Transcript 2011 Faculty Conference: Performance Funding and Financial Aid Reform April 29, 2011 Jason D.

2011 Faculty Conference:
Performance Funding and
Financial Aid Reform
April 29, 2011
Jason D. Dudich, Associate Commissioner and CFO
State General Fund Appropriation by Function
Fiscal Year 2011
Total General Fund Budget
2011 - $14.1 Billion
1%
12%
4%
5%
49%
5%
11%
12%
2
Source: State Budget Agency (note: includes all Higher Educ. expenditures)
K-12
Higher Education
Medicaid
Teacher Pension
Corrections
Child Welfare
Distributions
Others
Higher Education Appropriation
(General Fund Only)
FY 2009
Campus Operating
FY 2010
FY 2011
% Δ FY 09-FY11
$1,280,962,100
$1,232,147,725
$1,228,799,412
-4%
$176,580,698
$167,538,753
$193,772,387
10%
Line Items
$68,453,760
$63,229,941
$63,177,473
-8%
R&R
$31,035,048
$0
$0
SSACI
$249,155,438
$262,131,147
$268,731,930
8%
$1,725,047,566 $1,754,481,202
-3%
Debt Service
TOTALS
3
$1,806,187,044
-100%
Total Public Postsecondary Full Time
Equivalent Enrollment – All Students
300,000
250,000
2 Year FTE Compounded Annual Growth Rate – 10%
4 Year FTE Compounded Annual Growth Rate - 1.7%
200,000
189,230
150,000
100,000
163,119
50,000
-
82,637
34,681
2001
2002
2003
2004
2005
2 Year
4
Source: CHE SIS Data – Data Warehouse
2006
4 Year
2007
2008
2009
2010
Performance Funding Formula
Established in 2003 with Research Incentive
Grown to 6 metrics used to provide performance funding
to institutions








5
Successful Completion of Regular Credit Hours
Successful Completion of Dual Credit Hours
Degrees Attained by Low Income Students
Change in overall degrees attained
Change in degrees produced on-time
Research Growth Incentive
History of Performance Funding Formula
2001
2003
2005
2007
Enrollment Change
Enrollment Change
Enrollment Change
Enrollment Change
(credit hours enrolled) (credit hours enrolled) (credit hours enrolled) (credit hours enrolled)
2009
Enrollment Change
(successfully
completed credit
hours)
Inflation Adjustments Inflation Adjustments Inflation Adjustments Inflation Adjustments
Equity Adjustment
Equity Adjustment
Equity Adjustment
Equity Adjustment
Plant Expansion/leases Plant Expansion/leases
Program Adjustment
Research Support
Incentive
Research Support
Incentive
** Red font indicates a performance funding formula
Research Support
Incentive
Change in number of
degrees
Change in On-Time
graduation Rate
Two Year Transfer
Incentive
Research Support
Research Support
Incentive
Incentive
Change in number of Change in number of
degrees
degrees
Change in On-Time
Change in On-Time
graduation Rate
graduation rate
Two Year Transfer
Incentive
Low Income Degree
Low Income Degree
Completion Incentive Completion Incentive
Workforce
Development Incentive
(funding non-credit
coursework)
6
2011
Enrollment Change
(successfully
completed credit
hours)
Enrollment Change
Dual Credit
(successfully
completed credit
hours)
History of Performance Funding for Higher Education
$70,000,000
11.9% of 2013
recommendation. Hitorical
impact.
$60,000,000
$61,439,972
5.1%
6.8% of 2011
appropriation. Historical
impact.
$50,000,000
$40,000,000
$32,692,906
$30,000,000
2.5%
$19,694,875
$18,770,417
$20,000,000
1.6%
$12,260,903
$10,000,000
1.6%
1.0%
$2003-05
7
2005-07
2007-09
2009-11
2011-13
Performance Funding Metrics

Successful Completion of Regular Credit Hours

Provides for funding to institutions based on students
completing any credit hours with a D- or better at the end of
the semester
Funding provides for resident and reciprocity students, both
undergraduate and graduate level
The formula rewards the growth in successful completion by
comparing two, 4 year averages over a 6 year period





8
2007 to 2010 Actual Data
2009 to 2012 Actual and Projected Data
Between the 2007 and 2010, on average 121,962 FTE
successfully completed credit hours at all Indiana public
postsecondary institutions
Performance Funding Metrics

Successful Completion of Dual Credit Hours

Provides for funding to institutions based on students
completing specific dual credit courses with a D- or better
during high school
Specific courses are based on Priority Level Dual Credit
Liberal Arts courses reviewed by the Commission and the
Dual Credit Advisory Board
The formula rewards the growth in dual credit completion by
comparing two, 4 year averages over a 6 year period





