1. Funding Higher Education: 2010 and Beyond 2010 INDIANA STUDENT LEADERS SUMMIT February 5, 2010

2. $5,090,667,914 (total expenditures all public postsecondary institutions 2008-09 academic year)

3. Indianas Public Higher Education System 3 5 four-year Public Postsecondary Institutions 2 two-year Public Institutions 31 Public Campuses and 12 Instructional Sites 407,000 Students in 2008-09 1,500 buildings worth $12B $2.3B in salary and compensation IHEs have their own: Police, power plants, roads, utility infrastructure, hospitals, restaurants, entertainment industry, lodging, etc…

4. Examples of Expenditure Mix Purdue UniversityITCCI

5. Sources of Revenue State Appropriations Tuition & fees Tuition vs fees Resident & Non-resident Grants & contracts Federal government (research) Private industry Philanthropy Investment Income Other services auxiliaries

6. Examples of Revenue Mix Purdue University ITCCI

7. Sources of Ind. General Fund Revenue

8. Ind. General Fund Expenditures

9. State Appropriations to Public IHEs Compound Annual Growth Rate: 4.7%

10. Percentage of state General Fund appropriated to IHEs

11. State General Fund and PTRC Revenue Growth FY98 – FY09 Source: State Budget Agency. Indianas Fiscal Position 11

12. Compare State Revenue Growth with Higher Education Appropriations FY00 – FY10 State revenue forecast for FY 10 and FY 11 will be available December 2008 Indianas Fiscal Position 12

13. Higher Education Appropriations per FTE by State, 2007 Source: SHEEO SHEF, State Higher Education Finance FY2007. National Context 13

14. Higher Education Tuition, State and Local Revenue per FTE 14 National Context

15. Resident UG Tuition & Mandatory Fee Charges: CAGR 1989-2011 CampusCAGRCampusCAGR IUB7.0%PUC6.5% IUE6.2%PUNC6.6% IUK6.3%IPFW6.9% IUN6.3%ISU6.6% IUSB6.3%USI6.1% IUS6.2%BSU6.9% IUPUI6.8%VU5.3% PUWL7.3%ITCCI4.0%

16. 16

17. Distributing Scarce Resources

18. Evolution of CHE Funding Recommendations 20012003200520072009 Enrollment Change (credit hours enrolled) Enrollment Change (successfully completed credit hours) Inflation Adjustments Equity Adjustment Plant Expansion/leases Program Adjustment Research Support Incentive Change in number of degrees Change in On-Time graduation Rate Two Year Transfer Incentive Low Income Degree Completion Incentive Workforce Development Incentive (funding non- credit coursework)