Environmental Assessment by jennyyingdi

VIEWS: 4 PAGES: 62

									Environmental Scan




         University of Illinois
  Office for Planning and Budgeting
     3rd Edition, November 2007
                        Environmental Scan: Purpose and Process

    The purpose of an environmental scan is to support and inform the strategic planning
    process. A good environmental scan will help an organization understand and respond
    effectively to changes in their environments.1
       •    This environmental scan provides information on demographics, higher education,
            economic and budgetary matters, research, technology, and economic development, the
            political landscape, and the related implications, opportunities, and challenges for the
            University of Illinois.

       •    The University of Illinois’ initial environmental scan was developed in March 2005 to set a
            context for the University’s strategic planning framework. Subsequent editions of the
            environmental scan have updated source data for many of the charts and graphs and added
            elements of increasing importance (e.g., information has also been added on the topics of
            global competitiveness in higher education participation, completion, and attainment,
            energy, online education, and the impacts of the aging population).

       •    Because the external environment in which the University of Illinois operates is continually
            changing, the environmental scan will be updated and refined periodically to reflect the most
            recent available information on key opportunities and challenges facing the University.

       •    Feedback on the usefulness of the environmental scan and suggestions for improvement are
            welcome and encouraged. Please direct any comments or questions to the University Office
            for Planning and Budgeting (UOPB) via e-mail to envscan@uillinois.edu.


1   Bryson, John M. Strategic Planning for Public and Nonprofit Organizations. 2004.                  Page 2
               Key Highlights: Opportunities

• Creatively addressing the       • Enhancing capacity in energy
  educational, health care, and     research and development
  other needs of an                 (both traditional and
  increasingly diverse Illinois     renewable sources)
  population                      • Developing new and
• Developing a niche within         enhanced University revenue
  the rapidly developing            sources from the growing
  market for online education       demand for higher education
  both nationally and globally      and R&D activities
• Responding to the growing       • Effectively responding to the
  global demand for individuals     increased interest of state and
  with training in the sciences     federal policymakers in the
  and engineering                   public accountability of
                                    colleges and universities

                                                                  Page 3
                 Key Highlights: Challenges

• Maintaining and enhancing        • Maintaining the University’s
  access to the University for       physical environment absent
  minority, low income, and          new infusions of state capital
  first-generation students          funding
• Recruiting and retaining         • Expanding the University’s
  high quality faculty and staff     R&D capacity given federal
  given increasing competition       funding constraints
  and looming retirements          • Balancing interest in
• Ensuring the highest level of      enhancing higher education’s
  academic quality in the face       public accountability with
  of state and federal funding       legitimate privacy concerns
                                     within the University
  constraints
                                     community (students, faculty,
                                     and staff)

                                                                  Page 4
                                      Table of Contents

•   Demographics…………………………………………………………………………………………………. 7
    –   U.S. Population Projections, 2000-2020                                                          8
    –   Illinois Population Ages 18-24 Race/Ethnicity                                                   9
    –   University of Illinois Statewide Presence                                                      10
    –   Undergraduate and Graduate/Professional Enrollments by Race/Ethnic Higher Education            11
    –   Minority Enrollment Data by Campus                                                             12
    –   University of Illinois Full-Time Faculty by Race/Ethnicity                                     13
    –   University of Illinois Full-Time Faculty by Gender                                             14
    –   University of Illinois Full-Time Staff by Race/Ethnicity                                       15
    –   University of Illinois Full-Time Staff by Gender                                               16
    –   University of Illinois SURS Participants, Tenure-System Faculty Age Distribution               17
    –   University of Illinois SURS Participants, Non-Tenure Faculty and Staff by Age Distribution     18
    –   Health Care and Aging                                                                          19
    –   Implications for the University of Illinois                                                    20
•   Higher Education……………………………………………………………………………………………. 21
    –   International Comparisons: Higher Education Attainment                                          22
    –   International Comparisons: Higher Education Participation and Completion                        23
    –   Projected Percentage Change in Number of High-School Graduates from 2002 to 2009                24
    –   University of Illinois Degrees Conferred                                                        25
    –   Percentage of Bachelor’s Degrees Awarded by Gender                                              26
    –   Mean Income by Quintile in Illinois                                                             27
    –   Faculty Salary Comparisons, IBHE Peers                                                          28
    –   University of Illinois Faculty and Enrollments                                                  29
    –   Enrollment in Online Courses                                                                 30-31
    –   Implications for the University of Illinois                                                     32




                                                                                                             Page 5
                                     Table of Contents
•   Economy and Budget………………………………………………………………………………………... 33
     –   Economic Value of Higher Education                                                                    34
     –   U.S. Economic Indicators                                                                           35-36
     –   State of Illinois Economic and Fiscal Indicators                                                      37
     –   State of Illinois General Fund Appropriations by Sector FY 2007                                       38
     –   State of Illinois Financial Liabilities                                                               39
     –   Illinois Projected Employment Growth, 2002-2012                                                       40
     –   University of Illinois Share of State Tax Appropriations FY 1980 to FY 2007                           41
     –   University of Illinois Budget by Source of Funds                                                      42
     –   University of Illinois All Sources of Duns FY 1990 – FY 2007                                          43
     –   The Center: The Top American Research Universities                                                    44
     –   Big Ten University and Foundation Endowments                                                          45
     –   Public Higher Education Capital Appropriation History FY 1999 to FY 2007                              46
     –   Implications for the University of Illinois                                                           47
•   Research, Technology, and Economic Development………………………………………………………. 48
     –   Trends in Federal R&D Funding                                                                        49
     –   Total R&D Expenditures of Carnegie Research I Institutions, FY 2004                                  50
     –   University of Illinois Rank among AAU Institutions on Selected Quality Indicators                    51
     –   International Comparison: Production of Undergraduate Degrees in Natural Sciences & Engineering      52
     –   International Comparison: Doctoral Degrees Granted in Natural Sciences & Engineering (1993-2003)     53
     –   University of Illinois Technology Transfer: U.S. Patents                                             54
     –   University Technology Transfer and Commercialization Performance Index                               55
     –   Energy Costs and Use                                                                                 56
     –   Renewable Energy                                                                                     57
     –   Implications for the University of Illinois                                                          58
•   Political Landscape…………………………………………………………………………………………... 59
     –   Illinois House and Senate Memberships                                                                60
     –   Illinoisans’ Support for State Higher Education Spending Increases                                   61
     –   Implications for the University of Illinois                                                          62
•   Sources………………………………………………………………………………………………………... 63

                                                                                                                    Page 6
Demographics




               Page 7
                                                               U.S. Population Projections, 2000-2020
                           Ages 18-35, by Race-Ethnic Group
                                                                                                                                Ages 18-35, by Gender


 Millions
                  White          Asian          Black          Hispanic           Other*                                     Female                       Male
                                                                                                  Millions
    80
                                                                                                    45
                                                                                                    40
    60                                                                                              35
                                                                                                    30
    40                                                                                              25
                                                                                                    20
                                                                                                    15
    20
                                                                                                    10
                                                                                                      5
     0
                                                                                                      0
     2000                     2005                 2010                  2015              2020
                                                                                                                2000          2005         2010         2015        2020
                                                    Year
                                                                                                                                           Year

                       All Race-Ethnic Groups, by Age Group

                                                                                                                        Projected Total Number of High-School Graduates
Millions
                       18 - 35                   36 - 49                   50 & over
  120                                                                                             2002 2,894,429*

  100                                                                                             2003 2,952536

    80
                                                                                                  2004 2,958,908
                                                                                                  2005 2,983,477
    60
                                                                                                  2006 3,042,003
    40
                                                                                                  2007 3,107,931
    20
                                                                                                  2008 3,186,940
     0
                                                                                                  2009 3,195,259
                 2000              2005              2010              2015            2020
                                                    Year
           * Includes Native Americans, Aleutians, and persons of two or more races.
                                                                                                          2.5          2.6     2.7       2.8      2.9       3.0      3.1     3.2
                                                                                                          *Actual Figure
           Source: U.S. Census Bureau 2003.


                                                                                                                                                                           Page 8
                     Illinois Population Ages 18-24 Race/Ethnicity




           2000                                           2020
                                                                       Black
                       Black                      White
White                                                                  17.8%
                       17.2%                      58.2%
65.8%

                                American Indian                                 American Indian
                                    0.2%                                            0.2%

                                 Asian                                            Asian
                                 3.5%                                             5.1%




                               Hispanic
                                13.3%
                                                                               Hispanic
                                                                                18.7%




        N = 1.200M                                        N = 1.358M




                                                                                          Page 9
                   University of Illinois Statewide Presence
University of Illinois                                                On-Campus Headcount
 Campus Locations                                                 Enrollment by County, Fall 2007

                                Additional Facilities

                           •   Regional Medical Colleges
                   UIC          –   Rockford
                                –   Peoria
                                –   Urbana-Champaign
                           •   Illinois has 102 Counties
                                –   U of I Extension serves all
               UIUC                 102 Counties
                                –   Police Training Institute
                                    FY 2005 students from 81
                                    Illinois Counties
                                –   Fire Service Institute
     UIS                            FY 2005 students from 99
                                    Illinois Counties
                                –   FY 2005 State-wide
                                    Programming Course
                                    Locations in 16 Illinois
                                    Counties
                                –   Online Instruction
                                    accessible from all 102
                                    Illinois Counties
                                –   Regional Agricultural
                                    Stations
                                –   4-H Camps




                                                                                             Page 10
                    Undergraduate Enrollments by Race/Ethnicity Fall 2007
                 UIC                                                        UIS                                                          UIUC
                                                                               Black
                                                                               13.2                                                       Black
                         Black
                                                                                               Asian                                      6.7%
                         8.7%
                                                                                               3.2%
                                                                                                                                                        Asian
                                                                                                                                                        12.8%
                                                                                                  International
                                                                                                      1.2%
                                           Asian
                                           23.2%                                                       Hispanic                                                   International
White & Other
                                                                                                        2.8%                                                          5.6%
   50.1%




                                                                                                                                                                Hispanic
                                                                                                                                                                 6.9%

                                                                                                                       White & Other
                                     International       White & Other                                                    68.0%
                                         1.6%               79.6%

                          Hispanic
                           16.4%




                Graduate/Professional Enrollments by Race/Ethnicity Fall 2007
                 UIC                                                        UIS                                                          UIUC
                                                                           Black
                                                                           8.4%        Asian
                           Black                                                       1.8%
                           8.0%
                                                                                                                                                          Black
                                                                                                                                                          5.7%
                                                                                                  International
                                                                                                     15.1%
                                          Asian
                                          14.1%
                                                                                                                         White & Other
White & Other                                                                                                               61.0%                                     Asian
   54.2%                                                                                                    Hispanic                                                  10.1%
                                                                                                             1.0%




