University of Toledo: University Council
Higher Education Funding
Higher Education Funding
• Overview of BOR Budget
– BOR FY13 GRF Appropriation $2.315 Billion
• BOR has 43 GRF line items
• BOR largest ALI’s
– SSI – $1.751 Billion (75.64%)
– Debt Service/Capital Component - $272.8 Million (11.78%)
– Financial Aid - $131.7 Million (5.69%)
• OCOG - $91.4 Million
– Allocated by Sector
– Carry Over - $11.1 Million
– Proprietary $6.0 Million Casino Funding
2
Higher Education Funding
• National Guard Scholarship - $18.1 Million
• Choose Ohio First - $16.2 Million
• War Orphan Scholarship - $5.4 Million
– Dependents of deceased or disabled veterans of the
armed services of the United States
– Medical Funding - $41.9 Million (1.81%)
• In addition to SSI Medical Funding - $106,202,378
• $35.6 Million Clinic Support
• $6.3 Million Medical Subsidy
– Primary Care
– Geriatric
– Family Practice
3
Higher Education Funding
– Partner Operating Subsidies - $16.7 Million (.72%)
• OhioLINK - $6.1 Million
• OARNet - $3.2 Million
• Supercomputer - $3.4 Million
• eStudent Services - $2.5 Million
• Library Depositories - $1.4 Million
– Other Subsidies
• AWE - $15.3 Million
• ABLE - $7.3 Million
• Cooperative Extension – $33.1 Million
• Agriculture Research - $22.2 Million
• Central State/Shawnee State - $13.2 Million
4
Higher Education Funding
– BOR Operating Funds - $6.8 Million (.29%)
• Operating - $2.3 Million
• Articulation & Transfer - $2.0 Million
• HEI – $800,000
• State Grants - $1.2 Million
• Economic Growth Challenge - $440,000
5
Higher Education Funding
• FY2014/2015 Budget Process
– OBM request for 90%/100% Scenario for GRF Funding
– All Agencies required to submit budget request for these
scenarios
– SSI/Subsidy ALI’s continuation funding
– Debt funding determined by OBM
• Higher education treated very well In Governor’s Proposed Budget
– BOR received funding requested for ALI’s
6
Higher Education Funding
• SSI
– $1.784 Billion – FY14 - $33.0 Million Increase (1.9%)
• $411,247,477 – Community Colleges
• $1,372,968,020 – Universities
– $116,181,104 – Regional Campuses
– $1.818 Billion – FY15 - $34.0 Million Increase (1.9%)
• $419,101,428 – Community Colleges
• $1,399,124,069 – Universities
– Regional Campuses Merged
7
Higher Education Funding
• Current University Distribution of SSI
– 61% Course Completions - $717.0 Million/UT $62.2 Million
• At-Risk Factors
• EFC – less than 2,190
• Remedial students
• STEM Weighting
• Model weights
• Range from 1.0 to 1.8798
• Statewide average cost of course by Model
– 18% Degree Attainment - $245.5 Million/ UT $17.4 Million
• At-Risk Factors
• EFC/Remedial/Heritage/Age
• No STEM Weighting
– 20% Doctoral/Medical - $264.9 Million/UT $24.3 Million
8
Higher Education Funding
– Doctoral – $158.7 Million
• 50%/40% - Share of FTE
• 25%/30% - Share of Degrees
• 12.5%/15% - Share of Research Grant Activity
• 12.5%/15% - Quality Measures
– Medical - $106.2 Million
• Med I - $19.9
– OSU – Veterinary/Dental
• Med II - $86.3 Million
– FTE Basis
9
Higher Education Funding
• Current University Distribution of SSI
– Access Challenge
• 2009 Distribution Formula
• $3.9 Million
• UT $0
– Plant, Operation, Maintenance (POM)
•
•
•
•
2009 Formula
Provided funding for those institutions that have access space
Redistributes funding from other schools
UT $786,516/Central State $1,614,392
– Stop loss
• 96%
• Redistributes funding from schools above stop loss
• UT pays $262,680
10
Higher Education Funding
• Revised Distribution of SSI for FY14
– 30% Course Completions - $354.4 Million
• At-Risk Factors
• No change in STEM weighting
– 50% Degree Attainment - $628.4 Million
• At-Risk Factors
• Added STEM weighting for degrees
• STEM weight for degree matches STEM weight for courses
– 20% Doctoral/Medical – $270.1 Million
• Percentage based so increase with additional appropriations
• Remove Quality Measures and include in FTE
11
Higher Education Funding
