Transcript Document

2014-15 Finance Background
& Budget Recommendations
Tennessee Higher Education Commission
November 14, 2013
Tennessee Higher Education Commission
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Cost Effectiveness
Total Revenue per Award - Universities
Inflation Adjusted (2011 Dollars)
(ARRA/MOE)/Award
Student Fees/Award
State Appropriations/Award
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
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Increasing Efficiency
Universities
State Appropriations
Tuition & Fees
Total Awards
Revenue per Award
1988-2012
-40.1%
226.8%
74.5%
-23.0%
Inflation Adjusted
- Higher education revenues have shifted dramatically over the
last 25 years away from taxpayer support and towards student
tuition revenue.
- Total revenues per graduate, though, have fallen substantially
as institutions are spending less money to graduate a student.
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Operating State Appropriations
• $29.6M to fund outcomes formula
growth
• $11.6M for non-formula units
• $31.7M for TSAA financial aid
• $16.5M for TCAT/CC equipment
(non-recurring)
6
Operating State Appropriations
• Largest state appropriations
increase:
– Roane State Community College
– University of TN at Martin
• Chattanooga Job Placement Data
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Breakdown of Component Parts
Roane State Community College
Starting Point
Outcome
Students Accumulating 12 hrs
Students Accumulating 24 hrs
Students Accumulating 36 hrs
Dual Enrollment
Associates
1-2 Year Certificates
<1yr Certificates
Job Placements
Remedial & Developmental Success
Transfers Out with 12 hrs
Workforce Training (Contact Hours)
Awards per 100 FTE
Faculty Salary
Fixed Costs & Other Factors
Total Recommendation
$204,800
Impact
($97,900)
($69,000)
($22,800)
$240,900
$221,700
$25,700
($19,000)
$68,400
$33,700
$11,100
$530,900
$33,700
($42,300)
$203,300
$1,323,200
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Community College Outcomes Changes
Outcomes Breakdown
Students Accumulating 12 hrs
Students Accumulating 24 hrs
Students Accumulating 36 hrs
Dual Enrollment
Associates
1-2 Year Certificates
<1yr Certificates
Job Placements
Remedial & Developmental Success
Transfers Out with 12 hrs
Workforce Training (Contact Hours)
Awards per 100 FTE
2011-12
25,200
19,858
16,673
13,043
9,087
777
1,468
4,147
27,637
6,439
871,001
15.75
2012-13
23,772
18,497
15,524
13,550
9,261
801
2,818
4,026
28,904
6,255
798,978
16.77
Change
(1,428)
(1,361)
(1,149)
507
174
24
1,350
(121)
1,267
(184)
(72,023)
1.02
Percent
-5.7%
-6.9%
-6.9%
3.9%
1.9%
3.1%
92.0%
-2.9%
4.6%
-2.9%
-8.3%
6.5%
10
University Outcomes Changes
Outcomes Breakdown
2011-12
2012-13
Change
Students Accumulating 24 hrs
17,813
17,600
(213)
Students Accumulating 48 hrs
17,900
17,791
(109)
Students Accumulating 72 hrs
19,201
19,247
46
Bachelors and Associates
20,297
21,273
976
Masters / Ed Specialists
5,952
5,922
(30)
Doctoral / Law Degree
1,089
1,079
(10)
Research and Service $ 317,425,733 $ 298,187,015 $ (19,238,717)
Transfers Out with 12 hrs
3,880
3,863
(17)
Degrees per 100 FTE
18.6
20.0
1.4
Six-Year Graduation Rate
53.02
53.33
0.30
Percent
-1.2%
-0.6%
0.2%
4.8%
-0.5%
-0.9%
-6.1%
-0.4%
7.5%
0.6%
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Breakdown of Weighted Outcomes Share
Community College Sector
Weighted Outcomes Breakdown
2011-12 2012-13 2013-14 2014-15 4-Yr Trend
Students Accumulating 12 hrs
16.4%
16.6%
12.8%
10.4%
Students Accumulating 24 hrs
