University of Toledo: University Council 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 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, –Estimated at $6, 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