                                                                                                                                                                    International
                                         International                                                                                                                 17.6%
                                            16.6%          White & Other
                                                              73.4%


                       Hispanic
                                                                                                                                             Hispanic
                        7.1%
                                                                                                                                              5.6%

                                                                                                                                                                           Page 11
      Minority Enrollment Data Fall 1996 through Fall 2006
                                       UIC
          Undergraduate                               Campus Total
18%                                          14%

16%
                                             12%
14%
       Black              Hispanic                   Black              Hispanic
12%
                                             10%
10%

8%                                           8%




          Undergraduate               UIS
14%
                                                      Campus Total
12%                                          12%

10%                                          10%
8%                                           8%
6%
        Black              Hispanic          6%
4%                                                 Black              Hispanic
                                             4%
2%
                                             2%
0%
                                             0%



          Undergraduate               UIUC             Campus Total
8%                                           7%


7%
                                             6%

6%

                                             5%
5%
        Black              Hispanic                        Black            Hispanic
4%                                           4%


                                                                                       Page 12
            University of Illinois Full-Time Faculty by Race/Ethnicity
                           Fall 2005 – All Fund Sources


      Chicago Campus              White    Black     Hispanic   Asian   Other*   Springfield Campus
      8%      4%                                                                      4% 7%
                       5%
                                                                                                 3%

                                                                                                      10%
                            15%




                                                                         77%

69%



           N = 1,923                                                                  N = 196
                                          Urbana-Champaign Campus
                                               8%      4% 3%

                                                                10%




                                    75%



                                                    N = 2,258




                                                                                                            Page 13
              University of Illinois Full-Time Faculty by Gender
                         Fall 2005 – All Fund Sources

      Chicago Campus                                                     Springfield Campus

                                      Male        Female
                       38%
                                                                   56%



62%


                                                                                              44%



         N = 1,923                                                              N = 196



                                   Urbana-Champaign Campus


                                                             31%




                             69%



                                             N = 2,258




                                                                                               Page 14
      University of Illinois Full-Time Staff by Race and Ethnicity
                      Fall 2005 – All Fund Sources

                                       White            Black          Hispanic            Asian          Other*

            Chicago Campus                                                                                      Springfield Campus
                                                                                                                      1%       4% 2%
       2%                         30%                                                                                                    1%




                                            13%

44%
                                                                                                     92%
                                 11%
                                                                                                                            N = 451
              N = 8,229

       Urbana-Champaign Campus                                                                             University Administration
                2%    9%           2%                                                                                        1%         11%
                                     3%
                                                                                                                                              4%
                                                                                                                                               3%




  83%                                                                                                81%


               N = 7,712                                                                                                    N = 1,181
                          * Includes Native Americans, Aleutians, persons of two or more races, and non -resident aliens.

                                                                                                                                                    Page 15
                     University of Illinois Full-Time Staff by Gender
                              Fall 2005 – All Fund Sources


          Chicago Campus                                         Springfield Campus


 33%                                  Male   Female     41%




                                                                                           59%
                            67%


              N = 8,229                                                N = 451

      Urbana-Champaign Campus                                 University Administration

                                                        35%
46%




                                54%
                                                                                          65%

              N = 7,712                                               N = 1,181




                                                                                                 Page 16
University of Illinois SURS Participants, Tenure-System Faculty Age Distribution
                                October 10, 2006

         Chicago Campus w/ UIH                                    Springfield Campus




                     FTE                                                    FTE

                                 Urbana-Champaign Campus w/ CES




                                              FTE
                                                                                       Page 17
University of Illinois SURS Participants, Non-Tenure Faculty and Staff Age Distribution
                                    October 10, 2006

                  Chicago Campus w/ UIH                     Springfield Campus




                             FTE                                       FTE

              Urbana-Champaign Campus w/ CES              University Administration




                             FTE                                      FTE

                                                                                      Page 18
                                  Health Care Spending % of GDP                                                                                                                Health Care Spending % of GDP in the USA
                                               2005                                                                                                                                           1975 - 2020

        Total* spending on health per person at PPP†, 2005.
                                                                                                                                                 19%
16%


14%                                                                                                                                              17%


12%                                                                                                                                              15%
                                                                                                                                                                                                                                                                        ~77 million “baby boomers” start
                                                                                                                                                                                                                                                                        hitting 60 years of age in 2006
10%                                                                                                                                              13%

8%
                                                                                                                                                 11%

6%
                                                                                                                                                  9%

4%
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  Source: OECD www.oecd.org, Health Data Statistics October 2007. *Private and public. †Adjusted for purchasing-power parity.




                                    Number of Americans Over 60 by Decade                                                                                                        Total Spending on Health Care Per Person
                                                                                                                                                                                                   2005
                                                                                                                                                         Total* spending on health per person at PPP†, 2005.
 110,000,000                                                                                                                                   $7,000

 100,000,000                                                                                                                                   $6,000
  90,000,000
                                                                                                                                               $5,000
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                                                                                                                                               $4,000
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                                                                                                                                               $2,000

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                                                                                                                                                                                                                                                                                                    Page 19
                    Demographics
       Implications for the University of Illinois
• Illinois will experience slight population growth in coming years.
• As with the rest of the U.S., Illinois’ population will become more
  diverse and the Hispanic population will grow faster than any other
  segment.
• The proportion of African-American students at UIC and UIUC
  grew slightly after a period of decline, while the proportion of
  Hispanic students has generally grown at all three campuses in recent
  years. Pressure from University stakeholders to enhance diversity
  among students, staff, and faculty will continue.
• The over 50 population will grow rapidly. This aging population
  will put increasing pressure on social services and health care and
  may view higher education as less of a priority in the future.
• A significant proportion of the University’s tenure/tenure-track
  faculty are age 55 or over creating the potential for large numbers of
  retirements in the near future.

                                                                      Page 20
Higher Education




                   Page 21
                          International Comparison: Higher Education Attainment

                                   Ages 25-34                                                                                Ages 25-64
       Canada                                                                       60.3%          Canada                                                                     49.5%
         Japan                                                                   56.6%        United States                                                           40.1%
         Korea                                                              51.1%                  Finland                                                           39.4%
       Norway                                                            48.4%                       Japan                                                          38.4%
       Finland                                                        47.1%                      Denmark                                                      36.2%
       Belgium                                                      45.5%                          Norway                                                    35.5%
        Ireland                                                     45.3%                          Sweden                                                   34.4%
         Spain                                                      44.6%                           Iceland                                                33.9%
     Denmark                                                        44.4%                         Australia                                               33.1%
        France                                                   43.5%                             Belgium                                            32.2%
  United States                                                  42.8%                              Ireland                                         30.6%
      Australia                                                  42.4%                        New Zealand                                           30.0%
       Sweden                                                    42.4%                      United Kingdom                                         29.5%
        Iceland                                                 41.9%                                Spain                                        28.3%
  Luxembourg                                                38.7%                              Netherlands                                    27.5%
   Netherlands                                           36.6%                                       Korea                                  26.2%
United Kingdom                                          36.0%                                       France                                  25.9%
  New Zealand                                          34.2%                                  Luxembourg                                  24.1%
        Poland                                      30.9%                                         Germany                         20.3%
        Greece                                 28.2%                                            Switzerland                       20.1%
   Switzerland                              25.0%                                                   Greece                        19.9%
      Portugal                             24.2%                                                    Poland                       19.0%
      Hungary                             22.7%                                                   Hungary                     18.2%
      Germany                          22.1%                                                        Austria              15.2%
        Austria                       20.6%                                                       Portugal               15.0%
          Italy                     19.2%                                                   Slovak Republic           12.9%
        Mexico                    16.9%                                                               Italy           12.8%
Slovak Republic                   16.9%                                                             Mexico           12.2%
Czech Republic                14.6%                                                         Czech Republic           11.6%
       Turkey             10.4%                                                                    Turkey     7.7%


          Source: Organisation of Economic Co-operation and Development (OECD). Data represent the percentage of adults with an associate’s degree or higher in 2005. Page 22
      International Comparison: Higher Education Participation and Completion

                               College Participation                                                              College Completion
         Korea                                                            48%               Japan                                                                     26%

        Greece                                                      43%                   Portugal                                                                   25%

       Belgium                                                37%                     Switzerland                                                              23%

       Finland                                                37%                        Denmark                                                               23%

        Ireland                                              35%                         Australia                                                             23%

  United States                                              35%                     New Zealand                                                         21%

        Poland                                           34%                               Ireland                                                       21%

      Hungary                                          31%                                 France                                                       20%

        France                                         31%                                 Iceland                                                 19%

      Australia                                        31%                         Slovak Republic                                                18%

         Spain                                     30%                                    Sweden                                                  18%

  New Zealand                                     29%                                       Korea                                                 18%

   Netherlands                                   27%                                 United States                                           17%

       Portugal                             25%                                             Spain                                            17%

       Norway                               25%                                            Poland                                            17%

Czech Republic                              24%                                       Netherlands                                           16%

       Sweden                               24%                                          Hungary                                            16%

        Austria                            23%                                     Czech Republic                                      15%

      Germany                              23%                                             Mexico                                     14%

Slovak Republic                       20%                                                 Norway                                      14%

      Denmark                         20%                                                  Turkey                                13%

        Iceland                      19%                                                   Austria                               13%

   Switzerland                      18%                                                  Germany                                 13%

        Mexico                13%                                                         Finland                                13%

        Turkey              11%                                                              Italy                              12%

       Percent of Young Adults (Ages 18 to 24) Currently Enrolled in College               Total Number of Degrees/Certificates Completed per 100 Students Enrolled

                                     Source: Organisation of Economic Co-operation and Development (OECD). Data are for 2003.                                         Page 23
  Projected Percentage Change in Number
of High-School Graduates from 2002 to 2009




                                                  United States

                                               Gain of more than 20%

                                               Gain of 11% to 20%
                                               Gain of 1% to 10%

                                               Gain or loss of less than 1%

                                               Loss of 1% to 9%

                                               Loss of 10% or more




                                                            University of Illinois On-Campus Headcount
   Source: WICHE
                                                                   Enrollment by State Fall 2006
                                               101
                                                                                                                                                                                                         12
                                                                                   6             11

                                                                                                                     147                                                                     16
                                          55                                                                                                                                                       24

                                                                    22                                                                 199                                                         107
                                                                                                 12                                                                                    270
                                                                                                                                                    282                                           52 8
                                                                                       3


                                                                                                                           135                                                   127
                                                                                                      53
                                                     24                                                                                                        280
                                                                                                                                                                                       162
                                                                                                                                                  275                                             12
                                                                                                                                         56,337
                                                                              58
                                    551                                                                                                                               10
                                                                                            75
                                                                                                                                                                                 133
                                                                                                           87                    345
                                                                                                                                                          82


