1. Outcomes-Based Funding
Paul turcotte
Program Director
Texas Higher Education Coordinating Board
To the TASSCUBO Budget committee
February 2013

2. Outcomes-Based Funding – Seven Factors

3. Outcomes-Based Funding – Factors Defined
Total Undergraduate Degrees
Total number of Bachelor’s Degrees awarded by an institution in a given year.
Time-to-Degree Factor
Total Bachelor’s Degrees multiplied by the school’s six-year graduation rate, to incent timely completion.
Institutional Mission Factor
Degrees divided by Full Time Student Equivalents (FTSEs) and multiplied by 100. This aggregate measure adjusts for part-time and transfer students, providing a common framework for comparing degree productivity among institutions with different missions and student bodies.
Cost-to-Degree Factor
Degrees weighted using cost-based weights, to compensate for the varying costs associated with differing degree types.
Critical Fields Factor
Degrees awarded in fields identified as critical workforce needs such as Computer Science, Engineering, Math, Physics, Nursing, Allied Health and Teaching Certificates for Math and Science.
At-Risk Factor
Degrees awarded to students who meet federal criteria for being at high risk for non-completion. Indicators are being a federal Pell Grant recipient, below national average SAT/ACT score, part-time student, GED recipient, or entering higher education at age 20 or older.
Persistence Factor
Points awarded for students who complete their 30th, 60th, or 90th hour at the institution, to incentivize the use of effective persistence policies.

4. Outcomes-Based Funding - Points
Funds allocated by weighted points
The ratio of an institution’s weighted points to the weighted points earned by all institutions
Example
Institution
Points
Percent of Total Points
Funding (millions) A
100 25
$75 B
125 31
$93 C
175 44
$132
Total
400
$300

5. Outcomes-Based Funding - Points
Product of the three-year average and weight
Critical fields weighted two, all others weighted one
Example
Factor
Year 1
Year 2
Year 3
Average
Weighted Points
Total Undergraduate Degrees
1,000
1,100
1,200
Time-to-Degree
400
450
470
440
Institutional Mission 29 30 31
Cost-to-Degree
2,000
1,900
2,010
1970
Critical Fields
300
350
700
At-Risk
600
680
660
Persistence
3,000
1,500
3,300
2600
Total
N/A
7,500

6. Total Undergraduate Degrees
Accountability measure #10
Number of degrees reported on the CBM009 – Graduation Report for the fiscal year
Fiscal year 2012 includes fall 2011, spring 2012, and summer 2012 reports
Multiple degrees earned by a single student are included
Double Majors are counted as a single degree
Degrees included
Baccalaureate
Associate of Applied Science (AAS)
Excludes certificates
Total Undergraduate Degrees
Total number of Bachelor’s Degrees awarded by an institution in a given year.

7. 6-Year Graduation Rate – Accountability measure #9
First-time entering degree-seeking students who enrolled in an minimum of 12 semester credit hours their first fall semester who graduated from the same institution or another Texas public or independent institution after four, five, and six academic years. This metric includes Social Security Number changes submitted on the CBM00N. First-time determined by the first-time student flag on the CBM001. Sources: CBM001, CBM002, CBM009, CBM00N
Same Fiscal Year as degrees reported
For fiscal year 2012, cohort started in fall 2006
Includes same and other institutions
Upper-Level institutions use 3-Year Completion Rate
First-time junior level students transferring in who graduated from the same institution or another Texas public or independent institution after three academic years.
UT-Brownsville, TAMU-Texarkana, UH-Clear Lake, UH-Victoria, and Sul Ross Rio Grande.
New institutions calculated with parent graduation rate
TAMU-Central Texas, TAMU-San Antonio, and UNT-Dallas.
Example
Time-to-Degree
Total Bachelor’s Degrees multiplied by the school’s six- year graduation rate
To incent timely completion.
On this one you might put that it includes SSN changes received up to December 31 (check with Diane) of the final year.
Institution
Degrees
Rate
Weighted Points A
9,000
80%
7,200 B
200
30% 60