13.1%
13.8%
11.8%
10.3%
Students Accumulating 36 hrs
11.4%
12.0%
10.7%
9.9%
Dual Enrollment
5.0%
5.6%
6.3%
6.7%
Associates
14.7%
15.1%
17.4%
18.6%
1-2 Year Certificates
4.2%
0.6%
0.8%
1.1%
<1yr Certificates
0.0%
1.1%
0.8%
1.1%
Job Placements
9.5%
9.1%
9.9%
10.0%
Remedial & Developmental Success
7.0%
7.2%
7.5%
8.2%
Transfers Out with 12 hrs
5.5%
5.4%
4.9%
5.2%
Workforce Training (Contact Hours)
8.4%
9.8%
12.9%
13.9%
Awards per 100 FTE
4.9%
4.0%
4.2%
4.5%
Total 100.0% 100.0% 100.0% 100.0%
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Breakdown of Weighted Outcomes Share
University Sector
Weighted Outcomes Breakdown
2011-12 2012-13 2013-14 2014-15 4-Yr Trend
Students Accumulating 24 hrs
3.9%
3.9%
3.4%
3.1%
Students Accumulating 48 hrs
5.9%
6.0%
5.3%
5.0%
Students Accumulating 72 hrs
9.0%
9.1%
8.3%
8.1%
Bachelors and Associates
31.1%
30.8%
32.3%
33.5%
Masters / Ed Specialists
15.9%
16.0%
16.2%
16.0%
Doctoral / Law Degree
9.6%
9.7%
10.1%
10.2%
Research and Service
11.0%
11.5%
11.6%
11.2%
Transfers Out with 12 hrs
1.7%
1.4%
1.2%
1.3%
Degrees per 100 FTE
5.0%
4.5%
4.5%
4.6%
Six-Year Graduation Rate
6.9%
7.0%
7.1%
7.0%
Total 100.0% 100.0% 100.0% 100.0%
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Productivity Drives Funding
10.0%
8.0%
Weighted
Outcomes Change
6.0%
4.0%
2.0%
State Appropriations
Recommendation
Correlation = 0.91
0.0%
-2.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
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State Appropriation Change Due to Formula
-5.0%
UTM
UTK
UTC
CCs
UM
TTU
TSU
MTSU
ETSU
APSU
-3.0%
2011-12
-1.0%
1.0%
3.0%
5.0%
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State Appropriation Change Due to Formula
2012-13
UTM
UTK
UTC
CCs
UM
TTU
2011-12
-5.0%
TSU
MTSU
ETSU
APSU
-3.0%
-1.0%
1.0%
3.0%
5.0%
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State Appropriation Change Due to Formula
2013-14
-5.0%
UTM
UTK
UTC
CCs
UM
TTU
TSU
MTSU
ETSU
APSU
-3.0%
2012-13
2011-12
-1.0%
1.0%
3.0%
5.0%
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State Appropriation Change Due to Formula
2014-15
2013-14
-5.0%
UTM
UTK
UTC
CCs
UM
TTU
TSU
MTSU
ETSU
APSU
-3.0%
2012-13
2011-12
-1.0%
1.0%
3.0%
5.0%
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Cumulative Change in Appropriations at
Universities Due to Formula
25.0%
20.0%
15.0%
APSU
ETSU
MTSU
TSU
TTU
UM
UTC
UTK
UTM
Total Funding
10.0%
5.0%
0.0%
-5.0%
2010-11
2011-12
2012-13
2013-14
2014-15
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Cumulative Change in Appropriations at
Community Colleges Due to Formula
20.0%
15.0%
10.0%
5.0%
Chattanooga
Cleveland
Columbia
Dyersburg
Jackson
Motlow
Nashville
Northeast
Pellissippi
Roane
Southwest
Volunteer
Walters
Total Funding
0.0%
-5.0%
-10.0%
2010-11
2011-12
2012-13
2013-14
2014-15
20
Share of Outcomes-Based Formula
Institution
Austin Peay
East Tennessee
Middle Tennessee
Tennessee State
Tennessee Tech
University of Memphis
Community Colleges
UT Chattanooga
UT Knoxville
UT Martin
TCATs
Total
2011-12
3.6%
5.9%
9.8%
4.0%
4.8%
11.4%
25.2%
4.5%
19.9%
3.1%
7.7%
100.0%
2012-13
3.9%
5.8%
10.0%
4.0%
4.9%
11.1%
25.3%
4.4%
20.4%
3.1%
7.1%
100.0%
2013-14
4.0%
5.9%
9.8%
3.9%
4.8%
10.8%
25.4%
4.4%
20.9%
3.0%
7.0%
100.0%
2014-15
4.1%
5.8%
10.0%
3.9%
4.6%
10.8%
25.1%
4.5%
21.3%
3.1%
6.7%
100.0%
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Percent Funded by Institution
100%
90%
80%
70%
60%
The Evolution of the
Hold Harmless Policy
50%
40%
22
Percent Funded by Institution
100%
90%
80%
70%
The Hold Harmless Policy
