University Planning

Affordability and Financial Strength - Interactive & Sortable Table Representation
Fiscal Year 2010 Performance Report - December 18, 2009 Update

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Affordability and Financial Strength Progress

Western Illinois University has a strong history and commitment to maintaining cost predictability and affordability. From the time of application at the senior year of high school until college graduation, the student could have experienced four tuition and fee increases. However, Western’s Cost Guarantee assumes no cost increases for four year once the student is enrolled. When dividing the Cost Guarantee over the students four years, Western has kept the all costs increases below the average increase in the Higher Education Price Index.

Table 15: Western Illinois University - Macomb All Cost Increases, Changes in Higher Education Price Index,
and Annual State Appropriations
Fiscal Year 2005 through Fiscal Year 2009

(click on column title to sort)

Cost Comparisons
2005 2006 2007 2008 2009
Average Four Year All Costs Increase
3.6%
3.0%
2.1%
2.7%
1.8%
Average Four Year Increase in the Higher Education Price Index
3.7%
4.4%
4.0%
4.0%
2.3%
One Year Change in State Appropriations (operating)
2.5%
0.0%
1.5%
1.9%
2.8%

 

With limited cost increases, the percent of students graduating from Macomb with loans decreased during 2009, and the average debt load of these graduates increased by only $295 or 1.7 percent.

Table 16: Percent of Western Illinois University Graduates with Loans and the Average Debt Load of Graduating Students with Loans
Fiscal Year 2005 through 2009

(click on column title to sort)

Student Debt Comparisons
2005 2006 2007 2008 2009
Percent of students with loans
62%
62%
62%
67%
60%
Average debt load of graduates with loans
$14,850
$14,850
$16,400
$17,272
$17,567

 

The Macomb Campus is ranked ninth lowest (of 13) in the percent of graduating students with loans. The average debt load of these graduates is the ninth lowest.

Table 17: Percent of Graduates with Loans and the Average Debt Load of Graduating Students with Loans
Western Illinois University - Macomb Benchmark Institutions Fiscal Year 2008

(click on column title to sort)

Percent of Graduates with Loans Percent
Appalachian State
40%
College of Charleston
44%
Western Washington
50%
James Madison
53%
Western Kentucky
57%
Eastern Illinois
59%
Montclair State
59%
Central Washington
60%
Western Illinois
67%
Wisconsin - Whitewater
68%
Northern Iowa
78%
Sam Houston State
85%
Missouri State
92%
Average Debt Load Dollars
James Madison
$12,591
Eastern Illinois
$14,233
Western Kentucky
$15,042
Appalachian State
$15,080
Western Washington
$15,560
Sam Houston State
$15,763
Central Washington
$16,914
College of Charleston
$17,139
Western Illinois
$17,567
Missouri State
$18,379
Montclair State
$18,940
Wisconsin - Whitewater
$19,743
Northern Iowa
$24,176

 

 

 

 

 

 

 

 

 

 

Compared to peer institutions, the Quad Cities Campus has the lowest percent of graduating students with loans. Furthermore, the average debt load of these students is the lowest for the five institutions reporting data.

Table 18: Percent of Graduates with Loans and the Average Debt Load
Western Illinois University - Quad Cities Benchmark Institutions Fiscal Year 2008

(click on column title to sort)

Percent of Graduates with Loans Percent
Western Illinois - Quad Cities
65%
Pennsylvania State - Harrisburg
69%
Augustana College
70%
Illinois - Springfield
76%
Saint Ambrose
84%
Average Debt Load of Graduates Dollars
Western Illinois - Quad Cities
$11,822
Illinois - Springfield
$14,226
Augustana College
$16,794
Pennsylvania State - Harrisburg
$26,800
Saint Ambrose
$32,675

 

 

 

 

 

In maintaining commitments to affordability, it is important to note a fundamental change in the state financing of Illinois public higher education. Annual state operating appropriations are below Western’s all costs increases and the Higher Education Price Index. This, coupled with unfunded state mandates, has made the University increasing reliant on University Income Fund. State appropriations now account for less than one-half of the University’s annual general revenue appropriation.

Table 19: Western Illinois University Appropriation History
Fiscal Year 2006 through Fiscal Year 2010

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Dollars
2006
2007
2008
2009
2010
Total Appropriation
$103,154,100
$109,728,300
$118,287,500
$121,919,600
$123,919,600
General Revenue Fund
$53,391,100
$57,213,400
$58,287,500
$59,919,600
$59,919,600
University Income Fund
$46,763,000
$52,514,900
$60,000,000
$62,000,000
$64,000,000

 

Percent
2006
2007
2008
2009
2010
Total Appropriation Change
5.6%
6.4%
7.8%
3.1%
1.6%
General Revenue Change
0.0%
1.5%
1.9%
2.8%
0.0%
University Income Change
13.2%
12.3%
14.3%
3.3%
3.2%
Income Fund Percent of Total
45.3%
47.9%
50.7%
50.9%
51.7%

 

With conservative fiscal management, Western Illinois University contains costs and provides the resource base to support simultaneous advancement of the academic mission and service operations of the University.  

