Transcript Higher Education Budgeting in IndianaIndiana Commission for Higher Education October 12, 2006 Higher Education Budgeting in Indiana NATIONAL CONTEXT.

Higher Education Budgeting in Indiana
102
Indiana
Commission for
Higher Education
October 12, 2006
Higher Education Budgeting in Indiana
102
NATIONAL CONTEXT
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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
R W
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a
Full-Time-Equivalent (FTE) Enrollment in Public Higher Education,
Percent Change by State, 1990-2005
120%
112%
100%
80%
60%
U.S.
Indiana
40%
27%
32%
20%
4%
0%
Source: SHEEO SHEF, State Higher Education Finance FY2005.
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or D ns
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ut lif ire
h or
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e
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s a
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g
Educational Appropriations per FTE,
Percent Change by State, 1990-2005
40.0%
30.0%
-40.0%
29.1%
20.0%
10.0%
0.0%
-10.0%
-20.0%
-16.0%
-19.7%
-30.0%
Indiana
Source: SHEEO SHEF, State Higher Education Finance FY2005.
U.S.
-40.8%
-50.0%
to
U n
H tah
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Total Educational Revenues per FTE,
Percent Change by State, 1990-2005
50.0%
42.8%
40.0%
30.0%
20.0%
Indiana
10.0%
4.9%
0.0%
-0.5%
-10.0%
-20.0%
U.S.
-20.2%
-30.0%
Source: SHEEO SHEF, State Higher Education Finance FY2005.
V
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or n in
th e e
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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%
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
Higher Education Budgeting in Indiana
102
STATE TO STATE
COMPARISONS
Higher Education Budgeting in Indiana
102
Selected Peer States
Michigan
Ohio
Minnesota
Washington
Illinois
Wisconsin
Virginia
Massachusetts
Enrollment in Public Postsecondary
Institutions in Selected States (Fall 2004)
Illinois
563,593
Michigan
500,873
Ohio
454,377
Virginia
343,391
Washington
293,145
Indiana
266,916
Wisconsin
266,884
Minnesota
Massachusetts
241,245
187,873
Source: Chronicle of Higher Education Almanac
Enrollment in Public Postsecondary
Institutions per capita for Selected States
Massachusetts
34
Ohio
25
Indiana
23
Illinois
23
Virginia
22
Washington
21
Minnesota
21
Wisconsin
Michigan
Source: Chronicle of Higher Education Almanac
21
20
Enrollment in Public and Independent
Postsecondary Institutions in Selected
States (Fall 2004)
Ohio
19
Washington
18
Virginia
18
Indiana
18
Wisconsin
17
Michigan
16
Illinois
Minnesota
Massachusetts
Source: Chronicle of Higher Education Almanac
16
15
15
State Appropriations
for Higher Education FY 2006 ($000)
Illinois
$2,615,389
Ohio
$2,111,733
Michigan
$2,017,632
Virginia
$1,594,605
Washington
$1,532,281
Indiana
$1,430,424
Minnesota
Wisconsin
Massachusetts
$1,365,500
$1,131,515
$918,127
Source: Chronicle of Higher Education Almanac
Higher Education Appropriations per capita
FY 06
Minnesota
$266
Washington
$244
Indiana
$228
Virginia
$211
Illinois
$205
Wisconsin
$204
Michigan
$199
Ohio
Massachusetts
Source: Chronicle of Higher Education Almanac
$184
$143
Higher Education Appropriations per FTE FY
06
Minnesota
$5,660
Indiana
$5,359
Washington
$5,227
Massachusetts
$4,887
Ohio
$4,648
Virginia
$4,644
Illinois
$4,641
Wisconsin
Michigan
Source: Chronicle of Higher Education Almanac
$4,240
$4,028
Increases in State Appropriations for Higher
Education FY95-FY 06
Virginia
63%
Washington
54%
Indiana
46%
Illinois
31%
Minnesota
28%
Ohio
27%
Michigan
20%
Massachusetts
Wisconsin
19%
17%
Source: Chronicle of Higher Education Almanac
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.
