Higher Education Budget Recommendations Presented to: State Budget Committee November 15, 2006 2 HOW DOES INDIANA COMPARE? 3 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 Education Total Educational Revenues by State, 2005 Source: SHEEO SHEF, State Higher Education Finance FY2005. U.S. Indiana 5 Total Educational Revenues per FTE for Public Institutions by State, 2005 Indiana U.S. Source: SHEEO SHEF, State Higher Education Finance FY2005. 6 Change in State and Family Share of Education Expenditures FY1995 to FY2005 Source: Indiana Commission for Higher Education. 7 Compare State Revenue Growth with Higher Education Appropriations FY00 FY 07 Note: FY 07 estimated 8 Compare Revenue Projections to CHE Higher Education Recommendation Note: FY 08 and FY 09 revenue projections estimated 9 Commission for Higher Education Responsibilities and Funding Priorities Debt Service Research Enrollment Degree Completion Operating Support Repair and Rehabilitation 10 Growth in Debt Service 11 Debt Service Growth OperatingDebt Service DS as % of Oper. + DS FY 1980$335.6$ % FY 1985$497.3$ % FY 1990$743.3$ % FY 1995$824.6$ % FY 2000$1,025.4$ % FY 2005$1,176.1$ % FY 2007$1,185.3$ % FY 2009$1,220.0$ % Avg. Annual % Incr to %7.3% Total % Increase 1980 to %620% Note: includes debt service in FY 09 for CHE recommended new capital projects 12 Research Funding Total 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). 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 Rate Percent of high school graduates enrolled the next fall in postsecondary education Ranked 34th Ranked 10th Source: Postsecondary Education Opportunity, Oskaloosa, Iowa. 15 Adult Participation in Postsecondary Education for Indiana and Selected States Source: U.S. Census Bureau, Decennial Census, 2000. 16 Progress Toward 10-Year Enrollment Goal Source: Indiana Commission for Higher Education, Student Information System. 17 Fall Headcount Enrollment in Indiana Postsecondary Institutions Total 346,378 Public 266,790 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 18 Percent of first-time full-time degree-seeking students earning a baccalaureate degree for Indianas public colleges, 2004 College/University4-Year Grad Rate6-Year Grad Rate Indiana University Bloomington41%71% Purdue University West Lafayette31%64% Ball State University26%52% Indiana State University19%40% University of Southern Indiana13%32% Indiana University East4%19% Indiana University Kokomo8%23% Indiana University Northwest7%24% Indiana University South Bend5%21% Indiana University Southeast4%26% IUPUI5%22% Purdue University Calumet4%22% Purdue University North Central1%11% IPFW3%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 Educations 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 Indianas public community colleges, 2004 College/University2-Year Grad Rate3-Year Grad Rate Ivy Tech Community College of Indiana4%18% Vincennes University11%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 Techs 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 Educations 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 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 Source: National Center for Education Statistics, 2003 IPEDS Graduation Rate Survey 22 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 (increase only) Appropriation is the greater of Change in Degree funding or Enrollment Change funding 23 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 24 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 25 History of R&R 26 Base Appropriation Increases Appropriation% chg. FY 07$1.395 billion FY 08$1.467 billion5.0% FY 09$1.538 billion5.0% Does not include payment delay repayment $62M 27 Capital Appropriation Increases Appropriation% chg. FY 07$157 million FY 08$188 million20.0% FY 09*$201 million6.8% * Includes first year of debt service for CHE recommended capital projects 28 Capital Appropriation Increases ($ millions) FY 08FY 09* Debt Service$25.9$12.8 R&R$5.4$0.0 TOTAL$31.3$12.8 * Includes first year of debt service for CHE recommended capital projects 29 Existing and New Debt Service Increases * IU Totals 9.0%4.6% PU Totals 13.8%13.7% 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% * Includes first year of debt service for CHE recommended capital projects 30 Debt Service as a share of New Appropriations* FY 08 FY 09 * Includes first year of debt service for CHE recommended capital projects FY 09 DEBT SERVICE 31 Operating Appropriation Increases Appropriation% chg. FY 07$1.239 billion FY 08$1.277 billion3.1% FY 09$1.338 billion4.7% 32 Operating Appropriation Increases ($ millions) * Funded 50% in FY 08 and 100% in FY 09; ** Funded 100% in FY Research Support Incentive*$10.2 Enrollment Change Incentive*$6.8 Change In Degrees Incentive**$0.0$5.6 On-Time Degree Completion Incentive**$0.0$3.4 Campus Operating Support (1.4% / 2.0%)$16.8$24.0 Line Item Operating Support (3.0% / 3.0%)$1.5 New Academic Programs$3.1$3.6 Other$1.4$4.6 Plant Expansion$0.0 TOTAL$38.7$60.1 33 New Programs IUPUI Columbus*$.9M PU Statewide Technology*$.1M Fast Track to College$1.0M$3.0M Statewide Transfer Website$1.1M$-.4M Total:$3.1M$3.6M *Funds new programs related to Cummins expansion 34 Institution Operating Appropriations % chg2008% chg2009 IU Totals2.7%$470.6M4.0%$489.4M PU Totals3.1%$324.3M4.5%$339.0M ISU Totals1.3%$75.0M2.5%$76.8M USI Totals2.7%$36.2M3.5%$37.4M BSU Totals1.4%$124.7M3.3%$128.8M VU Totals1.4%$36.9M3.0%$38.0M ITCCI Totals5.8%$152.4M6.0%$161.6M Total2.9%$1,220M4.2%$1,271M 35 R&R Base Appropriations Funds 50% of R&R Formula IU Totals$12.6M PU Totals$9.9M ISU Totals$2.3M USI Totals$.6M BSU Totals$3.4M VU Totals$1.1M ITCCI Totals$1.1M Total$31.0M % change over FY0721.1% 36 Payment Delay Repayment (Does Not Go Into Base) IU Totals$12.2M PU Totals$8.6M ISU Totals$2.2M USI Totals$.8M BSU Totals$3.3M VU Totals$.9M ITCCI Totals$3.1M Total$31M CHE recommends these payments be used for R&R 37 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$12,800,000 IUPUI Neurosciences Research Building$20,000,000 ITCCI Fort Wayne Technology Center & Demolition Costs$26,700,000 ITCCI Logansport Building$10,500,000 TOTAL RECOMMENDED STATE FUNDING$149,900,000 RECOMMENDED FOR AUTHORITY ONLY PUWL Mechanical Engineering Addition$33,000,000