SB3965 - Adequate and Equitable Public University Funding Act

• Creates a new funding formula for Illinois public universities based on adequacy targets calculated from student population needs, institutional missions, and costs for instruction, research, student services, and operations.

• Establishes per-student funding amounts for various support components (e.g., $1,136 for access support, $2,196 for academic/nonacademic support, $9,797 for core instruction) with adjustments for high-cost programs, underrepresented students, and institutional characteristics.

• Distributes State appropriations using a two-part distribution formula: 50% based on absolute dollar funding gaps and 50% based on percentage gaps, with a guardrail mechanism ensuring institutions receive minimum increases tied to inflation.

• Requires the State to increase annual higher education funding by at least $135 million annually and establishes reporting requirements through an Accountability and Transparency Committee to track institutional spending and student outcomes on affordability, enrollment, retention, and graduation.

• Establishes a Funding Formula Review Panel to study and recommend recalibrations of the formula every three years and conduct comprehensive reviews every five years; amends the Board of Higher Education Act to require community colleges to submit budget requests by November 15 annually.