The State Funds Budget
The state funds budget has two separate categories: the operating budget and capital budget. The operating budget is composed of four general areas: new programs related to mission, salary increases and operating funds, building-related operating funds, and tuition-driven programs. The Provost's Office is the focal point for the preparation of the Urbana-Champaign campus's operating budget request.
The capital budget is reserved for infrastructure improvement needs of the Urbana-Champaign campus. Projects are reviewed in detail, placed in priority order and incorporated into a five-year capital improvement plan. This plan is then merged with the capital request of the Chicago and Springfield campuses and presented to the U. of I. Board of Trustees, which, after approval, transmits the request to the Illinois Board of Higher Education.
The capital budget differs from the operating budget in that all capital funds are provided through the sale of bonds by the state of Illinois, and many of the projects for which funding is approved are administered by the state Capital Development Board (CDB). Because of the length of time it takes for capital projects to be completed, funds not spent in a given fiscal year are usually reappropriated for the next fiscal year or years.
The university's board of trustees approves the budget in the fall of the year preceding the budget request year. It is then submitted to the Illinois Board of Higher Education, which prepares recommendations for the legislative and executive branches of the state government. These recommendations and further reviews of university needs lead to the submission of the appropriation bill. After appropriate legislative review and action, the bill is sent to the governor, who may sign it or make changes. If the governor reduces the budget, the General Assembly has an opportunity to restore the reductions.