Agenda Item No. 9:
Financial Condition
Report
Tara Smith,
Senior Associate Director of
Institutional Finance
Introduction
Report Purpose:


Describe financial conditions of Arkansas’s Public Institutions of
Higher Education
Describe difficulties & challenges experienced by Arkansas’s Public
Institutions of Higher Education
Topics Addressed:








Needs-Based Funding Formula
Outcome-Centered Funding
Comparison of Arkansas faculty salaries to other SREB states
Tuition & Fees
Fund Balances
Institutional Scholarship expenditures
Athletic Expenditures
Etc.
Comparison of Arkansas faculty salaries
to other SREB states
Comparison of Arkansas faculty salaries
to other SREB states
Arkansas Public School Teacher Salaries
vs. Two-Year College Faculty Salaries
Tuition and Fees – 2013-14

To offset flat and/or declining state support, institutions
continue to implement several cost-savings initiatives to keep
tuition increases at a minimum.

Increases for Fiscal Year 2013-14:
 Four-year Institutions = 1-YR Average increase 4.1%
 Two-year Institutions = 1-YR Average increase 7.2%

Latest available data from SREB (2010-11 to 2011-12)
•
•
•
•
National Four-year Institution = 1-YR Average increase 5.7%
SREB Four-year Institution = 1-YR Average increase 4.4%
National Two-year Institution = 1-YR Average increase 6.9%
SREB Two-year Institution = 1-YR Average increase 5.0%
Tuition Increases – 4 Year
Institutions
Tuition Increases – 2 Year
Institutions
Fund Balances – 2012-13

According to industry standards, optimal fund
balances should range from 5% to 14% of the
E & G operating budget.

For 2012-13, only two 4-year institutions’
fund balances fell below 5%.

For 2012-13, only one two-year institution’s
fund balance fell below 5%, and 19 were
above 14%.
Fund Balances – 4-Year
Fund Balances – 2-Year
Institutional Scholarships – 2012-13
(Academic and Performance)

A.C.A 6-80-106 set limitations on Institutional Scholarships
from tuition and fees

The limit is 25% for 2012-13

14,818 scholarships were awarded at 4-Year Institutions at
a cost of $53.2 million compared to 16,131 at a cost of
$61.7 million the previous year

Scholarships as a percent of tuition and fees were 9%
compared to 10.9% the previous year
Institutional Scholarships
E & G Facilities Audit
Program (FAP) – 2012 Report

Replacement Value = $4.9 billion

Square Footage = 26,994,604

Deferred Maintenance = $2.3 billion

Critical Maintenance = $181 million
Other Thoughts

SREB Comparisons
Funds per FTE student
 Enrollment

Outcome-Centered Funding
 Financial health of institutions

Recommendations

It is recommended that the ADHE Director, the Institutional
Finance staff and institutions’ presidents and chancellors continue
to work together to bring all institutions to 75 percent of need.

Since it is not anticipated that the needs-based funding models
will be fully funded in the near future, it is also recommended that
the ADHE Director, the Institutional Finance staff and institutions’
presidents and chancellors work together to find funding for cost of
living adjustments so that faculty and staff salaries can be
competitive.

