Performance Based Funding Formula
Performance Based Funding Formula
• SSI History
• SSI Overview
• University Formula
• Performance Changes
• OTC Funding Formula
2
Performance Based Funding Formula
– Performance Funding Commission Established
• Commission of university and community college Presidents
formed to guide the process.
• Commitment made to simplify the policy drivers in the formula.
• Guiding Principles agreed to and distributed early in the
process.
• Detailed recommendations vetted and voted on by campus
CFOs.
• Initial goal was to get full agreement on the recommendations
from the commission members.
• Aspirational goal was to get full agreement from all Presidents.
Performance Based Funding Formula
– Guiding Principles
• Incentivize colleges and universities to improve graduation
rates, the number of graduates and time to completion
• Raise participation rates in higher education among Ohio
high school graduates
• Attract best and brightest to learn and work in Ohio
• Encourage colleges and universities to attract, prepare and
graduate non-traditional and at-risk students
• Ensure college is affordable for students and families
University Funding Formula
•
SSI
– $1.789 Billion – FY14 - $38.4 Million Increase (2.1%)
• $411,247,477 – Community Colleges
• $1,372,968,020 – Universities
– $116,181,104 – Regional Campuses
– $5,474,764 – Bridge Funding/Main and Regional Campuses
–
$1.821 Billion – FY15 - $32.0 Million Increase (1.8%)
• $419,101,428 – Community Colleges
• $1,399,124,069 – Universities
– Regional Campuses Merged
– $3,100,000 – Bridge Funding/Community Colleges
–
–
–
–
FY10 - $1,706.3
FY11 - $1,710.3 (.20%)
FY12 - $1,735.5 (1.5%)
FY13 - $1,751.2 (.90%)
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University Funding Formula
•
FY2014
•
•
•
•
•
•
For FY 2014, the weighted degree cost component is 50% of the FY 2014 value for
the State Share of Instruction for main campuses.
Set Asides
• Doctoral Set-Aside Allocation = 11.79%
• Medical 1 Set-Aside Allocation = 1.48%
• Medical 2 Set-Aside Allocation = 6.41%
FY 2009 Access Challenge Allocations for Access Institutions (University of Akron,
University of Cincinnati, Cleveland State University, Central State University,
Shawnee State University, Youngstown State University)
The remaining amount is allocated to the course completion component of the
formula.
Out of State Student Degrees
• A weight of 0.25 is applied to out-of state degree costs.
• A degree or graduate is considered out of state if the student was reported as
non-resident in all terms they attended a public Ohio university.
$116.2 Million to Regional Campuses
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University Funding Formula
•
FY2014
– Degrees
• Bachelor’s, Master’s, and Professional degrees (excepting Medical
degrees) awarded at university main campuses
• STEM weighting for degrees
• Associate degrees awarded at main campuses that received Access
Challenge funding in FY2009.
– FY14 Associate Degree Earnings - $9,462,815
» Akron - $4,287,680
» UC - $1,011,156
» Shawnee St - $2,446,368
» Youngstown St - $1,717,611
– Access Challenge - $3,923,764
• Kept in formula through FY15
• Was supposed to be removed in FY16 but looking at phasing out in
next biennium
7
University Funding Formula
•
FY2014
– Plant, Operation, Maintenance (POM)
• Removed in FY16
• UT $811,326/Central State $1,619,418
– Stop loss
• Removed Stop Loss
• One year Bridge Funding for universities that would receive less than 96% of
FY2013 funding
– Three year average for all data in formula
– Doctoral – $161.7 Million
• 62.5%/55% - Share of FTE
• 25%/30% - Share of Degrees
• 12.5%/15% - Share of Research Grant Activity
– Medical - $108.3 Million
• Med I - $20.3 - OSU – Veterinary/Dental
• Med II - $88.0 Million
8
University Funding Formula
• Distribution of University SSI for FY14 – $1,256.8 Billion/$1,372.9 Billion
– 28.2% Course Completions - $354.4 Million/$470.6 Million (34.3%)
• At-Risk Factors
• STEM weighting
– 50% Degree Attainment - $628.4 Million/45.8% when UB Added
• At-Risk Factors
• Added STEM weighting for degrees
• STEM weight for degree matches STEM weight for courses
– 21.5% Doctoral/Medical – $270.1 Million/19.7% when UB Added
• Percentage based so increase with additional appropriations
• Remove Quality Measures and include in Historical component
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University Funding Formula
• Revised Distribution of SSI for FY15
– 50% Degree Attainment
• Risk Factors student based
– Based on graduation rate of a particular category of at-risk
students compared to the graduation rate of students with no risk
factors, leading to 15 individual at-risk weights
• STEM weighting
– 30% Course Completions
• Risk Factors
• STEM weighting
– Remove separate funding for regional campuses
• Regional campus students included in university performance metrics
• Emphasis on graduation
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University Funding Formula
•
Case
Risk Factors student based
00: No risk factor
01: Financial only
02: Academic Only
03: Financial and Academic only
04: Age only
05: Age and Financial only
06: Age and Academic only
07: Age, Financial and Academic only
08: Race only
09: Race and Financial only
10: Race and Academic only
11: Race, Financial and Academic only
12: Race and Age only
