Expenditures by Function

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1 Executive Summary This analysis presents expenditures by function per full-time equivalent (FTE) student and is modeled after the Delta Cost Project s Spending: Where Does the Money Go? data brief and utilizes data reported to the Integrated Postsecondary Educational Data System (IPEDS) for the most recent ten years available, fiscal years 2002 through All of the financial measures are reported in 2011 constant dollars and adjusted for changes in enrollment by dividing expenditures per FTE student enrollment. Data definitions are included in Appendix A. Illinois State University is compared to the IBHE designated peer institutions and the Illinois public universities and looks at the following spending measures: Total spending by standard expense categories (instruction, research, student services, public service, academic support, institutional support, and operation and maintenance) Total spending by grouped categories; education and related expenses, research, public service, and scholarships, and auxiliary and other operations Education and related spending by component (instruction, student services, and academic support/institutional support/operations and maintenance) Overall, Illinois State s total expenditures per FTE student are in line with the IBHE designated peer group and are lower than the Illinois public universities. Since 2002, the largest percentage increase in expenditures for Illinois State was in academic support (65.8%), which is consistent with increases seen in the Illinois public universities group (45.3%). However, the IBHE designated peer group experienced the largest increases in research (107.3%). Operation and maintenance expenditures declined in all three comparison groups, which is consistent with national trends. Looking at spending by grouped categories, auxiliary enterprises and other operations had the largest increase in expenditures at Illinois State since 2002 (47.9%). Sponsored research, public service, and net scholarships had the largest increase in the IBHE designated peer group (57.3%) and the Illinois public universities saw the largest increase in education and related expenses (23.8%). From 2002 to 2011, there were steady increases in spending on instruction for all three comparison groups. P a g e 1

2 Total spending by standard expense category Total spending by standard expense category looks at spending trends of the major expense functions from 2002 to 2011 on a per full-time student basis. Spending trends are detailed for Illinois State and the averages of the IBHE designated peer institutions and Illinois public universities in Table 1. Compared to the two peer groups, Illinois State s expenditures by function are in line with the IBHE peer group and lower than the Illinois public universities group. It should be noted that the variability of institution size and mission in the Illinois public university group limits the usefulness of the data for comparative purposes. Since 2002, the largest percentage increase in expenditures for Illinois State was in academic support (65.8%), followed by institutional support (43.5%) and student services (43.6%). This trend is somewhat consistent with changes seen in the Illinois public universities group, with the exception of institutional support, which actually decreased by 3.7%. For the IBHE group, the largest percentage increase was in research (107.3%), followed by academic support (34.1%). Illinois State University Instruction $ 6,824 $ 7,003 $ 8,099 $ 8,374 $ 1, % $ % Research $ 925 $ 1,029 $ 1,033 $ 1,012 $ % $ (21) -2.1% Student services $ 1,845 $ 2,248 $ 2,622 $ 2,649 $ % $ % Public service $ 757 $ 809 $ 1,015 $ 1,047 $ % $ % Academic support $ 768 $ 914 $ 1,052 $ 1,272 $ % $ % Institutional support $ 1,820 $ 1,759 $ 2,507 $ 2,612 $ % $ % Operation and maintenance $ 1,281 $ 1,570 $ 930 $ 752 $ (529) -41.3% $ (178) -19.1% IBHE Designated Peer Institutions Instruction $ 6,889 $ 7,393 $ 8,089 $ 8,155 $ 1, % $ % Research $ 656 $ 1,162 $ 1,332 $ 1,359 $ % $ % Student services $ 1,001 $ 1,155 $ 1,274 $ 1,288 $ % $ % Public service $ 603 $ 602 $ 564 $ 592 $ (11) -1.8% $ % Academic support $ 1,591 $ 1,928 $ 2,078 $ 2,134 $ % $ % Institutional support $ 1,580 $ 1,675 $ 1,800 $ 1,783 $ % $ (17) -0.9% Operation and maintenance $ 1,298 $ 1,573 $ 1,060 $ 1,046 $ (253) -19.5% $ (15) -1.4% Illinois Public Universities Instruction $ 8,596 $ 8,621 $ 11,210 $ 11,229 $ 2, % $ % Research $ 2,192 $ 2,406 $ 2,509 $ 2,460 $ % $ (49) -2.0% Student services $ 1,470 $ 1,688 $ 2,039 $ 2,182 $ % $ % Public service $ 2,510 $ 2,454 $ 2,586 $ 2,567 $ % $ (19) -0.8% Academic support $ 2,066 $ 2,208 $ 3,021 $ 3,003 $ % $ (18) -0.6% Institutional support $ 2,295 $ 1,944 $ 2,289 $ 2,210 $ (85) -3.7% $ (79) -3.5% Operation and maintenance $ 2,115 $ 2,084 $ 1,974 $ 1,858 $ (258) -12.2% $ (116) -5.9% Table 1. Spending per FTE Student by Standard Expense Categories, (in 2011 dollars) P a g e 2

