Illinois spends $2B more on its colleges, but loses 106K students
The Illinois Policy Institute found an increase in Illinois higher education spending has not made the state’s colleges more attractive to its students

CHICAGO (Sept. 4, 2025) – As Illinois students set off for college, the state is facing a discouraging spiral that draws in more taxes and produces fewer productive community members.

An analysis by the Illinois Policy Institute found Illinois state government spending on higher education increased over $2 billion as enrollment dropped by more than 106,000 students between 2009 and 2024.

In total, higher education spending consumed nearly 9% of the state budget – $4.46 billion in 2024 – up from 7% in 2009. That made it No. 1 in the country for per-pupil spending as it reached $25,529 per full-time student in 2024.

Yet most of the increased spending isn’t making it to the classroom or to students.

The institute found the average price of in-state tuition and fees at Illinois’ dozen public universities rose 66% to $15,439 in 2025 from $9,410 in 2009, which outpaced inflation. The most recent data shows Illinois’ in-state price ranks No. 6 in the nation.

At the same time, enrollment in Illinois’ public community colleges and state universities is down 106,375 students compared to 15 years ago.

Experts at the institute point to problems with state funding allocations. The state is punishing successful universities with less funding, clinging to an outdated formula that doesn’t factor in enrollment.

“Illinois higher education is spending more on fewer students. In theory, this should translate to better accommodations and outcomes. But the mass amount of students leaving symbolizes the opposite,” said Mark Batinick, policy adviser for the Illinois Policy Institute. “Rather than directing more funds toward growing schools, the outdated system punishes them. Students are required to make up the difference in the form of higher tuition – further disincentivizing Illinoisans from remaining in-state when they can get a better deal elsewhere.”

Pensions, administrative expenses and a poor funding formula are mainly responsible for these spending, tuition surges:

• About 43 cents of every state higher education dollar from general funds goes to fund pensions instead of instructing students in 2025. That’s up from just over 7 cents in 2009.
• A substantial portion of university funding – more than 10% – is spent on administrative bloat, not students or faculty. Illinois’ universities spent about $428.8 million in state-appropriated funds on administrative expenses in 2024, supporting 50% more administration per student than the national average.
• State appropriations for higher education are based on historical funding, not on enrollment or performance. Each university receives the same percentage increase year after year, regardless of how inefficiently they spend or how poorly they attract students – effectively punishing responsible, growing schools.
• In 2021, nearly 48% of Illinois’ four-year, college-bound students chose schools in other states, with the top picks being public universities in neighboring states where tuition was cheaper. Future Illinois enrollment is predicted to plummet by about one-third by 2041.

“If Illinois students don’t get into our top-ranked universities, they leave; often for good, taking their knowledge, income and tax dollars with them,” said Patrick Andriesen, writer for the Illinois Policy Institute. “If Illinois leaders want to retain future, high-earning workers, they must keep higher education affordable and fix the university funding formula so it rewards enrollment, controls rising pension costs and reduces administrative expenses.”

To read more about the state of higher education in Illinois, visit illin.is/tuition.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.