements, and other associated costs. (Source of funds: institutional funds.)



                                                 29
University of Illinois at Urbana-Champaign

         Child Development Lab Expansion – This project provides for constructing a facility to
expand the Child Development Lab, thereby doubling the number of preschool children enrolled.
The 60-year-old, university-based preschool and childcare program serves academic programs
within the Department of Human and Community Development in the College of Agricultural,
Consumer and Environmental Sciences. The existing lab serves 96 children, ages two through
four, in half-day preschool and full-day childcare. The new facility will be designed for the care
of an additional 96 children, ages infant through three years. The 14,450 NASF facility will
include classrooms, teacher offices, observation rooms, research room, kitchen, laundry, and a
multi-purpose and gross motor room. Outside playground space will be developed. The new
facility will be located one door east of the current facility. The expanded lab will support
education and training in child development and early childhood education and faculty and
graduate research in these disciplines. It will help accomplish the campus goal to improve the
work environment for employees while aiding in efforts to recruit and retain faculty and staff.
(Source of funds: institutional funds.)

        The staff recommends adoption of the following resolution:

       The Board of Higher Education hereby approves the noninstructional capital
improvement projects included in this item.




                                               30
                       BOARD OF HIGHER EDUCATION
                   MEETING AGENDA – INFORMATION ITEMS
                              February 6, 2001
                                 9:00 a.m.

 Item                                                                                  Page
Number                                                                                Number


 II-1.   Overview of Fiscal Year 2003 Budget Development                                   1
         This item reviews the schedule for fiscal year 2003 budget development,
         and solicits input from the higher education community on the priorities
         and activities that should be emphasized in the fiscal year 2003 budget
         context paper to be considered by the Board of Higher Education in April
         2001. (Debra Smitley)

 II-2.   Legislative Report - Final 2000                                                   5
         This report provides a brief description of legislation enacted during the
         2000 session of the Illinois General Assembly. The report shows public
         act numbers for each bill. (Ross Hodel)

 II-3.   Barbour Griffith & Rogers, Inc. Report                                           17
         This report highlights recent activities undertaken by Barbour Griffith &
         Rogers, Inc., a Washington, D.C.-based consulting firm that is working
         with the Board of Higher Education, State Board of Education, and the
         Illinois Community College Board to enhance Illinois’ work with the
         United States Congress and federal agencies. (Ross Hodel)

 II-4.   Board of Higher Education Meeting Calendar 2001                                  21
         This item lists the dates and locations of Board of Higher Education
         meetings for calendar year 2001. (Pat Sexton)
                                                                           Item #II-1
                                                                     February 6, 2001


        OVERVIEW OF FISCAL YEAR 2003 BUDGET DEVELOPMENT


Submitted for:       Information.


Summary:             This item presents a general outline of the budget development
                     schedule for fiscal year 2003, and solicits comments from
                     institutions, agencies, advisory groups, boards, and others as to
                     priorities for advancing the goals of The Illinois Commitment in
                     fiscal year 2003.

                     A Statewide Budget Context document will be presented for
                     discussion at the Board of Higher Education meeting on April 3
                     at Triton College. The Statewide Budget Context will set forth
                     broad parameters for the development of the budget for the next
                     fiscal year and communicate specific state level budget priorities
                     to institutions and agencies prior to their submission of budget
                     requests to the Board of Higher Education.


Action Requested:    None.




                                    1
2
                                                                                         Item #II-1
                                                                                   February 6, 2001

                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


         OVERVIEW OF FISCAL YEAR 2003 BUDGET DEVELOPMENT

        Refocusing Higher Education Budget Development (February 1999) established a new
framework for Illinois higher education budget development. The goals of the new budget
framework were to improve the link between statewide goals and budget recommendations,
expand participation in the budget process, better articulate budget priorities to institutions and
agencies prior to submission of budget requests, and strengthen accountability by improving the
assessment and communication of the contributions of higher education to statewide goals.

        Central to the refocused budget development process is a clear articulation of the goals
and priorities of Illinois higher education. The Illinois Commitment, also adopted by the Board in
February 1999, provides the link between statewide goals and expectations and campus programs
and services. In addition, The Illinois Commitment communicates to the institutions and higher
education agencies the broad programmatic initiatives that will receive funding priority in the
Board’s budget recommendations.

