1. House Appropriations Committee Louisiana Board of Regents
March 31, 2011

2. Louisiana Public Postsecondary Education
Board of Regents
LOUIS
LONI
Southern System
SU A&M
SU Law Center
SU Ag. Research Ctr.
SU - New Orleans
SU - Shreveport
LSU System
LSU A&M
UNO
LSU - Shreveport
LSU - Alexandria
LSU - Eunice
LSU - Law Center
LSU - Ag. Center
LSUHSC-NO
LSUHSC-Shreveport
Pennington
U of LA System
Grambling
LA Tech
McNeese
Nicholls
Northwestern
Southeastern
U of L - Lafayette
U of L - Monroe
LCTCS
Baton Rouge CC
Bossier Parish CC
Delgado CC
Nunez CC
River Parishes CC
South LA CC
LA Delta CC
Fletcher Technical CC
SOWELA Technical CC
7 Regional Technical Colleges
Proprietary Schools
LUMCON
Learning Centers
LOSFA 2 2

3. Annual Enrollment for Public Institutions

4. Certificates and Degrees Awarded
28% - Diplomas
24% Associate Degrees
6% Baccalaureate Degrees
-10% Master Degrees
11% Doctoral Degrees

5. Three Main Goals Board of Regents Focus
To increase the education attainment of its citizens;
To invest strategically in university research; and
To become a more efficient and accountable enterprise.

6. State/Student Share

7. Constitutional Authority
Board of Regents: (Article VIII, Section 5 [D][4])
The Board of Regents is required by the Louisiana Constitution to develop a funding formula as a component of the Master Plan for Public Postsecondary Education:
“At a minimum, the plan shall include a formula for equitable distribution of funds to the institutions of postsecondary education.”
Management Boards: (Article VIII, Section 12)
Appropriations for the institutions of higher education shall be made to their managing boards.  The funds appropriated shall be administered by the managing boards and used solely as provided by law.

8. Formula Implementation

9. History of Development of Formula
Act 1465 of 1997 set performance-based budgeting requirements
Core objectives: total enrollment, minority enrollment, retention (campus and statewide) and graduation rates
2007 Formula Workgroup recommendation
Core objectives: focus existing and new dollars on performance and results, make the formula more sensitive to missions of institutions, make cost metric values in the formula analysis more precise and current
2011 Proposed Formula
Core objectives: align with GRAD Act; set two-year and four-year institutions equidistant from their respective peer groups; end of course counts will be used to drive cost calculations; hold harmless metric to establish maximum annual funding loss

10. Formula Implementation Rates
** Includes ARRA Funds (area shaded in red shows impact of ARRA funds)

11. Total State Funds for All Formula Institutions
Four-Year Institutions
Two-Year Institutions*
Total State Funds for All Formula Institutions
Cost Calculation
Performance
Cost Calculation
Performance
*Includes all 2-year institutions

12. 85% Distribution Based on Cost Calculation
Funding Formula
85% Distribution Based on Cost Calculation
Student Credit Hours funded based on SREB peer faculty costs comparisons by discipline
Funds on End of Course instead of 14th class day except for the technical colleges
Follows best practices trends of other states
Responds to the Postsecondary Education Review Commission (PERC)

13. 25% for Performance: Funding Formula 15% SGF 10% Tuition Authority
Performance funds retained through successful GRAD Act performance
Standardizes definition of performance
Tracked on one set of agreed upon Student Success Metrics

14. Path Forward Funding Formula
Adopt legislative recommendation for phase-in of the funding formula so that campuses can manage funding shifts
Sustain formula for multi-years to allow performance to take root
Adopt process to address loss of performance funding (10 percent tuition and performance dollars) and rehabilitation plan requirements as a result of failed GRAD Act performance
Review future need to increase and expand GRAD Act performance measures
Adopt statewide implementation of End of Course measure

15. FY Executive Budget 15

16. Total Change Existing Budget FY 2010-11 to FY 2011-12
Executive Budget
Total Change Existing Budget FY to FY
Annualize FY Mid-year Expenditure Reduction
(34.7)
Net Adjustments to Hospitals (UCC, UPL, etc.)
19.0
Increase to TOPS
39.2
Decrease 8G Support Fund Budget (Based on REC)
(6.2)
Annualize FY GRAD Act Revenues
44.5
Full Time Tuition for 12 to 15 hours
74.5
Operational Fee
13.0
LCTCS Stabilization Fee
10.7
Total
160.0

17. ARRA Funds Substitution
Executive Budget
ARRA Funds Substitution
Remove ARRA from State Funds
(189.4)
Revenue from FY Tuition Increase
37.4
Revenue from FY GRAD Act Tuition Increase
53.3
Increase HIEF Statutory Dedication (Self Generated Carry Forward)
97.2
Orleans Parish Fund to Delgado
1.5
Total -

18. Adding $1.29B transfer of all State General Funds to Board of Regents.
Executive Budget
Executive Budget
Adding $1.29B transfer of all State General Funds to Board of Regents.

19. 2011-12 Executive Budget Executive Budget
Annualization of FY Mid-Year expenditure reduction.
This reduction is being allocated across the total State General Funds base.

20. 2011-12 Executive Budget Executive Budget
Multi-step process for addressing loss of American Recovery and Reinvestment Act of 2009 (ARRA).
Means of financing substitution: replacing ARRA with state general funds.

21. 2011-12 Executive Budget Executive Budget
This reduction is being allocated across the total State General Funds base of all institutions that received ARRA funds in FY 09 and FY 10.

22. 2011-12 Executive Budget Executive Budget
Higher education’s funding level reflects $97.2 million in tuition funding freed up and carried forward from FY
These funds will be allocated back to the campuses that generated the tuition revenue being carried forward.

23. 2011-12 Executive Budget Executive Budget
Budgeted Projected Self Generated Increases FY
$37.4m
FY GRAD Act
$53.3m
*Tuition Cap 12 to 15 hours
$74.5m
*Operational Fee Index Change
$13.1m
*LCTCS Stabilization
$10.7m
Annualization of FY GRAD Act
$46.6m
*Subject to legislative approval

24. Executive Budget
Formula Funding Base

25. 2011-12 Preliminary Formula Funding Distribution Model
Executive Budget
Preliminary Formula Funding Distribution Model

26. HB 1 Postsecondary Education TO
FY 11-12
27,703 (TO)
Difference
6004 Non SGF Funded Positions Vacancies

27. Goal: Baseline: Overall Decline: 5% annual personnel reduction
ACT 1000
Goal:
5% annual personnel reduction
Baseline:
FY 07-08
Overall Decline:
6.17% FY 08-FY 11

28. Average Salaries of Full-Time Instructional Staff

29. GRAD Act

30. GRAD ACT participating institutions Annual Review process underway Management Boards (April) Regents Annual Review (May-June)

31. Performance Objectives
GRAD Act
Performance Objectives
Student Success
Increase graduation rates, completers, and partner with high schools
Articulation and Transfer
Increase student retention
Workforce and Economic Development
Alignment with workforce needs
Institutional Efficiency and Accountability
Align program needs regionally and by demand