                                                                                                                                                                                 77
                                                                                                                                                   68

                                                                         64                                     45
                                                                                       30                                         22                                       26
                                                                                                                                                                                               United States
                                                                                                                                                                 93                           (AK & HI Inset)
                                                                                                                                             14     29
                                                                                                                                                                                             400 to 56,337 (3)
                                                                                                       250
                                                                                                                                                                                             300 to    400 (4)
                                                                                                                                  32
                                                                                                                                                                                             200 to    300 (5)
                                                                                                                                                                                             100 to    200 (10)
                                                                                                                                                                                                0 to   100 (28)
                                                                                                                                                                           154
                                                      13


                                                                                                                            Illinois – 56,337 (82%)
                                                                                                                            Other U.S. – 5,185 (7%)
                                                                                                                              District of Columbia - 20
                                                                                                                              U.S. Territories - 50
                                                                                                      21                      U. S. Residents with Foreign Address – 221                                 Page 24
                                                                                                                            Non-Resident Aliens - 7,287 (11%)
                               University of Illinois                                                           UIS Bachelor’s Degrees Conferred by Race/Ethnicity
                           Degrees Conferred – FY 2007                                                                               FY 2007

12,000
                                                                                    10,659                                            Asian, 2.3%
10,000                                                                                                                           Hispanic, 2.1%

                                                                                                                          Black, 9.6%
 8,000

                5,919
 6,000                                                                                                                 Other, 5.4%



 4,000                                                                                                     American Indian/Alaskan
                                                                                                                Native, 0.3%
                                                                                                                                                                                             White, 80.2%
 2,000
                                                   1,045

    0
                 UIC                               UIS                              UIUC
                                                                                                                                                            612
              Bachelor's             Master's              Doctorate             Professional
                                                                                                        Black      Hispanic          Asian          White         American Indian/Alaskan Native            Other




            UIC Bachelor’s Degrees Conferred by Race/Ethnicity                                                       UIUC Bachelor’s Degrees Conferred by Race/Ethnicity
                                 FY 2007                                                                                                  FY 2007

                                                                                                                                              American Indian/
                           American Indian/            Other                                                                                   Alaskan Native       Other
                            Alaskan Native             5.7%                                                                                        0.2%             5.0%
                                0.3%                                                                                                                                        Black
                                                                 Black
                                                                                                                                                                            6.1%
                                                                 6.9%
                                                                                                                                                                                Hispanic
                                                                                                                                                                                 5.8%

                                                                         Hispanic
                                                                          13.3%

                 White                                                                                                                                                                     Asian
                 48.0%                                                                                                                                                                     12.1%




                                                                         Asian                                           White
                                                                         25.9%                                           70.7%




                                               3,286                                                                                                        7,040

   Black   Hispanic        Asian       White           American Indian/Alaskan Native           Other   Black      Hispanic          Asian          White         American Indian/Alaskan Native            Other

                                                                                                                                                                                                     Page 25
               Percentage of FY 2007 Bachelor’s Degrees Awarded by Gender


         UIC                                                        UIS


                                                                             Male
                                                                             39%
                           Male
                           46%

Female
 54%
                                                   Female
                                                    61%




         UIUC                                                     National




                                                                             Male
                                                                             43%
Female
 48%
                             Male
                             52%                   Female
                                                    57%




                                                                   FY 2005


                                                                                    Page 26
                         Mean Income by Quintile in Illinois                                                         Increase in Median Income for Families by Quintile
                                  1982 to 2006                                         In Current Dollars
                                                                                                                                        1982 to 2006
$200,000                                                                               $150,000


                                                                                       $125,000
$160,000

                                                                                       $100,000
$120,000

                                                                                        $75,000
$80,000
                                                                                        $50,000
$40,000
                                                                                        $25,000

     $0
                                                                                               $0



           Quintile 1   Quintile 2   Quintile 3       Quintile 4      Quintile 5                        Quintile 1         Quintile 2           Quintile 3   Quintile 4   Quintile 5
                                                                                                            Lowest                                                         Highest
                                                                                                            Income                                                         Income


                                                  Percent of Undergraduates Who Receive MAP Awards by Race
                                                                            FY 2006

                                      80%

                                      70%

                                      60%

                                      50%

                                      40%

                                      30%

                                      20%

                                      10%

                                        0%
                                                      Black                Hispanic                            Asian                    White
                                                      UIC - 5,899 Awards           UIS - 760 Awards                  UIUC - 6,422 Awards
                                                                                                                                                                           Page 27
                                            Faculty Salary Comparisons, IBHE Peers
              Full-time Instructional Faculty Salary Rank, Fall 2007                           Full-time Instructional Faculty Salary Rank, Fall 2007
                                       UIC                                                                              UIUC

                                           UIC                                  $140
$120                                                                                                                                                                           UIUC
                                                                                $120
$100
                                                                                $100
$80
                                                                                $80
$60                                                                             $60
$40                                                                             $40
$20                                                                             $20
 $0                                                                               $0
        1st                                12th                          22nd            1st                                                                                  19th       21st




                Full-time Instructional Faculty Salary Rank, Fall 2007                                         Research I Universities
                                         UIS                                                       Full-Time Instructional Faculty Average Salaries
                                                                                  Constant                       FY 1982 to FY 2007
                                                                                   Dollars
                                                                                 ($1,000s)*

                                                                                115
                                                                                                                                                                                     Privates
  $100                                                                          105
                                                       UIS
   $80                                                                           95
                                                                                                                                                                                     Publics
   $60
                                                                                 85
   $40
                                                                                 75
   $20

       $0                                                                        65
              1st                                     10th               14th
                                                                                 55
                                                                                       '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07
                                                                                          $7,700                                                                                      $25,300
                                                                                          Gap in                                          Year                                         Gap in
                                                                                           1982                                                                                        2007
                                                                                       * Constant (FY 2007) dollars calculated using CPI -U (not seasonally adjusted).
                                                                                       Source: American Association of University Professors; Bureau of Labor Statistics.

                                                                                                                                                                                  Page 28
                                                                                                                               University of Illinois Faculty and Enrollments

                                         FTE On-Campus Enrollment per FTE Tenure-System Faculty                                                                                                                                   FTE On-Campus Enrollment per FTE Tenure-System Faculty
                                                         Fall 1983 to Fall 2006                                                                                                                                                                   Fall 1996 to Fall 2006
                                                                  UIC                                                                                                                                                                                      UIS
                                    20                                                                                                                                           19.5 19.5                                 17
                                                                                                                                                                19.2 19.2 19.3
                                                                                                                                                                                                                                        16.2

                                                                                                                                                           18                                                              16    15.7
                                                                                                                                                                                                                                                                                         15.5
                                                                                                                                                                                                                                                                                                15.7
                                    18                                                                                                         17.5 17.6
                                                                                                                                                                                                                                               15.1
                                                                                                                                        17.2




                                                                                                                                                                                                    Students per Faculty
                                                                                                                                                                                                                                                      14.9
             Students per Faculty




                                                                                       16.4
                                                                                                    16.7 16.6
                                                                                                                                 16.5                                                                                      15                                              14.5   14.5
                                                                                                                16.3 16.3 16.3                                                                                                                                                                            14.4
                                                                                              16
                                    16                                          15.3                                                                                                                                       14                                       13.7
                                                                         14.7
                                          14.4 14.4
                                                      14.1          14
                                    14                       13.8                                                                                                                                                          13                                12.7


                                                                                                                                                                                                                           12
                                    12
                                                                                                                                                                                                                           11

                                    10                                                                                                                                                                                     10
                                          83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06                                                                                                                96     97     98     99     00     01     02     03     04     05        06
                                                                                                                  Year                                                                                                                                              Year


                                         FTE On-Campus Enrollment per FTE Tenure-System Faculty                                                                                                                                 FTE On – Campus Enrollment per FTE Tenure – System Faculty
                                                         Fall 1983 to Fall 2006                                                                                                                                                                   Fall 1983 to Fall 2006
                                                                 UIUC
                             24
                                                                                                                                                                           22.0 22.2 22.2
                             22                                                                                                                                     21.5
                                                                                                                                                   20.8 20.6 20.8
                                                                                                                                       20.2 20.4
                             20                                                                                       19.6 19.5 19.7
Students per Faculty




                                                                                                          19.0 19.2
                                                                                                                                                                                             Students per Faculty
                                                                                                   18.4
                                                                                          18.0
                             18                      17.1
                                                            17.5 17.3 17.4
                                                                           17.2
                                                                                17.6
                                         16.8 16.8


                             16

                             14

                             12

                             10
                                         83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
                                                                                                                  Year
                                                                                                                                                                                                                                                                    Year


                                                                                                                                                                                                                                                                                                       Page 29
                                                                                    Enrollment in Online Courses
                                                    National Enrollments                                                                                                          At the University of Illinois
                                                    Fall 2002 to Fall 2006                                                                                                           Fall 1999 to Fall 2006
4,000,000                                                                                                                       12,000


3,500,000
                                                                                                                                10,000

3,000,000
                                                                                                                                    8,000
2,500,000

2,000,000                                                                                                                           6,000


1,500,000
                                                                                                                                    4,000

1,000,000
                                                                                                                                    2,000
 500,000

          0                                                                                                                            0
                     Fall 2002                 Fall 2003                Fall 2004             Fall 2005          Fall 2006                    Fall 1999           Fall 2000         Fall 2001        Fall 2002         Fall 2003          Fall 2004   Fall 2005    Fall 2006
                                                                                                                                                  Source: www.ivc.illinois.edu/pubs/enrollment.html - Fall Internet enrollment.
              Source: www.Sloan-c.org : “Online Nation: Five Years of Growth in Online Learning,” October 2007



                                     At Illinois Colleges and Universities                                                                                                  Illinois vs. University of Illinois
                                             Fall 1999 to Fall 2006                                                                                                                      FY 2006
140,000
                                                                                                                                                                                                                                  University of Illinois
                                                                                                                                                                        Illinois
120,000                                                                                                                                                                                                                           UIUC
                                                                                                                                                                                                                                  20.2%
                                                                                                                                                                                                      Other Illinois
                                                                                                                                                                                                       Institutions
100,000                                                                                                                                                                                                  92.0%


                                                                                                                                        UIUC                                                                                                                          UIC
 80,000                                                                                                                                 1.7%                                                                                                                         48.4%


                                                                                                                                            UIS
 60,000                                                                                                                                    2.5%
                                                                                                                                                                                                                        UIS
                                                                                                                                                                                                                       31.4%
                                                                                                                                                UIC
 40,000                                                                                                                                        3.9%


                                                                                                                                                            127,383 Enrollments                                                   10,201 Enrollments
 20,000


      0
               Fall 1999 Fall 2000 Fall 2001 Fall 2002                              Fall 2003 Fall 2004 Fall 2005       Fall 2006                                                                                                                                 Page 30
              Source: www.ivc.illinois.edu/pubs/enrollment.html - Fall Internet enrollment.
                                                 Online Learning Trends
        •      Online enrollments have continued to grow at rates far in excess of the total higher education student
               population, albeit at slower rates than for previous years.
                –      The Almost 3.5 million students were taking at least one online course during the fall 2006 term; a nearly 10
                       percent increase over the number reported the previous year.
                –      The 9.7 percent growth rate for online enrollments far exceeds the 1.5 percent growth of the overall higher
                       education student population.
                –      Nearly twenty percent of all U.S. higher education students were taking at least one online course in the fall of
                       2006.




