FY2017 Budget Recommendation

FY17 Budget Recommendation

Board of Higher Education Meeting | December 8, 2015


+$24M in Fiscal Year 2016 Budget (+ 3.7% over FY15) Key Increases:

▪ +$9.2M for the Community Colleges (+ 3.4%) ▪ +$7.8M for the State Universities (+ 3.1 %) ▪ +$2.0M for State Scholarship Line (+ 2.1%) ▪ + $500K for Dual Enrollment (+ 33%)

Key Decrease: ▪ -$500K for PIF, funded at $2.75M (- 18%)

Supplemental Funding for the Campuses $2.4M to support FY15 collective bargaining liability $9.2M to support FY14/FY15 National Guard reimbursements

Exposures FY16 collective bargaining shortfall of $16.8M Governor’s “9C” spending reduction authority still possible

Current Fiscal Year Review (FY16)

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December 8, 2015

BHE approves FY17 Budget Request; submits to EOE

January 27, 2016

Governor releases “House 2” FY17 Budget Recommendation

Mid-April 2016

House Ways and Means releases FY17 Budget Recommendation

Mid-May 2016

Senate Ways and Means releases FY17 Budget Recommendation

June 2016

Conference Committee releases FY17 Budget Report

July 1, 2016

FY2017 Fiscal Year begins

FY17 Budget Timeline


Focusing on the “Big Three” in FY17

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Performance Incentive Fund FY17: $4.25M +$1.5M Primary means of advancing strategic goals of the Vision Project’s

“Big Three.” Focus of additional funding in FY17: ▪ 100 Males to College: Continue pilot program to support the college-going

aspirations and college success of low-income males and males of color in Gateway cities.

▪ Females in Computer Science: Create campus programs to stimulate interest in and aptitude for careers in the computer science field, especially among under-represented female students.

▪ Educator Diversity: Expand campus initiatives to increase diversity of students enrolled in two-year and four-year educator prep programs, to better reflect diversity of Commonwealth’s Pre-K–12 classrooms.

▪ Curriculum & Student Success Collaborations: Enhance campus collaborations with K–12 partners, especially in Gateway cities, to align curriculum and increase the likelihood of underserved students earning post-secondary credentials.

Key Investments: Performance Incentive Fund

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Commonwealth Dual Enrollment FY17: $1.5M +$500K Provide more students with opportunity to take free or reduced-cost

college-level courses and earn credit toward future college degrees National research concludes that dual enrollment drastically increases

likelihood of students attending and graduating from college

Massachusetts State Scholarship FY17: $96.6M +$1M Includes additional funding for MASSGrant, the state’s primary

need-based financial aid program for MA-resident undergraduate students (public & private)

Also funds Cash Grant, Part-Time Grant, High Demand, Early Childhood Educators Scholarship

Key Investments: CDEP, Financial Aid

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$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000

Puerto Rico Arkansas

Massachusetts Alabama

Rhode Island Michigan

New Mexico Arizona

Maine Ohio

Louisiana District of Columbia

Oklahoma Montana

Utah Colorado Nebraska

Missouri Florida Alaska

Connecticut Delaware

North Dakota Minnesota

Oregon Tennessee

Nevada Kentucky

Virginia Wisconsin

Kansas Vermont

South Carolina North Carolina

West Virginia Hawaii

Maryland Pennsylvania

US AVERAGE Iowa

Indiana Illinois Idaho

New York Washington

Texas New Jersey Mississippi

California

National Average: $2,405 per student

Massachusetts Average: $657 per student

National Median: $1,500 per student


MA Ranking: Need-Based Aid

7 Source: SHEEO, State Higher Education Finance FY2013.


Trend in MASSGrant Buying Power

8 Source: MDHE, 2014.


DHE Administration and Academic Support

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DHE Administrative Account FY17: $4.4M

State University Internship Incentive [$1M] Matches state dollars with private donations to support internships

DHE Initiative: Campus Violence [$100K] Supports continued assessment & coordination of system efforts to

address campus violence Added emphasis on addressing racial & cultural bias, and providing

training & resources to campuses TRAIN (Training Resources and Internship Networks) Initiative [$1M]

Community college workforce development grant program addressing needs of long-term unemployed

Piloted in FY16 in tandem with Executive Office of Labor & Workforce Development


Workforce Development

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Nursing & Allied Health Initiative FY17: $400K Restores FY14 funding level to support development & replication

of pathways for RN-to-BSN in support of healthcare workforce plan

STEM Pipeline Fund FY17: $1.5M Supports initiatives of Governor’s STEM Advisory Council

STEM Starter Academies FY17: $4.75M Increases recruiting, retention & graduation rates for STEM programs

at community colleges

Community College Workforce Grants FY17: $1.45M Supports workforce development initiatives

Rapid Response Grants FY17: $500K Addresses the needs of employers for training programs to be implanted at

community colleges within 90 days, and to provide training for unemployed, underemployed & incumbent workers


Community Colleges & FY17: $566M +$49M State Universities Personnel costs: Recognizes importance of establishing baseline costs,

including fiscal impact of collective bargaining contracts ▪ FY16 value of collective bargaining contracts not currently

appropriated [≈ $16.8M] ▪ FY17 projected collective bargaining need of $17.3M for

both segments Performance funding: Recommends additional $15M in funding to be

allocated through respective funding formulas ▪ Community Colleges: $9,325,000 [+ 2% ] ▪ State Universities: $5,675,000 [+ 2% ]

Community College & State Universities

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Increase of $1.5M for the Performance Incentive Fund

Increase of $500K for the Dual Enrollment Program

Increase of $1M for the MA Scholarship line-item

Increase of $200K for the Nursing and Allied Health Initiative

Increase of $27M for the Community Colleges $9.325 million allocated through funding formula Estimated need of over $18 million for FY16/FY17 collective bargaining

Increase of $22M for the State Universities $5.675 million allocated through funding formula Estimated need of over $16 million for FY16/FY17 collective bargaining

Total request of $50M over FY16, overall increase of 7.7%

FY17 Recommendation Summary

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Discussion

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FY2017 Budget Recommendation

Education

Transcript of FY2017 Budget Recommendation