1 2007-09 Higher Education Budget Recommendations Presented to: Ways and Means Committee January 30,...

1

2007-09 Higher Education Budget Recommendations

Presented to:Ways and Means Committee

January 30, 2007

2

HOW DOES INDIANA COMPARE?

3

5,825

5,282

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Wyo

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Alaska

Hawaii

Conne

cticu

t

New Je

rsey

Nevad

a

Mas

sach

uset

ts

New M

exico

Georg

ia

New Y

ork

North

Car

olina

Illino

is

Idah

o

Delaw

are

Tenne

ssee

Rhode

Islan

d

Kansa

s

Wisc

onsin

Main

e

Kentu

cky

Arizon

a

Nebra

ska

Miss

ouri

Was

hingt

on

Califo

rnia

Unite

d Sta

tes

Mich

igan

Penns

ylvan

ia

Minn

esot

a

Texas

Utah

India

naIo

wa

Louis

iana

South

Car

olina

Virgini

a

Alabam

a

Oklaho

ma

Florida

Miss

issipp

iOhi

o

Arkan

sas

South

Dak

ota

Mar

yland

North

Dak

ota

Orego

n

Wes

t Virg

inia

Mon

tana

Color

ado

New H

amps

hire

Verm

ont

Higher Education Appropriations per FTE by State, 2005

U.S.Indiana

Source: SHEEO SHEF, State Higher Education Finance FY2005.

4

Net Tuition as a Percentage of Public Higher EducationTotal Educational Revenues by State, 2005

77%

50%

37%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Verm

ont

New H

amps

hire

Color

ado

Delaw

are

Mar

yland

Orego

n

Penns

ylvan

ia

Mon

tana

Rhode

Islan

d

Mich

igan

South

Dak

ota

India

naOhi

oIo

wa

Alabam

a

South

Car

olina

Virgini

a

Wes

t Virg

inia

Main

e

Minn

esot

a

North

Dak

ota

New Je

rsey

Tenne

ssee

Mas

sach

uset

ts

Conne

cticu

t

Miss

ouri

Miss

issipp

i

Kansa

s

Arkan

sas

Kentu

cky

Wisc

onsin

Unite

d Sta

tes

Arizon

a

Nebra

skaUta

h

Oklaho

ma

New Y

ork

Texas

Illino

is

Louis

iana

Florida

North

Car

olina

Was

hingt

on

AlaskaId

aho

Nevad

a

Hawaii

Califo

rnia

Georg

ia

Wyo

ming

New M

exico


U.S.

Indiana

5

Total Educational Revenues per FTE for Public Institutions by State, 2005

$10,585

$9,196

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Florida

Califo

rnia

Loui

siana

Oklaho

ma

Arkan

sas

North

Dak

ota

Was

hingt

on

Wes

t Virg

inia

Miss

issipp

i

Color

ado

Texas

Utah

Mon

tana

New M

exico

Idah

o

Georg

ia

Unite

d Sta

tes

Nebra

ska

Arizon

a

South

Dak

otaOhi

o

Orego

n

Virgini

a

Alabam

a

North

Car

olina

Illino

is

Kentu

cky

Wisc

onsin

Miss

ouri

New H

amps

hire

South

Car

olina

Kansa

s

Minn

esot

a

Nevad

a

Mar

yland

Iowa

India

na

Tenne

ssee

New Y

ork

Main

e

Mich

igan

Penns

ylvan

ia

Hawaii

Rhode

Islan

d

Mas

sach

uset

ts

Verm

ont

Wyo

ming

New Je

rsey

Delaw

are

Alaska

Conne

cticu

t

Indiana

U.S.


6

Change in State and Family Share of Education Expenditures

FY1995 to FY2005

Source: Indiana Commission for Higher Education.