         The recently approved fiscal year 2002 budget recommendations were developed in an
open and collaborative process. The process involved input from members of the Board of Higher
Education, institutional governing boards, administrations, students, faculty and staff, and other
interested participants. The continued input from these groups is important to assure that the
budget recommendations not only receive broad-based support but also represent the consensus
of the higher education community. As budget development processes continue to be refined, it is
important that input from the Board’s advisory committees, in particular, be strengthened and that
other campus constituents continue to be included in budget development.

         The Statewide Budget Context document for fiscal year 2003 will be presented for Board
of Higher Education discussion at its meeting on April 3, 2001 at Triton College. The Statewide
Budget Context will set forth broad parameters for the development of the budget for the next
fiscal year and communicate specific state level budget priorities to institutions and agencies prior
to their submission of budget requests to the Board of Higher Education. The document will
review statewide policy priorities for fiscal year 2003, analytical studies that form the basis for
statewide base funding priorities, performance measures, and an analysis of funding sources. The
recently released national report card, Measuring Up 2000, will also provide guidance on the
areas that need more attention in fiscal year 2003.

          Finally, assessing and communicating performance and results is important in
demonstrating accountability to those accessing higher education programs and services and to
those providing resources to the institutions. Each request for new resources from a college,
university, or higher education agency must not only address one of the goals of The Illinois
Commitment but also must include measurable and demonstrable performance goals and
measures. Actual results, based on these goals and measures, will be documented and
communicated to the Board of Higher Education in August of each year. The Board will then
summarize progress in addressing statewide goals in the Statewide Results Report taken to the
Board in December.


                                                 3
         To ensure broad participation in all aspects of the budget process, the Board staff is
soliciting comments from institutions, agencies, advisory groups, and others as to priorities for
advancing the goals of The Illinois Commitment in fiscal year 2003. Comments and suggestions
should be directed in writing to Debra Smitley (smitley@ibhe.state.il.us) of the Board staff by
Friday, March 2, 2001.

        A general outline for fiscal year 2003 budget development follows. As meetings are
scheduled and exact dates are identified, this information will be made available to the higher
education community and posted on the Board of Higher Education’s website
(www.ibhe.state.il.us).

Calendar Year 2001

        April           Statewide Budget Context for fiscal year 2003 discussed by the Board of
                        Higher Education

        July            Institution programmatic budget requests submitted to the Board of
                        Higher Education

        August          Submission of Institution and Agency Results Reports
                        Budget Overview Meetings

        September       Total budget requests submitted to Board of Higher Education
                        Budget Overview Meetings

        October/        Budget discussions with institutions and agencies
        November

        December        Statewide Results Report
                        Board of Higher Education action on staff budget recommendations

Calendar Year 2002

        February        Governor’s Budget Address

        May, June       Appropriations enacted

        July            Campus and agency internal budget allocations

        August          Submission of Institution and Agency Results Reports

        December        Statewide Results Reports




                                               4
                                                                             Item #II-2
                                                                       February 6, 2001

                    LEGISLATIVE REPORT – FINAL 2000


Submitted for:          Information.


Summary:                 This item summarizes legislation enacted during the spring 2000
                         and fall 2000 sessions of the 91st General Assembly. A total of
                         27 bills and six resolutions concerning higher education were
                         enacted by the General Assembly.


Action Requested:       None.




                                       5
6
                                                                                         Item #II-2
                                                                                   February 6, 2001


                                   STATE OF ILLINOIS
                               BOARD OF HIGHER EDUCATION


                         LEGISLATIVE REPORT – FINAL 2000

        The attached report provides summaries of higher education-related legislation enacted
during the spring 2000 and fall 2000 sessions of the 91st General Assembly. The summaries are
organized by topic area (affordability, appropriations, community colleges, pensions, public
universities, and other) and provide the Public Act numbers when applicable. In total, 27 bills
and six resolutions concerning higher education were enacted by the General Assembly.