AHECB must continue to work with institutions in order to continue
implementation of the outcome-centered funding models and
continue to develop a methodology for the redistribution of
performance funds.
Jeanne Jones
Program Specialist, Academic Affairs
AGENDA ITEM NO. 10
ASSOCIATE OF APPLIED SCIENCE
IN APPRENTICESHIP TRADES
CERTIFICATES IN PLUMBING APPRENTICESHIP
COLLEGE OF THE OUACHITAS
Associate of Applied Science in Apprenticeship Trades
Certificates of Proficiency and Technical Certificate
in Plumbing Apprenticeship
• The Apprenticeship Trades program allows students who have
completed an apprenticeship program to earn an associate degree.
• The associate degree consists of the apprenticeship courses, on-the-job
training, and general education courses.
• Students completing the on-the-job training required for the Plumbing
Apprenticeship will gain training and skills needed for employment
and will be awarded a Certificate of Proficiency or Technical
Certificate.
Jeanne Jones
Program Specialist, Academic Affairs
AGENDA ITEM NO. 11
CERTIFICATE OF PROFICIENCY AND
TECHNICAL CERTIFICATE IN HEATING,
VENTILATION AND AIR CONDITIONING
ARKANSAS STATE UNIVERSITY-MOUNTAIN HOME
Certificate of Proficiency and Technical Certificate
in Heating, Ventilation and Air Conditioning
• The Certificates in Heating, Ventilation and Air Conditioning (HVAC)
are designed to provide students the training and skills needed for
employment in the HVAC industry.
• The Certificate of Proficiency will provide instruction in residential
and commercial air conditioning, refrigeration, heating, and
ventilation; and hands-on training in sheet metal fabrication.
• The Technical Certificate will include training in troubleshooting,
blueprint reading, and safety; and students will have the technical
skills needed to install, service, and repair HVAC systems.
Jeanne Jones
Program Specialist, Academic Affairs
AGENDA ITEM NO. 12
CERTIFICATE OF PROFICIENCY
AND TECHNICAL CERTIFICATE IN
AUTOMOTIVE SYSTEMS REPAIR
ARKANSAS STATE UNIVERSITY-MOUNTAIN HOME
Certificate of Proficiency and Technical Certificate
in Automotive Systems Repairs
• The Certificates in Automotive Systems Repair are designed to
provide students the training and skills needed for employment in the
automotive service/repair industry.
• The Certificate of Proficiency will provide the initial classroom
experience and hands-on training in steering, suspension, electrical,
and braking systems; transmissions and drive trains; engine
performance; and safety.
• Students in the Technical Certificate will develop and apply the
technical knowledge and skills to repair, service, and maintain all
types of automobiles.
Cynthia Moten
Associate Director, Academic Affairs
AGENDA ITEM NO. 13
MASTER OF SCIENCE IN STRENGTH
& CONDITIONING STUDIES
ARKANSAS TECH UNIVERSITY
Master of Science
Strength & Conditioning Studies
• The program is designed to provide instruction in the theory and
science of strength and conditioning.
• The program will meet the needs of coaches, physical educators,
physical therapists, athletic trainers and others interested in the
fitness profession.
• Graduates will be prepared for positions in personal training,
strength coaching, and health club management.
Cynthia Moten
Associate Director, Academic Affairs
AGENDA ITEM NO. 14
MASTER OF SCIENCE IN APPLIED SOCIOLOGY
ARKANSAS TECH UNIVERSITY
Master of Science in Applied Sociology
• The program is designed to provide graduates with the
knowledge and skills to apply sociological theories and
