Transcript Using Funding Policy to Achieve State Goals

Using Funding Policy to Achieve State Goals
Higher Education Finance Study Commission
Chicago, Illinois
July 27, 2010
National Center for Higher Education Management Systems
3035 Center Green Drive, Suite 150
Boulder, Colorado 80301
The Specifics of SJR 88
• History and means of higher ed funding in Illinois
– Comparisons
– Reviewing for adequacy, equity, and reliability
• Compare productivity of Illinois institutions
– State systems
– Peer institutions
• Analyzing best practices for incentivizing certification and degree
completion
– Students
– Institutions
• Review tuition and financial aid policies – assess roles in improving
certification and degree completion
• Consider alternative funding mechanisms that will advance the goals
of the Illinois Public Agenda for College and Career Success.
Policy Leadership
Strategies for
Achieving
Goal
Attainment
Planning and
Leadership
Finance
Regulation
Alignment
Goal 2
Goal 3
Goal 4
slide 3
Consistency
Goal 1
Accountability
Governance
The Flow of Funds
Economy
Federal
Government
Available
State and Local
Govt. Funds
•
•
•
•
Higher
Education
Student Aid
Appropriations/Grants
Tuition
Students
Institutions
Scholarships &
Waivers
Student Aid (Restricted)
Federal
Government
slide 4
K-12
Corrections
Health Care
Other Govt.
Donors
Foundations
Corporations
The Flow of Funds - State
Economy
Federal
Government
Available
State and Local
Govt. Funds
•
•
•
•
Higher
Education
Student Aid
Appropriations/Grants
Public
Tuition
Students
Scholarships &
Waivers
Student
Aid
Federal
Government
5
Institutions
Private
K-12
Corrections
Health Care
Other Govt.
The Flow of Funds
Available
State and Local
Govt. Funds
Higher
Education
Student Aid
Appropriations/Grants
Tuition
Students
Institutions
Scholarships &
Waivers
Student Aid
Federal
Government
slide 6
Finance Policy – The Options
Institution
Focused
Core
Capacity
Capacity
Utilization/
Public Agenda
slide 7
• Base-Plus
• Formulas
• Investment
Funds
Performance
Funding
Student
Focused
Tuition & Aid
Policy Focused on
Revenue
Generation
Tuition & Aid
Policy Focused on
Attainment of
Specified
Outcomes
Remember
• All allocation mechanisms have embedded within them incentives
for institutional and student behavior
Ask
• Are incentives within current mechanisms consistent with state
goals
Characteristics of Sound Higher Education Finance Policy
• Comprehensive – encompasses
– Appropriations to institutions
– Tuition
– Student financial aid
• Components all consistently promote pursuit of state goals
• Maintains affordability to
– Students – judged against family income
– States – judged against tax capacity
• Serves to maintain – as well as create – necessary educational
capacity
– Promotes alignment of institutional missions with state priorities