State Higher Education Operating
Appropriations per Hoosier FTE 1992 –
2004 (nominal)
$7,000
$6,500
$6,000
$5,500
$5,000
$4,500
$4,000
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
Source: Indiana Commission for Higher Education
Inflation Adjusted State Higher Education
Operating Appropriations per Hoosier FTE
1992 – 2004 (2004 $)
$8,000
$7,500
$7,000
$6,500
$6,000
$5,500
$5,000
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
Source: Indiana Commission for Higher Education
Total State Student Aid Appropriations FY 05
($000)
Illinois
$377,455
Indiana
$295,428
Minnesota
$279,179
Michigan
$250,873
Ohio
$240,000
Virginia
$200,970
Washington
Massachusetts
Wisconsin
$173,103
$104,296
$89,899
Source: Chronicle of Higher Education Almanac
Student Aid Appropriations per capita FY 05
Minnesota
$54
Indiana
$47
Illinois
$30
Washington
$28
Virginia
$27
Michigan
$25
Ohio
$21
Massachusetts
$16
Wisconsin
$16
Source: Chronicle of Higher Education Almanac
Student Aid Appropriations per Resident
FTE FY 05
Minnesota
$1,157
Indiana
$1,107
Illinois
$670
Washington
$591
Virginia
$585
Massachusetts
$555
Ohio
$528
Michigan
Wisconsin
$501
$337
Source: Chronicle of Higher Education Almanac
Student Aid Appropriations per
All FTE FY 05
Indiana
$828
Minnesota
$800
Washington
$504
Virginia
$473
Illinois
$471
Michigan
$404
Ohio
Wisconsin
Massachusetts
$391
$271
$237
Source: Chronicle of Higher Education Almanac
Total Higher Education and Student Aid
Appropriations per capita FY 06
Minnesota
$320
Indiana
$275
Washington
$271
Virginia
$237
Illinois
$234
Michigan
$224
Wisconsin
$221
Ohio
Massachusetts
Source: Chronicle of Higher Education Almanac
$205
$160
Total Higher Education and Student Aid
Appropriations per FTE (FY 05)
Minnesota
$6,817
Indiana
$6,466
Washington
$5,818
Massachusetts
$5,442
Illinois
$5,310
Virginia
$5,229
Ohio
$5,176
Wisconsin
$4,577
Michigan
$4,529
Source: Chronicle of Higher Education Almanac
Average Tuition 4yr. Public Institutions
Fall 04 (U.S. DOE)
Ohio
$8,041
Massachusetts
$7,010
Illinois
$6,497
Minnesota
$6,478
Michigan
$6,189
Indiana
$5,666
Virginia
Wisconsin
Washington
Source: Chronicle of Higher Education Almanac
$5,556
$5,290
$4,926
Average Tuition 2yr. Public Institutions
Fall 04 (U.S. DOE)
Minnesota
$3,839
Ohio
$2,999
Massachusetts
$2,844
Wisconsin
$2,796
Indiana
$2,599
Washington
$2,390
Illinois
$1,952
Michigan
$1,936
Virginia
$1,929
Source: Chronicle of Higher Education Almanac
Average Tuition 4yr. Independent Institutions
Fall 04 (U.S. DOE)
Massachusetts
$25,935
Indiana
$20,112
Minnesota
$19,510
Washington
$19,031
Illinois
$18,996
Ohio
$18,941
Wisconsin
$18,380
Virginia
Michigan
Source: Chronicle of Higher Education Almanac
$17,010
$13,253
Federally Funded Expenditures on
Research & Development (NSF FY 04, $000)
Massachusetts
1,580,959
Illinois
1,066,129
Ohio
847,844
820,716
Michigan
705,963
Washington
Wisconsin
562,845
Virginia
526,823
Indiana
365,336
Minnesota
313,517
Iowa
306,237
Kentucky
195,032
Source: NCHEMS using NSF data, 2004.