        •      Improving student access is the most often cited objective for online courses and programs. Cost
               reduction is not seen as important.
        •      Approximately one-third of higher education institutions account for three-quarters of all online
               enrolments. Future growth will come predominately from these and similar institutions as they add
               new programs and grow existing ones.
                –      Much of the past growth in online enrollments has been fueled by new institutions entering the online learning
                       arena. This transition is now nearing its end; most institutions that plan to offer online education are already
                       doing so.
                –      Future growth in online enrollments will most likely come from those institutions that are currently the most
                       engaged; they enroll the most online learning students and have the highest expectations for growth.
                                                                                                                                             Page 31
Source: Online Nation: Five Years of Growth in Online Learning. The Sloan Consortium. http://www.sloan-c.org/publications/survey/index.asp
                     Higher Education
          Implications for the University of Illinois
•   U.S. competitiveness in higher education participation, completion, and attainment,
    while still strong, is slipping relative to other developed and developing nations.
•   The college age population will grow nationwide, but this growth will vary greatly
    among regions. The West, Southwest, and Southeast will experience growth that will
    exceed capacity in public higher education, although in general the Midwest will not.
•   A larger percentage of women are attending higher education than men and the gap is
    increasing.
•   Competition from proprietary institutions and other non-traditional educational
    providers in the marketplace for students (both nationally and internationally) has
    greatly increased in recent years.
•   Growth in faculty compensation at private institutions has surpassed public universities,
    and the intense competition for faculty will continue.
•   Relatively flat incomes at the lower income brackets in recent years will have
    implications for tuition and financial aid policies particularly with regard to promoting
    access for low income and first-generation students.
•   Rapid technological innovation has led to a need for lifelong learning that will allow
    individuals to continuously adapt and update skills. On-line instruction has grown
    rapidly in the last 10 years as it has gained mainstream acceptance due to increasing
    internet access and innovations in instructional technologies.


                                                                                         Page 32
Economy and Budget




                     Page 33
                                                                        Value of Higher Education

                                    The Lifetime Expected Value of a Bachelor’s Degree                    Median Income by Educational Achievement
                                      is Rising Compared to a High School Diploma                                         (Males)
                                                                                           $70,000
                        $1.6
                                             1980         2006
                        $1.4                                                               $60,000


                        $1.2                                                               $50,000
  Dollars in Millions




                        $1.0                                                               $40,000

                        $0.8                                                               $30,000

                        $0.6                                                               $20,000

                        $0.4                                                               $10,000

                        $0.2
                                                                                               $0

                        $0.0
                                              Men                       Women                                Bachelor's Premium        High School


                                                                      CUMULATIVE LIFETIME EXPECTED EARNINGS
                                                                                 (Dollars in Millions)
                                                         Males                                                             Females
$7.00                                                                                      $4.50
                                                                           Professional    $4.00
$6.00                                                                                                                                                 Doctorate
                                                                                                                                                      Professional
                                                                           Doctorate       $3.50
$5.00
                                                                                           $3.00
                                                                               Master’s
$4.00                                                                                                                                                 Master’s
                                                                           Bachelor’s
                                                                                           $2.50
                                                                                                                                                      Bachelor’s
$3.00                                                                                      $2.00
                                                                           Associate’s                                                                Associate’s
                                                                           H.S. Graduate   $1.50
$2.00                                                                                                                                                 H.S. Graduate
                                                                                           $1.00
$1.00
                                                                                           $0.50
$0.00                                                                                      $0.00
                               24       34          44     54    64       74                         24    34        44           54     64          74

                                                                                                                                                                     Page 34
                                                                                     U.S. Economic Indicators
                                Gross Domestic Product Annual Change                                                              Cumulative Inflation Increases

7.5%                                                                                                165%
                                                                                                                                                                                                GDP
7.0%                                                                                                150%
                                                                                                    135%
6.5%
                                                                                                    120%
6.0%
                                                                                                    105%
                                                                                                                                                                                                 HEPI
5.5%                                                                                                 90%

5.0%                                                                                                 75%
                                                                                                                                                                                                 CPI
                                                                                                     60%
4.5%
                                                                                                     45%
4.0%                                                                                                 30%

3.5%                                                                                                 15%
                                                                                                      0%
3.0%
                                                                                                    -15%
                                                                                                           1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
   Sources: Bureau of Economic Analysis and the US Office of Management and Budget




                                                                                       Target Federal Funds Rate
                                                                   20%

                                                                   18%

                                                                   16%

                                                                   14%

                                                                   12%

                                                                   10%

                                                                    8%

                                                                    6%

                                                                    4%

                                                                    2%

                                                                    0%



                                                                                                                                                                                             Page 35
                                                                                                             U.S. Economic Indicators

             Relative Labor Costs Among Major Auto-Producing Nations
                                                            (in dollars per hour)

$35
        $33.00


$30


$25
                      $22.50         $22.10
                                                   $20.20        $19.40
$20                                                                             $18.60



$15


$10
                                                                                               $8.40

                                                                                                              $5.20
 $5
                                                                                                                       $2.70
                                                                                                                               $0.90
 $0
      Germany          U.S.         France         Japan        Canada          U.K.          South          Taiwan   Mexico   China
                                                                                              Korea
      Source: U.S. Office of Trade and Economic Analysis, Roland Berger Strategy Consultants, WSJ 6/10/04.



                                                                                                                                            Increase in U.S. Health Insurance Premiums Compared to Other
                                                                                                                                                                 Indicators 1988 - 2006
                                                                                                                               20%
                                                                                                                                                18.0%
                                                                                                                               18%
                                                                                                                               16%
                                                                                                                                                          14.0%                                                                                   13.9%
                                                                                                                               14%                                                                                                        12.9%

                                                                                                                               12%                                                                                                10.9%                   11.2%
                                                                                                                                          12.0%
                                                                                                                               10%                                                                                                                                9.2%
                                                                                                                                                                                8.5%                                       8.2%
                                                                                                                                8%
                                                                                                                                                                                                                                                                    7.7%
                                                                                                                                6%                                                                                  5.3%

                                                                                                                                4%
                                                                                                                                2%
                                                                                                                                                                                                       0.8%
                                                                                                                                0%



                                                                                                                                                      Health Insurance Premiums                       Workers' Earnings                   Overall Inflation
                                                                                                                                       Source: The Kaiser Family Foundation Employer Benefits 2006 Annual Survey.


                                                                                                                                                                                                                                                          Page 36
                                                                                    State of Illinois Economic & Fiscal Indicators                                           State of Illinois
                                   Cumulative Growth FY 1990 – FY 2008                                                                                            State-Supported Principal Outstanding
                                                                                                                                                                        End-of-Year FY 1996-2007
                                                                                                                                                                                             (Dollars in Billions)
 165%
                                                                                                               GDP      153.6%
 150%
 135%                                                                                                                   128.8%
                                                                                                            State GRF
 120%
 105%
 90%
 75%
                                                                                                                 CPI
                                                                                                                         65.1%
 60%
 45%
                                                                                                      Public Univ. GRF
 30%                                                                                                                     26.7%
 15%
  0%
 -15%



      FY02 to FY08 exclude $45 million in payments to CMS from Universities for Health Insurance
      Source: Illinois State Budgets (FY08 is based on the Governor’s Proposed Budget)


                                                         University of Illinois                                                                                                  State of Illinois
                                                          Flash Index Data                                                                                               General Obligation Debt Service
                                                                                                                                                                                          Principal and Interest
            Growth                                      No Growth                                  Growth                        $1,800
108                                                                                                                                                                                                                                                                    $1,753.7
                                                                                                                                                                                                                                                 $1,649.4   $1,670.8
                                                                                                                                                                                                                                      $1,595.0
                                                                                                                                 $1,600
106                                                                                                                                                           Interest                    Principal                        $1,412.4
                                                                                                                                 $1,400
104
                                             Values above 100 represents                                                         $1,200
                                                 Economic Growth
102                                                                                                                              $1,000                                                                           $973.4

                                                                                                                                                                                                         $851.5
                                                                                                                                                                                              $790.5
100                                                                                                                               $800                                    $690.8    $717.2
                                                                                                                                                     $674.7    $686.2
                                                                                                                                          $621.7
                                                                                                                                  $600
98
                                                                                                                                  $400
96
                                                                                                                                  $200
94
                                                                                                                                    $0
                                                                                                                                          1996     1997       1998       1999      2000       2001      2002      2003     2004       2005        2006 2007* 2008*
                                                                                                                                           * The FY 2007 and FY 2008 debt service are GOMB Budget estimates.
  Source: IGPA, U of I




                                                                                                                                                                                                                                                                 Page 37
                  State of Illinois                                                                                                   State Tax Appropriations
   General Fund Appropriations by Sector – FY 2008                                                                                       Changes by Agency
                                                                                           In Constant 2007 Dollars (CPI)
                                                                                    75%
                                State By Sector                                                                                                                              Human Services      64.9%
                                                                                    60%                                                                                                          62.9%
                       Public           Other
                       Safety           5.1%                      Human                                                                                                                       Elem/Sec
                       5.5%                                       Services          45%
                                                                   20.4%                                                                                                                         38.6%
             Higher
            Education                                                               30%
              7.9%                                                                                                                                                                     State Average
                                                                                    15%

                                                                                     0%
                                                                                                                                                                                   Higher Educ.
                                                                                    -15%                                                                                                    -17.6%
                                                                                                                                                                                            -25.3%
                                                                                    -30%
      Healthcare                                                                                                                                                                     All Other
      and Family                                                                    -45%
       Services
        29.7%
                                                                      Elementary/
                                                                       Secondary      FY02 - FY08 exclude $45 M from Higher Education for Health Insurance payment to CMS.
                                                                         31.4%
          Source: Illinois State Budget, FY 2008 as introduced.

