Transcript No Slide Title

Overview of
Higher Education Funding
in Florida
presented to the Council of 100
Dr. Bill Proctor, Executive Director
November 7, 2002
FY 2002-03
State General Revenue
GG
6%
Education
HHS/Criminal Justice
HHS/
CJ
41%
Gen Gov't/Trans/Ec
Dev
Educ
53%
FY 2002-03 GAA
Education Appropriations
•
•
•
•
•
•
•
(in millions)
Public Schools
$ 9,823 m
Community Colleges
902 m
State Universities
1,914 m
Other Education
712 m
Workforce (includes Voc Rehab)
642 m
Fixed Capital Outlay
1,864 m
TOTAL
$ 15,857 m
FY 2002-03 GAA
Education Appropriations
Workforce
4%
Community
Colleges
6%
SUS
12%
Other Education
4%
Public Schools
62%
FCO
Fixed Capital Outlay
12%
Funding for
State Universities
in Florida
State Universities
FTE Enrollment Plan
2002-03
35,000
30,000
25,000
GRAD II
20,000
GRAD I
15,000
UPPER
LOWER
10,000
5,000
FI
U
UN
F
FG
CU
NC
F
UC
F
F
UW
U
FA
US
F
M
U
U
FA
FS
UF
0
Note: Educational and General (E&G) enrollment
State Universities
Educational & General
$2.5 billion Operating Budget
Trust Funds
2%
Student Fees
24%
Lottery
4%
General
Revenue
70%
State Universities
Total Operating Budgets
2002-03 (in billions)
•
•
•
•
Educational and General
Contracts and Grants
Auxiliary Enterprises
Local Funds
$ 2,535
1,224
661
1,210
(Student Activity, Athletics, Concessions, Student
Financial Aid, Self-Insurance Programs)
• Faculty Practice Plans
TOTAL
323
$ 5,952
State Universities
E&G Expenditures
2000-01 (in millions)
•
•
•
•
•
•
•
Instruction
$ 814.6
42%
Other Enroll-Related
246.6
13%
Academic Admin
152.8
8%
Other Academic
284.5
15%
University Support
203.8
11%
Physical Plant
181.9
9%
Stand-alone
44.0
2%
Total
$1,928.0 100%
State Universities:
Policy Issues Related to Funding
• Relationship between funding and
achievement of mission
• Student expectations v. taxpayer expectations
• Balance between local & state
control/accountability
• Articulation incentives
• Performance funding
State Universities:
Policy Issues Related to Funding
• Funding planned enrollment
• Decline in PECO funds
• Unnecessary obstacles to accessing funds?
• Best Financial Management Practices for
community colleges and universities?
Funding for
Public Community Colleges
in Florida
Community College
Profiles, 2001-02
•
•
•
•
•
•
28 colleges, 157 sites
Student headcount:
Part-time students:
Average age:
Minority enrollment:
Faculty members:
– Part-time faculty:
834,570
69%
27
37%
40,541
75.5%
Community College
Enrollment History
215,000
210,000
205,000
200,000
195,000
190,000
185,000
180,000
175,000
170,000
96-97
97-98
98-99
99-00
Note: Full-time equivalent (FTE) enrollment
00-01
01-02
Community College
Appropriations Process
• Community Colleges have adopted
formula, but it has not been consistently
used by the Legislature
• Formula is allocation model, not model
for requesting funds
• Formula takes 3-year average
enrollments into consideration, but not
projections
Community College
Revenues, 2000-01
Lottery
8%
Student Fees
29%
State CCPF
33%
Other Receipts
5%
State
Workforce
25%
Community College
Expenditures by Program
2000-01
Prep
CWE
7%
4%
PSec Voc
28%
Adult Ed
PSAV
3%
8%
A&P
50%
Community College
Expenditures by Function
2000-01
PO&M
13%
Inst Supp
19%
Direct Instruct
47%
Student Svcs
9%
Acad Supp
12%
Community Colleges:
Policy Issues Related to Funding
• Relationship between funding and achievement
of mission
• Student expectations v. taxpayer expectations
• Ensuring workforce needs are being met
• Balance between local and state
control/accountability
• Results of workforce performance funding
workforce
Workforce Appropriations
1999-00 to 2002-03
$730,000,000
$720,000,000
$710,000,000
$700,000,000
$690,000,000
$680,000,000
$670,000,000
$660,000,000
$650,000,000
$640,000,000
1999-00
2000-01
2001-02
2001-02 (Special
Session "C")
2002-03
Workforce Funding
Issues
• $640 million in state funding, administered by