Federally Funded Expenditures on
Research & Development per Capita (NSF FY 04)
Massachusetts
246.7
Washington
113.7
Iowa
103.7
Wisconsin
102.3
Illinois
83.9
Michigan
81.2
Ohio
74
Virginia
70.4
Minnesota
61.5
Indiana
Kentucky
58.7
47.1
Source: NCHEMS using NSF data, 2004.
Total Expenditures on Research &
Development (NSF FY 04, $000)
Massachusetts
2,000,120
Illinois
1,707,597
Michigan
1,397,011
Ohio
1,318,420
Wisconsin
955,802
Washington
896,913
Virginia
848,556
Indiana
840,957
Iowa
531,770
Minnesota
524,260
Kentucky
424,013
Source: NCHEMS using NSF data, 2004.
Total Expenditures on Research &
Development per Capita (NSF FY 04)
Massachusetts
312.2
Iowa
180.1
Wisconsin
173.7
Washington
144.5
Michigan
138.3
Indiana
135.1
Illinois
134.3
Ohio
115.1
Virginia
113.4
Minnesota
102.9
Kentucky
102.4
Source: NCHEMS using NSF data, 2004.
Higher Education Budgeting in Indiana
102
CAMPUS PEER COMPARISONS
Revenues per FTE Student—Indiana Institutions as a
Percentage of Peer Group Medians
Below 90% of Peer Group Median
90 to 110% of Peer Group Median
Above 110% of Peer Group Median
Revenues
Unrestricted: State,
Local, Tuition, Fees,
Private Gifts Per FTE
Restricted: Government
Grants and Contracts
Per FTE
INDIANA UNIVERSITY-BLOOMINGTON
PURDUE UNIVERSITY-MAIN CAMPUS
102.1
96.8
44.5
68.2
81.0
83.3
BALL STATE UNIVERSITY
INDIANA UNIVERSITY-PURDUE UNIVERSITY-INDIANAPOLIS
INDIANA STATE UNIVERSITY
114.3
99.3
125.6
113.9
84.0
61.9
110.9
120.0
112.1
INDIANA UNIVERSITY-PURDUE UNIVERSITY-FORT WAYNE
UNIVERSITY OF SOUTHERN INDIANA
INDIANA UNIVERSITY-SOUTH BEND
INDIANA UNIVERSITY-NORTHWEST
INDIANA UNIVERSITY-SOUTHEAST
PURDUE UNIVERSITY-CALUMET CAMPUS
INDIANA UNIVERSITY-KOKOMO
INDIANA UNIVERSITY-EAST
86.9
81.9
109.0
106.4
87.8
86.4
119.2
126.5
38.5
63.9
34.4
55.8
41.2
75.2
51.3
195.8
79.7
71.0
87.1
97.0
79.0
85.5
97.3
136.6
PURDUE UNIVERSITY-NORTH CENTRAL CAMPUS
IVY TECH STATE COLLEGE-NORTHCENTRAL
IVY TECH STATE COLLEGE-CENTRAL INDIANA
IVY TECH STATE COLLEGE-COLUMBUS
IVY TECH STATE COLLEGE-EAST CENTRAL
IVY TECH STATE COLLEGE-KOKOMO
IVY TECH STATE COLLEGE-LAFAYETTE
IVY TECH STATE COLLEGE-NORTHEAST
IVY TECH STATE COLLEGE-SOUTH CENTRAL
IVY TECH STATE COLLEGE-SOUTHWEST
IVY TECH STATE COLLEGE-WABASH VALLEY
IVY TECH STATE COLLEGE-WHITEWATER
IVY TECH STATE COLLEGE-NORTHWEST
IVY TECH STATE COLLEGE-SOUTHEAST
VINCENNES UNIVERSITY
IVY TECH STATE COLLEGE-BLOOMINGTON
113.4
83.7
91.5
74.3
80.9
91.6
70.8
95.7
77.5
77.4
75.5
118.0
95.6
95.3
119.4
43.2
80.0
174.8
80.4
84.7
102.0
55.6
101.5
101.3
82.9
98.3
126.0
203.0
97.3
139.8
99.4
77.4
90.6
74.2
76.4
91.3
62.7
90.9
79.8
73.2
76.0
117.1
114.1
93.3
126.0
Institution
Source: NCHEMS,Indiana Taskforce on Affordability
Total E&G Revenue
Per FTE Student
Expenditures per FTE Student—Indiana Institutions as a
Percentage of Peer Group Medians
Below 90% of Peer Group Median
