2015-17 postsecondary budget recommendation december 18, 2014 1
TRANSCRIPT
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Operating$1,261,170,333
65%
Student Financial Aid$311,211,260
16%
Capital Projects (Debt)154,822,110
8%
Capital Projects (Cash)$107,675,000
6%
Institution Line Items$66,038,418
3%
Repair and Rehabilitation$28,492,947
1%Other Higher Education Line Items$14,220,052
<1%
FY 15 Higher Education Appropriations
OperatingStudent Financial AidDebt ServiceCapital Projects (Cash)Institution Line ItemsRepair and RehabilitationOther Higher Education Line Items
Higher Education Budget
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Overview
• Operating• Line items• Capital Projects• Repair & Rehabilitation• Tuition & Mandatory Fees
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CPI-Urb
an
CPI (Less
Food/En
ergy)
CPI (Educati
on & Communica
tion)
CPI (Midwest
)HEC
AHEP
I
Averag
e
IN Per Cap
ita In
come (
Inflation Adj.)
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
3.56%
3.91%
3.36%3.46%
3.59%
3.29%
2 Year % Change
Average 2 Year % Change = 3.53%
2 Year % Change (2011 Base Year)
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Full-Time Equivalent vs. Headcount
• FTE: standardized way of measuring credit production
# credit hours attempted during FY30 (24 for graduate)
• Headcount: count of students attending an institution
• Examples: – Shelley attends college part time at 8 credits per semester.
(.5FTE; 1 headcount) – Keith attends college full time at 15 credits per semester.
(1 FTE; 1 Headcount)
FTE=
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2009 2010 2011 2012 20130
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
USI
BSU
ISU
Vincennes
Ivy Tech
IU BloomPurdue WL
IU Regional
PU Regional
Resident FTE (UG and Grad)
USI BSU ISU Vincennes Ivy TechIU Bloom Purdue WL IU Regional IUPUI GA PU Regional
IUPUI GA
Resident FTE flat / Declining
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Budget Recommendation – Guiding Principles
• Maintain commitment to student financial aid
• Maintain state’s support for higher education
• Use inflation indices (e.g., CPI, HECA) to inform recommended higher education funding
• Align recommendation to Reaching Higher, Achieving More strategic plan– Student-centered, mission-driven, workforce-aligned– Completion, productivity/affordability, quality
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Recommendation - Operating
• FY16: Increase performance funding pool to 7% in FY16 with 4% reallocation ($46.4M) and 3.23% ($37.4M) Total FY16 Performance Funding: $83.8M
• FY17: Increase performance funding pool to 8% in FY17 with 5% ($58M) reallocation and 3.26% ($37.8M) Total FY17 Performance Funding: $95.8M
• Performance funding = 4.4% of total annual higher education funding
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Recommendation - Line Items • Fund previously existing line items (excluding USI $2M, BSU $4.087M and IPFW
$2M which were rolled into FY15 base funding)
• No newly requested line items recommended • If previously existing line item increases requested were in excess of the operating
increase, increases were reduced to max operating increase
• Fund Dual-Credit at current $50 per credit hour (a 77.5% increase from previous biennium; $6,398,600 increase in dollars)
• BIF Dedicated funds included in submissions funded at requested levels as no request exceeded operating increase (excluding MHEC contract)
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Higher Education Capital Projects
• Focus on:– Priority one projects – Deferred maintenance of buildings – Projects that improve academic space needs for campuses
• Consider the impact on student fees and state support for capital projects (debt service)
• Maintain overall debt levels near 10% of operating funds
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Capital Projects Recommended
• Capital Projects Requested:– 31 Projects– $761,700,000
• Capital Projects Recommended: – 7 Projects– $285,000,000
• Debt Service per year: $22M
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• Ball State STEM & Health Professionals Facility Renovation & Expansion Project, Phase I: $62.5M
• Indiana State College of Nursing, Health, and Human Services Project: $64M
• Ivy Tech Muncie New Construction & Renovation: $25.0M
• IU Bloomington Old Crescent Renovation Phase II: $48.5M
• PU West Lafayette Agriculture & Life Sciences Facility Phase I: $30.0M
• USI Classroom Renovation/Expansion Health Professionals Center: $8.0M
• VU Center of Science, Engineering and Mathematics: $20.0M
Capital Projects Recommended
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Repair & Rehabilitation Support
• Focus on investment allocation target to support maintenance and upkeep on academic/administrative buildings– 1.0% per year of current facility and infrastructure value
• Recommend repair and rehabilitation funding as partnership between state and institutions
• Recommend state support of investment goal at 0.50% each biennium - $31.7M from state in 2016 and 2017 (11.5% increase in overall funding)
• Total deferred maintenance as of 2012: $1.8B
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• Tuition Targets: Commission sets nonbinding targets for tuition and mandatory fee increases after each budget session– Last biennium: limit to CPI or no more than 2%
• Tuition Structures: This biennium, Commission also looking at tuition structure as a tactic for student success– Do students pay by the credit hour or a flat rate?– How does that influence on-time completion?
Looking Ahead
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Summary
Bottom line: Increased investment in higher education means:
– Additional financial support per resident FTE– Continued support for state financial aid programs– Increased state support for capital investment
and maintenance of facilities– Targeted funding for returning adults
Ultimate Outcome:Enhanced ability to meet the goals and initiatives of Reaching Higher, Achieving More