– Access Challenge
• Kept in formula through FY15
• Removed in FY16
• UT $0
– Plant, Operation, Maintenance (POM)
• Kept in formula through FY15
• Removed in FY16
• UT $809,760/Central State $1,619,668
– Stop loss
• Removed Stop Loss
– Three year average for all data in formula
12
Higher Education Funding
• Revised Distribution of SSI for FY15
– 30% Course Completions
• At-Risk Factors student based
– 50% Degree Attainment
• At-Risk Factors student based
– Remove separate funding for regional campuses
• Regional campus students included in university performance metrics
• Emphasis on graduation
13
Higher Education Funding
• Revised Distribution of SSI for FY15
– All campuses can award associate degrees
• Previously only Access Challenge funding schools allowed
• Stackable degrees
• Foresee increased number of AA’s due to funding
– Proportional degree funding
• Splits degree funding based on cost of course at USO Institution
• Bonus of cost of degree from outside USO to degree granting
institution
– Degree funding awarded to universities for out-of-state
students remaining in Ohio to work or continue
education
14
Higher Education Funding
• Current Regional Campus Distribution of SSI
– 100% Course Completions
– Access Challenge
• $12.9 Million
– Plant, Operations, Maintenance (POM)
• 2009 Formula
• Provided funding for those institutions that have access space
• Redistributes funding from other schools
– Stop Loss
• 96%
• Redistributes funding from schools above stop loss
15
Higher Education Funding
• Regional Campuses Revised Distribution of SSI – FY14
– 100% Course Completions
– Access Challenge Eliminated
• Funding moved to course completion
– Plant, Operations, Maintenance (POM) Eliminated
– Stop Loss Eliminated
• Regional Campuses Revised Distribution of SSI – FY15
– Uses same formula as university
main campuses
16
Higher Education Funding
• Current Community College Distribution of SSI
– 90% Enrollment
– 10% Success Points
– Access Challenge
• 2009 Distribution Formula
• $54.5 Million
– Stop loss
• 96%
• Redistributes funding from schools above stop loss
17
Higher Education Funding
• Community College Revised Distribution of SSI – FY14
–
–
–
–
50% Enrollment
25% Success Points
25% Course Completions
Access Challenge Eliminated
• Funding included in performance funding
– Stop loss
• 97%
• Redistributes funding from schools
above stop loss
18
Higher Education Funding
• Community College Revised Distribution of SSI – FY15
– All funding completion based
• Study to define “completion”
• Courses
• Associate Degrees
• Certificates
• Credentials
• Transfers
• Job Training
– Stop Loss Eliminated
– Study to Determine At-Risk Factors for Community College Students
– Review Funding Allocations
19
Higher Education Funding
• OCOG – As Introduced Version - $87.9 Million
– $41.0 Public
– $41.0 Private
– $5.968 Proprietary
• OCOG –House Adopted Version - $89.1 Million
– $41.0 Public
– $41.0 Private
– $7.126 Proprietary
• Original FY12/13 appropriation
$80.3 million GRF
20
Higher Education Funding
• Other Changes to OCOG
– Reserve Account
– No casino funding
• Safety Officers
– Maintain funding for Safety Officers Scholarships
– 100% tuition coverage at public institutions
– Amount to be determined at private institutions
• Funding for Privates based on funding for Publics
– FY13 was $6,234.00
– Estimated at $6,618.00 for FY14
21
Higher Education Funding
• War Orphans
– Increase appropriation to $5.5 million
• Original FY12/13 appropriation $4.8 million
• Goal to fund 100%
• Choose Ohio First
– Increase appropriations to $16.7
• Original FY12/13 appropriation $15.6
• Fund new cohort of students
• National Guard Scholarship FY14 - $16.7 Million
– Fully fund National Guard members
•
•
•
•
FY10 Expenditures – 15.1 million
FY11 Expenditure - $14.9 million
FY12 Expenditure - $14.8 million
FY13 Estimated - $16.4 million
22
Higher Education Funding
• Budget Process