was Phased Out from
2011-12 to 2013-14
60%
50%
40%
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Financial Aid Profile
•
•
•
•
•
Merit-based lottery scholarship program = $312M
Need-based grant (TSAA) = $64M
State grant aid = $1,280/UG FTE (3rd in US)
Average debt = $20,700 (6th lowest in US)
Cohort default rate = 5.7% (nation = 9.1%)
Sources: TN data, NASSGAP, Project on Student Debt, US Dept. of Education
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Student Financial Aid
2011-12 Recipients Universities
Pell Grants
56,600
TSAA
12,372
Lottery Programs
50,050
TOTAL
119,022
CCs
TCATs
Total
57,016
8,096
25,210
9,095
1,084
12,734
122,711
21,552
87,994
90,322
22,913
232,257
Sources: THEC, TSAC, US Department of Education
Out of 261,000 students in public higher
education, over 122,000 received a Pell
grant and nearly 88,000 benefited from the
lottery program.
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Student Financial Aid
Sources: THEC, TSAC, US Department of Education
2011-12 Awards
Pell Grants
TSAA
Lottery Programs
Total Grants
Tuition Revenue*
Percent
Universities
CCs
TCATs
Total
$226,315,000
$22,121,000
$205,098,000
$453,533,000
$192,674,000
$7,738,000
$33,104,000
$233,516,000
$26,174,000
$665,000
$13,484,000
$40,322,000
$445,162,000
$30,523,000
$251,686,000
$727,371,000
$884,418,000
51.3%
$274,962,000
84.9%
$26,817,000
150.4%
$1,186,197,000
61.3%
*University Tuition Revenue is an estimate of undergraduate students only.
In 2011-12, public higher education collected
$1.19 billion in gross tuition revenue, which
was offset by $727 million in federal and
state grants.
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Median EFC by Academic Profile, Full-time
Community College Students
GPA/ACT
1-12
13-15
16-18
19-20
21-24
25-27
28-36
Overall
0-2.49
$0
$0
$0
$0
$333
$347
$95
$0
2.50-2.74
$0
$0
$0
$2
$409
$1,867
$2,242
$0
2.75-2.99
$0
$0
$0
$177
$2,292
$1,801
$1,352
$0
3.0-3.49
$0
$0
$1,197
$2,584
$2,661
$2,786
$3,984
$1,344
3.50-3.74
$50
$1,565
$2,056
$2,490
$3,482
$3,636
$2,757
$2,344
3.75-4.00
$0
$473
$1,870
$4,107
$4,571
$4,439
$5,625
$3,198
Overall
$0
$0
$0
$1,134
$2,488
$2,880
$3,380
$0
$5,600 EFC is roughly equivalent to a $60,000 AGI
28
Median EFC by Academic Profile, Full-time
University Undergraduates
GPA/ACT
1-12
13-15
16-18
19-20
21-24
25-27
28-36
Overall
0-2.49
$0
$0
$0
$999
$2,902
$3,420
$3,675
$330
2.50-2.74
$0
$0
$0
$1,649
$4,558
$5,032
$3,166
$1,569
2.75-2.99
$0
$0
$402
$1,855
$5,503
$5,685
$8,288
$2,499
3.0-3.49
$0
$0
$1,366
$3,738
$5,792
$6,776
$7,898
$4,225
3.50-3.74
$0
$858
$1,769
$4,223
$6,128
$8,684
$8,685
$5,916
3.75-4.00
$0
$0
$941
$4,709
$6,786
$9,426
$10,989
$7,892
Overall
$0
$0
$603
$3,131
$5,695
$7,966
$9,410
$4,285
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Student Borrowing Rates
Chattanooga
Cleveland
Dyersburg
Nashville
Pellissippi
Northeast
Volunteer
Roane
Columbia
Motlow
Walters
Jackson
Southwest
Overall
Black Female
61.0%
48.7%
38.2%
41.8%
45.5%
30.2%
33.3%
26.8%
22.4%
18.1%
17.2%
0.3%
0.6%
20.4%
Black Male
White Female White Male Overall
59.6%
36.3%
29.3% 38.2%
35.7%
33.0%
23.6% 29.8%
40.4%
23.3%
18.1% 26.0%
31.6%
22.7%
17.5% 25.1%
35.0%
26.0%
19.6% 24.2%
33.7%
24.4%
18.7% 22.1%
32.1%
21.6%
16.5% 21.0%
34.6%
18.3%
13.9% 16.8%
22.8%
12.1%
11.1% 13.0%
19.4%
10.7%
8.9% 11.0%
11.5%
11.7%
8.1% 10.3%
0.0%
0.3%
0.4%
0.0%
0.3%
0.1%
0.1%
0.0%
19.4%
19.6%
15.5% 18.2%
NOTE: Southwest and Jackson do not participate in the Federal loan program. Any loans in the data are private
loans.