8. Institutional Mission
Degrees same as the first factor
Undergraduate Full-time student equivalents (FTSE) – Accountability measure #2
Number of semester credit hours (SCH) reported on the CBM004 – Class Report for the fall of the fiscal year
For fiscal year 2012, fall 2011
Includes state funded undergraduate semester credit hours
Excludes non-state funded and graduate semester credit hours
Undergraduate Semester Credit Hours divided by 15 to convert to FTSE
Example
Institutional Mission
Degrees divided by Full-Time Student Equivalents (FTSEs) and multiplied by 100.
This aggregate measure adjusts for part-time and transfer students, providing a common framework for comparing degree productivity among institutions with different missions and student bodies.
Degrees
SCH
FTSE (SCH/15)
Weighted Points (Degrees/(FTSE/100))
4,930
255,000
17,000 29
The stuff in red might need to be smaller.

9. Relative Weight (Weighted Points)
Degrees same as the first factor
Cost weights – Upper-Level relative weights for the fiscal year of the degrees.
The CIP code reported for each degree on the CBM009 converted to a fund code using Appendix O of the reporting manual
The corresponding relative weight is matched to each degree by fund code
Weighted Point – Sum of the relative weights
Example
Cost-to-Degree
Degrees weighted using cost-based weights
To compensate for the varying costs associated with differing degree types.
Degree
CIP Code
Fund
Code
Relative Weight (Weighted Points) 01
1.69 02
2.95 14
1.76
Total Weighted Points
6.40

10. Subset of degrees in the first factor
Weighted Points - Degrees with the following CIP codes times 2
Critical Fields
Critical Field
Degree CIP Code
Computer Science
11.xx- Computer and Information Sciences and Support Services
Engineering
14.xx - Engineering
15 - Engineering Technologies and Engineering-Related Fields
Mathematics
27 .xx - Mathematics and Statistics
Physical Sciences
40.xx - Physical Sciences
Biological and Physical Sciences
Nursing
Registered Nursing, Nursing Administration, Nursing Research and Clinical Nursing
Practical Nursing, Vocational Nursing and Nursing Assistants
Allied Health
Communication Disorders Sciences and Services
Dental Support Services and Allied Professions
Health and Medical Administrative Services
Allied Health and Medical Assisting Services
Allied Health Diagnostic, Intervention, and Treatment Professions
Clinical/Medical Laboratory Science/Research and Allied Professions
Ophthalmic and Optometric Support Services and Allied Professions
Rehabilitation and Therapeutic Professions
Health Aides/Attendants/Orderlies
Medical Illustration and Informatics
Dietetics and Clinical Nutrition Services
Bioethics/Medical Ethics
Alternative and Complementary Medicine and Medical Systems
Alternative and Complementary Medical Support Services
Degrees awarded in fields identified as critical workforce needs such as Computer Science, Engineering, Math, Physics, Nursing, Allied Health and Teaching Certificates for Math and Science.

11. Critical Fields – Teaching Certificates
Mathematics and Science teacher certificates as reported by the State Board of Educator Certification (SBEC)
Go to tx.us
In the left hand frame, select “State Board for Educator Certification”
From the expanded menu, select “Reports, Data, Research”
In the left hand frame, select “Interactive Reports”
Under the “SBEC Production Reports”, select “Educator/Teacher Production Counts”
Enter the dates for the fiscal year (one year lag)
Check the “Initial Educator Certificates by Educator Preparation Program Area”
At the bottom on the page, select “Continue”
On the data webpage, select “Click here to download the data in comma delimited form”
Sort the data by Organization and count the certificates issued for the Mathematics and Science certification areas.
As of February 1
For the fiscal year 2012 metrics,
Certifications reported for 9/1/2010 to 8/31/2011
Certification counts are believe to only appear once teachers are fingerprinted. This causes a considerable delay. Through observation the staff believes lagging these data one fiscal year is the most equitable way to account for the significant majority of certifications for each institution.
Mathematics and Science Only
Organization reported by SBEC
Assumed to be the degree granting institution
Points not a subset of first factor, but the certificates reported for the period
Two points for each teaching certificate
Critical Fields – Teaching Certificates
Teaching Certificates for Math and Science.