3 Operation and maintenance expenditures declined in all three comparison groups, but decreased the most at Illinois State (-41.3%). This observed decline in operations and maintenance expenditures is consistent with national trends. Between 2010 and 2011, the largest percentage increase in expenditures at Illinois State was in academic support (20.9%) and institutional support (4.2%). For the IBHE peer group, the largest percentage increase was in public service (5.0%). The Illinois public universities group saw the largest increase in student services expenditures (7.0%). For all three comparison groups, instruction still makes up the majority of spending. From 2002 to 2011, the dollar increase in spending per FTE student still outpaced the other functional categories, with higher dollar amount increases in the Illinois public university group. P a g e 3

4 Total spending by grouped categories Another way to evaluate spending trends is to group functions into larger categories. These categories include; education and related expenses, auxiliary enterprises/hospitals/independent operations/other expenses, and sponsored research/public service/and net scholarships. Figure 1 and Table 2 compare the spending trends per FTE student by the grouped categories for Illinois State and the peer group averages. Figure 1 Total Expenditures per FTE Student by Grouped Categories $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- '02 '07 '10 '11 '02 '07 '10 '11 '02 '07 '10 '11 Illinois State University IBHE Designated Peer Institutions Illinois Public Universities Auxiliary enterprises, hospitals, independent operations, and other expenses Sponsored research, public service, and net scholarships Education and Related Expenses Total spending per FTE student increased for all three comparison groups. The most significant increases were seen at Illinois State and the Illinois public universities group, particularly between 2007 and Illinois State s total spending per FTE student is higher than the IBHE group but lower than the Illinois public universities. Since 2002, the education and related spending per FTE student increased for Illinois State and both peer groups. For Illinois State, the largest percent increase in spending by group was auxiliary enterprises and other expenses (47.9%). The IBHE peer group saw the largest percent increase in P a g e 4

