Transcript Slide 1

Promoting Degree Completion
Through Financial Incentives
Teresa Lubbers, Commissioner
November 9, 2009
Choices
Fund Colleges to do the same things
Expect to get the same results
OR
Fund Colleges to move in new directions
Expect to get new results
Results
Results
14.3% of students graduate with a two-year degree within three
years.
Reaching Higher with College Completion
5
Indiana Cannot Compete Under the
Status Quo
Indiana needs the equivalent of an additional 10,000
Bachelor’s degrees per year through 2025
The Lumina Foundation’s “Big Goal” indicates that
60% of the nation’s population should have a
postsecondary credential by 2025 for the United
States to remain economically competitive.
Indiana needs to increase its Associate Degree
and Certificate Production by 50% by 2015
Budgeting Policy Changes
• CHE Budget Recommendations are an outgrowth of Reaching Higher,
CHE’s strategic plan for Indiana’s system of higher education
• Restructure higher education state appropriations to focus on degree and
course completion rather than enrollment growth and inflationary
increases.




Number of credit/course completions
Number of degrees conferred
On-time graduation rates
Number of credits transferred from the community colleges to the
four-year institutions
 Premium for low-income students
• Substantially eliminate all remedial courses at Indiana’s public four-year
colleges and universities.
9
College Completion Incentives
• Enrollment Completion Incentive: Transitioning from counting the credit
hours of students enrolled in courses at the beginning of a semester, to
counting the credit hours for courses successfully completed by students
at the end of the semester.
• Change in Degrees Incentive: Provides funding to institutions that
increase the number of baccalaureate or associate degrees they produce
year over year.
• Time to Degree Incentive: Provides funding to an institution that increases
the on-time graduation rate. On-time graduation means within 4 years for
a baccalaureate degree and within 2 years for an associate degree.
• Low Income Degree Incentive: Provides additional funding to an
institution that increases the number of degrees awarded to low income
students (low income is defined by having received a federal Pell grant).
• Transfer Incentive: provides additional funds to a 4 year institution that
accepts credit hours transferred from Ivy Tech Community College or
Vincennes University.
Economic Development Incentives
• Research Funding Incentive: Provides matching funds to Indiana’s major
research universities for increases in science and engineering research
expenditures funded by the federal government.
• Non-Credit Workforce Development Activity: CHE is examining a formula
to reward Ivy Tech Community College and Vincennes University for
training and instruction activities that develop Indiana’s workforce, but
does not to lead a college degree
2009-11 Budget Results
• College Completion Incentives were utilized in
the budget
– Phased-in approach
• Change in Total Degrees: Funded 50% in FY10 and 75%
in FY11
– Grants instititutions $5,000 for baccalaureate, $3,500 for
associate
• Change in On-Time Degrees: Funded 50% in FY10 and
75% in FY11
– Change in the 4-year or 2-year graduation rate for cohorts
– Grants institutions $5,000 for baccalaureate, $3,500 for
associate
2009-11 Budget Results
• Change in degrees awarded to Low-Income
students (Pell): Funded 50% in FY10 and 75%
in FY11
– Grants institutions $5,000 for baccalaureate,
$3,500 for associate
• 2-Year Transfer Incentive: Funded 50% in FY10
and 75% in FY11
– Grants $875 per FTE for credit hours transferred to
a 4-year campus from ITCC or VU
2009-11 Budget Results
• Enrollment Completion: Funded 50% in FY10
and 75% in FY11
– Phasing in the transition from counting
“attempted” credit hours to “successfully
completed” credit hours
– Phase in is 90%/10% in FY10 and 75%/25% in
FY11, with full transition occurring at the end of
the next biennium
2009-11 Budget Results
• Economic Development Incentives
– Non-Credit Instruction Incentive: Funded 50% in FY10
and 75% in FY11
• Incentivizes ITCC and VU to expand non-credit workforce
instruction activity
– Research Support Formula not funded, but the
Indiana Innovation Alliance funded $10M in each year
of the biennium for:
• Core Research: $5M
• Medical Education Center Expansion: $3M
• Technical Assistance Program (TAP): $2M
Stimulus Funding
• Overall cuts to higher education below FY09
levels were restored using ARRA funds
– BUT ARRA funds must be used in FY10 for onetime expenditures, including Renovations and
Rehabilitation and Deferred Maintenance
What’s next?
• Ongoing exploration and refinement of
performance incentives
– Mission differentiation
– Deeper cuts into base
– New formulas based on successful models
• Washington State “Momentum Points”
Indiana’s Twenty-first Century Scholars
Program
• Developed in 1999 to reduce the high school dropout
rate and raise the educational aspirations of low- and
moderate-income Hoosiers.
• Taking the Pledge… Students sign an agreement to:
–
–
–
–
Stay in School and earn a diploma with at least a 2.0 GPA
Stay out of trouble
Apply for state financial aid on time
Apply to an eligible Indiana college
• Provides students with enhanced mentoring and support
opportunities in high school.
• Provides students with grant to cover tuition and
mandatory fees at any Indiana public college or
university (or a similar amount at a private college)
18
21st Century Scholars
Scholars are more likely to complete high school than their peers
• 60.3% of Scholars are firstgeneration college students
(compared to 43.6% of all FAFSA
filers)
• 54.5% are from single-parent
families (compared to 30.2% of all
FAFSA filers.
• Come from families with an
average family income of $25,842,
compared with an average family
income of $62,178 for all FAFSA
filers.
19
21st Century Scholars
Scholars are more likely to go to college than their peers
Scholars are also more likely
than their low-income peers
to attend a 4-year college,
and in particular, a 4-year
research institution,
indicating that Scholars are
likely increasing their
college aspirations and
meeting more rigorous
admissions requirements as
a result of the program.
20
21st Century Scholars
Scholars are more likely to complete college than their low-income peers at both 4year and 2-year institutions. However, Scholar completion still lags behind that of all
students.
21
www.che.in.gov