1. Show Me The Money: Funding Mechanisms for Texas Institutions Texas Higher Education Coordinating Board 2009 Leadership Conference Bill Nance Texas State University – San Marcos

2. Appropriations 2010-2011 (in millions) *Instruction and Operations based on credit hours, and Infrastructure based on predicted square feet. Colleges based on contact hours by discipline. All formulas cost-based.

3. Sources of Funds General Academics (Senior Public)  Designated Tuition/Fees  General Revenue Appropriation based on Instruction/Operation and Infrastructure formulas driven by credit hour production  HEAF/PUF  Exceptional Items or Special Items  Enhancement  Research driven  Tuition Revenue Bonds for major construction  Enrollment Growth Community & Technical Colleges  Tuition/Fees  General Revenue Appropriations based on formulas driven by contact hours  Dramatic Enrollment Growth

4. The Formulas Instruction and Operations Infrastructure Health-Related Institutions Community Colleges have a single formula for Instruction and Administration

5. General Academic Institutions Instruction and Operations Cost-Based Matrix Weighted SCH x $62.19

6. Community/Technical Colleges Instruction and Administration Formula Rates

7. Health-Related Institutions Instruction and Operation Formula Weights and Rates

8. The Infrastructure Formula provides physical plant and utilities support based on both the Coordinating Board’s Space Projection Model for each institution and its costs of utilities. The average rate per square foot is $6.09. The Infrastructure Formula, including Small Institution Supplement, represents about 17 percent of the formula funds to universities. General Academic Institutions

10. Increased costs are being paid by students instead of general revenue NOTE: In Constant Dollars, CPI-U (Per Fall Enrolled Student)

11. Commissioner of Higher Education’s Charges to the Formula Advisory Committee for the 2012 – 2013 Biennium 1.Study and make recommendations on the best method of moving towards a more outcomes based funding formula that supports student success and identifies measurements that recognize progression to success. (Instruction and Operations Workgroup) 2.Recommend the appropriate funding levels for the I&O and Infrastructure formulas (GAFAC) and the percent split between the “utilities” and “operations and maintenance” (O&M) components of the infrastructure formula. (Infrastructure Workgroup) 3.Recommend a method to adjust the formula models for institutional mission. (Instruction and Operations Workgroup)

12. Commissioner of Higher Education’s Charges to the Formula Advisory Committee for the 2012 – 2013 Biennium 4.Make a recommendation on the minimum funding level required to operate an institution. (Infrastructure Workgroup) 5.Make a recommendation on the use of actual cost data in the cost matrix relative weights for programs delivered by fewer than three institutions in the state. (Instruction and Operations Workgroup) 6.Make a recommendation on the need to split the rates of Doctoral degree funding between the research degree programs and the professional practice degrees. (Instruction and Operations Workgroup)