5 sponsored research, public service, and net scholarships (57.3%) and the Illinois public universities group saw the largest percent increase in education and related expenses (23.8%). From 2010 to 2011, spending per FTE student stayed relatively flat for all categories, with decreases seen in auxiliary enterprises and other expenses at Illinois State (-5.4%) and the IBHE peer group (-0.3%) and education and related expenses at the Illinois public universities (-0.2%). Illinois State University Education and related expenses $ 12,538 $ 13,495 $ 15,210 $ 15,659 $ 3, % $ % Sponsored research, public service, and net scholarships $ 2,850 $ 2,925 $ 3,710 $ 3,968 $ 1, % $ % Auxiliary enterprises, hospitals, independent operations, and other expenses $ 3,335 $ 2,879 $ 5,216 $ 4,934 $ 1, % $ (282) -5.4% Total $ 18,724 $ 19,299 $ 24,136 $ 24,561 $ 5, % $ % IBHE Designated Peer Institutions Education and related Expenses $ 12,360 $ 13,724 $ 14,302 $ 14,406 $ 2, % $ % Sponsored research, public service, and net scholarships $ 2,161 $ 2,620 $ 3,176 $ 3,400 $ 1, % $ % Auxiliary enterprises, hospitals, independent operations, and other expenses $ 3,230 $ 3,297 $ 4,285 $ 4,274 $ 1, % $ (11) -0.3% Total $ 17,751 $ 19,641 $ 21,762 $ 22,080 $ 4, % $ % Illinois Public Universities Education and related Expenses $ 16,543 $ 16,546 $ 20,533 $ 20,482 $ 3, % $ (51) -0.2% Sponsored research, public service, and net scholarships $ 5,734 $ 5,973 $ 6,428 $ 6,465 $ % $ % Auxiliary enterprises, hospitals, independent operations, and other expenses $ 5,088 $ 6,184 $ 5,625 $ 6,113 $ 1, % $ % Total $ 27,364 $ 28,703 $ 32,585 $ 33,060 $ 5, % $ % Table 2. Total expenditures per FTE student by grouped categories, (in 2011 dollars) P a g e 5

6 Education and related spending by component Expenditures by Function Education and related spending per FTE student by component further disaggregates education and related expenses by three components; instruction, student services, and academic and institutional support and operation and maintenance. This comparison allows for a deeper understanding of trends in spending on an institution s primary mission (Figure 2 and Table 3). $25,000 $20,000 $15,000 $10,000 $5,000 Figure 2 Average Education and Related Spending per FTE Student by Component $- '02 '07 '10 '11 '02 '07 '10 '11 '02 '07 '10 '11 Illinois State University IBHE Designated Peer Institutions Illinois Public Universities Academic and institutional support, and operation and maintenance Student Services Instruction Overall, total education and related spending per FTE student increased for all three groups since However, between 2010 and 2011, total spending was relatively flat for the IBHE peer group, declined slightly for the Illinois public universities peer group, and increased a little at Illinois State. Since 2002, there have been steady increases in spending on instruction observed in all three comparison groups. However, the largest increases during that time were in student services for Illinois State and the Illinois public universities peer group. Spending by component, as a percent of the total education and related spending, has remained relatively stable since Only minor fluctuations in each of the peer groups were observed. P a g e 6

7 Illinois State University $ % of total $ % of total $ % of total $ % of total Instruction $ 6, % $ 7, % $ 8, % $ 8, % Student Services $ 1, % $ 2, % $ 2, % $ 2, % Academic and institutional support, and operation and maintenance $ 3, % $ 4, % $ 4, % $ 4, % Total $ 12, % $ 13, % $ 15, % $ 15, % IBHE Designated Peer Institutions $ % of total $ % of total $ % of total $ % of total Instruction $ 6, % $ 7, % $ 8, % $ 8, % Student Services $ 1, % $ 1, % $ 1, % $ 1, % Academic and institutional support, and operation and maintenance $ 4, % $ 5, % $ 4, % $ 4, % Total $ 12, % $ 13, % $ 14, % $ 14, % Illinois Public Universities $ % of total $ % of total $ % of total $ % of total Instruction $ 8, % $ 8, % $ 11, % $ 11, % Student Services $ 1, % $ 1, % $ 2, % $ 2, % Academic and institutional support, and operation and maintenance $ 6, % $ 6, % $ 7, % $ 7, % Total $ 16, % $ 16, % $ 20, % $ 20, % Table 3. Average education and related spending per FTE student by component (in 2011 dollars) P a g e 7