         During the final days of the 91st General Assembly, the legislature enacted Senate
Bill 1397 and House Joint Resolution 19. Senate Bill 1397, which was sent to Governor Ryan on
January 16, 2001, directs Southern Illinois University and the University of Illinois to study the
feasibility and desirability of industrial hemp production in Illinois. House Joint Resolution 19
(attached) directs the Board of Higher Education to review the use of part-time and nontenure-
track faculty by Illinois colleges and universities, to consider policies to discourage over-reliance
on such faculty, and to recommend policies concerning minimum salary and fringe benefit
provisions. The resolution also directs each public university and community college to report
to the Board on its use and compensation of such faculty. House Joint Resolution 19 requires the
Board to submit a report to the General Assembly by December 15, 2001.




                                                 7
8
       ACTION ON LEGISLATION PASSED BY THE 91ST GENERAL ASSEMBLY - 2000 SESSION

     Brief summaries of bills passed by the 91st General Assembly during the 2000 legislative session follow. The sponsor of
the bill in its house of origin is identified first, while sponsors in the second house are identified in parentheses. Summaries are
provided only for bills related to higher education. Bills are grouped in the following categories: Affordability; Appropriations,
Tax Relief, and Budget Implementation; Community Colleges; Pensions; Public Universities; and Other Miscellaneous.

  Bill No.          Sponsor                                       Description                                           Status

AFFORDABILITY

 HB 2870 Capparelli - et al           Amends Vehicle Code. Requires moneys remaining in Fire                 Public Act 91-0832
         (Dudycz)                     Fighters' Memorial Fund, after memorial is constructed, be used to
                                      maintain memorial, hold commemorations, and provide
                                      scholarships to children of firefighters killed in line of duty.

 SB    1537 Watson (Wirsing)          Amends Prepaid Tuition Act. Exempts from sunset provision of           Public Act 91-0867
                                      the act the assets and income of the trust fund. Provides that
                                      prepaid tuition contract be considered an investment for purpose
                                      of investing a ward's money under Probate Act.


 SB    1538 Watson - Lightford - Amends Higher Education Student Assistance Act; increases                   Public Act 91-0747
            Demuzio (Lang)       maximum Monetary Award Program grant to $4,740 (full-time)
                                 and $2,370 (part-time).

APPROPRIATIONS, TAX RELIEF, AND BUDGET IMPLEMENTATION

 HB 1534 Daniels - Ryder -            $ - Fiscal Year 2000 supplemental appropriations - various             Public Act 91-0697
         Mulligan                     agencies
         (Rauschenberger)

 HB 3872 Daniels - et al              Amends Property Tax Code, Senior Citizens and Disabled                 Public Act 91-0699
         (Radogno)                    Persons Property Tax Relief and Pharmaceutical Assistance Act,
                                      Illinois Public Act Code, and State Mandates Act to increase
                                      number of senior citizens eligible for Circuit Breaker program.
                                      This provision is one component of the three part 2001 tax relief
                                      plan.
 HB 3876 Daniels - et al              Amends Illinois Income Tax Act to double property tax credit for       Public Act 91-0703
         (O'Malley)                   one year only. This provision is one component of the three part
                                      2001 tax relief plan.

 HB 3939 Currie - et al               Amends Illinois Income Tax Act to create earned income tax             Public Act 91-0700
         (Peterson)                   credit. This provision is one component of the three part 2001 tax
                                      relief plan.

 HB 4374 Daniels - Ryder              FY2001 Budget Implementation                                           Public Act 91-0704
         (Maitland)

HB 4435 Hannig - et al                $ - FY2001 Higher Education and State Board of Education               Public Act 91-0705
        (Rauschenberger)
 Bill No.        Sponsor                                  Description                                          Status

HB 4437 Hannig - et al         $ - FY2001 Various Agencies. FY2000 supplemental                       Public Act 91-0706
        (Rauschenberger)       appropriations including $200,000 to Western Illinois University
                               to pay a judgment against the university.