The following financial ratios described in Strategic Financial Analysis for Higher Education (6th Edition) were used to determine if the institutional resource base is strengthening and supporting the goals and priorities of the University. Through conservative fiscal management, the University has improved it financial strength. 

The University’s primary reserve ratio demonstrates financial strength. A negative or decreasing trend over time would have indicated a weakening financial condition. The net operating revenue shows that Western has operated with a surplus in five of the last six years, therefore enabling the University to carry forward funds in conjunction with limitations established in Illinois statutes for public institutions. The viability ratio has also significantly improved since 2003, giving the University additional expendable net assets to satisfy debt obligations. While the return on net assets ratio is quite volatile and sensitive to inflationary and other economic conditions, including the recent recession, Western Illinois University maintains a constant return on net assets ratio.

Table 20: Western Illinois University Financial Ratios Reported to the Higher Learning Commission
North Central Association of Colleges and Schools
Fiscal Year 2006 through Fiscal Year 2010

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Financial Strength Comparisons
2003 2004 2005 2006 2007 2008
Primary Reserve Ratio
0.090
0.072
0.082
0.101
0.139
0.130
Net Operating Revenue Ratio
0.004
-0.013
0.021
0.017
0.033
0.014
Return on Net Assets Ratio
0.060
0.056
0.069
0.083
0.102
0.052
Viability Ratio
0.299
0.315
0.357
0.035
0.545
0.567

 

Western is committed to efficiently allocating resources. Between Fiscal Years 2004 and 2008, the University remained below the statewide average on the instructional costs per credit hour.

Table 21: Instructional Costs per Credit Hour at Illinois Public Universities
Fiscal Year 2004 through Fiscal Year 2008

(click on column title to sort)

School 2004 2005 2006 2007 2008
Statewide Average
$244.41
$261.31
$266.81
$279.58
$292.74
Chicago State University
$281.15
$290.03
$309.97
$323.57
$324.20
Eastern Illinois University
$218.49
$232.03
$237.85
$247.15
$262.43
Governors State University
$272.58
$278.25
$299.12
$314.03
$313.87
Illinois State University
$202.85
$209.78
$225.52
$238.00
$243.58
Northeastern Illinois University
$215.64
$227.10
$232.52
$237.91
$255.41
Northern Illinois University
$220.82
$233.22
$235.35
$244.96
$265.46
Southern Illinois University - Carbondale
$249.78
$257.69
$275.18
$283.79
$294.79
Southern Illinois University - Edwardsville
$203.19
$215.12
$222.70
$235.88
$236.75
University of Illinois - Chicago
$263.71
$292.95
$299.55
$321.29
$324.64
University of Illinois - Springfield
$270.54
$245.97
$259.15
$313.24
$346.59
University of Illinois - Urbana/Champaign
$291.96
$322.90
$314.84
$327.46
$343.15
Western Illinois University
$199.40
$211.97
$220.02
$235.21
$250.82

 

Western also maintains administrative costs per credit hour that are below the statewide average. The five-year increase in the administrative and support cost per credit hour at Western was $13.15, which is below the statewide average increase of $16.22.

Table 22: Administrative Costs per Credit Hour at Illinois Public Universities
Fiscal Year 2004 through Fiscal Year 2008

(click on column title to sort)

School 2004 2005 2006 2007 2008
Statewide Average $50.40 $72.09 $72.20 $74.79 $80.38
Chicago State University
$115.02
$121.46
$131.99
$131.76
$130.16
Eastern Illinois University
$60.88
$69.19
$71.22
$71.84
$75.87
Governors State University
$97.63
$100.51
$111.93
$124.00
$129.85
Illinois State University
$65.01
$66.77
$73.14
$77.60
$76.59
Northeastern Illinois University
$68.46
$71.71
$59.13
$60.86
$66.11
Northern Illinois University
$69.63
$73.90
$86.95
$80.87
$91.89
Southern Illinois University - Carbondale
$79.42
$78.54
$81.43
$80.70
$87.58
Southern Illinois University - Edwardsville
$55.84
$58.81
$60.01
$60.47
$65.28
University of Illinois - Chicago
$83.80
$81.89
$90.58
$95.41
$121.33
University of Illinois - Springfield
$50.59
$69.28
$65.99
$72.28
$70.81
University of Illinois - Urbana/Champaign
$56.13
$73.97
$63.18
$68.96
$77.70
Western Illinois University
$50.40
$51.47
$54.93
$59.92
$63.55

 

Limited staff growth helps to control administrative costs. The percent increase in the total number of staff at Western was below the average of all other Illinois public universities. Staff headcounts are reported in the table below as there is not published data for non-faculty staff years. Headcount serves as a proxy for staff years as most staff are on a 12-month contract and would be counted as one staff year.


Table 23: Staff Headcount at Western Illinois University Compared to All Other Illinois Public Universities
Fiscal Year 2004 and Fiscal Year 2008

(click on column title to sort)

Fall Staff (Headcount)
2004
2008
Change
Percent
Western Illinois University
1,271
1,324
53
4.2%
All Other Illinois Public Universities
44,171
47,533
3,362
7.6%

 

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