                                                                                                                       State Tax Appropriations
                                $28.4 Billion                                                            Higher Education vs. Elementary/Secondary Education
                                                                                           In Constant 2007 Dollars (CPI)
        Sources of General Revenue Fund                                             65%
                                                                                                                                                                                                 62.9%
                                                                                                                                                                                   Elem/Sec
                                 Other
           Gross
                                Sources
          Receipts
                                 7.6%                                               45%
           8.3%
                                                                   Individual
  Lottery &                                                       Income Tax
   Gaming                                                            30.2%
                                                                                    25%
    4.6%


                                                                                     5%
Public Utility
   3.5%
                                                                                                                                                                                    Higher Educ.
                                                                                    -15%                                                                                                     -17.6%


 Federal Aid                                                                        -35%
   16.3%
                                                                     Corporate
                                                                    Income Tax
                                                                       5.5%           FY02 - FY08 exclude $45 M from Higher Education for Health Insurance payment to CMS.


                                           Sales Tax
                                                                                                                                                                                              Page 38
                                            24.0%
                                            Illinois Projected Employment Growth, 2002-2012
                           Fastest Growing Industries                                                                                   Fastest Growing Occupations
                                            Avg. ann. change                                                                                             Avg. ann. change
                                                                                                                                        Medical Asst.                                4.5%
                 Home Health Serv.                                          3.7%

                                                                                                                     Network & Data Comm. Analyst                              4.1%
          Mgmt., Sci. & Tech. Serv.                                     3.5%

                                                                                                                         Social & Human Serv. Asst.                           4.0%
     Ambulatory Health Care Serv.                                   3.2%

                                                                                                                       Fitness Train./Aerobics Instr.                        3.8%
    Internet Publish. & Broadcast.                               3.1%

                                                                                                                                      Physician Asst.                        3.8%
              Child Day Care Serv.                               3.0%

                                                                                                                     Med. Rec. & Health Info. Techn.                    3.6%
       Health Practitioners Offices                             3.0%

                                                                                                                                  Home Health Aides                    3.5%
   Electronics & Appliance Stores                              2.9%

                                                                                                                               Veterinary Technician                  3.4%
           Outpatient Care Centers                             2.9%

                                                                                                                                  Phys. Therap. Asst.                 3.3%
 Internet, Web & Data Processing                               2.9%

                                                                                                                          Haz. Mat. Removal Worker                    3.3%
    Computer Syst. Design & Serv.                            2.8%

                                                                           Source: Illinois Department of Employment Security

                                                                      U.S. Projected Employment Growth, 2002 -2012
                         Fastest Growing Industries                                                                                     Fastest Growing Occupations
                                           Avg. ann. change                                                                                              Avg. ann. change
               Software Publishing                                      5.3%                                                             Medical Asst.                                  5.9%

          Mgmt., Sci. & Tech. Serv.                            4.5%                                                  Network & Data Comm. Analyst                                      5.7%

   Community Elder & Resid. Care                               4.5%                                                                    Physician Asst.                         4.9%

    Computer Syst. Design & Serv.                              4.5%                                                       Social & Human Serv. Asst.                           4.9%

                 Employment Serv.                              4.4%                                                                 Home Health Aide                          4.8%

Indiv., Family, Voc. & Rehab. Serv.                     3.9%                                                          Med. Rec. & Health Info. Techn.                         4.7%

     Ambulatory Health Care Serv.                       3.9%                                                                    Phys. Therapist Aide                         4.6%

  Water, Sewage & Other Systems                         3.9%                                                         Software Engineer, Applications                         4.6%

 Internet, Web & Data Processing                        3.9%                                                              Software Engineer, Systems                        4.5%
              Child Day Care Serv.                    3.6%                                                                         Phys. Therap. Asst.                      4.5%
                                                                           Source: U.S. Bureau of Labor Statistics
                                                                                                                                                                                              Page 39
                                                University of Illinois                                                                                                   Average Compounded Annual Increases
                                          Share of State Tax Appropriations                                                                                                       FY 1990 – FY 2008
                                                 FY 1980 to FY 2008                                                                          8%           7.5%
5.0%
                                                                                                                                             7%
4.5%                                                                                                                             $1,291.1M   6%

4.0%                                                                                                                                         5%

3.5%                                                                                                                              $594.5M    4%                                                                                                                                3.6%
                                                                                                                                                                                                                      3.3%
                                                                                                                                                                                                                                                     2.8%
                                                                                                                                             3%
3.0%
                                                                                                                                             2%
                                                                                                                                                                                       1.3%
2.5%                                                                                                                             $696.6M
                                                                                                                          2.4%               1%
2.0%
                                                                                                                                             0%
                                                                                                                                                       General                         State                        State                             CPI                     Direct
                                                                                                                                                    Undergraduate                  Appropriations             Appropriations +                                            Appropriations +
   FY02 – FY08 excludes $45 million reduction to Universities for Health Insurance
                                                                                                                                                     Tuition Rate                     (GRF)                    Undergraduate                                             Payments on Behalf
                                                                                                                                                  CPI: Consumer Price Index, BLS                              Tuition Revenue


                                                                       University of Illinois                                                                                     State of Illinois
                                                                       Payments on Behalf                                                                              General Fund Appropriation – FY 2008
                                                                              Fringe           Health
                                                                                                                                                                                                   All Other SURS                  Community
                                             Retirement                      Benefits        Insurance    Total      % Change                                                                       6.8% 0.2%                       Colleges
                    1990                      $39,573.5                       $29,300.1                  $68,873.6                                                                                                                  14.1%
                    1991                       34,823.7                        39,976.4                   74,800.1        8.6%
                    1992                       34,388.5                        39,151.6                   73,540.1       -1.7%
                    1993                       31,730.3                        40,936.2                   72,666.5       -1.2%
                    1994                       32,266.0                        65,845.6                   98,111.6       35.0%
                    1995                       35,069.2                        62,447.3                   97,516.5       -0.6%                                          U of I
                    1996                       49,543.7                        90,252.7                  139,796.4       43.4%                                          31.5%                                                                            Student Aid
                    1997                       63,881.4                        95,138.7                  159,020.1       13.8%                                                                                                                             19.5%
                    1998                       81,625.3                       103,342.2                  184,967.5       16.3%
                    1999                       87,425.1                       112,200.3                  199,625.4        7.9%
                    2000                       90,606.5                       127,261.8                  217,868.3        9.1%
                    2001                       94,267.3                       154,420.1                  248,687.4       14.1%
                    2002                       99,014.4                       157,024.2       24,893.2   280,931.8       13.0%
                    2003                      112,980.6                       169,170.4       24,893.2   307,044.2        9.3%
                    2004                      727,269.3                       210,084.4       24,893.2   962,246.9      213.4%                                                                                      Other Public
                    2005                      114,279.8                       232,952.6       24,893.2   372,125.6      -61.3%                                                                                      Universities
                    2006                       70,462.8                       257,464.0       24,893.2   352,820.0       -5.2%                                                                                        27.9%
                    2007                      107,981.7                       268,675.0       24,893.2   401,549.9       13.8%
                                                                                                                                                                                                         $2.2 Billion
            Compounded
                                                                                                                                                                   Sources: IBHE tables for Higher Education - final budget as signed by Governor.
            Annual Rate                                    6.1%                      13.9%                  10.9%
                                                                                                                                                                   Note: Health Insurance redirection of $45 million has been moved from Public Universities to All Other.
              Note: 2004 includes proceeds from bond sale.                                                                                                                                                                                                                     Page 40
                                               University of Illinois
                                           Budget by Source of Funds
                                     FY 1980, FY 2008 and Projected FY 2018



                   FY 1980                                     FY 2008                                 Projected FY 2018
                                                                                                                              State
            Auxiliaries                              Auxiliaries            State
                                      State                                                            Auxiliaries           Taxes
             13.9%                                      13.4%              Taxes
                                     Taxes                                                                10.9%              11.0%
                                              Hospital/                    18.6%                Hospital/
Hospital/                            44.5%                                                      Medical                                   Payments
                                              Medical
Medical                                                                                          15.8%                                    on Behalf
                                               14.0%                                Payments
 10.9%                                                                                                                                     15.3%
                                                                                    on Behalf
                                                                                     11.3%


 Grants/
Contracts                                                                    Tuition                                                   Tuition
                                                   Grants/                                         Grants/
 20.4%            Tuition Payments                                           15.4%                                      AFMFA          21.4%
                                                  Contracts        AFMFA                          Contracts
                   5.7% on Behalf                                   0.5%                           24.9%                 0.7%
                                                   26.8%
                            4.6%

            $641.7 Million                                $3,899.8 Million                                    $7,499.5 Million
                                                                                                              Based on FY 1996-2008 Trends.




                                                                                                                                                 Page 41
                                                   University of Illinois                                                                                                                                                                               University of Illinois
                                          All Source of Funds FY 1990 – FY 2008                                                                                                                                                              All Source of Funds as a % of Total Budget
                                                   (Dollars in Millions)                                                                                                                                                                                 FY 1990 – FY 2008
$4,000                                                                                                                                                                                                40%


                                                                                                                                                                                                      35%
                                                                                                                                                                            Hospital
$3,000
                                                                                                                                                                                                      30%
                                                                                                                                                      Gifts/Grants/Contracts
                                                                                                                                                                                                                                                                                                                                                                     Gifts/Grants/Contracts
                                                                                                                                                                                AFMFA
                                                                                                                                                                                                      25%
$2,000                                                                                                                                                     Self Supporting
                                                                                                                                                                                                                                                                                                                                                                              State Funds
                                                                                                                                                       Institutional Funds                            20%
                                                                                                                                                                            Income Fund
                                                                                                                                                                                                                                                                                                                                     Self Supporting                                    Income Fund
$1,000                                                                                                                                                                                                15%
                                                                                                                                                               Payments on Behalf
                                                                                                                                                                                                                                                                                                                                                                            Payments on Behalf

                                                                                                                                                                                GRF/EAF               10%

   $0                                                                                                                                                                                                                                                                                                                                                                             Institutional Funds
                                                                                                                                                                                                      5%
                                                                                                                                                                                                                                                                                                                                                 Hospital
                                                                                                                                                                                                                                                                                                                                                                                            AFMFA
                                                                                                                                                                                                      0%
     Sources: Budget Summary for Operations, state payments on behalf, and RAMP. Waivers excluded.
     FY90-FY95 state funds adjusted to include UIS. GRF for FY02 – FY08 exclude $24.9 million for Health Insurance, Payments on Behalf adjusted to include the $24.9 million.
                                                                                                                                                                                                        FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
                                                                                                                                                                                                             Sources: Budget Summary for Operations, state payments on behalf, and RAMP. Waivers excluded.
                                                                                                                                                                                                             FY90-FY95 state funds adjusted to include UIS. GRF for FY02 - FY08 exclude $24.9 million for Health Insurance, Payments on Behalf adjusted to include the $24.9 million.


