State Universities Annuitants Association
Mini Briefing
February 26, 2010
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Representative Winters (R – 68) lone sponsor for HB4706. This bill was not heard in the Higher Education Hearing on Wednesday as planned. The bill is intended to take the 50% tuition waiver from those employed at the State funded universities. There does not seem to be a clear reason for the introduction of this legislation. Rep. Winters has now decided to add an amendment that would limit the change to new hires only. At this writing, the amendment language has not been added. It should be available soon. Rep. Winters was interviewed on TV Channel 20 in Springfield outlining his plan.

The following facts were prepared for this bill in its original content (agreed upon by IFT, IEA, AFSCME, UPI, SEIU, AFL-CIO and SUAA):

1. Tuition waivers are essential to recruiting faculty and staff. Some campuses have a difficult time recruiting and retaining faculty and staff because of location or other financial limitations. Tuition waivers help these institutions recruit high quality faculty and staff because prospective employees see the waivers as an important part of their overall compensation package.

2. Tuition waivers help institutions retain faculty and staff. An individual considers many factors when deciding to move or change jobs. Tuition waivers are a vital financial incentive for an individual to stay in a particular location, and their availability can mean the difference between retaining high quality staff or losing an individual to an out-of-state institution.

3. Tuition waivers are an important part of an employee’s financial planning. In today’s economy, many families begin planning how they will pay for college from the moment they have a child. The tuition waiver is an essential part of this planning. Repealing this waiver for current faculty and staff would devastate many families that have factored this benefit into their college planning.

4. This benefit applies to all employees and not just faculty. While we often think of faculty as the employees at a university, the reality is that many of the employees are low wage earners. From cooks to physical plant employees, there are numerous people who stand to lose from this change. Many of these employees make just over $12 an hour. The tuition waiver is a vital benefit to these individuals who would not otherwise be able to provide a college education for their children.

5. The waiver rewards long-term employees and saves on hiring costs. Hiring employees, regardless of position, is expensive. Universities, like any other employer, face numerous costs such as those associated with the hiring process and training. The tuition waiver encourages employees to stay long term, which in turn saves an institution money by not having to continually compete for and train new employees.

If you would like to contact Rep. Winters, please do so at:

Springfield Office:	District Office:
215-N Stratton Office Building	3444 N. Main, Suite 80
Springfield, IL   62706	Rockford, IL  61103
(217) 782-0455	(815) 282-0083
(217) 782-5257 FAX	(815) 282-0085

Many of you should have personal stories to share with Rep. Winters.

Those on the Higher Education Committee are: Chairperson Rep. Mike Boland; Vice Chairperson Rep. Naomi Jakobsson; Republican Speaker Rep. Robert Pritchard; Rep. Mike Bost; Rep. Mary Flowers; Rep. Kevin McCarthy; and Richard Myers.

Due to the members of the Higher Education Committee HB4706, it should fail to pass out of committee.

SB365 Amendment #1 introduced by Senate President Cullerton provides that a member of the General Assembly may forfeit the privilege of nominating persons in any year for a General Assembly scholarship. Provides that a member may not nominate a person for a scholarship if that person or an immediate family member made a contribution to a candidate political committee of the member during the current year or the previous 5 years. Provides that a person who receives a scholarship or an immediate family member may not make a contribution to a candidate political committee of the member during a scholarship year or the 5 following years. Exempts contributions made before the effective date of the amendatory Act. Provides that a person who has not been admitted to a State-supported university may not be nominated for a scholarship. Provides that if any person nominated to receive a General Assembly scholarship changes residence to a location outside of the district from which the person was nominated, the nominating member shall terminate (rather than may terminate) that scholarship at the conclusion of the college year. In provisions concerning the waiver of confidentiality, provides that a waiver document shall also contain a statement by the nominee that neither the nominee nor an immediate family member has made a prohibited contribution. Adds provisions requiring an annual scholarship information document for multi-year recipients of a General Assembly scholarship that must be submitted to the State Board of Education. Effective immediately.

This bill was assigned to the Executive Committee’s Sub-committee on Legis. Tuition Waivers. Other bills assigned to this sub-committee were: SB2472, SB3511, and SB3652. Only SB0365 was passed out of the committee. (Synopsis’ for other bills were reported in Mini Briefing dated 02/22/10.)

Senator Lightford is the Sub-Chairperson for the Tuition Waivers. Representatives Righter and Munoz were also members of this committee.

Senator Michael Frerichs stated in his testimony that each legislator can award up to eight tuition waivers per year. The cost to the University of Illinois alone is $9 Million. Senator Radogno stated that the scholarships have no place given the financial crunch put on higher education and the ongoing ethics questions. Sen. Lightford’s comments were picked up by the State Journal Register, “a perk to who? The media? It’s a benefit to our constituency. I don’t see where the perk comes in for me.” When asked if it would be better to turn control over to a state student aid agency or the universities themselves and just have the waivers granted in lawmakers’ names Senator Lighford replied “No. I like it being with the members being able to make a decision.” She did suggest that the program be used to help those who truly are in need of assistance. Her additional solution was that if a legislator did not want to use a scholarship that they should make it available to those legislators who do want to use them. (177 x 8 = 1,416 scholarships or waivers per year).

Who picks up the costs for these waivers? The universities do along with the unfunded MAP Grants and the unfunded Military Grants. Now with the underfunding of the universities, the burden will be put on those who do pay tuition, including those university employees who are paying 50% for tuition to admit their children to State funded campuses.

During the Senate Executive Committee hearing on Wednesday, SB0365 passed out of committee and on to the Senate floor with a vote of 54-00-00. It is now in the House of Representatives Rules Committee.

The CIP HB6162 (Currie) will be heard on Thursday, March 4 in the Personnel and Pensions Committee. But, CIP SB3532 (Trotter) will be heard on Tuesday, March 2 in the Human Services Committee.

More information will be provided to those who have an interest in these bills by Saturday.

Representative Kosel ‘s HB5506, which would amend the articles of the Illinois Pension Code to cap the salaries, earnings, or compensation used in determining retirement annuities for persons who first enter the systems on or after July 1, 2010 at the Governor’s salary on the date of the participant’s retirement , was held in the Personnel and Pensions today.

According to Rep. McCarthy, he is in hopes that the agreed upon cap will be lower than the Governor’s salary.

Rep. Kosel agreed to hold the bill temporarily, but emphasized that the pensions must be dealt with and the citizens need to know that the legislators are serious about making changes.

If you have a question about any bills that you do not see reported on, please contact the SUAA office at suaa@suaa.org or call 217.585.2370.

The last day for substantive bills to move out of the Senate or House Committees is March 12^th.