9
2007 to 2010 Actual Data
2009 to 2012 Actual and Projected Data
Between the 2007 and 2010, on average 2,897 FTE
successfully completed dual credit hours at Indiana high
schools
Performance Funding Metrics

Degrees Attained by Low Income Students

Provides for funding to institutions based on students receiving
degrees who were recipients of the Pell Grant at the time of
graduation.
Institutions can be rewarded in the formula for increasing the
number of low income students graduating from their institution, no
time restraints
Applies to resident, undergraduate students only
The formula rewards growth by comparing the average change over
2 years for a 4 year period:






Change in degrees from 2006 to 2007
Change in degrees from 2008 to 2009
Between the 2006 and 2009, Pell grant recipients graduating from
Indiana public postsecondary institutions grew from 3,554 to 4,020,
a growth of 13.1%
10
Performance Funding Metrics

Change in Overall Degrees

Provides for funding to institutions based on students receiving
bachelor or associate degrees, resident only
Institutions can be rewarded in the formula for an overall
increase in degrees attained, no time restraints
The formula rewards growth by comparing the average change
over 2 years for a 6 year period:





Change in degrees from 2004 to 2005
Change in degrees from 2008 to 2009
Between the 2004 and 2009, total bachelor and associate
degrees conferred by all Indiana postsecondary institutions
grew from 19,191 to 20,076, a growth of 4.6%
11
Performance Funding Metrics

Change in Degrees On-Time

Provides for funding to institutions based on students graduating in
4 or 2 years based on degree type
Institutions can be rewarded in the formula for an overall increase in
the 4 or 2 year graduation rate
Applies to resident, first-time, full time, degree seeking students only
The formula rewards growth by comparing the 4 or 2 year
graduation rate for 2 periods of time:






2004 Cohort graduation rate
2006 Cohort graduation rate
Between the 2004 and 2006 cohorts:


12
A decrease of 0.3% in the 4 year graduation rate
A decrease of 4.6% in the 2 year graduation rate
Performance Funding Metrics

Research Growth Incentive

Provides for funding to research institutions for growth in outside
research funding
Currently applies to only IU Bloomington, IUPUI and PU West
Lafayette
Research funding can be in the form of federal funds (non-ARRA),
industrial grants and contracts, and private foundations
The formula rewards growth by comparing two, 4 year averages:






2005 through 2008 actual average
2009 through 2012 projected average
In 2010, research support in the funding formula accounted for
$391.8 million for the 3 institutions compared to $386.8M in 2009, a
growth of 1.3%.
13
Performance Funding and Student Learning
Outcomes

What Performance Funding metrics impact student
learning outcomes?

Performance formula provides incentives for improvement in
completion by college students in numerous areas.

Improvement in completion in course work and overall
degree attainment shows improvement in student learning.

Institutions can improve completion metrics in the
performance formula and show improvement in student
learning – IMPACT: REWARD FUNDING THROUGH
FORMULA
14
State Student Financial Aid Reform

2010 Student Aid Reform


Commission for Higher Education (CHE) and the State
Student Assistance Commission of Indiana (SSACI) presented
and prepared state financial aid reform recommendations.
Recommendations included:






15
Eligibility determinations for financial aid
GPA requirements increased above current levels
Improving data collection by CHE for all college and university
students in Indiana
Wrap around services by institutions for students on state financial
aid
Merge funding for state financial aid into one source
Consideration of outside financial resources when determining state
financial aid
State Student Financial Aid Reform



2011 General Assembly – Senate Bill 577 Financial Aid Reform
Provides for changes to major state financial aid programs
Changes in these programs include:





16
Provides for greater needs testing for various state financial aid
programs: during enrollment, application and renewal of aid
Requires a higher GPA during high school in order to receive state
financial aid, changes from 2.0 to 2.5
Provides for a GPA minimum during college while on state financial
aid, staggered based on year up to 2.5 during senior year
Allows CHE and SSACI access to student data for public, private and
proprietary institutions
Allows students with an Associate degree seeking a Bachelors degree
to receive a higher financial aid award if the student did not obtain an
academic honors diploma
State Student Financial Aid Reform

Changes in these programs include (cont.):





17
Adjustments to the administration of state financial aid funds
to allow for better administration of state resources
Requires potential state financial aid recipients to participate in
academic success program while in high school in order to
obtain state financial aid in college
Changes to high school GPA and eligibility requirements will
take affect after June 30, 2014
Changes to college GPA requirements will take affect after
June 20, 2012
Changes to eligibility requirements for state financial aid
programs will not have an impact until 2017 at the earliest
Questions?
Thank you!
18