IL HR1372

College Illinois! prepaid tuition program had a funding deficit of more than $515 million (67.6% funded ratio) as of June 2009, nearly doubling from the previous year's deficit of $273 million.

Illinois Student Assistance Commission placed approximately 20% of program participants' contributions into risky alternative investments, including $135 million in three separate hedge funds.

Illinois Student Assistance Commission lost $10.7 million of its $12.7 million investment in ShoreBank, a privately held company declared to be in financial trouble by federal regulators.

Direct Illinois State Board of Investment to conduct an independent asset allocation study of College Illinois! investments and report findings to the General Assembly and Governor by January 15, 2011.

Direct the Auditor General to conduct a special audit of College Illinois! operations to document administrative cost growth and program administration efficacy, with results due by January 15, 2011.