HB 4438 Hannig - et al         $ - FY2001 Agencies Concerned with Human Services                      Public Act 91-0707
        (Rauschenberger)

HB 4439 Hannig - et al         $ - FY2001 Capital Development Board Capital Projects, Build           Public Act 91-0708
        (Rauschenberger)       Illinois Capital Projects, Court of Claims

HB 4582 Hannig -               Build Illinois Bond Act - Increases authorization for capital          Public Act 91-0709
        Schoenberg - Ryder     program
        (Weaver, S)

HB 4584 Hannig -               General Obligation Bond Act - Increases authorization for capital      Public Act 91-0710
        Schoenberg - Ryder     program
        (Weaver, S)

HB 4587 Hannig - Morrow -      FY2001 Budget Implementation. Includes language to implement           Public Act 91-0711
        Davis, Monique         Arthur F. Quern Information Technology Grant Program; provides
        (Maitland)             for need-based grants up to $2,500; limits eligibility to two years.


HB 4588 Hannig -             FY2001 Budget Implementation                                             Public Act 91-0712
        Schoenberg - Silva -
        Davis, Monique
        (Rauschenberger)


SB   618    Rauschenberger -   $ - technical changes for Illinois FIRST; includes following items     Public Act 91-0687
            Lauzen (Hannig)    related to higher education: transfers appropriation for the Career
                               Connector Program from the Board of Higher Education to the
                               Department of Commerce and Community Affairs; specifies that
                               funds appropriated for DePaul University technology scholarships
                               can be used for High Tech Workforce Crisis Program; exempts
                               John A. Logan College and Lewis and Clark Community College
                               from local funding requirement for certain capital projects; other
                               provisions.

COMMUNITY COLLEGES

HB 3993 Wirsing                Amends Public Community College Act. Changes purpose of                Public Act 91-0776
        (Burzynski)            AFDC Opportunities Fund. Removes requirement that
                               community college district have Board of Higher Education
                               approval before entering into installment loan to buy/build
                               land/buildings.
HB 4266 Ryder - et al          Amends acts to transfer adult education from State Board of            Public Act 91-0830
        (Cronin)               Education to Illinois Community College Board. Some provisions
                               effective July 1, 2000.

PENSIONS
 Bill No.         Sponsor                                Description                                          Status


HB   1583 Murphy - et al      Amends Illinois Pension Code and State Employees Group                 Public Act 91-0887
          (Maitland)          Insurance Act to make numerous changes affecting eligibility,
                              benefits, and administration of benefits for various public
                              employees. Also amends State Universities Article of the Pension
                              Code. Provides resolution of Mattis v. SURS lawsuit and
                              eliminates remarriage loss of survivor benefit.

PUBLIC UNIVERSITIES

HB 2580 Ryder (Burzynski)     Amends public universities governance acts to provide that             Public Act 91-0715
                              members of the public and university employees shall be afforded
                              time to comment/question at regular/special meetings of the
                              governing boards that are open to the public.


HB 4182 Winkel - et al        Amends all public university governance acts regarding student         Public Act 91-0778
        (Weaver, S)           board members. Deletes provision that students be nonvoting
                              members after July 1, 2001, except regarding tenure or promotion
                              of faculty or on issues where there is a conflict of interest.
                              Amends University of Illinois Trustees Act to increase board
                              membership from nine members plus the Governor to at least
                              twelve members plus the Governor. The three additional
                              members will be students with one representing each university
                              campus. Only one student, designated by the Governor, will have
                              legally binding voting authority; the other two students will cast
                              advisory votes.

HR   569    Lang - et al      Universities to review civil service salaries/increases compared to    House Adopted. Report
                              other salaries and to distribute personal services dollars to work     submitted by Board of
                              toward salary equity for civil service employees. Through Board        Higher Education
                              of Higher Education, universities are to report to General             September 28, 2000.
                              Assembly by October 1, 2000.


SB   1329 del Valle (Silva)   Amends University of Illinois and Southern Illinois University         Public Act 91-0861
                              Management Acts. Requires informed consent documents for
                              research experiments be written in language understood by
                              subject. Must read document to any subject who has difficulty
                              reading.

SB   1397 Bowles - et al      Requires the University of Illinois and Southern Illinois University   Sent to Governor on
          (Lawfer)            to study the feasibility and desirability of industrial hemp           January 16, 2001.
                              production in Illinois, subject to appropriation for the study.
                              Excludes industrial hemp, solely for the purpose of the study,
                              from the definition of "cannabis" under the Cannabis Control Act
                              and under the Cannabis and Controlled Substances Tort Claims
                              Act.
 Bill No.        Sponsor                                       Description                                          Status

SB    1589 Geo-Karis               Amends Board of Higher Education Act. Removes repealer for             Public Act 91-0792
           (Wirsing)               gender equity in intercollegiate athletics tuition waivers; requires
                                   Board of Higher Education report to General Assembly every
                                   three years.