57.2%

2.2%

40.6%

56.8%

2.5%

40.7%

56.4%

2.7%

40.9%

55.9%

2.7%

41.4%

55.3%

3.0%

41.6%

54.7%

2.9%

42.4%

53.7%

3.0%

43.3%

51.2%

3.4%

45.4%

48.1%

3.7%

48.1%

46.3%

4.1%

49.5%

45.9%

4.0%

50.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

State Operating Appropriations

Tuition & Fees

SSACI Aid

7

Compare State Revenue Growth with Higher Education Appropriations FY00 – FY 07

2.9%

-3.0%-3.8%

13.4%

7.5% 7.5%

5.5%

2.5%

8.8%

4.5%

-0.2%

0.0% 0.7%

3.6%2.0%

2.8%

FY 00

FY 01

FY 02

FY 03

FY 04

FY 05

FY 06

FY 07

revenue growth higher education approps

Note: FY 07 estimated

8

Compare Revenue Projections to CHE Higher Education Institutional Funding

Recommendation

4.2%4.5%

5.0% 5.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

FY 08 FY 09

Revenue Projection CHE Recommendation

Note: FY 08 and FY 09 from December 14, 2006 revenue projections

9

Commission for Higher Education Responsibilities and Funding Priorities

• Debt Service• Research• Enrollment• Degree Completion• Operating Support• Repair and Rehabilitation• SSACI

10

Growth in Debt ServiceDebt Service as a Percentage of Debt Service and Operating

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

1975-76

1976-77

1977-78

1978-79

1979-80

1980-81

1981-82

1982-83

1983-84

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

Note: includes debt service in FY 09 for CHE recommended new capital projects

11

Debt Service GrowthOperating Debt

ServiceDS as % of

Oper. + DS

FY 1980 $335.6 $17.0 4.8%

FY 1985 $497.3 $34.5 6.5%

FY 1990 $743.3 $64.0 7.9%

FY 1995 $824.6 $79.4 8.8%

FY 2000 $1,025.4 $104.8 9.3%

FY 2005 $1,176.1 $110.2 8.6%

FY 2007 $1,185.3 $131.2 10.0%

FY 2009 $1,220.0 $169.8 11.8%

Avg. Annual % Incr. 1980 to 2009 4.4% 7.3%

Total % Increase 1980 to 2009 237% 620%

Note: includes debt service in FY 09 for CHE recommended new capital projects

12

Research FundingTotal institutional research & development expenditures per capita

for Indiana, US and Selected States

Source: National Center for Higher Education Management Systems (using National Science Foundation; U.S. Census Bureau).

$138.3$146.2

$65.3

$25.8

$67.3

$42.6

$57.4

$43.5

$56.9

$134.3

$102.4$102.9

$115.1

$135.1

0

20

40

60

80

100

120

140

160

Michigan Indiana Illinois Ohio Minnesota Kentucky Nation

1990 2004

13

Research Funding Incentive

• Matches University Expenditures on Research Expenditure Growth $.50 per $1

• Matches Federal, Industry and Competitively Awarded Private Foundation Research Grants

• Includes IUB, PUWL & IUPUI Health

14

College-going RatePercent of high school graduates

enrolled the next fall in higher education

Ranked34th

Ranked10th

Source: Mortenson, T. Postsecondary Education Opportunity, Oskaloosa, Iowa. (Note: Technical corrections were made to three states: Indiana, Kentucky, and Utah in the 2004 data and are reflected in the chart).

62.0%

54.3%

62.0%60.0%60.5%

58.0%55.0%

50.5%

57.1%58.6%

56.5%57.3% 55.5%56.7%

1992 1994 1996 1998 2000 2002 2004

Indiana Nation

15

Adult Participation in Postsecondary Education for Indiana and Selected States

Source: U.S. Census Bureau, Decennial Census, 2000.

3.6%

4.0%

4.2%

4.4%

4.6%

4.7%

4.8%

4.8%

5.2%

5.4%

5.6%

6.4%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Indiana

Oklahoma

Florida

U.S.

Michigan

Virginia

Washington

Illinois

Hawaii

Maryland

Alaska

California

16

Progress Toward 10-Year Enrollment Goal

Source: Indiana Commission for Higher Education, Student Information System.

