HB 1581: Adequate and Equitable Public University Funding Act

House Bill 1581 and Senate Bill 13, known as the Adequate and Equitable Public University Funding Act, would create a new formula for distributing any new state funding among Illinois’ 12 public universities. The bill calls for $135 million in additional annual state higher education funding for 15 years.

No. The U of I System strongly supports increased state investment in higher education. State appropriations have fallen dramatically over the past two decades, and while the current governor has prioritized higher education, all institutions need more support. What we oppose is the specific model this legislation is built on, which would redistribute resources away from the U of I System and stifle its contributions to access, affordability, workforce development, and life-improving research, which all power economic progress and regional and national competitiveness.

Under the proposed formula, UIUC is considered the most adequately funded state university at 89% of the target, meaning it would be last in line for new funding. UIC and University of Illinois Springfield sit at 56% and 57%. In practice, the three universities that educate 53% of all public university students in Illinois would receive a significantly smaller share of future state investment, even as enrollment, workforce demand, and research expectations grow.

Proponents say no university would receive less than its current funding level. The issue is not a nominal cut. It is relative decline. If new state dollars flow disproportionately to other institutions while the U of I System faces rising costs tied to inflation, enrollment growth, and research demands, a flat dollar amount over a decade in a growing-cost environment is, in real terms, a reduction.

The U of I System's impact reaches every part of Illinois. Eighty percent of our undergraduates are Illinois residents. Seventy-four percent of our graduates stay in the state after graduation, fueling the workforce, economy, and civic life. One in 37 Illinois jobs is supported by the three U of I System universities and their students. We run the state’s only public academic health system, and we spend nearly $300 million of our own funds on undergraduate financial aid each year. Under-resourcing the system would have consequences far beyond our campuses, affecting communities, employers, healthcare systems, and students across Illinois.

The consequences would be far-reaching. Research that addresses Illinois priorities, from agriculture to public health, would slow. Pipelines for doctors, nurses, pharmacists, teachers, engineers, and other key professionals would narrow. Students and families could face higher tuition, fewer academic options, and reduced support services. Employers would see fewer graduates entering the Illinois workforce. Illinois as a whole would risk slower growth, reduced competitiveness, and fewer opportunities for the next generation.

We serve the largest share of students, more than half of all public university students in Illinois (53%), and we conduct the majority of the state’'s public university research. We also operate vital services such as Illinois Extension that no other university provides. Our 51% funding share reflects our scale, mission, and statewide impact. A formula that does not account for these realities does not achieve equity. It undermines the institutions that hold the ecosystem together.

Proponents draw that comparison, but higher education is fundamentally different. Universities have distinct missions, — research, healthcare, graduate and professional education — that carry different costs. A formula that treats all institutions as interchangeable risks weakening the institutions that set Illinois apart nationally and help us compete economically.

The U of I System supports a funding approach built on stability and predictability, a clear distinction among capital, financial aid, and operating support, and a balanced framework for distributing operating support that reflects institutional scale, student need, outcomes, and mission differentiation. Advancing equity also requires new investment, not redistribution of limited resources. Equity and adequacy are shared goals. The path to achieving them should strengthen the entire ecosystem. The current proposal does not.

HB 1581 advanced out of the House Appropriations Higher Education Committee in late March and awaits possible consideration by the full House. If approved, it would move to the Senate. SB 13 also remains active in the Senate. The U of I System continues to engage lawmakers and stakeholders on the need for a better long-term approach.

Contact your state legislator and urge them to oppose this legislation in its current form. Ask them to support a funding approach that increases investment in all of Illinois’ public universities while recognizing the unique role and scale of the U of I System. Every voice matters.