SB    1860 Philip (Daniels)        Sections 240 through 285 amend Nonresident College Trustee Act         Public Act 91-0798
                                   and public university governance acts to require members of
                                   boards of trustees be state residents.

SR    292   Burzynski              Urges University of Illinois to issue report to the General            Senate Adopted
                                   Assembly on potential consequences of cloning human tissue,
                                   organs, and body parts.

SR    296   Dillard - Weaver, S.   Encourages Illinois state research-based universities to expand        Senate Adopted
            - Philip               their role in statewide economic development.

OTHER

HB 3254 Gash - et al               Creates Dissection Alternatives Act. Allows students to perform        Public Act 91-0771
        (Cronin)                   alternative project to dissection, limited to elementary and
                                   secondary schools. Directs State Board of Education to develop
                                   guidelines to notify parents/students about courses that include
                                   dissection. First applies to 2000-2001 academic year.

HR    728   Younge                 Requires Board of Higher Education, Illinois Community College         House Adopted. The
                                   Board, and State Board of Education to conduct analysis of             required preliminary
                                   education needs in East St. Louis metropolitan area. Report to         report was submitted to the
                                   Governor and General Assembly in fall 2000 with second report          Governor and General
                                   during February 2001.                                                  Assembly November 29,
                                                                                                          2000.

HJR    19   Howard - et al         Urges Board of Higher Education to review the dependence of            Adopted by Both Houses
            (Rauschenberger)       Illinois colleges and universities on part-time and nontenure-track
                                   faculty. Requires each public university and community college
                                   to report its use and compensation of part-time and nontenure-
                                   track faculty to the Board. Requires the Board to consider
                                   policies to discourage over-reliance on such faculty and to make
                                   recommendations concerning the establishment of minimum
                                   salary and fringe benefits provisions indexed to tenure-track
                                   faculty compensation for part-time and nontenure-track faculty.
                                   Requires the Board to report to the General Assembly by
                                   December 15, 2001.
 Bill No.        Sponsor                                      Description                                      Status

SB   1404 Jones, W. (Burke)        Amends various acts; authorizes graduate audiology students to     Public Act 91-0932
                                   dispense hearing instruments without a license under the
                                   supervision of licensed audiologist. Provides that audiologists
                                   licensed under the Speech-Language Pathology and Audiology
                                   Practice Act are exempt from licensure provisions of the Hearing
                                   Instrument Consumer Protection Act but are otherwise subject to
                                   the provisions of the Act. Other provisions.

SR   284    Madison, L -           Urges State Board of Education, with Teacher Certification         Senate Adopted
            Cronin - Silverstein   Board, Joint Education Committee, and public universities to
                                   establish teacher education and certification programs for Asian
                                   language being taught in public schools.
                                                                             Item #II-3
                                                                       February 6, 2001


                 BARBOUR GRIFFITH & ROGERS, INC. REPORT


Submitted for:           Information.


Summary:                 The Board of Higher Education has jointly participated in
                         activities designed to enhance the state’s work with the United
                         States Congress and other federal agencies. This report
                         highlights recent activities with Washington based consultants
                         Barbour Griffith & Rogers and the extension of their work in
                         this regard.


Action Requested:        None.




                                        17
18
                                                                                        Item #II-3
                                                                                  February 6, 2001

                                  STATE OF ILLINOIS
                              BOARD OF HIGHER EDUCATION


                  BARBOUR GRIFFITH & ROGERS, INC. REPORT

          The Board of Higher Education has participated with the Illinois State Board of
Education and the Illinois Community College Board in a number of activities designed to
enhance Illinois’ work with the United States Congress and other federal agencies concerned
with education and to increase the amount of federal funds coming into Illinois. The state
currently receives federal funding of approximately $1.2 billion for elementary and secondary
education via the United States Departments of Education and Agriculture, and approximately
$390 million for various higher education programs. Federal research and development grants to
Illinois institutions total $450 million.