0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ad

dit

ion

al

Stu

de

nts

Goal: 30,000 More Students

Current: 29,636 More Students

17

Fall Headcount Enrollment in Indiana Postsecondary

InstitutionsTotal346,378

Public266,790

Private*79,588

Source: Annual Editions of Report of Enrollment in Indiana Colleges and Universities, prepared for the Indiana Association of Collegiate Registrars and Admissions Officers. Independent Colleges of Indiana. Commission for Higher Education Student Information System. *Awaiting update

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1979-80

1980-81

1981-82

1982-83

1983-84

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

18

Percent of first-time full-time degree-seeking students earning a baccalaureate degree for Indiana’s public colleges, 2004

College/University 4-Year Grad Rate 6-Year Grad Rate

Indiana University Bloomington 41% 71%

Purdue University West Lafayette 31% 64%

Ball State University 26% 52%

Indiana State University 19% 40%

University of Southern Indiana 13% 32%

Indiana University East 4% 19%

Indiana University Kokomo 8% 23%

Indiana University Northwest 7% 24%

Indiana University South Bend 5% 21%

Indiana University Southeast 4% 26%

IUPUI 5% 22%

Purdue University Calumet 4% 22%

Purdue University North Central 1% 11%

IPFW 3% 19%

NOTE: Graduation rates calculated using the national GRS formula for first-time full-time degree seeking students.Source: The Education Trust, College Results Online, Databank/Reporting Tool using data collected by the U.S. Department of Education’s National Center for Education Statistics (NCES) through the IPED Graduation Rate Survey.

19

Percent of first-time full-time degree-seeking students earning an associate degree for Indiana’s public community colleges, 2004

College/University 2-Year Grad Rate 3-Year Grad Rate

Ivy Tech Community College of Indiana 4% 18%

Vincennes University 11% 19%

NOTE: Graduation rates calculated using the national GRS formula for first-time full-time degree seeking students.

Source: For 3-year grad rate, Ivy Tech’s data gathered from reports on the IPEDS Graduation Rate Survey published by the Office of Institutional Research at ITCCI. For 3-year grad rate, Vincennes data gathered from U.S. Department of Education’s National Center for Education Statistics (NCES) through the IPED Graduation Rate Survey Peer Analysis System. For 2-year grad rate, data gathered from the CHE SIS system.

20

Six-Year Graduation Rates Relative to Peer Groups

Indiana University-Bloomington

Purdue University-Main Campus

Ball State University

Indiana University-Purdue University-Indianapolis

Indiana State University

Indiana University-Purdue University-Fort Wayne

University of Southern Indiana

Indiana University-South Bend

Indiana University-Northwest

Indiana University-Southeast

Purdue University-Calumet Campus

Purdue University-North Central Campus

Indiana University-Kokomo

Indiana University-East

INDIANA UNIVERSITY-BLOOMINGTON

PURDUE UNIVERSITY-MAIN CAMPUS

BALL STATE UNIVERSITY

INDIANA UNIVERSITY-PURDUE UNIVERSITY-INDIANAPOLIS

INDIANA STATE UNIVERSITY

INDIANA UNIVERSITY-PURDUE UNIVERSITY-FORT WAYNE

UNIVERSITY OF SOUTHERN INDIANA

INDIANA UNIVERSITY-SOUTH BEND

INDIANA UNIVERSITY-NORTHWEST

INDIANA UNIVERSITY-SOUTHEAST

PURDUE UNIVERSITY-CALUMET CAMPUS

PURDUE UNIVERSITY-NORTH CENTRAL CAMPUS

INDIANA UNIVERSITY-KOKOMO

INDIANA UNIVERSITY-EAST

Range of Peer Groups

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: National Center for Higher Education Management Systems (IPEDS Graduation Rate Survey, 2003)

21

Six and Three Year Degree-Completion Rates in Indiana Postsecondary Education

by Race and Degree

33%

26%30%

47%

35%

56%

0%

10%

20%

30%

40%

50%

60%

All Students African American Hispanic

Associate Degree Baccalaureate Degree

Source: National Center for Education Statistics, 2003 IPEDS Graduation Rate Survey

22

New Incentives

• Degree Growth Incentive

• Time to Degree Incentive

• Transfer Incentive

23

Degree Growth Incentive

• Change in number of degrees conferred• Includes all resident students regardless of entry

(first time, transfer, continuing) or status type (part-time, full time)

• This is a simple calculation that measures change in the number of degrees conferred over a specified period of time and multiplied by $3,500 for Associates Degree and $4,000 for Baccalaureate Degree (increase only)

• Appropriation is the greater of Change in Degree funding or Enrollment Change funding

24

On-Time Completion Incentive• Change in On-Time Degree Completion Rate (4yr.