                                                                    University of Illinois                                                                                                                                              State & Tuition Pay for Instructional Function
                                                                    Cumulative Growth                                                                                                                                                         Expenditures by Function FY 2006
                                                                    FY 1990 – FY 2008                                                                                                                           (Dollars in Millions)
 600%                                                                                                                                                                                                 $600
                                                                                                                                                                          Payments on Behalf                                                                                                                                                                    Non-State
 525%                                                                                                                                                                                                                $17.6                                                                                                                                      State & Tuition
                                                                                                                                                                                                      $500


 450%
                                                                                                                                                                                                      $400
                                                                                                                                                                                    Income Fund
 375%
                                                                                                                                                                         Hospital                                                                                                            $484.2
                                                                                                                                                                                                      $300                                                                                                                         $509.4
 300%
                                                                                                                                                                                                                    $501.4
                                                                                                                                 Institutional Funds
                                                                                                                                                                                                                                       $40.6
                                                                                                                                                                                                      $200
 225%                                                                                                                                                                                                                                                     $74.9
                                                                                                                                                                                                                                                                                                                $254.3
                                                                                                                                                                     Gifts/Grants/Contracts                                                                                 $18.6
                                                                                                                                                                                                                                                                                                                                                                                        $239.2
 150%                                                                                                                                                                                                 $100                            $188.4                                                                                                                            $70.3
                                                                                                                                                                                                                                                         $143.1            $132.0
                                                                                                                                                                                    Self Supporting                                                                                                                                                   $45.0
                                                                                                                                                                                                                                                                                               $72.7
                                                                                                                                                                                                                                                                                                                 $46.7             $44.3                                $53.4
  75%                                                                                                                                                                                                                                                                                                                                                 $37.7
                                                                                                                                                                                                       $0
                                                                                                                                                                                     State Funds

   0%
     FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
         Sources: Budget Summary for Operations, state payments on behalf, and RAMP. Waivers excluded.
                                                                                                                                                                                                                                                                                                                                                                                    Page 42
         FY90-FY95 state funds adjusted to include UIS. GRF for FY02 – FY08 exclude $24.9 million for Health Insurance, Payments on Behalf adjusted to include the $24.9 million.
                     The Center: The Top American Research Universities                                                                                                                 Total Endowment-Equivalent Adjusted for Student FTE Enrollment
                                       (August 2002)                                                                                                                                          Universities with More Than $20 Million in Federal Research in Rank Order

         • An Annual Report from The Lombardi Program on Measuring                                                                                                                     $18
                                                                                                                                                                                                  Harvard off-scale
                                                                                                                                                                                                  at $31.1 Billion


           University Performance                                                                                                                                                                 Michigan
                                                                                                                                                                                                   Stanford
                                                                                                                                                                                       $16
         • Intended to assess the relative economic strength of research                                                                                                                               Minnesota
                                                                                                                                                                                                                                                                                                                                Private (N=39)

           universities                                                                                                                                                                $14                     Berkeley
                                                                                                                                                                                                                                                                                                                                Public (N=80)




                                                                                                                                   Adjusted Total Endowment-Equivalent (in Billions)
         • Evaluated universities based on the market value of their                                                                                                                   $12                                Ohio State
           endowments and an endowment equivalent calculation for                                                                                                                                                            Northwestern

           other revenue streams                                                                                                                                                       $10
                                                                                                                                                                                                                                       Chicago
                  – Endowment equivalent is the amount of endowment that would be
                                                                                                                                                                                       $8
                    required to generate the revenue stream (assuming a 4.5% growth)                                                                                                                                                               UIUCTexas
                  – Revenue streams included annual giving, tuition and fees, and state                                                                                                $6                                                                               Iowa
                    appropriations                                                                                                                                                                                                                                                   UIC
                                                                                                                                                                                                                                                                                                 Arizona State

                  – Adjusted for size based on student enrollment                                                                                                                      $4                                                                                                                                 Oregon State
                                                                                                                                                                                                                                                                                                                             Colorado
                  – Used FY 1999 data
                                                                                                                                                                                       $2
         • Public institutions can compete with private institutions                                                                                                                                     12 Private
                                                                                                                                                                                                         8 Public
                                                                                                                                                                                                                                      12 Private
                                                                                                                                                                                                                                      8 Public
                                                                                                                                                                                                                                                                      12 Private
                                                                                                                                                                                                                                                                      8 Public
                                                                                                                                                                                                                                                                                               12 Private
                                                                                                                                                                                                                                                                                               8 Public
                                                                                                                                                                                                                                                                                                                     12 Private
                                                                                                                                                                                                                                                                                                                     8 Public
                                                                                                                                                                                                                                                                                                                                            12 Private
                                                                                                                                                                                                                                                                                                                                            8 Public

           because of the significant state support received                                                                                                                           $0
                                                                                                                                                                                              0                           20                            40                             60                      80                    100                 120
                                                                                                                                                                                                                                                                   Rank Among All 119 Research Universities




                       2005 Adjusted Total Endowment-Equivalent                                                                                                                                                           2005 Adjusted Total Endowment-Equivalent
                          Based on The Center’s Methodology                                                                                                                                                                  Based on The Center’s Methodology
                          UIUC – Peer Institutions (in billions)                                                                                                                                                           UIC – IBHE Peer Institutions (in billions)
$25.0                                                                                                                                                                                  $12
                                                                                                                                                                                                                                                                            Endow Asset Market Value                Endow-Equiv Annual Giving
                                                                  Endow Asset Market Value          Endow-Equiv Annual Giving
                                                                                                                                                                                                                                                                            Endow-Equiv State Appn                  Endow-Equiv Tuition and Fees
                                                                  Endow-Equiv State Appn            Endow-Equiv Tuition and Fees                                                       $10
$20.0
                                                                                                                                                                                                                                                                                                              UIC
                                                                                                                                                                                        $8
$15.0
                                                                                                  UIUC
                                                                                                                                                                                        $6

$10.0
                                                                                                                                                                                        $4


 $5.0                                                                                                                                                                                   $2


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                                                                                                                                                                                         2005 annual giving data was not available for Wayne State. We used 2001 data as a proxy for 2004.
                                                                                                                                                                                                                                                                                                                                                   Page 43
                                                                 Big Ten University and Foundation Endowments
                                                                                              (Dollars in Billions)

                                                   FY 2006                                                                                 Percentage Growth from 1995-2006

 $6                                                                                                         975%
          $5.7
                     $5.1
                                                                                                            900%
 $5                                                                                                         825%
                                                                                                            750%
                                                                                                            675%
 $4
                                                                                                            600%
                                                                                                            525%
 $3                                                                                                         450%
                               $2.2                                                                         375%
                                          $2.0
 $2                                              $1.7                                                       300%
                                                        $1.5
                                                                 $1.3    $1.3   $1.3                        225%
                                                                                       $1.0
                                                                                               $0.8
 $1                                                                                                         150%
                                                                                                             75%
 $0                                                                                                           0%




      Source: NACUBO Endowment Study FY 2006.                                                                Source: NACUBO Endowment Study FY 2006.




                 Big Ten University and Foundation Endowments                                                                     Annual Change in Endowment Spending
                                                                                                      25%
$6
                                                               2006     2005    1995   1985
$5                                                                                                    20%


$4
                                                                                                      15%

$3                                                                                                                                                                                  12.2 %
                                                                                                                                                                                  Compounded
                                                                                                      10%                                                                         Annual Rate
$2

                                                                                                      5%
$1

$0                                                                                                    0%


                                                                                                      -5%

Source: NACUBO Endowment Study FY 2006.




                                                                                                                                                                              Page 44
        Public Higher Education Capital Appropriation History                                                                                                             U of I Capital Appropriations
                         FY 1999 to FY 2007                                                                                                                                    FY 1995 to FY 2007
                       (Dollars in Thousands)                                                                                                                                  (Dollars in Millions)
                                                                                                                              $180
                                                                                                                                                                                                                     $165.9
                                                                                                                              $160
                   U of I             SIU        Other Public         ICCB                 Other             Total                                                                                                                $140.1
                                                                                                                              $140
FY 1999        $ 37,310.10      $ 14,274.70      $ 33,877.40 $ 52,041.90             $ 1,310.00         $ 138,814.10
FY 2000          80,685.60        29,938.50        99,474.90   96,189.30              11,000.00           317,288.30          $120
FY 2001          46,821.90        42,573.80        52,231.50   63,532.50                 415.00           205,574.70
FY 2002         165,949.40        22,730.00       104,957.00   75,736.40               2,000.00           371,372.80          $100
FY 2003         126,335.00        30,072.10        45,311.30   80,679.20              13,943.80           296,341.40                                                                          $80.7
                                                                                                                              $80
FY 2004          12,735.00         5,752.50        34,137.40   59,107.60                    -             111,732.50
FY 2005                                           NO APPROPRIATIONS                                                           $60
FY 2006                                           NO APPROPRIATIONS                                                                                                                                      $46.8
                                                                                                                                                                                  $41.8
FY 2007                                           NO APPROPRIATIONS                                                           $40
                                                                                                                                     $30.5                   $27.8
                                                                                                                                                                       $21.1
                                                                                                                              $20                                                                                                            $12.7
                                                                                                                                                $0.0                                                                                                   $0.0      $0.0       $0.0
                                                                                                                               $0
                                                                                                                                     1995      1996         1997       1998       1999        2000        2001        2002        2003        2004     2005      2006       2007
                                                                                                                                             Repair & Renovation                                Regular Capital                                Designated Projects




                                       Total Debt by Type                                                                                                                         Total Debt by Campus

                                                                                                                                              Dollars in Millions
   Dollars in Millions
                                                                                                                                                                                                                                                                            $1,543.5
                                                                                                                   $1,543.5


                                                                                                                                                                                                                                                                 $1,322.2
                                                                                                        $1,322.2
                                                                                                                                                                                                                                                      $1,202.2
                                                                                             $1,202.2
                                                                                                                                                                                                                                           $1,131.0
                                                                                $1,131.0                                                                                                                                      $1,098.7
                                                                     $1,098.7
                                                                                                                                                                                                                 $1,018.1
                                                          $1,018.1


                                                                                                                                                                                                     $803.1
                                                 $803.1
                                                                                                                                                                                     $692.4
                                        $692.4




                                                                                                                                                              $385.5     $422.2
                             $422.2                                                                                                             $387.0
      $387.0        $385.5




                                                                                                                                                                                                                                                                        Page 45
                   Economy and Budget
          Implications for the University of Illinois
•   The economic value of higher education to the individual – especially those with post-
    baccalaureate degrees – continues to grow.
•   The U.S. economy will continue to grow, but at a slower rate. Health care costs
    continue to grow at a more rapid rate than general inflation and earnings which has an
    impact on both the national economy and governmental spending at all levels.
•   The state’s fiscal situation, while somewhat improved, faces continued challenges in
    the coming years. Health care and pension obligation costs are expected to continue
    rising rapidly and will likely outpace any state revenue growth realized resulting in
    continued constraints on “discretionary spending” in the state budget (e.g., higher
    education).
•   The state has greatly increased its debt burden in the last four years creating a
    reluctance among state policymakers to fund additional capital improvements. At the
    same time, the University must increasingly rely on internal sources for funding
    capital projects which in turn has contributed to increased debt service levels.
•   The University has become more reliant on multiple revenue streams and state
    policymakers may interpret this trend as meaning the University can more easily
    absorb reductions or at least flat funding in the general appropriation.


