Transcript 2007-09 Higher Education Budget Recommendations Presented to: State Budget Committee November 15, 2006 HOW DOES INDIANA COMPARE?

2007-09 Higher Education Budget
Recommendations
Presented to:
State Budget Committee
November 15, 2006
1
HOW DOES INDIANA COMPARE?
2
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Higher Education Appropriations per FTE by State, 2005
14,000
12,000
10,000
U.S.
8,000
6,000
Source: SHEEO SHEF, State Higher Education Finance FY2005.
Indiana
5,825
5,282
4,000
2,000
0
3
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N
Net Tuition as a Percentage of Public Higher Education
Total Educational Revenues by State, 2005
90%
80%
70%
50%
77%
Indiana
60%
50%
U.S.
40%
Source: SHEEO SHEF, State Higher Education Finance FY2005.
37%
30%
20%
13%
10%
0%
4
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Total Educational Revenues per FTE for Public Institutions
by State, 2005
$16,000
$14,000
$10,000
Indiana
U.S.
$12,000
$10,585
$9,196
$8,000
$6,000
$4,000
$2,000
$-
Source: SHEEO SHEF, State Higher Education Finance FY2005.
5
Change in State and Family Share of Education
Expenditures
FY1995 to FY2005
100%
90%
80%
Tuition & Fees
40.6%
40.7%
40.9%
41.4%
41.6%
42.4%
43.3%
45.4%
48.1%
49.5%
50.1%
70%
SSACI Aid
60%
2.2%
2.5%
2.7%
2.7%
3.0%
2.9%
3.0%
3.4%
3.7%
50%
4.0%
State Operating
Appropriations
40%
30%
4.1%
57.2%
56.8%
56.4%
55.9%
55.3%
54.7%
53.7%
51.2%
48.1%
46.3%
45.9%
20%
10%
0%
1994-95
1995-96
1996-97
Source: Indiana Commission for Higher Education.
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
6
Compare State Revenue Growth with Higher
Education Appropriations FY00 – FY 07
revenue growth
higher education approps
13.4%
8.8%
7.5%
7.5%
5.5%
4.5%
5.4%
3.6%
2.9%
2.8%
2.0%
0.7%
0.0%
-0.2%
-3.0%
-3.8%
FY 07
FY 06
FY 05
FY 04
FY 03
FY 02
FY 01
FY 00
Note: FY 07 estimated
7
Compare Revenue Projections to CHE
Higher Education Recommendation
revenue projection
CHE Recommendation
6.0%
5.0%
5.0%
4.5%
5.0%
4.5%
4.0%
3.0%
2.0%
1.0%
0.0%
FY 08
Note: FY 08 and FY 09 revenue projections estimated
FY 09
8
Commission for Higher Education
Responsibilities and Funding Priorities
•
•
•
•
•
•
Debt Service
Research
Enrollment
Degree Completion
Operating Support
Repair and Rehabilitation
9
Growth in Debt Service
Debt Service as a Percentage of Debt Service and Operating
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
1991-92
1990-91
1989-90
1988-89
1987-88
1986-87
1985-86
1984-85
1983-84
1982-83
1981-82
1980-81
1979-80
1978-79
1977-78
1976-77
1975-76
10
Debt Service Growth
Operating
Debt
Service
DS as % of
Oper. + DS
FY 1980
$335.6
$17.0
4.8%
FY 1985
$497.3
$34.5
6.5%
FY 1990
$743.3
$64.0
7.9%
FY 1995
$824.6
$79.4
8.8%
FY 2000
$1,025.4
$104.8
9.3%
FY 2005
$1,176.1
$110.2
8.6%
FY 2007
$1,185.3
$131.2
10.0%
FY 2009
$1,220.0
$169.8
11.8%
Avg. Annual % Incr. 1980 to 2009
4.4%
7.3%
Total % Increase 1980 to 2009
237%
620%
11
Note: includes debt service in FY 09 for CHE recommended new capital projects
Research Funding
Total institutional research & development expenditures per capita
for Indiana, US and Selected States
160
140
$146.2
$138.3
$135.1
$134.3
$115.1
120
$102.9
$102.4
100
80
60
$56.9
$67.3
$57.4
$43.5
$65.3
$42.6
40
$25.8
20
0
Michigan
Indiana
Illinois
Ohio
1990
Minnesota Kentucky
2004
Source: National Center for Higher Education Management Systems (using National Science Foundation; U.S. Census Bureau).