And 2yr.)• Includes all full-time, degree-seeking resident

students• Measures change in the graduate rate of cohorts • Uses the Graduation Rate Survey national

methodology and compares rates measured over a specified period of time

• Appropriation is most recent cohort graduation rate minus previous cohort graduation rate: pays $5,000 for increase in bachelor degrees and $2,500 for associate degrees

25

Transfer Incentive

• Provides funding to two-year colleges for students that successfully transfer to public four-year institutions

• Appropriation is the greater of Transfer Incentive funding or Enrollment Change funding

26

Operating Support

• Funds Campus Operating 1.4% FY 08 and 2.0% in FY 09*

• Funds Line Items 3.0% in FY 08 and 3.0% in FY 09

Note: Institutional operating increases 3.1% and 4.7%

27

History of R&R 2000-2007

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

1999-01 2001-03 2003-05 2005-07

Formula Total Appropriated Total R&R Distributed

FY 07 estimated

28

CHE SSACI Recommendation

• Higher Education Award and Freedom of Choice Award funded to keep caps flat in FY 08 and increase caps 3% in FY 09

• Fully funds 21st Century Scholars Awards• Fully funds fee remission programs for veterans,

National Guard and public safety officers • Other SSACI programs flat or small inflationary

increases• Total SSACI Increases of 7.2% (FY 08) and

4.3% (FY 09)

29

CHE 2007-09HIGHER EDUCATION

BUDGET RECOMMENDATIONS

30

Base Appropriation Increases(includes SSACI)

Appropriation % chg.

FY 07 $1.613 billion

FY 08 $1.699 billion 5.3%

FY 09 $1.783 billion 4.9%

Does not include payment delay repayment $62M

31

Base Appropriation Increases (excludes SSACI)



FY 08 $1.465 billion 5.0%

FY 09 $1.539 billion 5.0%

Does not include payment delay repayment $62M

32

Capital Appropriation Increases


FY 07 $157 million

FY 08 $188 million 20.0%

FY 09* $201 million 7.1%

* Includes first year of debt service for CHE recommended capital projects

33

Capital Appropriation Increases($ millions)

FY 08 FY 09*

Debt Service $25.9 $13.3

R&R $5.4 $0.0

TOTAL $31.3 $13.3


34

Existing and New Debt Service Increases

2008 2009*

IU Totals 9.0% 5.3%PU Totals 13.8% 14.0%ISU Totals 30.0% 0.2%USI Totals 60.8% 23.4%BSU Totals 14.8% -1.7%VU Totals 38.9% 18.8%ITCCI Totals 58.1% 11.3%Total: 19.7% 8.1%


35

Debt Service as a share of New Appropriations*

60%

40%

19%

81%

FY 08 FY 09

* Includes first year of debt service for CHE recommended capital projects FY 09

DEBT SERVICE

36

Institutional Operating Appropriation Increases

(excludes SSACI)



FY 08 $1.277 billion 3.1%

FY 09 $1.337 billion 4.7%

37

Operating Appropriation Increases Over FY 07 Base ($ millions)

* Funded 50% in FY 08 and 100% in FY 09; ** Funded 100% in FY 09

2008 2009

Research Support Incentive* $10.2 $20.4

Enrollment Change Incentive* $6.6 $13.2

Change In Degrees Incentive** $0.0 $6.7

On-Time Degree Completion Incentive** $0.0 $3.4

Two-year campus Transfer Incentive** $0.0 $0.5

Campus Operating Support (1.4% / 2.0%) $16.8 $40.9

Line Item Operating Support (3.0% / 3.0%) $1.2 $2.7

New Academic Programs $2.0 $9.3

Other $1.4 $1.0

Plant Expansion $0.0 $0.0

TOTAL $38.3 $98.7

38

New Academic ProgramsIncreases Over FY 07 Base

2008 2009

IUPUI – Columbus (a) $.9M $1.9M

PU Statewide Technology and TAP Programs (a)(b)