90 to 110% of Peer Group Median
Above 110% of Peer Group Median
Expenditures
Instruction Per FTE
Academic Support Per
FTE
Student Service Per
FTE
Institutional Support
Per FTE
Plant Operation and
Maintenance Per FTE
INDIANA UNIVERSITY-BLOOMINGTON
PURDUE UNIVERSITY-MAIN CAMPUS
103.7
93.9
68.2
66.5
89.5
69.3
148.6
91.1
79.3
107.4
BALL STATE UNIVERSITY
INDIANA UNIVERSITY-PURDUE UNIVERSITY-INDIANAPOLIS
INDIANA STATE UNIVERSITY
117.8
125.5
113.9
112.4
187.3
105.2
90.7
57.2
76.8
98.6
57.9
107.8
166.1
120.6
135.3
INDIANA UNIVERSITY-PURDUE UNIVERSITY-FORT WAYNE
UNIVERSITY OF SOUTHERN INDIANA
INDIANA UNIVERSITY-SOUTH BEND
INDIANA UNIVERSITY-NORTHWEST
INDIANA UNIVERSITY-SOUTHEAST
PURDUE UNIVERSITY-CALUMET CAMPUS
INDIANA UNIVERSITY-KOKOMO
INDIANA UNIVERSITY-EAST
96.8
70.0
112.3
103.7
82.1
111.1
87.4
116.4
40.6
63.9
99.9
80.2
78.2
40.2
124.0
97.9
53.0
59.0
38.4
68.8
59.0
68.8
64.2
116.8
77.4
93.3
91.6
76.3
90.9
78.1
101.5
140.7
94.3
72.9
88.0
96.8
52.4
116.4
96.5
74.2
PURDUE UNIVERSITY-NORTH CENTRAL CAMPUS
IVY TECH STATE COLLEGE-NORTHCENTRAL
IVY TECH STATE COLLEGE-CENTRAL INDIANA
IVY TECH STATE COLLEGE-COLUMBUS
IVY TECH STATE COLLEGE-EAST CENTRAL
IVY TECH STATE COLLEGE-KOKOMO
IVY TECH STATE COLLEGE-LAFAYETTE
IVY TECH STATE COLLEGE-NORTHEAST
IVY TECH STATE COLLEGE-SOUTH CENTRAL
IVY TECH STATE COLLEGE-SOUTHWEST
IVY TECH STATE COLLEGE-WABASH VALLEY
IVY TECH STATE COLLEGE-WHITEWATER
IVY TECH STATE COLLEGE-NORTHWEST
IVY TECH STATE COLLEGE-SOUTHEAST
VINCENNES UNIVERSITY
IVY TECH STATE COLLEGE-BLOOMINGTON
117.7
71.2
91.9
68.6
69.0
86.8
48.1
77.2
76.2
67.5
81.7
115.1
93.3
70.3
126.9
19.4
96.6
73.1
57.2
78.6
89.3
57.0
112.9
87.2
95.2
37.6
111.5
53.5
51.5
86.2
63.0
48.9
60.5
57.8
64.3
67.8
43.9
58.1
53.5
44.0
49.3
100.6
72.7
65.1
69.8
126.7
58.7
109.2
91.6
74.4
106.2
75.0
72.9
75.9
55.5
57.0
179.3
105.2
172.3
71.1
121.6
83.8
97.2
73.0
72.7
99.5
63.2
72.4
59.6
65.4
59.5
105.5
78.3
149.4
95.0
Institution
Source: NCHEMS,Indiana Taskforce on Affordability
Higher Education Budgeting in Indiana
102
INDIANA’S FISCAL POSITION
Change in Official Combined Reserve Balance
including debt owed to Postsecondary Institutions,
Schools and Local Units of Government
$2,264.9
$2,209.9
$1,841.3
$909.6
$265.0
$160.5
$41.9
$13.6
-$190.0
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
FY 07 estimated. Source: State Budget Agency
-$90.8
State General Fund and PTRC
Revenue Growth FY00 – FY 07
13.4%
7.5%
7.5%
5.5%
5.4%
FY 06
FY 07
2.9%
-3.0%
-3.8%
FY 05
FY 04
FY 03
FY 02
FY 01
FY 00
Note: FY 00-06 actual, FY 07 estimated. Source State Budget Agency
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%
5.4%
4.5%
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
State revenue forecast for FY 08 and FY 09 will be December 2006
Higher Education Budgeting in Indiana
102
DEBT SERVICE
Change in State Appropriations