Nation
12
Research Funding Incentive
• Matches University Expenditures on
Research Expenditure Growth $.50 per $1
• Matches Federal, Industry and
Competitively Awarded Private Foundation
Research Grants
• Includes IUB, PUWL & IUPUI Health
13
College-going Rate
Percent of high school graduates enrolled the next fall
in postsecondary education
53.6%
55.0%
57.2%
57.9% 58.5%
62.4%
60.5%
57.2%
60.0%
56.7%
56.6%
50.0%
1992
Ranked
34th
1994
1996
Indiana
1998
Nation
2000
2002
Ranked
10th
14
Source: Postsecondary Education Opportunity, Oskaloosa, Iowa.
Adult Participation in Postsecondary Education for Indiana and
Selected States
California
6.4%
Alaska
5.6%
Maryland
5.4%
Hawaii
5.2%
Illinois
4.8%
Washington
4.8%
Virginia
4.7%
Michigan
4.6%
U.S.
4.4%
Florida
4.2%
Oklahoma
4.0%
Indiana
0.0%
3.6%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
15
Source: U.S. Census Bureau, Decennial Census, 2000.
Progress Toward 10-Year Enrollment Goal
Current: 29,636
More Students
30,000
25,000
Goal: 30,000
More Students
Additional Students
20,000
15,000
10,000
5,000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
16
Source: Indiana Commission for Higher Education, Student Information System.
Fall Headcount Enrollment in Indiana
Postsecondary Institutions
400,000
Total
346,378
350,000
300,000
Public
266,790
250,000
200,000
150,000
100,000
Private*
79,588
50,000
0
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
1991-92
1990-91
1989-90
1988-89
1987-88
1986-87
1985-86
1984-85
1983-84
1982-83
1981-82
1980-81
1979-80
Source: Annual Editions of Report of Enrollment in Indiana Colleges and Universities, prepared for the Indiana Association of Collegiate Registrars and Admissions
Officers. Independent Colleges of Indiana. Commission for Higher Education Student Information System. *Awaiting update
17
Percent of first-time full-time degree-seeking students earning
a baccalaureate degree for Indiana’s public colleges, 2004
College/University
4-Year Grad Rate
6-Year Grad Rate
Indiana University Bloomington
41%
71%
Purdue University West Lafayette
31%
64%
Ball State University
26%
52%
Indiana State University
19%
40%
University of Southern Indiana
13%
32%
Indiana University East
4%
19%
Indiana University Kokomo
8%
23%
Indiana University Northwest
7%
24%
Indiana University South Bend
5%
21%
Indiana University Southeast
4%
26%
IUPUI
5%
22%
Purdue University Calumet
4%
22%
Purdue University North Central
1%
11%
IPFW
3%
19%
NOTE: Graduation rates calculated using the national GRS formula for first-time full-time degree seeking students.
Source: The Education Trust, College Results Online, Databank/Reporting Tool using data collected by the U.S. Department of Education’s National Center for Education Statistics (NCES)
through the IPED Graduation Rate Survey.
18
Percent of first-time full-time degree-seeking students earning an
associate degree for Indiana’s public community colleges, 2004
College/University
2-Year Grad Rate
3-Year Grad Rate
Ivy Tech Community College of Indiana
4%
18%
Vincennes University
11%
19%
NOTE: Graduation rates calculated using the national GRS formula for first-time full-time degree seeking students.
Source: For 3-year grad rate, Ivy Tech’s data gathered from reports on the IPEDS Graduation Rate Survey published by the Office of Institutional Research at ITCCI. For 3-year grad rate,
Vincennes data gathered from U.S. Department of Education’s National Center for Education Statistics (NCES) through the IPED Graduation Rate Survey Peer Analysis System. For 2-year
grad rate, data gathered from the CHE SIS system.