$.1M $1.7M

Fast Track to College $1.0M $4.8M

BSU Entrepreneurial Prog. $0.0M $1.0M

Total: $2.0M $9.3MNotes: (a) Funds new programs related to Cummins expansion

(b) Roll-out of statewide programs

39

Institution Operating Appropriations

% chg 2008 % chg 2009

IU Totals 2.7% $470.6M 4.1% $489.8M

PU Totals 3.1% $324.2M 4.6% $339.2M

ISU Totals 1.3% $74.9M 2.6% $76.9M

USI Totals 2.7% $36.2M 4.9% $37.9M

BSU Totals 1.4% $124.7M 4.2% $128.9M

VU Totals 1.4% $36.9M 4.4% $38.5M

ITCCI Totals 5.8% $152.4M 6.0% $161.6M

Total 2.9% $1,220M 4.4% $1,271M

40

R&R Base AppropriationsFunds 50% of 2007-09 R&R Formula

2008 2009

IU Totals $12.6M $12.6M

PU Totals $9.9M $9.9M

ISU Totals $2.3M $2.3M

USI Totals $.6M $.6M

BSU Totals $3.4M $3.4M

VU Totals $1.1M $1.1M

ITCCI Totals $1.1M $1.1M

Total $31.0M $31.0M

% change over FY07 21.1%

41

Payment Delay Repayment(Does Not Go Into Base)

2008 2009

IU Totals $12.2M $12.2M

PU Totals $8.6M $8.6M

ISU Totals $2.2M $2.2M

USI Totals $.8M $.8M

BSU Totals $3.3M $3.3M

VU Totals $.9M $.9M

ITCCI Totals $3.1M $3.1M

Total $31M $31M

CHE recommends these payments be used for R&R

42

CHE 2007-09 SSACI Budget Recommendations

FY 2007 FY 2008 FY 2009

Higher Education Awards* $120,674,940 6.2% $128,125,919 6.9% $136,917,883

Freedom of Choice Awards* $46,035,799 0.0% $46,035,799 1.3% $46,640,885

21st Century Scholar Program Awards $19,171,429 33.3% $25,546,085 1.0% $25,811,511

Statutory Fee Remissions $18,148,108 10.5% $20,055,513 0.5% $20,150,884

* Funds cap increases of 0% in FY 2008 and 3% in FY 2009

43

CHE 2007-09 SSACI Budget Recommendations

FY 2007 FY 2008 FY 2009

SSACI Hoosier Scholar Awards 400,000 0.0% 400,000 0.0% 400,000

SSACI Minority Teacher Scholarship 399,768 0.0% 399,768 0.0% 399,768

SSACI College Work Study 805,189 0.0% 805,189 0.0% 805,189

SSACI Grant Administration 1,240,723 3.2% 1,280,998 0.0% 1,280,998

SSACI Southeast Indiana Contract for Space 603,407 0.0% 603,407 0.0% 603,407

SSACI 21st Century Scholar Program Administration 2,000,000 1.1% 2,021,000 0.0% 2,021,000

SSACI Part-time Student Grant Program 5,250,000 0.0% 5,250,000 0.0% 5,250,000

SSACI Nursing Scholarships 402,142 0.0% 402,142 0.0% 402,142

SSACI National Guard Supplemental Grant 3,299,821 0.0% 3,299,821 0.0% 3,299,821

44

Recommended New Capital Projects

PUWL Boiler #6 $53,000,000

VU Electrical Infrastructure/Substation Phase II $2,000,000

USI College of Business/General Classroom Building $24,900,000

IUB Cyber Infrastructure Buildings $18,300,000

IUPUI Neurosciences Research Building $20,000,000

ITCCI Fort Wayne Technology Center & Demolition Costs $26,700,000

PUNC Student Services & Rec. Center A&E $1,000,000

ITCCI Logansport Building $10,500,000

TOTAL RECOMMENDED STATE FUNDING $156,400,000

RECOMMENDED FOR AUTHORITY ONLY

PUWL Mechanical Engineering Addition $33,000,000

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