8 Appendix A - Definitions Expenditure functions: Instruction. Activities directly related to instruction, including faculty salaries and benefits, office supplies, the administration of academic departments, and the proportion of faculty salaries going to departmental research and public service. Research. Sponsored or organized research, including research centers and project research. These costs are typically budgeted separately from other institutional spending, through special revenues restricted to these purposes. Student services. Noninstructional, student-related activities, such as admissions, registrar services, career counseling, financial aid administration, student organizations, and intramural athletics. Public service. Activities established to provide noninstructional services to external groups. These costs are also budgeted separately and include conferences, cooperative extension services, and public broadcasting. Academic support. Activities that support instruction, research, and public service, including libraries, academic computing, and central academic administration (dean s offices). Institutional support. General administrative services, executive management, legal and fiscal operations, public relations, and central operations for physical plant. Operation and maintenance of plant. Service and maintenance of the physical plant, grounds and building maintenance, utilities, property insurance, and similar items. Scholarships and fellowships net of allowance. Institutional spending on scholarships and fellowships net of allowances. Does not include federal aid, tuition waivers, or tuition discounts. It is a residual measure that captures any remaining aid after it is applied to tuition and auxiliaries. Auxiliary enterprises, hospitals, independent and other operations. User fee activities that do not receive general support. Include student housing, bookstores, and meal services. P a g e 8

9 Education and related expenses includes total spending per FTE student for instruction, student services, academic support, institutional support, and operation and maintenance of plant. Full time equivalent student is calculated based upon credit hours reported by the institution on the IPEDS 12-month enrollment component and the institution's calendar system. The level of instructional activity is used to convert credit hours reported to an indicator of full-time equivalents (FTE students): Quarter calendar system: Undergraduate 45 credit hours Graduate 36 credit hours Semester/trimester/4-1-4 plan/other calendar system: Undergraduate 30 credit hours Graduate 24 credit hours Appendix B - Peer Institutions IBHE Designated Peer Institutions Ball State University Bowling Green State University Central Michigan University Illinois State University Miami University-Oxford Old Dominion University Portland State University University of North Carolina-Charlotte University of North Carolina-Greensboro Western Michigan University Wichita State University Illinois Public Universities Chicago State University Eastern Illinois University Governors State University Northeastern Illinois University Northern Illinois University Southern Illinois University Carbondale Southern Illinois University Edwardsville University of Illinois Chicago University of Illinois Springfield University of Illinois Urbana/Champaign Western Illinois University P a g e 9

10 Appendix C Supplemental Tables FTE Enrollment, IBHE Designated Peer Institutions # % # % Bowling Green State University 17,971 18,454 16,831 16,915-1, % % Central Michigan University 23,046 23,170 23,289 24,143 1, % % Illinois State University 19,184 18,774 19,238 19, % % Miami University-Oxford 17,535 17,210 17,464 17, % % Old Dominion University 14,595 16,469 19,172 19,843 5, % % Portland State University 15,759 18,741 21,909 22,122 6, % % University of North Carolina at Charlotte 15,205 17,302 21,372 21,719 6, % % University of North Carolina at Greensboro 11,832 13,872 17,078 16,938 5, % % Western Michigan University 24,732 22,067 21,654 21,835-2, % % Wichita State University 10,717 11,607 11, % Illinois Public Universities # % # % Chicago State University 5,019 4,977 5,651 6,023 1, % % Eastern Illinois University 9,933 11,429 11,044 10, % % Governors State University 3,750 4,009 4,453 4, % % Illinois State University 19,184 18,774 19,238 19, % % Northeastern Illinois University 7,966 8,482 8,502 8, % % Northern Illinois University 19,933 21,146 20,650 20, % % Southern Illinois University Carbondale 19,305 15,859 15,476 15,298-4, % % Southern Illinois University Edwardsville 10,530 10,764 12,439 12,868 2, % % University of Illinois at Chicago 21,546 21,129 27,890 28,365 6, % % University of Illinois at Springfield 2,947 3,580 3,799 3, % % University of Illinois at Urbana- Champaign 39,954 44,571 47,908 48,072 8, % % Western Illinois University 11,473 12,127 11,250 11, % % P a g e 10