19
Six-Year Graduation Rates Relative to Peer
Groups
Range of Peer Groups
INDIANA UNIVERSITY-BLOOMINGTON
Indiana University-Bloomington
Purdue University-Main
PURDUE UNIVERSITY-MAIN
CAMPUSCampus
Ball State
BALL STATE UNIVERSITY
University
IndianaUNIVERSITY-PURDUE
University-Purdue UNIVERSITY-INDIANAPOLIS
University-Indianapolis
INDIANA
Indiana
State University
INDIANA STATE
UNIVERSITY
IndianaUNIVERSITY-PURDUE
University-Purdue UNIVERSITY-FORT
University-Fort Wayne
INDIANA
WAYNE
University
of Southern
UNIVERSITY
OF SOUTHERN
INDIANAIndiana
Indiana University-South
INDIANA UNIVERSITY-SOUTH
BEND
Bend
Indiana University-Northwest
INDIANA UNIVERSITY-NORTHWEST
Indiana University-Southeast
INDIANA UNIVERSITY-SOUTHEAST
University-Calumet
Campus
PURDUE Purdue
UNIVERSITY-CALUMET
CAMPUS
Purdue
University-North
Central
Campus
PURDUE
UNIVERSITY-NORTH
CENTRAL
CAMPUS
Indiana University-Kokomo
INDIANA UNIVERSITY-KOKOMO
Indiana University-East
INDIANA UNIVERSITY-EAST
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
20
Source: National Center for Higher Education Management Systems (IPEDS Graduation Rate Survey, 2003)
100%
Six and Three Year Degree-Completion Rates in Indiana
Postsecondary Education by Race and Degree
60%
56%
50%
40%
47%
35%
33%
30%
30%
26%
20%
10%
0%
All Students
African American
Associate Degree
Source: National Center for Education Statistics, 2003 IPEDS Graduation Rate Survey
Hispanic
Baccalaureate Degree
21
Degree Growth Incentive
• Change in number of degrees conferred
• Includes all resident students regardless of entry
(first time, transfer, continuing) or status type
(part-time, full time)
• This is a simple calculation that measures
change in the number of degrees conferred over
a specified period of time and multiplied by
$3,500 (increase only)
• Appropriation is the greater of Change in Degree
funding or Enrollment Change funding
22
On-Time Completion Incentive
• Change in On-Time Degree Completion Rate (4yr. And
2yr.)
• Includes all full-time, degree-seeking resident students
• Measures change in the graduate rate of cohorts
• Uses the Graduation Rate Survey national methodology
and compares rates measured over a specified period of
time
• Appropriation is most recent cohort graduation rate
minus previous cohort graduation rate: pays $5,000 for
increase in bachelor degrees and $2,500 for associate
degrees
23
Operating Support
• Funds Campus Operating 1.4% FY 08 and
2.0% in FY 09
• Funds Line Items 3.0% in FY 08 and 3.0%
in FY 09
24
History of R&R 2000-2007
Formula Total
Appropriated Total
R&R Distributed
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
1999-01
2001-03
2003-05
2005-07
FY 07 estimated
25
Base Appropriation Increases
Appropriation
% chg.
FY 07
$1.395 billion
FY 08
$1.467 billion
5.0%
FY 09
$1.538 billion
5.0%
Does not include payment delay repayment $62M
26
Capital Appropriation
Increases
Appropriation
% chg.