methods to specific programs in the community or workplace.
• Graduates will be able to teach at the undergraduate level,
conduct independent research, and work with agencies,
businesses, and communities to identify and solve problems.
Alana Boles
Program Specialist, Academic Affairs
AGENDA ITEM NO. 15
ICAC RESOLUTIONS
Institutional Certification Advisory Committee (ICAC)
33 Colleges and Universities
118 Programs
2 New Institutions – Arkansas Campus
• Jefferson Regional Medical Center School of Nursing, Pine Bluff, AR
• Vista College, Richardson, Texas - Campus in Fort Smith, AR
10 New Institutions – Distance Technology
Initial Degree Certifications
• Crowder College, Neosho, Missouri– 3 Degrees
• Maryville University, St. Louis, Missouri – 4 Degrees
• The New School, New York, New York – 3 Degrees
• Oregon State University, Corvallis, Oregon – 15 Degrees
• Saint Francis University, Loretto, Pennsylvania – 1 Degree
• University of Nebraska at Kearney, Kearney, Nebraska – 4 Degrees
• University of Nebraska-Lincoln, Lincoln, Nebraska – 6 Degrees
• University of Nebraska Medical Center, Omaha, Nebraska – 4 Degrees
• University of Nebraska at Omaha, Omaha, Nebraska – 2 Degrees
• Western Governors University, Salt Lake City, Utah – 18 Degrees
Education Programs
Arkansas Independent 2-Year College
• Shorter College, North Little Rock, AR
Accredited Institution Reinstated to offer Associate Degrees
Previously Certified Institutions
Initial Degree Certifications – Distance Technology
• Argosy University, Orange, California – 1 Degree
• Arizona State University, Scottsdale, Arizona – 8 Degrees
• Bethel University, McKenzie, Tennessee – 3 Degrees
• Capella University, Minneapolis, Minnesota – 2 Degrees
• Chamberlain College of Nursing, Downers Grove, Illinois – 1 Degree
• Columbia College, Columbia, Missouri – 1 Degree
• DeVry University, Downers Grove, Illinois– 1 Degree, 3 Certificates
• Drury University, Springfield, Missouri – 1 Degree
• Liberty University, Lynchburg, Virginia – 6 Degrees
• Missouri State University, Springfield, Missouri – 3 Degrees
• National American University, Rapid City, South Dakota– 1 Degree
• Post University, Waterbury, Connecticut – 3 Degrees, 3 Certificates
• Rasmussen College, Bloomington, Minnesota – 1 Degree
• South University, Savannah, Georgia – 3 Degrees
• University of Cincinnati, Cincinnati, Ohio – 6 Degrees, 1 Certificate
• University of Missouri, Columbia, Missouri – 9 Degrees
• University of West Alabama, Livingston, Alabama – 2 Degrees
• Webster University, St. Louis, Missouri – 4 Degrees
Initial Degree Certifications – Distance Technology and at Arkansas Campus
• Strayer University, Washington, D.C., by distance and Little Rock Campus – 1 Degree
Initial Degree Certifications – at Arkansas Campus
• Bryan University, Springfield, Missouri, Rogers Campus – 1 Degree
Jeanne Jones
Program Specialist, Academic Affairs
AGENDA ITEM NO. 16
LETTERS OF NOTIFICATION
Letters of Notification
•
•
•
Programs approved by the ADHE Director
Programs must be included on the AHECB agenda prior to
initiation
Programs are reasonable and moderate extensions of existing
certificates and degrees
Cynthia Moten
Associate Director, Academic Affairs
AGENDA ITEM NO. 17
LETTERS OF INTENT
Letters of Intent
•
•
Notification of institutional plans to offer new programs or
organizational units that require Coordinating Board approval
Chief academic officers and chief executive officers can
comment on the proposals before consideration by AHECB
