Illinois Legislators Battle University Funding Reform as Tuition Skyrockets
Illinois public universities face a crossroads as lawmakers debate two competing approaches to fix a broken funding system that has pushed tuition costs upward for decades.
Senate Majority Leader Kimberly Lightford wants to replace the current flat-rate distribution with a needs-based formula that would prioritize institutions furthest from adequacy.
Representative Jeff Keicher proposes a different approach. His plan would review how universities spend taxpayer dollars to identify waste and right-size the system over a decade.
The debate comes as Illinois public universities struggle with deteriorating infrastructure, falling enrollment, and a funding model that critics say favors wealthy institutions over struggling ones.
Two Bills, One Goal
Lightford champions Senate Bill 0013, known as the Adequate and Equitable Public University Funding Act. The legislation proposes increasing public university funding by $135 million each year over the next 15 years.
Funds would distribute under a formula that sets an adequacy target for each school. The formula gives priority for new funding to institutions furthest from their target.
The formula design disperses state funds based on a university's specific calculated needs rather than applying a flat percentage increase to all institutions.
Currently, lawmakers approve a certain percentage increase or decrease from the previous fiscal year. That percentage applies to every public university in the state regardless of their individual circumstances.
If Springfield issues a 1% flat rate increase, the University of Illinois and Western Illinois University both receive a 1% increase. All other public universities receive the same percentage increase.
Proponents say that approach creates a fundamental problem with how state money distributes across the system.
The Numbers Tell a Stark Story
In fiscal year 2026, Western Illinois University received a state appropriation of $57.4 million. The University of Illinois received $726.6 million.
Those numbers represent a 1% increase from fiscal year 2025 to fiscal year 2026.
However, the University of Illinois received significantly more funding than Western Illinois University in 2025. Westerns 1% increase was represented by $568,000. The University of Illinois 1% increase was $5.2 million.
State spending on higher education fell 46% between 2000 and 2023. The Center for Tax and Budget Accountability reported those figures.
Lightford said the disinvestment in state schools has led universities to raise tuition costs.
The average cost of tuition and fees at a public four-year school in Illinois has gone from $7,151 in 2005 to $17,339 in 2024-2025. The Illinois Student Assistance Commission reported those numbers in its 2025 data book.
Illinois has the highest cost for in-state tuition and fees and room and board compared to its border states at $29,400. The Education Data Initiative reported that figure.
Wisconsin rate is approximately $19,900. Iowa and Missouri rate is $22,400. Indiana rate is $22,500. Kentucky rate is $26,000.
State appropriations have gone from covering 75% of university costs to now covering 28%. The Illinois Board of Higher Education reported those figures as of 2024.
The national average per the Illinois Board of Higher Education as of 2024 is 61%.
The Formula Would Change Everything
The new formula would establish an adequacy target for each institution. It would give priority for new funding to institutions furthest from their target.
Advance Illinois, an independent advocacy and research group focused on public education, has traveled across the state for over a year to talk about the proposed funding formula.
Eyob Villa-Moges is a senior policy associate with Advance Illinois. He said the state's funding cuts over the last few decades have posed not only a threat to schools but to the communities they are located in.
For every single university except those in Chicago they are the number one or two employer in that city. Villa-Moges said that.
He argued that Western Illinois University is the least funded university in the whole state. According to Advance Illinois, WIU is 48% fully funded.
The average university is funded at 89%. Regional schools like Western are much lower. Eastern Illinois University and Southern Illinois University-Edwardsville are 49% funded. Northern Illinois University is funded at 51%.
With the new formula, WIU would receive $35,000 per student compared to the current $16,000.
A Different Approach
Representative Jeff Keicher, R-Sycamore, said the funding system needs reform. He said his bill HB 5037 would do just that.
He proposed a statewide review of how universities use tax dollars. That review would guide a 10-year plan restructuring funding.
We need to right-size our system and make sure taxpayer dollars are being spent wisely. Not wasted. By prioritizing resources responsibly. We can help ensure students have access to safe and usable learning spaces. Keicher said that.
He said Illinois cannot afford to keep doing things the same way and expect a different result.
Maintenance Backlog Mounts
The debate about funding reform comes as universities face a growing maintenance crisis.
The backlog of maintenance requests at state universities and community colleges has grown to a projected $10.8 billion this year. The Illinois Board of Higher Education's 2027 budget recommendation reported those figures.
Former Republican state Sen. Jeanne Ives told The Center Square she thinks universities need consolidation.
We have way too many campuses and it's hard to support all of that. Especially with the infrastructure you need to run a university. Ives said.
She said she thinks university funding is important but state priorities are terrible.
Northern Illinois University President Lisa Freeman spoke up about the degradation of multi-million dollar buildings as a result of ongoing delays in funding.
NIU has not received $34 million of its allocated $52.9 million of capital renewal funds from fiscal year 2020. That has caused the university to assume prolonged risks associated with aging infrastructure. Freeman said.
The Illinois Board of Higher Education document says roughly $796 million would need to be allocated each year to keep deferred maintenance needs from growing. That figure is based on current standards.
Enrollment Declines Add Pressure
Directional universities across Illinois have seen dramatic decreases in enrollment in the last decade.
From 2014 to 2024, Northern Illinois University lost just over 5,000 students. Enrollment that hovered around 20,000 students at Southern Illinois University-Carbondale in 2010 has since fallen to 11,790.
Eastern Illinois University, which peaked at over 12,000 students over 20 years ago, dropped to 7,030 students in 2017. It has since seen a steady uptick.
Since 2015, enrollment at Western Illinois University has decreased from 11,094 to about 6,000.
Because of lesser funds coming in from the state, schools have had to rely more on the money they're bringing in from students.
Proponents of the funding formula said it's hard to do that when enrollment is falling.