– House Finance Committee testimony
• OCOG
– Community Colleges
– Pell First
•
•
•
•
•
•
•
•
Co-op Internship
Affordability
Digital Textbooks
Central State
Historical SSI
Sea Grant
Faculty Workload
College Credit Plus
23
Higher Education Funding
• Budget Process
– House Education Sub-Committee testimony
• OCOG
– Community Colleges
– Pell First
•
•
•
•
Co-op Internship
Affordability
Sea Grant
College Credit Plus
24
Higher Education Funding
• Limit of liability for private nonprofit institution for transmission
of data to Regents or state agency, when data is later subject
to a data breach due to
– An action by the recipient agency
– An action by a third party after information had left the possession of the
private institution but before it was received by BOR or other agency
• SSI Bridge Funding
– $8.0 million for colleges and universities that receive less SSI funding in
FY14 than FY13
• Residency status for state subsidy and tuition purposes
– If a state institution issues a letter or utility bill for use as proof that the
student is a qualified Ohio voter
– Student would receive in-state tuition
– Subsidy eligible
25
Higher Education Funding
• Undergraduate Tuition Guarantee Program
– Guarantees a cohort of students a set rate for general and
instructional fees for four years
– Allows a one-time 6% tuition increase
– Can request fee in excess of 6% with BOR approval
– Number of credit hours to earn degree in each major
– Provides protection to student if they cannot finish in four years
due to various conditions
• Available courses
• Military
• Uncontrollable circumstances
26
Higher Education Funding
• Tuition Caps
–
–
–
–
2.0% or $188 for Universities
2.0% or $114 for Regional Campuses
$100 for Community Colleges
Cap is based on annual tuition from previous year
• SB1
– $25.0 million Workforce Development Revolving Loan Fund
•
•
•
•
BOR loan to institution
Institution loan to student
Third party loan servicing agent
Preference given to projects with business partners
willing to repay loan
27
Higher Education Funding
• Capital Funding
– Public-Private Partnerships
• Mutually beneficial arrangement that brings faculty, researchers,
students, and industry professional under one roof to work on states
most pressing issues
– Workforce Development
• Projects viewed as necessary to meet immediate workforce needs,
such as shale gas industry, were given highest priority
– Interdisciplinary Approach
• Internal collaboration to encourage natural synergies between
traditional laboratory sciences and market-enhancing practicality of
engineering
– Long-term Maintenance
• Projects that focus on either modernizing student learning
environments or reducing on-going operating costs
28
Higher Education Funding
29
Higher Education Funding
• Capital Funding
– Public-Private Partnerships
• Mutually beneficial arrangement that brings faculty, researchers,
students, and industry professional under one roof to work on
states most pressing issues
30
Higher Education Funding
• Capital Funding
– Workforce Development
• Projects viewed as necessary to meet immediate workforce
needs, such as shale gas industry, were given highest priority
31
Higher Education Funding
• Capital Funding
– Interdisciplinary
• Modernize STEM facilities to encourage increased
interdisciplinary collaboration and innovation
32
Higher Education Funding
• Capital Funding
– Long-term Maintenance
• Protect investment on campuses and maintain basic
infrastructure
33
Higher Education Funding
34
Higher Education Funding
•
Senate Bill 6 Ratios
– Ratios to analyze financial health
• Viability Ratio
– Expendable Net Assets/Plant Debt
– Fee Pledges
» BOR approval to issue debt backed by general receipts
pledge
• Net Income Ratio
– Change in Total Net Assets/Total Revenues
• Reserve Ratio
– Expendable Net Assets/Operating Expenses
– Weighted for Composite Score
• Viability - 30%
• Net Income - 20%
• Primary Reserve – 50%
35
THANK YOU