Cynthia Moten
Associate Director, Academic Affairs
AGENDA ITEM NO. 18
BACHELOR OF SCIENCE IN ENGINEERING
SOUTHERN ARKANSAS UNIVERSITY-MAGNOLIA
Bachelor of Science in Engineering
• No institution in southern Arkansas offers a degree in
engineering.
• Three engineering faculty and administrators assisted ADHE
with the review of the SAUM engineering proposal.
• The reviewers confirmed that SAUM has demonstrated its
commitment to meeting the needs of area industry and the
demands of students.
AHECB Meeting
January 31, 2014
Shane Broadway
Director
AGENCY OVERVIEW
Agency Updates
• Resigned
– Dawanna Walls, Accountant I
– Transferred to DHS
Remediation Conference
Remediation Conference
State Authorization Reciprocity Agreements (SARA)
•
There are State and Federal requirements for colleges and universities to
be authorized to offer courses and degrees to residents in other states.
•
SARA establishes an agreement among states through recognized
regional compacts such as SREB for home state authorization of
institutions offering distance technology courses and degrees.
•
All accredited institutions offering degrees can participate in SARA with
a nominal fee.
•
Arkansas institutions will be authorized to offer courses and degrees in
other SARA participating states with no further program review and fees.
•
ADHE will lose revenue from out-of-state institutions that currently seek
Board certification under ICAC.
42
Important to Know
• Deadline for all categories – both spring and fall
semester – is June 1
• New awards are $2K, $3K, $4K and $5K as a
freshman, sophomore, junior or senior respectively,
with $2K only at two-year college
• Amounts for those who received the ACS in 2010 and
continued his or her eligibility will receive same
amounts – $5,000 or $2,500
• Amounts for those who received the ACS in 2011 and
2012 and continued his or her eligibility will receive
same amounts – $4,500 or $2,250
www.ADHE.edu
Free Smart Phone App
Fiscal Session Update
• Pre-session budget hearings held Tuesday, Jan. 14
• Fiscal session will convene Monday, Feb. 10
• Governor Mike Beebe’s balanced budged was presented Thursday, Jan.
23 and calls for an increase in spending next year of $105.8 million
• Under the governor’s proposed budget scholarships would be increased
by about $3 million to boost programs for dependents of law officers
and personnel in the armed forces.
• Spending bills approved during the fiscal session will authorize state
government spending for FY15, which begins July 1, 2014 and ends
June 30, 2015.
• Non-budget bills can be introduced if both the Senate and House adopt
a resolution to do so. Adoption of those resolutions requires approval
by an extraordinary majority of two-thirds of each chamber.
Enrollment
AHECB Meeting of January 31, 2014
Rick Jenkins
Associate Director, Planning and Accountability
Fall Enrollment Is Down 2.4%
Fall Enrollment: 2009 Fall to 2013 Fall
200,000
190,000
180,000
176,823
174,667
173,300
170,505
170,000
164,819
160,000
150,000
2009 Fall
2010 Fall
2011 Fall
2012 Fall
Fall enrollment is up by 3.4 percent from
the 2009 Fall term to the 2013 Fall term.
2013 Fall
Enrollment by Student Level
2013 Fall Term by Student Level
8.4%
10.8%
80.9%
High School
Undergraduate
Graduate
Enrollment by Institution Type
2013 Fall Enrollment by Institution Type
9.4%
0.4%
32.9%
57.3%
4-Year Universities
2-Year Colleges
Private Institutions
Nursing Schools
Enrollment History by Institution Type
Fall Enrollment by Institution Type
