FY19 Budget Recommendation

Board of Higher Education — December 12, 2017

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FY19 Budget Timeline

December 12, 2017

BHE approves FY19 Budget Request

Three weeks after General Court convenes in January

Governor releases “House 2” FY19 Budget Recommendation

Mid-April 2018

House Ways and Means releases FY19 Budget Recommendation

Mid-May 2018

Senate Ways and Means Releases FY19 Budget Recommendation

June 2018

Conference Committee reconciles FY19 Budget

July 1, 2018

FY2019 Fiscal Year Begins

FY19 Budget Recommendation

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Align FY19 funding with sharpened focus to improve

student success:

College Access & Affordability

College Completion

Elimination of Achievement & Opportunity Gaps

New funding from Casino Gaming legislation (Chapter

194 of the Acts of 2011)

25% tax on gross gaming receipts

14% of gaming tax earmarked for public education

35% of the public education earmark is further earmarked for

public higher education


Strategic Investments

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Massachusetts State Scholarship FY19: $102.8M + $7.2M

Includes additional funding for need-based financial aid to undergraduate

students who reside in Massachusetts and are pursuing a program of

higher education at a public or private institution. Includes expansion of

financial aid for students attending Massachusetts public institutions, and

expansion of the Commonwealth Commitment program.

Foster Care Adoption Fee Waiver FY19: $5.5M + $945K

Increased funding to meet projected need

Foster Care Grant Program FY19: $1.3M + $224K

Increased funding to meet projected need

High Demand Scholarships FY19: $1.0M + $500K

Doubles financial aid for students pursuing degrees in disciplines that

address high demand workforce needs


Key Investments: Financial Aid

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Performance Incentive Fund FY19: $3.75M +$1.2M

PIF funding continues to support competitive grants to campuses to make

progress on the goals articulated by the BHE. This is a competitive grant

program that rewards innovative thinking and evidence-based practices at

the campus level.

The Commonwealth Commitment supports campus efforts to improve transfer advising

and expand support services to students; with financial aid and incentives, promotes the

goal of attending and completing college on time.

100 Males to College supports the college-going aspirations of low-income males, and

males of color in Gateway cities.

Competency-based pathways supports campus efforts to adapt academic programming

to students’ mastery of key learning objectives and supports their advancement toward

degree completion.

Co-requisite remediation at-scale builds upon successful models that feature

concurrent developmental and credit-bearing coursework, supporting greater student

retention and persistence.

New approaches to affordability includes the use of open educational resources, online

course offerings, CBE, and accelerated degree completion.


Key Investments: Performance Incentive Fund

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Foster Care Financial Aid FY19: $1.3M +$224K

The Foster Care Financial Aid program provides up to 100% tuition and fee

assistance to identified students in foster care programs overseen by the

Department of Children and Families (DCF). Increase in funding meets

projected demand.

Foster Care and Adopted Fee Waiver FY19: $5.5M +$945K

The Foster Care and Adopted Fee Aid Waiver provides up to 100% tuition

and fee assistance to students under the age of 24 who were previously in

the custody of the Department of Children and Families (DCF) and had

been adopted by a Massachusetts state employee or resident. Increase in

funding meets projected demand.

College Health and Welfare Fund FY19: $6.5M +$1.2M

Increase to support projected dental benefits for campus employees as

stipulated in the respective collective bargaining agreements.


FY19 Increases to Meet Mandatory Obligations

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DHE Administrative Account FY19: $3.26M -$713K

Includes $1M for student internships; omits $1.1M for TRAIN grants

Includes Campus Safety and Violence Prevention [$150K]

▪ Supports additional funding for the implementation of pending legislation to codify the

Campus Safety and Violence Prevention (CSVP) recommendations.

Includes SARA Implementation [$180K]

▪ Supports the first year costs of joining the state reciprocity agreement.

Maintenance funding for DHE operations [$96K]▪ Funding to support the payroll obligations for current staff.

Bridges to College FY19: $250K -$127K

Continuation of legislative initiative to assist low-income adult learners

via competitive grants to agencies in the Commonwealth; omits gangs

to college earmark.


DHE Administration & Academic Support

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Nursing & Allied Health Initiative FY19: $0

Discontinues funding for a program that supports the development

and replication of pathways for Registered Nurses to Bachelor of Science

in Nursing.

STEM Pipeline Fund FY19: $1.5M

Supports initiatives of Governor’s STEM Advisory Council.

STEM Starter Academy FY19: $4.75M

Increases recruiting, retention, and graduation rates for STEM programs

at all of the Commonwealth’s community colleges. FY18 will mark the

fifth year of the initiative.

Community College Workforce Grants FY19: $750K

Supports workforce development initiatives at community colleges.


Workforce Development

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New England Board of Higher Education FY19: $367K -$184K

The New England Board of Higher Education (NEBHE) is a consortium

of New England higher education executive offices that primarily

administers the Regional Student Program (RSP) tuition break for the

five New England states.

Tufts Veterinary School FY19: $3M -$2M

Tufts provides reduced tuition for approximately 150 Massachusetts

students annually and undertakes bioterrorism research for the

Commonwealth. The DHE is requesting a $2M decrease consistent with

prior year recommendations.


Miscellaneous

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Increase of $1.2M for the Performance Incentive Fund

Increase of $7.1M for the Massachusetts Scholarship line-item

Decrease of $730K for the DHE Administrative line-item

Increase of $1.2M for College Health and Welfare

Increase of $945K for Foster Care and Adopted Fee Waiver

Increase of $224K for Foster Care Financial Aid

Increase of $500K for High Demand Scholarships

Decrease of $2M for Tufts Veterinary School

Decrease of $194K for Nursing and Allied Health

Total Request of $8.2M over FY18; $2.6M increase in General

Fund supported costs – a net increase of 2.0% over FY18


Recommendation Summary: DHE

Community Colleges and

State UniversitiesFY19 Budget Recommendation

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Unit FY12 FY13 FY14 FY15 FY16 FY17 FY18

AFSCME 3.0% 3.0% 3.0% 3.0% 3.5% 3.5% TBD

MSCA 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% TBD

APA 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% TBD

MCCC 3.5% 3.5% 3.5% 3.5% 2.0% 2.5% 2.5%

APA contract expired on December 30, 2016

AFSCME and MSCA contracts expired on June 30, 2017

MCCC contract expires on June 30, 2018


Annual Increases of Current Contracts

Yellow box denotes year one of a three year contract

Questions or Comments?FY19 Budget Recommendation

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FY19 Budget Recommendation

Government & Nonprofit

Transcript of FY19 Budget Recommendation