FY 07
$157 million
FY 08
$188 million
20.0%
FY 09*
$201 million
6.8%
* Includes first year of debt service for CHE recommended capital projects
27
Capital Appropriation Increases
($ millions)
Debt Service
R&R
TOTAL
FY 08 FY 09*
$25.9 $12.8
$5.4
$0.0
$31.3 $12.8
* Includes first year of debt service for CHE recommended capital projects
28
Existing and New Debt Service Increases
IU Totals
PU Totals
ISU Totals
USI Totals
BSU Totals
VU Totals
ITCCI Totals
Total:
2008
2009*
9.0%
13.8%
30.0%
60.8%
14.8%
38.9%
58.1%
19.7%
4.6%
13.7%
0.2%
23.4%
-1.7%
18.8%
11.3%
8.1%
* Includes first year of debt service for CHE recommended capital projects
29
Debt Service as a share of
New Appropriations*
DEBT SERVICE
19%
40%
60%
81%
FY 08
FY 09
* Includes first year of debt service for CHE recommended capital projects FY 0930
Operating Appropriation
Increases
Appropriation
% chg.
FY 07
$1.239 billion
FY 08
$1.277 billion
3.1%
FY 09
$1.338 billion
4.7%
31
Operating Appropriation Increases
($ millions)
2008
2009
Research Support Incentive*
$10.2
$10.2
Enrollment Change Incentive*
$6.8
$6.8
Change In Degrees Incentive**
$0.0
$5.6
On-Time Degree Completion Incentive**
$0.0
$3.4
Campus Operating Support (1.4% / 2.0%)
$16.8
$24.0
Line Item Operating Support (3.0% / 3.0%)
$1.5
$1.5
New Academic Programs
$3.1
$3.6
Other
$1.4
$4.6
Plant Expansion
$0.0
$0.0
$38.7
$60.1
TOTAL
* Funded 50% in FY 08 and 100% in FY 09; ** Funded 100% in FY 09
32
New Programs
2008
2009
$.9M
$.1M
$.9M
$.1M
Fast Track to College
$1.0M
$3.0M
Statewide Transfer Website
$1.1M
$-.4M
Total:
$3.1M
$3.6M
IUPUI – Columbus*
PU Statewide Technology*
*Funds new programs related to Cummins expansion
33
Institution Operating Appropriations
% chg
2008
% chg
2009
IU Totals
2.7% $470.6M
4.0%
$489.4M
PU Totals
3.1% $324.3M
4.5%
$339.0M
ISU Totals
1.3%
$75.0M
2.5%
$76.8M
USI Totals
2.7%
$36.2M
3.5%
$37.4M
BSU Totals
1.4% $124.7M
3.3%
$128.8M
VU Totals
1.4%
$36.9M
3.0%
$38.0M
ITCCI Totals
5.8% $152.4M
6.0%
$161.6M
Total
2.9% $1,220M
4.2%
$1,271M
34
R&R Base Appropriations
Funds 50% of 2007-09 R&R Formula
IU Totals
PU Totals
ISU Totals
USI Totals
BSU Totals
VU Totals
ITCCI Totals
Total
% change over FY07
2008
2009
$12.6M
$9.9M
$2.3M
$.6M
$3.4M
$1.1M
$1.1M
$31.0M
21.1%
$12.6M
$9.9M
$2.3M
$.6M
$3.4M
$1.1M
$1.1M
$31.0M
35
Payment Delay Repayment
(Does Not Go Into Base)
IU Totals
PU Totals
ISU Totals
USI Totals
BSU Totals
VU Totals
ITCCI Totals
Total
2008
2009
$12.2M
$8.6M
$2.2M
$.8M
$3.3M
$.9M
$3.1M
$31M
$12.2M
$8.6M
$2.2M
$.8M
$3.3M
$.9M
$3.1M
$31M
CHE recommends these payments be used for R&R
36
Recommended New Capital Projects
PUWL Boiler #6
VU Electrical Infrastructure/Substation Phase II
$53,000,000
$2,000,000
USI College of Business/General Classroom Building
$24,900,000
IUB Cyber Infrastructure Buildings
$12,800,000
IUPUI Neurosciences Research Building
$20,000,000
ITCCI Fort Wayne Technology Center & Demolition Costs
$26,700,000
ITCCI Logansport Building
$10,500,000
TOTAL RECOMMENDED STATE FUNDING
$149,900,000
RECOMMENDED FOR AUTHORITY ONLY
PUWL Mechanical Engineering Addition
$33,000,000
37