13. Race, Age and Financial only
14: Race, Age and Academic only
15: All risk factors
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University Funding Formula
case
case
case
case
case
case
case
case
case
case
case
case
case
case
case
case
case
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
any risk
Students
64,983
34,352
12,780
9,480
853
974
342
870
4,027
5,397
1,788
7,224
99
576
41
551
144,337
79,354
Graduates
47,530
23,201
6,478
3,837
141
232
81
208
2,144
2,638
657
1,952
16
44
6
83
89,248
41,718
State Grad
Rate
73%
68%
51%
40%
17%
24%
24%
24%
53%
49%
37%
27%
16%
8%
15%
15%
62%
53%
Weight
8.3%
44.3%
80.7%
342.5%
207.1%
208.8%
205.9%
37.4%
49.6%
99.1%
170.7%
352.6%
857.5%
399.8%
385.6%
18.3%
39.1%
12
University Funding Formula
• Revised Distribution of SSI for FY15
•
All Universities eligible for Associate Degrees awarded at All
Campuses
• Previously only eligible if awarded by main campus of Access
Challenge funding schools
• Stackable degrees
• Proportional degree funding
• Splits degree funding based on cost of courses at IUC Institutions
• Bonus of cost of degree from outside IUC to degree granting
institution
• Degree funding awarded to universities for out-of-state students
remaining in Ohio to work or continue education
• Weighted at 0.5 IF the graduate remains in Ohio
• Must be employed or enrolled in a USO school
• Will use a rate so as not to delay funding of these degrees
13
University Funding Formula
– Proportional Degree Funding
– Degree costs divided amongst IUC institutions based on courses taken at
each IUC institution
– “Bonus” to degree granting institution if total degree costs are less than
statewide average cost for that degree
• Typically when there are transfer in credits from outside the USO, exam
based credits …
• If it is the student’s first degree at that level
• Bonus credits are not included in the at-risk add-on
– Degree selection will need to be done at OBR
14
University Funding Formula
• Revised Distribution of SSI
for FY15
AKRON
BOWLING GREEN
CINCINNATI
•
Out of State degree earnings
based on degree cost and
percentage of students who stay
in state (stay in state rate)
CLEVELAND STATE
CENTRAL STATE
KENT STATE
MIAMI
NEOUCOM
OHIO STATE
OHIO UNIV
SHAWNEE ST.
TOLEDO
WRIGHT ST.
YOUNGSTOWN ST.
29.630%
18.343%
18.721%
28.889%
19.663%
20.200%
7.372%
25.000%
14.182%
9.509%
5.263%
28.125%
13.095%
18.699%
15
University Funding Formula
16
University Funding Formula
17
University Funding Formula
18
University Funding Formula
19
University Funding Formula
OTC Funding Formula
• SECTION 363.120. POST-SECONDARY ADULT CAREERTECHNICAL EDUCATION
The foregoing appropriation item 235444, Post-Secondary Adult CareerTechnical Education, shall be used by the Chancellor of the Board of Regents, in
consultation with the Superintendent of Public Instruction and the Governor's
Office of Workforce Transformation, to support post-secondary adult careertechnical education. The Chancellor of the Board of Regents, the
Superintendent of Public Instruction, and the Governor's Office of Workforce
Transformation, or their designees, shall hold a series of consultations with the
Ohio Technical Centers during fiscal year 2014 to develop an appropriate
funding formula to distribute these funds based on student outcomes, beginning
in fiscal year 2015.
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OTC Funding Formula
• In FY 2015, the State of Ohio appropriation for the Ohio Technical
Centers is $15,817,547.
• $400,000 is to be distributed to the Ohio Central School
System;
• $48,000 will be used for accreditation assistance for Ohio
Technical Centers; and,
• $975,000 shall be distributed to the 39 Ohio Technical Centers
that provide business consultation with matching local dollars.
Centers meeting this requirement will receive an amount not to
exceed $25,000 per center.
• The OTC Performance Funding Consultation Group proposed the
remainder be disbursed through a performance-based formula in
FY 2015 calculated with a three-year average and based on a fulltime equivalent of 450 clock hours on four major performance
metrics - retention, completion, credential, employment.
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OTC Funding Formula
•
•
•
•
Retention – 20% shall be distributed based each Center’s full-time
equivalent students who complete 50 % of an approved program of
study as a measure of student retention.
Completion – 25% shall be distributed based on each Center’s full-time
equivalent students who successfully complete a post-secondary
workforce training program approved by the Chancellor with a grade of C
or better or grade of pass if pass/fail basis.
Credential – 5% shall be distributed based on the proportion of each
Center’s full-time equivalent students to the total full-time equivalent
students who have earned a credential from an industry recognized third
party.
Employment – 50% shall be distributed based on each Center’s fulltime equivalent students who have found employment, military service or
additional post-secondary education and training. The calculation for
eligible full-time equivalent students shall be based on students who
have completed at least 50 percent of a program of study.
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THANK YOU
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Performance Based Funding Formula, David Cannon