272 state and local agencies, with very little
coordination
• Rewards have not kept pace with increases in
performance
• Only 4% of K-12 funding is in workforce
education (therefore it tends to receive less
priority than at community colleges)
Approaches to
Funding in the States
1. Formula
•
Budget decisions rely on mathematical formulas
2. Justification of increment
•
Budget decisions rely on incremental increases
3. Formula plus
•
Combination of 1 and 2
4. Performance funding (at the margins)
•
•
Incentive funding or performance-based budgeting
Florida does both
13 Guiding Principles
for Postsecondary Funding
1. Based on state goals for postsecondary
education
2. Sensitive to colleges’ different missions
3. Provide adequate funding
4. Provide incentives for or reward performance
5. Appropriately recognize size-to-cost relationships
6. Be responsive to changing demands
13 Guiding Principles
for Postsecondary Funding
7. Provide reasonably stable funding
8. Simple to understand
9. Fund colleges and universities equitably
10. Appropriately recognize size-to-cost relationships
11. Make provisions for special purpose units
12. Use valid, reliable data
13. Allow administrative flexibility in spending funds
“Shared Responsibility”
and Funding for Postsecondary
Education in Florida
• Florida ranks 26th in state and local
appropriations per full-time equivalent
student at public degree-granting
institutions…
• …but ranks 49th in resident undergraduate
tuition at state universities
Tuition and
Financial Aid
Student Aid
in the U.S., by Source
State Grants
6.2%
Federal Pell Grants
10.6%
Total Aid
Awarded
$74.4 billion
Inst-Other Grants
19.5%
Federal CampusBased
3.8%
NonFed Loans
6.1%
Other Federal
Programs
3.8%
•
Federal Loans
50.0%
SOURCE: The College Board.
State programs are a
small but growing
source of student
financial aid.
Total and Need-Based Undergraduate
State Grant Aid per Full-Time Equivalent Student,
1990-91 to 1999-00
Need-Based Grant Aid
Total Grant Aid
$700
$600
$ per FTE
$500
NOTE:
1990-91 constant dollars.
SOURCE: NASSGAP
$400
$300
$200
$100
$0
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00
Florida Legislative Appropriations
for Financial Aid, by Basis of Award,
2000-01
Need
27%
Merit
73%
Source: State Student Aid Policy, PEPC, January 2001.
Need Status of Financial Aid
Recipients in the State University
System, 2000-01
with
financial
need
29%
without
financial
need
71%
Students with Bright Futures
N=63,085
without
financial
need
22%
with
financial
need
78%
Florida resident students without
Bright Futures
N=60,299
1998-99
Family Income Distribution, FSAG Recipients and
Bright Futures Initial Recipients
FSAG
Bright Futures
40%
35%
30%
25%
20%
15%
10%
5%
0%
Under
$10K
$1019K
$2029K
$3039K
$4049K
$5059K
$60$69K
$7079K
$80K +
Unmet and Overmet Financial Need, by Family Income, for Aid
Applicants Who Received Initial Bright Futures Award in 1998-99
(State University System: Dependent, Resident)
Avg. Need Remaining After Subtracting Avg. EFC from
Avg. Attendance Cost
$15,000
Other Remaining Need
Bright Futures Portion of Remaining Need
$10,000
$5,000
$0
-$5,000
-$10,000
-$15,000
Data Source: OSFA
-$20,000
< $10,000
$10,000$19,999
$20,000$29,999
$30,000$39,999
$40,000$49,999
Income
$50,000$59,999
$60,000$69,999
$70,000$79,999
$80,000 and
over
Student Financial
Policy Issues
• Target financial aid to likely growth areas of
the postsecondary education market
Examples:
 Part-time students
 Students in career
education programs
 Students in training for
high-demand occupations
 Adult students
Current Reality:
 Part-time FSAG 1% of OSFA budget
 Private postsecondary FSAG is 2%
of OSFA budget; no postsecondary
FSAG for use at public institutions
 Aid for targeted occupations &
populations is 3% of OSFA budget
 Bright Futures usage must begin
within 3 years of HS graduation
Council Web Site
http://www.cepri.state.fl.us