Commission Meeting Summary - 2009-10 Budget Spending Priorities and MAP Recompute Formula

At its June 26th meeting, the Illinois Student Assistance Commission (ISAC) approved the 2009-10 Monetary Award Program (MAP) recompute formula, along with overall spending priorities based on the anticipated fiscal year 2010 (FY10) budget.  Following the meeting, ISAC issued a Press Release containing a statement regarding the impact of a possible reduced state budget on student financial aid appropriations.

FY2010 Budget Spending Priorities (Agenda Item 4)

Prior to adjourning on June 1, 2009, both chambers of the General Assembly approved a budget (which has not yet been sent to the Governor for action) reducing ISAC's FY10 appropriation from $440 million to $220 million. This proposed budget, provided in a lump sum and when coupled with a subsequent request to manage an additional reserve of 25% of ISAC's general funds appropriation, would leave $165 million for FY10 gift assistance programs.

In preparation for the possibility of this scenario becoming reality, the Commission approved the following spending priorities for FY10: $161.9 million (including $3.7 million from federal LEAP/SLEAP funds) would be applied to MAP for the first part of the academic year (see Agenda Item 5, below); $4.5 million would be used for the Silas Purnell Illinois Incentive for Access (IIA) Program at the start of the academic year; $1.6 million would be allocated to the Golden Apple Scholars of Illinois Program; and $750,000 would go to fund grant programs for dependents of police, fire, and correctional officers, as required by state statute. No other FY10 scholarship, grant, or loan repayment/forgiveness programs administered by ISAC would be paid from the state's general fund.  Although Illinois Veteran Grant (IVG) and Illinois National Guard (ING) Grant recipients would still receive their full tuition and fee benefits, the cost would be absorbed by the public universities and colleges, rather than through state appropriations through ISAC.  (We have subsequently learned that the Illinois Community College Board (ICCB) has been allocated level funding for IVG in the FY10 proposed budget.)

2009-10 MAP Recompute Formula (Agenda Item 5)

Each year, ISAC is responsible for adopting an allocation formula for MAP. Typically, once the governor and General Assembly take action on the budget (which, as indicated above, remains unresolved), the Commission revisits the MAP formula and approves a "recompute" formula that is updated from the formula used at start-up.

The Commission approved an FY10 recompute formula that reduces annual awards by the amount necessary to stay within the appropriation and still provide awards for students whose applications were received prior to the May 15th suspense date.  Awards will be "front-loaded" to provide a first-term award as close as possible to the amount announced at start-up.  If the reduced annual award exceeds the first-term award announced at start-up, the remainder would be provided as a second-term award.  For quarter school students, a third-term award would be provided only if the reduced annual award exceeds the sum of the first two term awards.

Note: In the event that the state budget appropriates $385.2 million for FY2010 MAP, the Commission approved retaining the FY10 start-up formula for FY10 recompute. If the final appropriation exceeds $385.2 million, the FY10 start-up formula would be retained and remaining funds would be used to release some suspended award announcements.

Watch for Further Details

The 2009-10 MAP Formula section (which includes the 2009-10 Hand Calculation Forms and is located within the ISAC Gift Assistance Programs area at collegezone.com) will soon be updated to reflect "recompute."

You will be notified via this College Zone e-Messaging service when the budget for FY10 MAP is known, and when to expect system changes related to the recompute process to be reflected in MAPnet.

Adopted Rules Amendments (Agenda Item 13)

The Commission approved and adopted the omnibus rules amendments, as modified during the rulemaking process, to be effective for the 2009-10 academic year.  No substantive changes were made to the rules amendments as originally published.  The full text of the rules amendments is available as 2009-10 Proposed Rules Amendments in College Zone’s e-Library.

Other Commission Meeting Agenda Items

Also addressed as part of the agenda were the following items.  Additional information is provided in the June 26th Agenda Book, which can be accessed from the ISAC's Governing Board: The Commission page at collegezone.com. Specific agenda items may also be accessed by clicking on the appropriate link(s) below.

• The Commission approved the execution and delivery of a servicing contract with Ed Financial, LLC for loan originations and servicing for ISAC’s Illinois Designated Account Purchase Program (IDAPP) Federal Family Education Loan Program (FFELP) loan portfolio. (Agenda Item 15)
• The Commission approved the following agenda items related to the College Illinois!® Prepaid Tuition Program:
  • Revisions to the Statement of Investment Policy (Agenda Item 9)
  • FY2010 Budget Request (Agenda Item 12)

• 2008-09 Program News and Close-Out
• 2009-10 Program News
• Budget and Legislative Update
• Commission Meeting Report
• ISAC Rule Changes, effective July 1st
• HEOA Changes, effective July 1st