        The Board staff has been in regular contact with the Governor's Washington D.C. office,
providing information regarding priorities for federal budget initiatives. The Board also joined
the State Board of Education and the Illinois Community College Board in securing assistance
from a Washington D.C.-based consulting firm, Barber Griffith & Rogers.

          In the fall of 1999, the State Board of Education issued a Request for Sealed Proposals
seeking assistance with legislative and administrative initiatives at the federal level on behalf of
the three education agencies. A contract was subsequently signed with the firm of Barbour
Griffith & Rogers, Inc. in January 2000 for an initial six months with an extension in June for a
second six-month period. Representatives of Barbour Griffith & Rogers, Inc. work with staff of
the three boards to: develop and implement strategies to increase Illinois’ visibility and impact
on federal education initiatives; notify the agencies of federal legislation and emerging policy
issues and proposals that will affect education policies and programs; research the effects of
proposed federal legislation and administration actions on all aspects of education; and work
with members of Congress and their staff, congressional committee staff, and executive agencies.

         A second Request for Proposals was issued in September 2000 for a two-year contract
potentially renewable for a second two-year period upon successful performance and available
funding. Five firms responded to the RFP and an interagency team of staff reviewed the
proposals and conducted face-to-face interviews in Washington D.C. As a result of the reading
of the narrative and the cost document and the interviews the staff of the three agencies
recommended a contract extension with the firm of Barbour Griffith and Rogers, Inc. The
Executive Director in consultation with the chairman of the Board concurred. The staff members
at Barbour Griffith and Rogers assigned to oversee their work for Illinois are Bill Himpler and
Scott Barnhart. Both have extensive legislative experience at the federal level and Mr. Himpler
has served as Chief of Staff for Illinois Congressman Jerry Weller. Haley Barbour and Lanny
Griffith are principals in the firm and have also been active on Illinois issues. The Board's share
of the contract is $71,000 per year.




                                                19
        The contract with the firm requires several deliverables, including monthly reports by
BGR summarizing specific activities undertaken and status of pending issues; arrange for
meetings as needed for Illinois education officials; and Illinois education funding from federal
sources will increase at least six percent over prior year funding levels and current grants will be
maintained.

         The firm has delivered on the first two deliverables and to date it appears that the final
objective will be met also. While grants will be issued over the course of the year, funding for
programs that substantially benefit higher education easily surpassed the six percent benchmark.
Federal fiscal year 2001 funding for Illinois formula allocated and financial aid programs
increased 14.0 percent over fiscal year 2000. Pell Grants received by Illinois students are
estimated to increase by 15.6 percent over fiscal year 2000. Preliminary estimates indicate that
total federal funds appropriated to Illinois increased nine percent over fiscal year 2000.

        More specifically, Barbour Griffith and Rogers staff were involved in helping secure
grants totaling $25.6 million for construction projects at Loyola University, Northern Illinois
University, Southern Illinois University at Edwardsville, the Illinois Institute of Technology and
two projects at the University of Illinois at Urbana-Champaign.

        The firm and education agencies will work on initiatives important to Illinois higher
education in the area of teacher education, student financial aid, educational technology, capital
construction projects and programs for individuals with disabilities continue as the new Congress
convenes.




                                                20
                                                                                Item #II-4
                                                                          February 6, 2001


                      BOARD OF HIGHER EDUCATION
                        MEETING CALENDAR 2001


Submitted for:      Information.


Summary:            Provides dates and locations for Board of Higher Education meetings for
                    the remainder of calendar year 2001.


Action Requested:   None.




                                          21
22
                                                                                                           Item #II-4
                                                                                                     February 6, 2001

                                      STATE OF ILLINOIS
                                  BOARD OF HIGHER EDUCATION


                             BOARD OF HIGHER EDUCATION
                               MEETING CALENDAR 2001



February 6    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Westin Michigan Avenue/Scholl
                                                                            College of Podiatric Medicine
                                                                            Chicago

April 3       . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Triton College
                                                                              River Grove

June 5        . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heartland Community College
                                                                              Normal

August 21     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Eastern Illinois University
                                                                              Charleston

October 2     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Radisson Hotel/Wheaton College
                                                                              Lisle

December 11   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Swissôtel
                                                                              Chicago




                                                           23

				
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