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Undergraduate Borrowing Rates
Black Female
Black Male
White Female
White Male
Overall
TSU
80.7%
75.8%
56.4%
43.8%
74.1%
UM
80.3%
75.3%
48.9%
42.2%
60.1%
APSU
77.0%
63.1%
58.7%
46.8%
58.1%
MTSU
77.0%
70.0%
47.9%
46.6%
52.3%
ETSU
71.9%
68.8%
48.1%
44.0%
47.8%
TTU
66.9%
62.2%
45.3%
41.9%
44.4%
Overall
79.1%
72.2%
49.4%
44.5%
55.1%
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32
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Tuition & Fees Comparison
Resident
Undergrad
APSU
ETSU
MTSU
TSU
TTU
UM
UTC
UTK
UTM
CCs
Fees 13-14
$7,158
$7,543
$7,840
$6,774
$7,383
$8,666
$7,555
$10,062
$7,514
$3,787
Peer Fees
2013-14
$6,943
$7,003
$7,719
$7,523
$7,026
$9,055
$6,633
$9,365
$8,116
$3,576
+/- %
3.1%
7.7%
1.6%
-10.0%
5.1%
-4.3%
13.9%
7.4%
-7.4%
5.9%
TN
Rank Peer Max Peer Min
7
$8,790
$4,553
4
$9,148
$4,553
6
$9,928
$5,986
9
$9,928
$4,553
5
$9,192
$4,553
10
$10,791
$6,410
2
$8,594
$4,553
4
$12,676
$6,270
8
$13,810
$6,343
7
$6,470
$2,400
34
2014-15 Tuition Recommendation
• 2-4% (all sectors)
• Accompanies $29.6M operating
increase
• Tuition model guidance has macro
inflation factor that includes salary
COLA.
35
36
Capital Outlay Projects Background
• Projects initiated by the institution
• UT and TBR establish system priorities
• THEC merges those priorities into a
unified list
– Respect priority order within system
– Renovations over new space
– CCTA/D55 links
37
Capital Outlay Funding History
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
38
Capital Maintenance Funding History
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
39
Capital Outlay Recommendation
• $213M for seven projects
• Each project has a matching
component
–Began in 2012-13
– 5-25% match depending on sector
– Private gifts, grants and other
resources
40
Capital Outlay Life Cycle
The 2014-15 Capital Outlay recommended projects were first
identified by the respective system years ago. The first year the
project emerged as a UT or TBR priority…
UTK
Volunteer
Columbia
TCATs
UTC
APSU
Jackson
Science Laboratory Facility
Humanities Building
Williamson County Center Relocation
TCAT Improvements
Academic Classroom Building Renovation
Fine Arts Improvements
Health Sciences Building
2012-13
2001-02
2001-02
2005-06
2003-04
2005-06
2005-06
41
Capital Maintenance Recommendation
•
•
•
•
$115M for 71 projects;
$69M at TBR for 60 projects;
$46M at UT for 11 projects;
This 60%/40% split mirrors the
TBR/UT infrastructure footprints.
42
Final Observations
•
•
•
•
Growth in institutional outcomes
Outcomes formula data
Affordability
Financial aid system reform
43
2014-15 Finance Background
& Budget Recommendations
Tennessee Higher Education Commission
November 14, 2013
Tennessee Higher Education Commission