                                                                                      Page 46
Research, Technology, and
 Economic Development




                            Page 47
                                   Trends in Federal R&D Funding
      Federal Outlays for R&D                                            Federal Outlays for R&D
            All Agencies                                                National Institute of Health
       Annual Percentage Change                                           Annual Percentage Change

20%                                              20%


15%                                              15%

                                                 10%
10%
                                                  5%
5%
                                                  0%

0%
                                                 -5%

-5%                                              -10%




       Federal Outlays for R&D                                      Federal R&D Budget Proposal
      National Science Foundation                                       (Dollars in Millions)
        Annual Percentage Change
20%                                                      FY 2006      FY 2007        FY 2008         % Change
                                                          Actual      Estimate       Estimate        2007-2008
15%
                                                        $ 73,043     $ 75,481       $ 72,935              -3.4%
10%
                                                           26,695        26,974        27,580              2.2%
                                                            7,529         9,174        10,114             10.2%
 5%                                                         1,156         1,241          1,409            13.5%
                                                            3,707         3,943          3,894            -1.2%
 0%                                                         1,779         1,795          1,734            -3.4%
                                                            8,886         9,533          9,345            -2.0%
-5%
                                                        $ 122,795    $ 128,141      $ 127,011             -0.9%


                                                                                                             Page 48
                                                      Total Research and Development Expenditures of
                                                         Carnegie Research I Institutions, FY 2005


                                         Quartile 1                                                                         Quartile 2
Rank                                Institution             Total                    Rank                                Institution        Total

 1     Johns Hopkins University                            $1,443,792                24     University of Pittsburgh, All Campuses          $510,943
 2     University of Michigan, All Campuses                  $808,887                25     University of Illinois at Urbana-Champaign      $499,711
 3     University of Wisconsin-Madison                       $798,099                26     Harvard University                              $447,196
 4     University of California-Los Angeles                  $785,625                27     University of Southern California               $445,036
 5     University of California-San Francisco                $754,444                28     University of North Carolina at Chapel Hill     $441,033
 6     University of California-San Diego                    $721,035                29     Yale University                                 $431,618
 7     Stanford University                                   $714,897                30     Georgia Institute of Technology, All Campuses   $425,386
 8     University of Washington - Seattle                    $707,519                31     University of Texas at Austin                   $410,981
 9     University of Pennsylvania                            $654,982                32     Northwestern Univ                               $387,242
10     Duke University                                       $630,752                33     Purdue University, All Campuses                 $364,986
11     Pennsylvania State U, All Campuses                    $625,764                34     Louisiana State Univ, All Campuses              $356,828
12     Ohio State University, All Campuses                   $608,923                35     Vanderbilt University                           $350,433
13     Cornell University, All Campuses                      $606,804                36     University of Rochester                         $345,337
14     Massachusetts Institute of Technology                 $580,742                37     University of Maryland at College Park          $338,648
15     University of California-Berkeley                     $554,551                38     University of Iowa                              $334,144
16     Texas A&M University, All Campuses                    $552,897                39     Michigan State University                       $333,735
17     University of Minnesota, All Campuses                 $548,873                40     Emory University                                $333,665
18     University of California-Davis                        $546,978                41     University of Nebraska Central Admin Sys Off    $333,126
19     Columbia University in the City of New York           $535,424                42     Case Western Reserve University                 $323,618
20     Washington University                                 $531,846                43     University of Alabama at Birmingham             $318,536
21     University of Florida                                 $530,734                44     University of Illinois at Chicago               $318,279
22     University of Arizona                                 $530,233                45     University of Georgia                           $316,806
23     University of Colorado, All Campuses                  $517,067                46     Rutgers the State Univ of NJ, All Campuses      $309,531

Note: Totals reported in thousands   .
Source: National Science Foundation
                                                                                                                                              Page 50
                                     University of Illinois Rank Among AAU Institutions on Selected Quality Indicators

                                            No. Doctorates Awarded                           State/Local R & D Spending                    No. Faculty Citations
                                            USDA Obligations                                 Federal R & D Spending                        No. Post doctorates

                                                                                      Urbana-Champaign Campus

      Rank                                   - Actual -                                                        Rank                            - Per 100 Faculty -
     (N = 61)                                                                                                 (N = 61)
       10                                                                                                       10

        10                                                                                                      10

        20                                                                                                      20
        30                                                                                                      30
        40                                                                                                      40

        50                                                                                                      50
       60
       61                                                                                                       60
                                                                                                                61
                '96    '97    '98    '99    '00    '01    '02    '03    '04    '05     '06                               '96   '97   '98     '99   '00   '01    '02   '03   '04   '05   '06
                                                   Year                                       Chicago Campus                                             Year


       Rank                                   - Actual -                                                       Rank                            - Per 100 Faculty -
      (N = 61)                                                                                                (N = 61)
        10                                                                                                      10

        10                                                                                                      10

        20                                                                                                      20

        30                                                                                                      30

        40                                                                                                      40

        50                                                                                                      50

        60
        61                                                                                                      60
                                                                                                                61
                 '96    '97    '98    '99    '00    '01    '02    '03    '04    '05     '06                              '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
                                                   Year                                                                                                  Year
Sources: National Science Foundation—USDA Obligations, State/Local and Federal R & D spending, No. Post doctorates; IPEDS—No. Doctorates; Thomson ISI—No. Faculty Citations.                  Page 50
           International Comparison: Production of Undergraduate Degrees in
                           Natural Sciences and Engineering


                                            Number of Degrees Per 100 24-Year-Olds

            Oceania (Australia, NZ)                                                                                  11.8

                                Europe                                                      7.7

                                    U.S.                                       5.7

              North/Central America                                        5

                           All Regions                          3

                                   Asia                   2.2

                       South America                    1.9

                          Middle East                  1.8

                 Sub-Saharan Africa              0.7



Note: Natural sciences include physical, biological, earth, atmospheric, ocean, agricultural, and computer sciences, and mathematics.
      Data include terminal undergraduate degrees only (e.g., bachelor’s degrees).
Source: National Science Foundation (NSF), Science and Engineering Indicators 2006.
                                                                                                                                        Page 51
                     International Comparison: Doctoral Degrees Granted in
                         Natural Sciences and Engineering (1993 – 2003)

         30,000



         25,000



         20,000



         15,000



         10,000



          5,000



              0
              1993                    1995                    1997                    1999                   2001                    2003

                         China                         Germany                      India                        Japan

                         Taiwan                        United Kingdom               United States


Notes: Natural sciences include physical, biological, earth, atmospheric, ocean, agricultural, and computer sciences, and mathematics.
       Data for China ends in 2001. Data for all countries include degrees granted to both native and foreign national students.
Source: National Science Foundation (NSF), Science and Engineering Indicators 2006.                                                         Page 52
                                        University of Illinois Technology Transfer
                                                       U.S. Patents
                    Applications Filed FY 1999 – FY 2007                                    Technology Disclosures FY 1999 – FY 2007

350                                                                         350

300                                                                         300

250                                                                         250

200                                                                         200

150                                                                         150

100                                                                         100

 50                                                                          50

  0                                                                           0
      FY99   FY00     FY01      FY02   FY03    FY04    FY05   FY06   FY07         FY99   FY00   FY01   FY02   FY03   FY04   FY05    FY06    FY07

                      UIC               UIUC              Total                                 UIC           UIUC              Total



                            Issued FY 1999 – FY 2007                                              Licenses & Options Executed
                                                                                                       FY 1999 – FY 2007

200                                                                         200



150                                                                         150



100                                                                         100



 50                                                                          50



  0                                                                           0
      FY99   FY00      FY01     FY02   FY03    FY04    FY05   FY06   FY07         FY99   FY00   FY01   FY02   FY03   FY04   FY05    FY06    FY07

                      UIC               UIUC              Total                                 UIC           UIUC              Total

                                                                                                                                           Page 53
               University Technology Transfer and Commercialization Performance Index
                                                                                  2000 - 2004

Rank        Institution Name                                                         Overall Score
1.          Massachusetts Inst. Of Technology (MIT)                                     100.00
2.          University of California System                                              96.59
3.          California Institute of Technology                                           92.94
4.          Stanford University                                                          92.65
5.          University of Florida                                                        86.11
6.          University of Minnesota                                                      85.55
                                                                                                            Brief Methodology Description
7.          Brigham Young University                                                     85.41
                                                                                                            The purpose of this index is to show performance
8.          University of British Columbia                                               84.23              in the overall commercialization pipeline, including
9.          University of Michigan                                                       82.54              all research fields. The four criteria (outcome
10.         New York University                                                          81.63              measures) that factor into the overall score are
11.         Georgia Institute of Technology                                              80.95              Patents Issued, Licenses Executed, Licensing
12.         University of Pennsylvania                                                   80.83              Income, and Startups. A weighted average of the
13.         University of Illinois, Chicago, Urbana-Champaign                            80.35              scores in these areas was computed. The
14.         University of Utah                                                           79.40              Licensing Income and Startups scores received the
15.         University of Southern California                                            79.28              highest weights since they are the most direct
16.         Cornell Research Fdn., Inc.                                                  78.69              outcome measures. The overall scores have been
17.         University of Virginia Patent Fndtn.                                         78.52              re-benchmarked to 100 in order to form an index.
18.         Harvard University                                                           77.68
19.         University of California, San Francisco                                      77.19
20.         North Carolina State University                                              76.94
21.         SUNY Research Foundation                                                     76.90
22.         W.A.R.F./University of Wisconsin                                             76.86
23.         McGill University                                                            76.80
24.         University of Washington/Wash. Res. Fdn.                                     76.54
25.         University of North Carolina, Chapel Hill                                    76.00


                                                                                                                                                         Page 54
SOURCE: Milken Institute. Mind to Market: A Global Analysis of University Biotechnology Transfer and Commercialization. September 2006.
                                                    Energy Costs
                                                 Cumulative Increases
350%
                                                                                                     Wellhead
                                                                                                    Natural Gas
300%

250%
                                                                                                             Texas WTI Crude
200%
                                                                 Total UI Utility Production Cost                                              Energy Use Projections
150%

100%

50%
                                                                                                                  Anthracite
 0%

-50%


   Source: Energy Information Administration (www.eia.doe.gov)