120,000
100,000
89,893
93,933
96,477
97,365
97,688
80,000
59,419
61,948
62,129
59,786
60,000
56,110
40,000
20,000
15,507
16,500
17,351
16,605
16,105
0
919
866
911
602
2009 Fall
2010 Fall
2011 Fall
2012 Fall
2013 Fall
0
4-Year Universities
2-Year Colleges
Private Institutions
Nursing Schools
4-Year
Universities
continue
enrollment
growth while 2Year Colleges
and
Independents
experienced
decreases in
2013 Fall term.
One (1) Year Growth Rates
Inst. Type
One (1) Year Growth Rates
High
UnderGraduate
All
School
graduate
Students Students
Students Students
4-Year Universities
11.0%
-0.4%
2-Year Colleges
-0.6%
-7.1%
Private Institutions
16.3%
-0.6%
3.9%
-33.9%
-3.0%
Nursing Schools
State Total
0.7%
0.3%
-6.1%
-17.3%
-3.0%
-2.0%
-33.9%
-2.4%
Enrollment by Gender
2013 Fall Enrollment by Gender
100%
89.7%
90%
80%
70%
62.3%
56.5%
60%
50%
58.4%
54.9%
45.1%
43.5%
41.6%
37.7%
40%
30%
20%
10.3%
10%
0%
4-Year Universities
2-Year Colleges
Private/Independents
Male
Female
Nursing Schools
Total
Enrollment by Race/Ethnicity
2013 Fall: Enrollment by Race/Ethnicity
80.0%
68.8%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
17.1%
10.0%
4.8%
1.5%
0.0%
Asian Only
0.9%
Black Only
Hispanic Any
Amer. Indian/
Alaskan Only
0.1%
White Only
Hawaiian/ Pacific
Islander Only
3.0%
2.5%
Non-Resident
Alien
Two or More
Races
1.3%
Unknown
Enrollment by Age
2013 Fall Enrollment by Age
40.0%
35.0%
33.4%
30.0%
24.3%
25.0%
20.0%
17.9%
15.0%
10.6%
10.0%
8.1%
3.9%
5.0%
1.9%
0.0%
Age Less
Than 18
Age 18-19
Age 20-24
Age 25-34
Age 35-44
Age 45-54
Age 55 or
Older
Average Age
2013 Fall: Average Age by Institution Type
28
26.83
27
26.08
26
25
24.22
24
23.07
23
22
21
4-Year Universities
2-Year Colleges
Private/Independents
Nursing Schools
Enrollment by Attend Status
2013 Fall Enrollment by Attend Status and Institution Type
100%
99.5%
82.2%
80%
70.6%
63.9%
60%
53.3%
46.7%
40%
36.1%
29.4%
17.8%
20%
0.5%
0%
4-Year Universities
2-Year Colleges
Private/ Independents
Full-Time
Part-Time
Nursing Schools
Total
Fall SSCH/FTE Growth
Fall FTE Growth
15.0%
9.2%
10.0%
5.0%
3.8%
1.0%
0.0%
-1.4%
-5.0%
-6.2%
-6.1%
1-Year Growth
5-Year Growth
-10.0%
4-Year Universities
2-Year Colleges
Total
SSCH/FTE data is not collected for
Private/Independent institutions or Nursing Schools.
Annual SSCH/FTE Growth
Annual FTE Growth
14.0%
12.4%
11.4%
12.0%
9.5%
10.0%
8.0%
6.0%
4.0%
2.0%
0.3%
0.0%
-2.0%
-1.5%
-4.0%
-6.0%
-4.8%
1-Year Growth
4-Year Universities
5-Year Growth
2-Year Colleges
Total
SSCH/FTE data is not collected for
Private/Independent institutions or Nursing Schools.
Remediation Rates
AHECB Meeting of January 31, 2014
Rick Jenkins
Associate Director, Planning and Accountability
Change in Cutoff Scores/Methodology
Test
Type
STEM Students
Math
Other Students
English Reading
Math
CTE Students
English Reading
Math
English Reading
ACT
19
19
19
19
19
19
16
19
19
SAT
460
450
470
460
450
470
460
450
470
Asset
39
45
43
39
45
43
31
45
43
Compass
41
80
83
36
80
83
21
80
83
The change in cutoff scores requires remediation rate calculation to
change. Students are now evaluated based on their major falling into one
of three areas:
1. STEM (Science, Technology, Engineering, & Mathematics)
2. CTE (Career Technical Education)
3. Other (non-STEM and non-CTE)
Comparison of Remediation Rates
Comparison of Remediation Rates
37.2%
38.8%
30.0%
43.2%
40.0%
42.0%
47.8%
40.5%
42.9%
49.4%
43.8%
45.7%
52.6%
45.4%
40.0%
47.8%
50.0%
55.0%
60.0%
20.0%
10.0%
0.0%
2009 Fall
2010 Fall
Anytime Rates
2011 Fall
2-Year Rates
2012 Fall
