Follow the Money:Follow the Money:Funding Mechanisms for Texas Funding Mechanisms for Texas

InstitutionsInstitutions

October 10, 2005October 10, 2005

4:00 p.m. – 4:30 p.m.4:00 p.m. – 4:30 p.m.

Texas Higher Education Coordinating BoardTexas Higher Education Coordinating Board

2005 Governing Board Conference2005 Governing Board Conference

Closing the Gaps: Achieving ExcellenceClosing the Gaps: Achieving Excellence

Presented by:Presented by:

Jesse W. RogersJesse W. Rogers

President, Midwestern State UniversityPresident, Midwestern State University

Chairman, University Formula Advisory CommitteeChairman, University Formula Advisory Committee

Texas Higher Education Coordinating BoardTexas Higher Education Coordinating Board

Fiscal 2006Fiscal 2006Bill PatternBill Pattern

Midwestern State UniversityMidwestern State University

1. Informational Listing of Appropriated FundsA. Instruction/Operations Fiscal 06

*A.1.1. Instructional and Operations Support $16,722,001 A.1.2. Teaching Experience Supplement $ 907,183 A.1.3. Staff Group Insurance Premiums $ 524,709 A.1.4. Workers’ Compensation Insurance $ 120,000 A.1.5. Texas Public Education Grants $ 1,200,491 A.1.6. Excellence Funding $ 136,968

B. Infrastructure Support*B.1.1 E&G Space Support $ 3,275,719 B.1.2. Tuition Revenue Bond $ 1,375,621

C. Special Item Support C.1.1. Small Business Development Center $ 113,399

C.2.1. Institutional Enhancement $ 2,474,402  D. Research Development Fund   

D.1.1. Research Development Fund $ 9,470

Cost Centers Employed*Cost Centers Employed*To Construct New MatrixTo Construct New Matrix

Faculty SalariesFaculty Salaries Academic SupportAcademic Support Institutional SupportInstitutional Support Student ServicesStudent Services Departmental Operating Departmental Operating

Expenses (all fund sources)Expenses (all fund sources)

*taken directly from Annual Financial Report*taken directly from Annual Financial Report

**Abbrebiated**Abbrebiated

FY04 and FY05FY04 and FY05Formula Matrix**Formula Matrix**

Lower Lower DivisionDivision

Upper Upper DivisionDivision

MasterMasterss

DoctorDoctoralal

Liberal ArtsLiberal Arts 1.001.00 1.961.96 3.943.94 12.0412.04

Fine ArtsFine Arts 1.851.85 3.113.11 6.516.51 17.4717.47

Teacher EdTeacher Ed 1.281.28 1.961.96 3.233.23 9.959.95

AgricultureAgriculture 2.052.05 2.542.54 6.646.64 16.3716.37

EngineeringEngineering 3.013.01 3.463.46 8.208.20 21.4021.40

Business Business AdminAdmin 1.411.41 1.591.59 4.594.59 13.9113.91

NursingNursing 4.914.91 5.325.32 6.496.49 16.3216.32

**Abbreviated**Abbreviated

FY06 and FY07FY06 and FY07Formula Matrix**Formula Matrix**

Lower Lower DivisionDivision

Upper Upper DivisionDivision

MasterMasterss

DoctorDoctoralal

Liberal ArtsLiberal Arts 1.001.00 1.861.86 4.074.07 10.8910.89

Fine ArtsFine Arts 1.631.63 2.742.74 5.915.91 12.3112.31

Teacher EdTeacher Ed 1.341.34 1.911.91 2.892.89 8.418.41

AgricultureAgriculture 2.062.06 2.622.62 7.147.14 13.4313.43

EngineeringEngineering 2.432.43 3.283.28 7.217.21 18.3518.35

Business Business AdminAdmin 1.241.24 1.611.61 3.953.95 16.5916.59

NursingNursing 3.583.58 4.964.96 5.895.89 13.4913.49

Formula IssuesFormula Issues

1.1. The formulas are now related to the cost of The formulas are now related to the cost of operation by subject matter and level.operation by subject matter and level.

2.2. Since based on credit hour production, the Since based on credit hour production, the formulas put money with student growth.formulas put money with student growth.

3.3. The formulas built-in funding differential The formulas built-in funding differential accounts for university mission and level.accounts for university mission and level.

4.4. The formulas provide a clear and equitable The formulas provide a clear and equitable manner of distributing available appropriated manner of distributing available appropriated funds.funds.

5.5. The formulas do not recognize quality issues.The formulas do not recognize quality issues.6.6. Do the formulas encourage degree creep?Do the formulas encourage degree creep?7.7. Finally, the formulas do not recognize the Finally, the formulas do not recognize the

difference in cost in distance education difference in cost in distance education methodology and traditional classroom methodology and traditional classroom methodology. methodology.