12. One point for each student awarded degrees in the first measure that meets one or more of the conditions
Reported by any institution as a “Pell Grant recipient” in the Financial Aid Database System (FADS) during the last 10 years
Earned an SAT or ACT score below the national average
Scores reported on the CBM00B – Admissions Report or by the College Board
National Averages posted on or
Part-Time (taking less than 12 hours) when reported as first-time in college on the CBM001 – Student Report
General Education Degree (GED) recipients for the last six years
Data provided by the Texas Education Agency (TEA) upon request
20 or older by date of birth field on the CBM001 – Student Report when reported as first-time in college
At-Risk
Degrees awarded to students who meet federal criteria for being at high risk for non-completion.
Indicators are being a federal Pell Grant recipient, below average SAT/ACT score, part-time student, GED recipient, or entering higher education at age 20 or older.
Student
Received Pell Grant
Earned a Below Average SAT or ACT Score
First-Time in College and Attended less than 12
Received a GED
First-Time in College and 20 or Older
Weighted Points A
Yes 1 B No C

13. At-Risk – Data Elements
CBM009 - Graduation
CBM00B - Admissions
2 - Institution Code
3 - Student Identification Number
6 - Date of Birth
24 - Application Year
7 - Degree Conferred
25 - ACT Composite Score
8 - Level of Degree or Certificate Conferred
26 - SAT Combined Score
9 - Major
TEA GED Data
CBM001 – Student
Student Identification Number
GED Certification Date
SAT and ACT National Averages
5 - Classification
9 - Transfer Student or First-Time-in-College
10A - Semester Credit Hour Load, On-Campus
10 - B Semester Credit Hour Load, Off-Campus
13 - Semester
14 - Year
31 - Dual Credit Course Semester Credit Hours
CBM00N – Student Number Change
3 - Current Student Identification Number
4 - Current Date of Birth
6 - Prior Student Identification Number
7 - Prior Date of Birth
FAD - Financial Aid Database
1B - FICE
1D - Student Social Security Number/ID Number
31A - Federal Pell
At-Risk – Data Elements
Degrees awarded to students who meet federal criteria for being at high risk for non-completion.
Indicators are being a federal Pell Grant recipient, below average SAT/ACT score, part-time student, GED recipient, or entering higher education at age 20 or older.

14. One point awarded for students successfully completing 30, 60, or 90 hours at the institution as reported on the CBM00S – Student Schedule Report
Last five years – FY 2012 includes data from fall 2007 to summer 2012
Successful completion reported as A, B, C, D, or Credit/Passed in 24
Prior to summer 2011, students receiving a failing grade are included in counts
All undergraduate students enrolled at the institution
College-level hours earned at the institution currently enrolled
Exclude hours earned at other institutions
Exclude developmental education hours
Examples
Persistence
Points awarded for students who complete their 30th, 60th, or 90th hour at the institution.
To incentivize the use of effective persistence policies.
Student
Hours Earned at the Institution in prior Fiscal Years
Hours Earned at the Institution in current Fiscal Year
Total
Weighted Points 1 30 2 21 24 45 3 60 4 12 57 5 90 6 75
105 7
120 8 29 74

15. Persistence – Data Elements
CBM001 – Student
2 - Institution Code
3 - Student Identification Number
5 - Classification
6 - Date of birth
18 - Semester
CBM00N – Student Number change
3 - Current Student Identification Number
4 - Current Date of Birth
6 - Prior Student Identification Number
7 - Prior Date of Birth
Prior to summer 2011
CBM002 – Texas Success Initiative
4 - Reporting period
5 - Year
10A - Semester Credit Hours Completed
Summer 2011 and after
CBM00S – Student Schedule
10 - Semester Credit Hour Value
19 - Developmental Education Course/Intervention Level (value=0)
24 - Course Grade (value=1, 2, 3, 4, 8)
29 - Semester
Persistence – Data Elements
Points awarded for students who complete their 30th, 60th, or 90th hour at the institution.
To incentivize the use of effective persistence policies.