1. July 28, 2011 THECB 6/2011 Closing the Gaps 2011 Progress Report

2.  Progress toward Closing the Gaps  Overview of financial challenges  Where do we go from here? THECB 7/2011

3. 1,505,449 1,650,000 1,423,000 THECB 7/2011

4. 445,183 676,100 474,000 THECB 7/2011

5. 193,734 172,700 158,300 THECB 7/2011

7. 176,604 210,000 171,000 THECB 7/2011

8. 18,433 24,300 19,800 THECB 7/2011

9. 47,364 67,000 50,000 THECB 7/2011

10. University Baccalaureate Graduation Rate

11. THECB 7/2011 Two-Year Graduation Rate Includes Baccalaureate, Associate, and Certificate

12. THECB 7/2011 Math and Science Teachers STEM field degrees overall have been flat, with Engineering showing the most growth Teacher Education Initial Certificates and Math/Science may reflect job market 44,70034,600 6,500 5,400

13. 07/2011 National Research Council review of doctoral programs indicates significant improvement Texas A&M University UT Austin University of Houston UT Dallas TRIP Funding and NRUF will improve the seven emerging research universities Texas State University System campuses have improved graduation rates and undergraduate retention

14. (in billions) THECB 7/2011

15. All Funds GR/GR-D Funds Estimated/ Budgeted 2010-11 $22,740.0$15,578.4 HB 1, as adopted 2012-13 $21,770.9$14,358.6 Difference ($969.1)($1,219.8) Biennial Changes (4.3%)(7.8%) HB 1 – Higher Education Funding Source: Legislative Budget Board. Summary of Conference Committee Report House Bill No. 1 for the 2012-2013 Biennium. May 2011. Base includes 5% reductions for 2010-11, but not 2.5% reductions for FY11. 2012-13 Biennium (in millions) THECB 7/2011

16. Formula Funding – total reduction $180M – General Academics – 5% reduction – Health-Related Institutions – 10% reduction – Community colleges – 0% reduction No Funding for Enrollment Growth Hold Harmless – no General Academic Institution experiences a reduction of more than 15% in total GR funds (excluding TRB Debt Service) No Outcomes-Based Funding Source: Legislative Budget Board’s Summary of Conference Committee Report House Bill No. 1 for the 2012-2013 Biennium. THECB 7/2011

17.  Special Item Funding – total reduction $215.2 million, or a 25% decrease  American Recovery and Reinvestment Act - elimination of $227 million in one-time funding from ARRA  Higher Education Group Insurance – reduced by $99.3M  CC Retirement Benefits – reduced by $97.7M Source: Legislative Budget Board’s Summary of Conference Committee Report House Bill No. 1 for the 2012-2013 Biennium. THECB 7/2011

18. Community Colleges 4 districts are down more than 25% 12 districts are down 15% to 25% 4 districts had increases THECB 7/2011 Universities 15 institutions had decreases over 15% 4 institutions had increases between 1%-3% Health-Related Changes range from 14% decrease to a 14% increase

19. THECB 7/2011

20. ProgramReduction Total Funding Developmental Education$1.75M$4M Texas Research Incentive Program$11.9M$35.6M Professional Nursing Shortage Reduction Prog.$17.1M$30M Family Practice Residency$14.6M$5.6M Advanced Research Program$15.1M$1M Teach for Texas Loan Repayment Program$10.5M$1M Physician Education Loan Repayment Program$17.7M$5.6M THECB 7/2011

21.  Financial aid reductions impact all our institutions  Many reductions are to programs that are passed to the institutions  Other reductions are to programs that support on going initiatives THECB 7/2011

22.  Institutionalize a LEAN Culture and Continuous Improvement  Implement a Statewide Comprehensive 2+2 System  Restructure Student Financial Aid and Low Cost Options  Reinvent Developmental Education  Strengthen Two-Year Colleges  Balance Emphasis on Access and Success  Implement Outcomes-based Funding  Review Admissions Standards  Strengthen Alignment Between Higher Education and Workforce Development THECB 7/2011