1-Year Rates
2013 Fall
2013 Fall Remediation Rates
Anytime Remediation Rates: 2009 Fall - 2013 Fall
90.0%
80.0%
76.0%
77.2%
75.6%
74.2%
67.4%
70.0%
60.0%
55.0%
52.6%
49.4%
50.0%
47.8%
43.2%
40.0%
40.8%
30.0%
38.0%
34.5%
32.9%
30.1%
20.0%
10.0%
0.0%
2009 Fall
2010 Fall
4-Year Universities
2011 Fall
2-Year Colleges
2012 Fall
2013 Fall
Total
Remediation rate using the old methodology = 45.2 percent.
Rates by Subject
Anytime Remediation Rates by Subject Area
60%
50%
46.4%
42.4%
40%
34.0%
39.3%
38.4%
29.9%
29.0%
32.8%
30%
29.2%
31.1%
26.8%
28.1%
25.5%
24.9%
20%
22.1%
10%
0%
2009 Fall
2010 Fall
2011 Fall
Math
English
2012 Fall
Reading
2013 Fall
Rates by Student Type/Major
9,533
Number of Anytime Remediated Students by Student Major,
2013 Fall
1,314
112
683
270
2,000
413
4,000
1,202
6,000
3,748
3,788
8,000
5,220
10,000
4,313
7,536
12,000
-
STEM
CTE
Other
4-Year Universities
Total
2-Year Colleges
Total
Anytime Remediation Rates by Student Major: 2013
Fall
0.0%
STEM
CTE
4-Year Universities
30.1%
Other
2-Year Colleges
43.2%
67.3%
42.9%
19.9%
10.0%
28.0%
30.0%
20.0%
31.6%
40.0%
63.7%
50.0%
45.3%
60.0%
66.2%
75.2%
70.0%
67.4%
80.0%
Total
Total
Rates by Gender
Anytime Remediation Rates by Gender: 2013 Fall
80.0%
67.3%
70.0%
67.5%
60.0%
50.0%
42.8%
43.5%
40.0%
30.0%
30.4%
29.9%
20.0%
10.0%
0.0%
4-Year Universities
2-Year Colleges
Male
Female
Total
Rates by Race/Ethnicity
Anytime Remediation Rates by Race/Ethnicity: 2013 Fall
100.0%
37.5%
14.3%
20.0%
34.1%
20.7%
39.1%
60.3%
67.3%
29.3%
38.9%
30.0%
24.6%
40.0%
49.8%
50.0%
30.5%
65.4%
60.0%
73.5%
70.0%
73.9%
79.5%
80.0%
70.0%
87.6%
90.0%
10.0%
0.0%
Asian Only
Black Only
Hispanic Any
4-Year Universities
Amer. Indian/
Alaskan Only
2-Year Colleges
Total
White Only
Hawaiian/ Pacific
Islander Only
Rates by Age
Anytime Remediation Rates by Age: 2013 Fall
50.0%
93.9%
83.5%
83.3%
84.4%
82.8%
83.2%
80.6%
83.4%
84.1%
81.3%
64.3%
57.4%
62.7%
60.0%
70.2%
70.0%
77.4%
80.0%
80.5%
90.0%
87.3%
100.0%
10.0%
37.6%
27.3%
20.0%
29.6%
30.0%
38.2%
40.0%
0.0%
Less Than 18
Age 18-19
Age 20-24
4-Year Universities
Age 25-34
2-Year Colleges
Age 35-44
Total
Age 45-54
Age 55 or Older
Rates by Attend Status
Anytime Remediation Rates by Attend Status: 2013 Fall
90.0%
78.4%
80.0%
70.0%
66.6%
76.0%
64.6%
60.0%
50.0%
39.9%
40.0%
30.0%
29.1%
20.0%
10.0%
0.0%
4-Year Universities
2-Year Colleges
Full-Time
Part-Time
Total
Rates by Institution Type
Comparison of Remediation Rates: 2013 Fall
80.0%
27.4%
28.1%
20.0%
30.1%
30.0%
10.0%
0.0%
4-Year Universities
Anytime Rates
2-Year Colleges
2-Year Rates
Total
1-Year Rates
37.2%
43.2%
40.0%
38.8%
50.0%
61.9%
60.0%
63.3%
67.4%
70.0%
Rates of Students with High School GPA of 3.00 or Higher
Anytime Remediation Rates of Students with High School GPA
>= 3.00 for 2013 Fall
44.7%
60.0%
50.0%
20.5%
9.1%
10.0%
6.3%
7.0%
10.6%
13.5%
10.1%
20.0%
15.6%
21.4%
30.0%
25.1%
27.4%
40.0%
0.0%
Any Remediation
Math
4-Year Universities
Engllish
2-Year Colleges
Reading
Total
Remediation Attempts
Remediation Attempts: For Students Passing a Remedial Course in
AY2013 How Many Attempts It Took Them to Pass
100%
90%
85.0%
87.7%
87.0%
80%
70%
60%
50%
40%
30%
20%
15.0%
12.3%
13.0%
10%
0%
1 Attempt Only
4-Year Universities
2 or More Attempts
2-Year Colleges
Totals
Cynthia Moten
Associate Director, Academic Affairs
AGENDA ITEM NO. 8
ACADEMIC PROGRAM VIABILITY REPORT
Academic Program Viability
• Non-viable programs reported to AHECB in January 2010
• Program Viability required by Summer 2013
• Program Continuation with Update in January 2018