University of Toledo: University Council Higher Education Funding

University of Toledo: University Council

Higher Education Funding

Higher Education Funding• Overview of BOR Budget

– BOR FY13 GRF Appropriation $2.315 Billion• BOR has 43 GRF line items• BOR largest ALI’s

– SSI – $1.751 Billion (75.64%)– Debt Service/Capital Component - $272.8 Million (11.78%)

– Financial Aid - $131.7 Million (5.69%)• OCOG - $91.4 Million

– Allocated by Sector– Carry Over - $11.1 Million– Proprietary $6.0 Million Casino Funding

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Higher Education Funding• National Guard Scholarship - $18.1 Million• Choose Ohio First - $16.2 Million• War Orphan Scholarship - $5.4 Million

– Dependents of deceased or disabled veterans of the armed services of the United States

– Medical Funding - $41.9 Million (1.81%)• In addition to SSI Medical Funding - $106,202,378• $35.6 Million Clinic Support• $6.3 Million Medical Subsidy

– Primary Care– Geriatric– Family Practice

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Higher Education Funding– Partner Operating Subsidies - $16.7 Million (.72%)

• OhioLINK - $6.1 Million• OARNet - $3.2 Million• Supercomputer - $3.4 Million• eStudent Services - $2.5 Million• Library Depositories - $1.4 Million

– Other Subsidies• AWE - $15.3 Million• ABLE - $7.3 Million• Cooperative Extension – $33.1 Million• Agriculture Research - $22.2 Million• Central State/Shawnee State - $13.2 Million

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Higher Education Funding– BOR Operating Funds - $6.8 Million (.29%)

• Operating - $2.3 Million• Articulation & Transfer - $2.0 Million• HEI – $800,000• State Grants - $1.2 Million• Economic Growth Challenge - $440,000

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Higher Education Funding• FY2014/2015 Budget Process

– OBM request for 90%/100% Scenario for GRF Funding– All Agencies required to submit budget request for these

scenarios– SSI/Subsidy ALI’s continuation funding– Debt funding determined by OBM

• Higher education treated very well In Governor’s Proposed Budget– BOR received funding requested for ALI’s

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Higher Education Funding• SSI

– $1.784 Billion – FY14 - $33.0 Million Increase (1.9%)• $411,247,477 – Community Colleges• $1,372,968,020 – Universities

– $116,181,104 – Regional Campuses– $1.818 Billion – FY15 - $34.0 Million Increase (1.9%)

• $419,101,428 – Community Colleges• $1,399,124,069 – Universities

– Regional Campuses Merged

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Higher Education Funding• Current University Distribution of SSI

– 61% Course Completions - $717.0 Million/UT $62.2 Million• At-Risk Factors

• EFC – less than 2,190• Remedial students

• STEM Weighting• Model weights• Range from 1.0 to 1.8798

• Statewide average cost of course by Model

– 18% Degree Attainment - $245.5 Million/ UT $17.4 Million• At-Risk Factors

• EFC/Remedial/Heritage/Age• No STEM Weighting

– 20% Doctoral/Medical - $264.9 Million/UT $24.3 Million

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Higher Education Funding– Doctoral – $158.7 Million

• 50%/40% - Share of FTE• 25%/30% - Share of Degrees• 12.5%/15% - Share of Research Grant Activity• 12.5%/15% - Quality Measures

– Medical - $106.2 Million• Med I - $19.9

– OSU – Veterinary/Dental• Med II - $86.3 Million

– FTE Basis

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Higher Education Funding• Current University Distribution of SSI

– Access Challenge• 2009 Distribution Formula• $3.9 Million• UT $0

– Plant, Operation, Maintenance (POM)• 2009 Formula• Provided funding for those institutions that have access space• Redistributes funding from other schools• UT $786,516/Central State $1,614,392

– Stop loss• 96%• Redistributes funding from schools above stop loss• UT pays $262,680

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Higher Education Funding• Revised Distribution of SSI for FY14

– 30% Course Completions - $354.4 Million• At-Risk Factors

• No change in STEM weighting

– 50% Degree Attainment - $628.4 Million• At-Risk Factors

• Added STEM weighting for degrees

• STEM weight for degree matches STEM weight for courses

– 20% Doctoral/Medical – $270.1 Million• Percentage based so increase with additional appropriations

• Remove Quality Measures and include in FTE

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Higher Education Funding– Access Challenge

• Kept in formula through FY15

• Removed in FY16

• UT $0

– Plant, Operation, Maintenance (POM)• Kept in formula through FY15

• Removed in FY16

• UT $809,760/Central State $1,619,668

– Stop loss• Removed Stop Loss

– Three year average for all data in formula

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– 30% Course Completions• At-Risk Factors student based

– 50% Degree Attainment• At-Risk Factors student based

– Remove separate funding for regional campuses• Regional campus students included in university performance metrics

• Emphasis on graduation

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– All campuses can award associate degrees• Previously only Access Challenge funding schools allowed• Stackable degrees• Foresee increased number of AA’s due to funding

– Proportional degree funding• Splits degree funding based on cost of course at USO Institution• Bonus of cost of degree from outside USO to degree granting

institution

– Degree funding awarded to universities for out-of-state students remaining in Ohio to work or continue education

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Higher Education Funding• Current Regional Campus Distribution of SSI

– 100% Course Completions– Access Challenge

• $12.9 Million

– Plant, Operations, Maintenance (POM)• 2009 Formula

• Provided funding for those institutions that have access space

• Redistributes funding from other schools

– Stop Loss• 96%

• Redistributes funding from schools above stop loss

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Higher Education Funding• Regional Campuses Revised Distribution of SSI – FY14