FY01 – FY 07
Operating
Line Items
Fee replacement
Other Op
cash capital (R&R)
23.1%
11.4%
-6.6%
-17.7%
-67.0%
Debt Service as a Percentage of Operating
and Debt Service Appropriations 1975-2005
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
New Appropriations FY 06
$28.6 million
fee replacement
other line items
Univ line items
SSACI
operating only
R&R
New Appropriations FY 07
$44.8 million
fee replacement
other line items
Univ line items
operating only
R&R
SSACI
Debt Service Requests 07-09
($ millions)
FY 08
FY 09
$25.9
$50.7*
*FY 09 would be the appropriation if all capital projects requested are
authorized by the General Assembly
Plant Expansion
Continuation of method implemented in 2003-05
– Nonresearch facilities receive the lesser of the statewide
average personal services and general S&E per GSF +
campus utilities per GSF or the actual request
– Research facilities calculated in same manner, but using
statewide research facility average for personal services
and general S&E + campus research facility utility costs
per GSF
– New leases requested in plant expansion
Plant Expansion Requests 07-09
($ millions)
FY 08
FY 09
$10.0
$14.3
Higher Education Budgeting in Indiana
102
DEGREE COMPLETION
INCENTIVE
Degree Production Incentive
• While it is very important to fund growth, the
State should consider outputs as well as inputs in
its funding decisions
• Increasing graduation rates and decreasing time
to degree is good for students, parents,
institutions, and the State
• The State should consider a base adjustment that
rewards institutions for graduating more students
faster
Six-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
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%
Source: National Center for Higher Education Management Systems (IPEDS Graduation Rate Survey, 2003)
30%
40%
50%
60%
70%
80%
90%
100%
Degree Production Incentive as
proposed 05-07
• Funding for 4-yr institutions based on improvement in
baccalaureate degrees awarded per Hoosier FTE
• Funding for 2-year institutions based on improvement
in associate’s degrees awarded per Hoosier FTE
• Incentive pays $3,500 per FTE, same as enrollment
change subsidy rate
• Using baccalaureate degrees per Hoosier FTE
provides for the inclusion of part-time and transfer
students
Higher Education Budgeting in Indiana
102
SPECIAL APPROPRIATION
REQUESTS
Economic Development Related Higher
Education Special Appropriation Requests
FY 08
FY09
Life Sciences (IU)
30,000,000
50,000,000
Purdue Indiana's New Manufacturing Economy
$5,000,000
$5,000,000
International Ctr for Motorsports Studies (ISU)
$500,000
$1,050,000
Ctr for Research, Enterprise & Econ Develop (ISU)
$400,000
$850,000
Econ Devel Outreach In SW Indiana (USI)
$950,000
$1,800,000
$3,500,000
$6,000,000
Strategic Skills Initiative (VU)