                                                                                                                               SOURCE: U.S. Department of Energy. http://www.eia.doe.gov/oiaf/ieo/world.html



                                                                                                                                                                                                       Page 55
                   Renewable Energy’s Role in U.S. Supply                                                                                                                                                Illinois’ Renewable Energy Presence

                                                                                                                                                                             •           Wind is the world’s fastest growing energy technology.
                                                                                                                                                                             •           Illinois currently has 6 ethanol plants in operation and 1
                                                                                                                                                                                         under construction.
                                                                                                                                                                             •           Illinois corn is used to produce 40% of the ethanol
                                                                                                                                                                                         consumed in the U.S.
                                                                                                                                                                             •           Investment by the ethanol industry in Illinois exceeds $1
                                                                                                                                                                                         billion, generating 800 jobs in plant operations and 4,000
                                                                                                                                                                                         jobs in the industry-related service sector.
                                                                                                                                                                             •           ADM is the largest producer of fuel ethanol in the U.S.
                                                                                                                                                                             •           UI’s Renewable Energy Efforts:
                                                                                                                                                                                            –    UIUC will build 3 wind turbines on the South
Figure 1: The Role of Renewable Energy Consumption in the Nation’s Energy Supply, 2006
                                                                                                                                                                                                 Farms to provide electricity and serve as a
Source: Department of Energy. http://www.eia.doe.gov/cneaf/solar.renewables/page/prelim_trends/rea_prereport.html                                                                                demonstration to farmers (2007).
                                                                                                                                                                                            –    UIUC’s new business building will be its first
                                                                                                                                                                                                 sustainable building, utilizing solar panels and
                                                                                                                                                                                                 other clean technologies.
                                                                                                                                                                             Source: Illinois Corn Growers Association. http://www.ilcorn.org/Ethanol/EthanolFact/ethanolfact.html
                                      Illinois’ Nuclear Presence
•          Illinois has 6 nuclear power plants, the largest family of                                                                                                                              OECD Renewable Energy Supply Growth
           nuclear facilities in the Nation.                                                                                                                  Hydro                      Geothermal                            Solar, Tide, Wind, etc.                 Combustible Renewables and Waste
•          Over half of Illinois’ power is derived from nuclear.                                                                                            350
•          Illinois’ nuclear generation capacity is greater than any other
           state and all but seven world nations.                                                                                                           300
                                                                                                                    Million tons of oil equivalent (Mtoe)




•          Illinois is also home to the Department of Energy’s Argonne                                                                                      250

           National Laboratory and Fermi National Accelerator
           Laboratory (Fermilab).                                                                                                                           200

              –    Argonne has a long history of research and
                                                                                                                                                            150
                   development in nuclear reactor technology.
              –    Fermilab conducts research on the frontier of high
                                                                                                                                                            100
                   energy physics and related disciplines.
              –    University of Illinois faculty have a history of                                                                                         50
                   collaboration with researchers at both facilities.
                                                                                                                                                             0
Source: Department of Energy. http://www.energy.gov/illinois.htm
                                                                                                                                                              1971    1974        1977         1980          1983         1986          1989         1992          1995          1998   2001    2004
                                                                                                                                          Source: OECD. http://puck.sourceoecd.org/vl=9713047/cl=19/nw=1/rpsv/factbook/05-01-05-g01.htm
                                                                                                                                                                                                                                                                                           Page 56
    Research, Technology, & Economic Development
        Implications for the University of Illinois
•    Federal R&D spending has slowed significantly in recent years and this pattern is likely to
     continue in the near term due to the slowing economy and other significant pressures on the
     federal budget (e.g., defense, homeland security).
•    The bedrock of economic development through research and technology commercialization
     are top quality science and engineering faculty and students. Intense competition for science
     and faculty and students nationally and internationally coupled with stagnant state and
     federal funding will create serious challenges for major research institutions such at the
     University of Illinois as they attempt to maintain and enhance the quality and
     competitiveness of their research programs and technology commercialization endeavors.
•    Land grant and other major research universities are increasingly expected to have
     technology transfer as a key part of their overall economic development mission. The
     University’s efforts in this area have grown considerably in recent years although many
     technical and competitive opportunities (and challenges) remain.
•    Global interest in renewable energy sources will continue to grow in the future due to the
     overall increase in demand and continued concerns about the cost and supply of fossil fuels
     and other traditional energy sources. The University has an opportunity to take a leadership
     role in energy research and development given its proximity to traditional (e.g., coal,
     nuclear) and renewable (e.g., biomass, wind) energy sources and its fundamental strengths
     in science and engineering disciplines.




                                                                                                Page 57
Political Landscape




                      Page 58
             Illinois House of Representatives Membership                                  U.S. House of Representatives Membership


Republican                                              51                   Republican                                                      200
Democrat                                                          67         Democrat                                                                233



             0              20              40               60         80                 0            50           100           150           200            250
                                                                                                       * Excludes two vacancies.


                                                                                               Source: Office of the Clerk, U.S House of Representatives Web site.




             Illinois Senate Membership                                                   U.S. Senate Membership


Independent                                                                  Independent       2
                                                  22
Republican                                                                   Republican                                                             49
                                                                       37
Democrat                                                                     Democrat                                                               49


             0              10              20               30         40                0                     20                    40                      60
              Source: Illinois General Assembly Web site.                                  Source: US Senate Statistics party division. history Web site.




                                                                                                                                                            Page 59
    Illinoisans’ Support for State Higher Education Spending Increases, 2005 -2006                                                         Illinoisans’ Willingness to Pay to Maintain Service Levels, 2004
                                                                                     78%
                  Public schools K-12                                              75%                                               Public schools K-12                                                    80%
                                                                             67%
Financial Aid for IL College Students                                                                                                         Medical care                                              78%
                                                      Not Asked in 2005
                                                                           64%
                           Medical care                                   63%                                                                       TANF                                              73%
                                                                       60%
                       Higher education                               58%                                                                     Public health                                         72%
                                                                       59%
                          Public health                               57%                                                          Protecting air & water                                       67%
                                                                      58%
         Job training for unemployed                                    62%                                                       Economic development                                          67%
                                                                     55%
                  Low-income families                                  59%                                                                     Job training                                     66%
                                                                    52%
                          Environment                             49%                                                                   Higher education                                  59%
                                                            37%
           Job training for employed                       35%                                                                                   Preschool                              56%
                                                            36%                                                                               Public safety
                           Repair roads                    35%                                                                                                                  47%
                                                                                                 2006
                                                    22%                                                                            Protecting open spaces                       47%
                   Building new roads               22%
                                                                                                 2005
                                                    20%                                                                             Public transportation                    42%
                                Prisons           17%


                                          0%              25%        50%             75%               100%                                                   0%      25%              50%                  75%               100%
                                                                   Illinoisans’ Support for State Higher Education Spending Increases, 2006
                Region                                                                                                                                                   Income
                                                                                      Age                                                                               Under $21,000                       64%
             Statewide                                                              18 - 24                                       75%
                                                                                                                                                                     $21,000 - $34,999                            75%
              Chicago                                                               25 - 34                                62%
                                                                                                                                                                     $35,000 - $55,999                      60%
       Suburban Cook                                                                35 - 44                               60%
      Collar Counties                                                                                                                                                $56,000 - $99,999                  56%
                                                                                    45 - 54                              57%
          Northern IL                                                                                                                                              $100,000 - $149,999                      61%
                                                                                    55 - 64                        47%
            Central IL                                                                                                                                                  Over $150,000                   56%
                                                                                       65 +                         48%
          Southern IL                                                                                                                                                                     0%     25% 50% 75% 100%
                                                                                              0%             25%          50%       75%          100%
                                                                                                                                                                          Education
                           0%         25%      50%         75%    100%                     Ethnicity                                                                  College graduate                       59%
           Race                                                                     Non-Hispanic
                                                                                                                            57%
                                                                                                                                                                         Some college                        61%
          Other                                             88%
                                                                                            Hispanic                                                                High school or less                      60%
                                                                                                                                        88%
          Asian                                      72%
                                                                                                        0%         25%      50%         75%       100%                                    0%        25%      50%        75%    100%
                                                                                    Gender                                                                           Political party
          Black                                     69%
                                                                                   Female                                  61%                                       Independent                             62%


         White                              55%                                                                                                                       Republican              33%
                                                                                      Male                                58%
                                                                                                                                                                       Democrat                                   70%
                  0%            25%         50%            75%      100%
                                                                                 0%                      25%             50%        75%          100%
       Source: Northern Illinois University, 2005 and 2007 Illinois Policy Survey                                                                                                  0%         25%           50%         75%     100%
                                                                                                                                                                                                                                Page 60
                     Political Landscape
           Implications for the University of Illinois
•   Higher education issues have traditionally been state concerns, but Congress also has
    become much more interested in issues related to higher education’s affordability and
    public accountability.
•   Growing public concern over affordability and recent legislation (e.g., “Truth in
    Tuition”) will make major increases in tuition challenging to achieve.
•   Congress is also interested in an array of issues concerned with Homeland Security,
    which will have implications for privacy and student issues.
•   The “P-16” education continuum has been truncated in the minds of many state
    policymakers and no longer includes higher education; there is, however, a significant
    focus on issues related to K-12 education and its financing.
•   While the University enjoys a broad base of support within the General Assembly, the
    dominance of other issues facing the state legislature (e.g., health care, pensions, K-12
    education) make it difficult to advance the University’s (or higher education’s)
    interests.
•   There is growing interest at both the state and national levels in creating complex data
    systems that would provide policy makers and the general public with detailed
    information on student progress through the P-16 educational pipeline and beyond to
    the work place.

                                                                                           Page 61
                               Sources
External Sources
•   U.S. Bureau of the Census
•   WICHE Enrollment Projections 2006
•   U.S. Bureau of Labor Statistics
•   Post Secondary Education Opportunity Newsletter
•   National Science Foundation Science and Engineering Indicators 2007
•   National Center for Public Policy and Higher Education
•   Organisation for Economic Co-operation and Development (OECD)
•   U.S. Office of Trade and Economic Analysis
•   U.S. Office of Management and Budget
•   TIAA-CREF Institute Quarterly
•   Illinois Economic and Fiscal Commission
•   Milken Institute
•   Governor’s State Budget Recommendations for FY 2008
•   House Democratic Budget Summit Document FY 2008
•   Northern Illinois University 2007 Illinois Policy Survey

U of I Reports
•    Profile of Students, Faculty and Staff by Race/Ethnic Group, Gender and Disability
•    Financial Aid Survey
•    University Office for Planning and Budgeting Employment Statistics
•    FY 2008 Budget Request for Operating and Capital Funds
•    Institute for Government and Public Affairs
•    Budget Summary for Operations
•    Annual Report Technology Commercialization Activities




                                                                                          Page 62

								
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