– 100% Course Completions

– Access Challenge Eliminated

• Funding moved to course completion

– Plant, Operations, Maintenance (POM) Eliminated

– Stop Loss Eliminated

• Regional Campuses Revised Distribution of SSI – FY15– Uses same formula as university

main campuses

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Higher Education Funding• Current Community College Distribution of SSI

– 90% Enrollment

– 10% Success Points

– Access Challenge• 2009 Distribution Formula

• $54.5 Million

– Stop loss• 96%

• Redistributes funding from schools above stop loss

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Higher Education Funding• Community College Revised Distribution of SSI – FY14

– 50% Enrollment

– 25% Success Points

– 25% Course Completions

– Access Challenge Eliminated• Funding included in performance funding

– Stop loss• 97%

• Redistributes funding from schools

above stop loss

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Higher Education Funding• Community College Revised Distribution of SSI – FY15

– All funding completion based• Study to define “completion”

• Courses

• Associate Degrees

• Certificates

• Credentials

• Transfers

• Job Training

– Stop Loss Eliminated

– Study to Determine At-Risk Factors for Community College Students

– Review Funding Allocations

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Higher Education Funding• OCOG – As Introduced Version - $87.9 Million

– $41.0 Public– $41.0 Private– $5.968 Proprietary

• OCOG –House Adopted Version - $89.1 Million– $41.0 Public– $41.0 Private– $7.126 Proprietary

• Original FY12/13 appropriation

$80.3 million GRF

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Higher Education Funding• Other Changes to OCOG

– Reserve Account– No casino funding

• Safety Officers– Maintain funding for Safety Officers Scholarships– 100% tuition coverage at public institutions – Amount to be determined at private institutions

• Funding for Privates based on funding for Publics – FY13 was $6,234.00– Estimated at $6,618.00 for FY14

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Higher Education Funding• War Orphans

– Increase appropriation to $5.5 million• Original FY12/13 appropriation $4.8 million• Goal to fund 100%

• Choose Ohio First– Increase appropriations to $16.7

• Original FY12/13 appropriation $15.6• Fund new cohort of students

• National Guard Scholarship FY14 - $16.7 Million– Fully fund National Guard members

• FY10 Expenditures – 15.1 million• FY11 Expenditure - $14.9 million• FY12 Expenditure - $14.8 million• FY13 Estimated - $16.4 million

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Higher Education Funding• Budget Process

– House Finance Committee testimony• OCOG

– Community Colleges– Pell First

• Co-op Internship• Affordability• Digital Textbooks• Central State• Historical SSI• Sea Grant• Faculty Workload• College Credit Plus

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Higher Education Funding• Budget Process

– House Education Sub-Committee testimony• OCOG

– Community Colleges

– Pell First

• Co-op Internship

• Affordability

• Sea Grant

• College Credit Plus

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Higher Education Funding• Limit of liability for private nonprofit institution for transmission

of data to Regents or state agency, when data is later subject to a data breach due to– An action by the recipient agency– An action by a third party after information had left the possession of the

private institution but before it was received by BOR or other agency

• SSI Bridge Funding– $8.0 million for colleges and universities that receive less SSI funding in

FY14 than FY13

• Residency status for state subsidy and tuition purposes– If a state institution issues a letter or utility bill for use as proof that the

student is a qualified Ohio voter– Student would receive in-state tuition– Subsidy eligible

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Higher Education Funding• Undergraduate Tuition Guarantee Program

– Guarantees a cohort of students a set rate for general and instructional fees for four years

– Allows a one-time 6% tuition increase– Can request fee in excess of 6% with BOR approval– Number of credit hours to earn degree in each major– Provides protection to student if they cannot finish in four years

due to various conditions• Available courses

• Military

• Uncontrollable circumstances

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Higher Education Funding• Tuition Caps

– 2.0% or $188 for Universities– 2.0% or $114 for Regional Campuses– $100 for Community Colleges– Cap is based on annual tuition from previous year

• SB1– $25.0 million Workforce Development Revolving Loan Fund

• BOR loan to institution• Institution loan to student• Third party loan servicing agent• Preference given to projects with business partners willing to repay loan

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Higher Education Funding• Capital Funding

– Public-Private Partnerships• Mutually beneficial arrangement that brings faculty, researchers,

students, and industry professional under one roof to work on states most pressing issues

– Workforce Development• Projects viewed as necessary to meet immediate workforce needs,

such as shale gas industry, were given highest priority– Interdisciplinary Approach

• Internal collaboration to encourage natural synergies between traditional laboratory sciences and market-enhancing practicality of engineering

– Long-term Maintenance• Projects that focus on either modernizing student learning

environments or reducing on-going operating costs

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– Public-Private Partnerships• Mutually beneficial arrangement that brings faculty, researchers,

students, and industry professional under one roof to work on states most pressing issues

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– Workforce Development• Projects viewed as necessary to meet immediate workforce

needs, such as shale gas industry, were given highest priority

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– Interdisciplinary• Modernize STEM facilities to encourage increased

interdisciplinary collaboration and innovation

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– Long-term Maintenance• Protect investment on campuses and maintain basic

infrastructure

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Higher Education Funding• Senate Bill 6 Ratios

– Ratios to analyze financial health• Viability Ratio

– Expendable Net Assets/Plant Debt– Fee Pledges

» BOR approval to issue debt backed by general receipts pledge

• Net Income Ratio– Change in Total Net Assets/Total Revenues

• Reserve Ratio– Expendable Net Assets/Operating Expenses

– Weighted for Composite Score• Viability - 30%• Net Income - 20%• Primary Reserve – 50%

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THANK YOU

Documents

University of Toledo: University Council Higher Education Funding